Plekowski v. Ralston Purina Co.

68 F.R.D. 443, 20 Fed. R. Serv. 2d 1206, 1975 U.S. Dist. LEXIS 11483
CourtDistrict Court, M.D. Georgia
DecidedJuly 11, 1975
DocketCiv. A. No. 2909
StatusPublished
Cited by21 cases

This text of 68 F.R.D. 443 (Plekowski v. Ralston Purina Co.) is published on Counsel Stack Legal Research, covering District Court, M.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Plekowski v. Ralston Purina Co., 68 F.R.D. 443, 20 Fed. R. Serv. 2d 1206, 1975 U.S. Dist. LEXIS 11483 (M.D. Ga. 1975).

Opinion

OPINION AND ORDER ON PLAINTIFF’S MOTION FOR CLASS DETERMINATION

ELLIOTT, Chief Judge.

This matter is presently before the Court on the plaintiff’s motion for class determination pursuant to Rule 23(c) (1) F.R.C.P. After full consideration of the extensive briefs and substantial eviden-tiary record, the Court has determined for a number of reasons that the pending motion must be denied. In accordance with Eisen v. Carlisle & Jacquelin, 417 [446]*446U.S. 156, 94 S.Ct. 2140, 40 L.Ed.2d 732 (1974), this decision is not an inquiry into the merits of the suit; the merits of the named plaintiff’s case are not the subject of this opinion. For the purpose of this motion the Court makes findings and determinations as set forth below.

In this treble damage action the plaintiff alleges tying arrangements in violation of Sections 1 and 2 of the Sherman Act (15 U.S.C. §§ 1, 2) and Section 3 of the Clayton Act (15 U.S.C. § 14). Jurisdiction rests upon Section 4 of the Clayton Act (15 U.S.C. § 15). Under Rule 23 F.R.C.P. the plaintiff seeks to bring this action not only individually, but as a representative of a class alleged to consist of all persons who obtained loans or credit from the defendant, any portion of which was outstanding during the four-year period immediately preceding the filing of the complaint; who purchased feeds from the defendant during the period; and who were parties to written agreements with the defendant containing a provision on the part of the purchaser to use the defendant’s livestock and poultry feed products in his own feeding operations exclusively so long as any indebtedness of such person was outstanding or so long as such person was party to an agreement with the defendant authorizing the defendant to declare all obligations due and payable if the purchaser procured feed from suppliers other than the defendant.

The tying arrangements attacked by the plaintiff may be divided into two broad categories. The first category consists of the tying of feed purchases to the advancement of loans primarily for the purchase of livestock and poultry or for the purchase of capital equipment. The second category consists of the tying of feed purchases to the deferral .of payment for such purchases, i. e., the extension of credit for the feed purchases themselves.

The plaintiff’s complaint alleges, and the record indicates, that the damages individually sustained by the plaintiff were substantial. He contends that, but for the tie, he could have bought equivalent feed elsewhere for a lower price. The defendant has asserted a counterclaim against the plaintiff individually on a promissory note and on an open account for the total amount of $75,052.63, and the plaintiff’s complaint avers that his damages exceed “any indebtedness which may be lawfully due from plaintiff to defendant”.

Substantial discovery, both formal and informal, has provided a sound factual background for the determination of this motion. The plaintiff was furnished by the defendant with numerous credit files for at least one customer from each of the defendant’s 36 geographical areas of operation. In addition, a wide array of documentary material was furnished to the plaintiff by the defendant' from defendant’s headquarter offices. The parties obtained large numbers of representative feed price lists for various points in time from more than 30 livestock and poultry feed manufacturers located in various regions of the United States. The defendant also furnished the plaintiff with complete records of 62 customers out of the more than 6,500 of the defendant’s customers, past and present, which the plaintiff seeks to certify as a class. This latter phase of the document production amounted to some 95 file drawers of material.

The plaintiff furnished to the defendant many documents including the plaintiff’s financial records and records of agricultural operations. Depositions have been taken and a number of documents were produced at the proceedings which are attached to each of the four depositions. The plaintiff deposed three officials of the defendant, and the defendant deposed the plaintiff. Substantial evidentiary materials have been appended to the briefs filed with the Court, and affidavits and offers of proof have been submitted.

The plaintiff a resident of Crawford County, Georgia, entered the business of [447]*447raising hens for commercial egg production in June, 1969, and continued until the end of 1971. In early 1969 he purchased land and erected egg production facilities through financial assistance obtained from the Central Georgia Production Credit Association (PCA). He purchased started pullets (hens in the beginning stage of egg production) in part through funds made available by the defendant. During the pertinent period, the plaintiff also puchased laying hens with the proceeds of loans from the Crawford County Bank and the Central Georgia PCA. To secure loans from the defendant, the plaintiff executed security agreements. Some of these security agreements, at least, contained language challenged by the plaintiff as tying the loan to the purchase of poultry feed supplied by the defendant. Except for a few purchases from other suppliers, the plaintiff purchased poultry feed only from the defendant during the period he was indebted to the defendant.

The defendant is a Missouri corporation with headquarters in St. Louis. Nationally, the defendant is the largest manufacturer and distributor of feed for livestock and poultry. However, the defendant’s share of the feed market varies from area to area and there are many manufacturers and distributors whose market share exceeds that of the defendant in given areas.

The feeds manufactured by the defendant are sold primarily through a network of independent dealers with some additional direct sales to feeders. The defendant sells its feeds for cash, on short-term credit, and in limited cases on extended credit. Credit terms do not affect the price which the customer pays. Short-term credit sales are made on normal “2%-7, net 30 day” terms. Extended credit terms vary according to the needs of particular customers. Payments for most of the defendant’s feed sales are made within 30 days. For approximately four years preceding the filing of the plaintiff’s complaint, less than ten percent of the defendant’s feed sales were made on extended credit terms. On some occasions the defendant has advanced funds to customers to assist them in various agricultural activities or for expansion of their physical facilities. The defendant employed many different forms of agreements, many with diverse provisions, to evidence its financing arrangements, some 40 of which plaintiff now attacks.1

In 1969 the defendant changed the form of security agreement to eliminate the provision which the plaintiff attacks. However, in the field, where the forms were used the old forms became mixed with the new forms; thus, the use of the old forms continued on an intermittent basis.

Other facts will be discussed throughout this opinion.

It is well established that the burden rests upon the plaintiff to bring this case within the requirements of Rule 23. As we stated in Albertson’s, Inc. v. Amalgamated Sugar Co.,

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Bluebook (online)
68 F.R.D. 443, 20 Fed. R. Serv. 2d 1206, 1975 U.S. Dist. LEXIS 11483, Counsel Stack Legal Research, https://law.counselstack.com/opinion/plekowski-v-ralston-purina-co-gamd-1975.