Port Terminal & Warehousing Co. v. John S. James Co.

695 F.2d 1328, 35 Fed. R. Serv. 2d 1299, 1983 U.S. App. LEXIS 31359
CourtCourt of Appeals for the Eleventh Circuit
DecidedJanuary 17, 1983
DocketNos. 81-7375, 81-7520 and 81-8013
StatusPublished
Cited by4 cases

This text of 695 F.2d 1328 (Port Terminal & Warehousing Co. v. John S. James Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Port Terminal & Warehousing Co. v. John S. James Co., 695 F.2d 1328, 35 Fed. R. Serv. 2d 1299, 1983 U.S. App. LEXIS 31359 (11th Cir. 1983).

Opinion

TUTTLE, Senior Circuit Judge:

This is an appeal from judgments of the district court for the Southern District of Georgia based on a jury verdict finding a conspiracy in violation of § 1 of the Sherman Act and the court’s denial of the appellants’ motion for a new trial based on their contention that there had been an insufficient inquiry into alleged jury tampering.

I. STATEMENT OF THE CASE

The jury had before it the following evidence upon which to base its verdict. Plaintiffs-appellees are Port Terminal and Warehousing Company and McKinney International Forwarders, Inc. both of which are Georgia corporations owned and managed by J. Allen McKinney. Port Terminal has been an ICC trucking terminal in Savannah, Georgia for 25 years. It served as the non-exclusive local cartage and storage agent for three ICC certificated trucking companies, Carolina Freight Systems, Bruce Johnson Trucking Co., Inc. and American Freight Systems, all three of which were defendants in this action. In 1979, McKinney International Forwarders applied to the Federal Maritime Commission for a foreign freight forwarder license. Foreign freight forwarders are like “travel agents” for exported goods. They arrange for passage of goods going abroad and often contract with trucking companies for hauling by ICC freight companies from the place of manufacture to the port.

Defendants John S. James Company and C.J. Powers Company, and their respective presidents, James and Carter, also defendants in this action, are licensed foreign freight forwarders and custom house brokers in Savannah. Savannah has a small number of such businesses who do not solicit the accounts of competitors or engage in price competition. In spite of comments to the FMC on McKinney International Forwarders’ application for a license, the FMC granted it in early October, 1979.

Thereafter, MIF solicited customers for its new business at a foreign trade conference in Savannah in the fall of that year. Both Carter and James regarded these activities as “unseemly” and, in a discussion on the custom house steps, Carter said he would write to American Freight Systems, Bruce Johnson Trucking Company and Car[1330]*1330olina Freight Systems to slow down MIF’s operation. James revealed he had already done so. Later Carter spoke by telephone with James Black, president of Frank Richards, Inc. of Georgia. Black said he would write letters to the same three companies, which he did on October 29. Within 20 days of MIF’s licensing, Carter, James and Black had each written letters to each of Port Terminal’s customers claiming that they could no longer do business with the addressee trucking company so long as it continued to use Port Terminal as its agent and would recommend that their clients do the same.1 There was evidence that at a meeting of the Brokers Association in early December, 1979, Carter told McKinney that the “boycott” would continue until McKinney gave up his freight forwarding business. Within several months of the time the letters were sent, Port Terminal’s agency relations with all three of its customers had been terminated. Bruce Johnson Trucking rented Port Terminal’s terminal building and subleased a section to American Freight Systems. MIF never got its [1331]*1331operations started. McKinney’s companies thereafter filed their original complaint in February, 1980, alleging that the freight forwarder defendants engaged in a group boycott of the trucking companies’ doing business at Port Terminal to coerce McKinney to abandon plans for MIF to enter into competition with the defendants as a foreign freight forwarder.

The case was submitted to the jury upon special interrogatories. The jury answered affirmatively to each of the two questions:

1. Do you find by a preponderance of the evidence that there was a conspiracy or combination between the defendants, or any of them, for the purpose or effect of which was to prevent McKinney International Forwarders, Inc. from entering into competition in the foreign freight forwarding business in Savannah, Georgia?
3. Do you find by a preponderance of the evidence that the conspiracy or combination was a substantial factor in the damage if any, to the business of Port Terminal and Warehousing Company?

Interrogatory No. 2 required the jury to state the name of each “participant in the conspirator combination.” The jury answered that each of the named defendants was a participant.

Finally, the jury responded to question No. 4 “what is the amount of damages to Port Terminal and Warehousing Company, if any, caused by the conspiracies or combination” by answering $158,500. This sum was trebled, and credit was given against the resulting figure for amounts received by Port Terminal in settling with dismissed defendants Carolina Freight Carriers Corporation, American Freight Systems, Inc., and Bruce Johnson Trucking Company, Inc. The court later granted an injunction in favor of MIF and fixed attorney’s fees and costs in the sum of $141,167.34.

At a pretrial conference held November 14, 1980, the court set February 15, 1981 as the last day for discovery. On February 24, 1981, less than three weeks before the date of trial, defendants notified plaintiffs of several additional witnesses, the use of some of which, most particularly the academic valuation expert, the court prohibited by order of March 2, 1981.

On April 12, 1981, McKinney learned from juror Rawlings of an approach to him that he swing the case in favor of defendant James in return for a bribe of from $5,000 to $10,000. McKinney notified his lawyer who notified the court the following day. Thereafter, the court commissioned the FBI to conduct an investigation of the incident. The court notified defendant’s counsel of the issue on May 29 and prohibited their disclosing this information to anyone other than attorneys in their firm. Defendant’s counsel by letters of June 2 and June 10 notified the court of the difficulties in representing their clients imposed by this order. At 11:30 a.m. on June 18, 1981, the defendant’s counsel were notified of a post-trial hearing at 1:30 p.m. that day, at which the court conducted an investigation of the alleged incidents. Counsel were permitted to disclose this information to their clients before that hearing. The hearing was continued to June 22. Following the hearing on June 22, the court ordered the records sealed and the defendants did not see the FBI report. The court stated that one of the reasons for holding the hearing was to give the parties an opportunity to move for a new trial if they saw fit to do so. On July 30, 1981, the defendants moved for a new trial on the grounds of jury misconduct. By order of October 9, 1981, the court unsealed the record and allowed a 10 day investigation into the jury tampering issue, but still would not permit the interviewing of jurors or the examination of the FBI report. The court denied the defendant’s motion for an extension of time for the investigation. No further hearing was held and on November 13, 1981, the court found that there was no jury prejudice and denied defendant’s motion for a new trial. 92 F.R.D. 100.

Defendants James Company, Powers Company, James and Carter together filed three appeals from the findings of an anti[1332]*1332trust conspiracy, the award of attorney’s fees, and the denial of their motion for a new trial. These three appeals were consolidated for this disposition.

II.

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695 F.2d 1328, 35 Fed. R. Serv. 2d 1299, 1983 U.S. App. LEXIS 31359, Counsel Stack Legal Research, https://law.counselstack.com/opinion/port-terminal-warehousing-co-v-john-s-james-co-ca11-1983.