Richardson v. Chrysler Motors Corporation

257 F. Supp. 547, 1966 U.S. Dist. LEXIS 10207, 1966 Trade Cas. (CCH) 71,920
CourtDistrict Court, S.D. Texas
DecidedJuly 27, 1966
DocketCiv. A. 12189
StatusPublished
Cited by4 cases

This text of 257 F. Supp. 547 (Richardson v. Chrysler Motors Corporation) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Richardson v. Chrysler Motors Corporation, 257 F. Supp. 547, 1966 U.S. Dist. LEXIS 10207, 1966 Trade Cas. (CCH) 71,920 (S.D. Tex. 1966).

Opinion

Memorandum Opinion:

HANNAY, District Judge.

Plaintiffs C. C. RICHARDSON, RICH’S ENTERPRISES, INC., individually and d/b/a STAR PLYMOUTH, hereinafter called “plaintiffs,” or Richardson, sued CHRYSLER MOTORS CORPORATION and CHRYSLER CORPORATION, both Delaware corporations, and the HOUSTON AUTOMOBILE DEALERS ASSOCIATION of Houston, BETTER BUSINESS BUREAU OF HOUSTON, COMMERCIAL CREDIT CORPORATION, ALBERT BERRY, doing business and operating under the name of ALBERT BERRY MOTOR COMPANY of Houston, hereinafter referred to as Berry, A. C. BURTON COMPANY, INC., and Mrs. A. C. Burton, ROSENSTOCK MOTORS of Houston and Julius Rosenstock, WENDELL HAWKINS MOTORS, INC., and WENDELL HAWKINS of Houston, THEODORE A. HANSON of Houston and L. L. COLBERT of Michigan, FRANK SUSLAVICH of Michigan and FRED M. HARRIS of Georgia.

The second amended complaint (the trial pleading) further avers that this Court has jurisdiction under Title 15, United States Code Annotated, Chapter 1, Sections 1, 2, 3, 7, 8, 9, 10, 12, 13, 14, 15, 22 and 24, also under Title 15, United States Code Annotated, Chapter 27, Sections 1221 through 1225.

For cause of action Plaintiffs alleged that prior to May, 1958, the Plaintiff C. C. Richardson had been engaged in the retail automobile business and had built a successful career as a volume operator, operating new car retail dealership agencies for himself and others in various parts of the United States. That immediately before the occurrences made the basis of this suit, the said Richardson had successfully engaged in a new car retail dealership agency for Chevrolet automobiles, located in Houston, Harris County, Texas, until he had sold that agency in the early part of 1958.

Defendants Chrysler Motors Corporation and/or Chrysler Corporation, acting through their respective agents, sought out Richardson with the purpose of persuading him to purchase the assets of Davis Plymouth located at 4057 Bellaire Blvd., in Houston, Texas. This Richardson did. He claims that Chrysler Motors Corporation and/or Chrysler Corporation, acting through agents, had promised him a franchise to sell Plymouths and that, acting upon such representation, he purchased the assets of Davis Plymouth and entered into a five year *550 lease of the premises formerly occupied by Davis Plymouth and also purchased the furniture, fixtures and equipment of Davis Plymouth.

Richardson further claims that he also bought a large number of Plymouth automobiles elsewhere, and made financial arrangements and incurred obligations with the Defendant Commercial Credit Corporation.

Plaintiffs further say that Defendants Albert Berry Motor Company and the various other motor companies made Defendants herein were engaged in the sale at retail of Plymouth and Chrysler automobiles in the Houston market. Plaintiffs further claim that the defendant motor companies and the individuals who were the principal owners of same, fearing Richardson as competition, arranged for a meeting with the employees of Chrysler Motor Corporation and/or Chrysler Corporation. Plaintiffs further claim at that meeting Defendants entered into a contract, combination and conspiracy to deprive Richardson of the franchise agreement so that they would not have to compete with a volume operator and could thus increase and maintain a higher retail price on new Plymouth automobiles which high price would not prevail in a competitive and uncontrolled market.

Plaintiffs further allege in furtherance of said contract, combination and conspiracy, Defendants Chrysler Motors Corporation and/or Chrysler Corporation, together with Defendants Commercial Credit Corporation, Better Business Bureau, and Theodore M. Hanson, did set out to destroy the credit and borrowing ability of Plaintiffs, thereby joining in the said contract, combination and conspiracy to deprive Richardson of the franchise agreement and to gain control of the Plymouth automobile market in the Houston area in order to prevent and decrease competition. (It is significant to note that Albert Berry was not named as one of those who set out to destroy the credit and borrowing ability of Plaintiff.)

Plaintiffs further say that because of the alleged conspiracy Chrysler Motors Corporation failed and refused to forward to Richardson and deliver to him a franchise, but instead denied and returned to him his application for a direct dealership franchise. Plaintiffs further contend as a proximate result of the contract, combination and conspiracy of the Defendants and their actions in carrying out said contract, combination and conspiracy, Richardson, a volume operator, was excluded from the Houston market, thus stifling competition, and the public has been damaged due to the control of the market of new Plymouth automobiles in this market which has resulted in increased retail prices, or the maintenance of higher retail prices on new Plymouth automobiles.

Plaintiffs further claim that the alleged conspiracy had the effect of a group boycott against Richardson and that he suffered damages because of expenditures made and incurred in reliance on the actions and course of conduct of the Defendant Chrysler Motors Corporation, that all of the Defendants named caused serious and grievous damage to the business reputation of Plaintiffs, that the Plaintiffs sustained serious damage to their capital investment, a considerable portion of which was lost, and Plaintiffs have sustained loss of profits and loss of anticipated profits by reason of the wrongful, willful and malicious acts of Defendants, and each of them, all to the damage of Plaintiffs in the sum of $750,000.00.

Plaintiffs further assert that it was necessary to hire attorneys and ask for reasonable attorney’s fees in the amount of $200,000.00. They also ask for costs of this suit.

Defendants Chrysler Corporation and Chrysler Motors Corporation deny the allegations of Plaintiffs’ complaint and particularly say that the true facts of this matter are that Richardson made an application for a Direct Dealership Agreement and filled out a written application. This written application specifically specifies that the Chrysler Com *551 panies incur no obligation by allowing an applicant to complete the application and specifically states that an application can be approved only if the approval is granted in writing by a Vice President of Chrysler Motors Corporation. In this case Richardson’s application was seriously considered by the various responsible officials of Chrysler Motors Corporation and after due and proper deliberation and consideration of all of the information and facts applicable to such application Chrysler Motors Corporation and Chrysler Corporation decided in good faith that the application should be refused and it was in good faith refused. Defendants specifically deny that this action was taken in pursuit of any combination or conspiracy and say that on the contrary the action was simply the exercise of business judgment, which judgment was formed after careful consideration of all of the facts and in complete good faith.

The other Defendants served filed similar answers.

After a vast number of motions and the taking of many depositions, the case went to trial on February 15, 1965, and continued for some 3% weeks. At the conclusion of the testimony, Plaintiffs had dismissed from the case all of the Defendants except Chrysler Motors Corporation, Chrysler Corporation, and Berry.

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257 F. Supp. 547, 1966 U.S. Dist. LEXIS 10207, 1966 Trade Cas. (CCH) 71,920, Counsel Stack Legal Research, https://law.counselstack.com/opinion/richardson-v-chrysler-motors-corporation-txsd-1966.