Rotec Industries, Inc. v. Mitsubishi Corp.

181 F. Supp. 2d 1173, 2002 U.S. Dist. LEXIS 4791, 2002 WL 125527
CourtDistrict Court, D. Oregon
DecidedFebruary 1, 2002
DocketCIV 00-1394-KI
StatusPublished
Cited by3 cases

This text of 181 F. Supp. 2d 1173 (Rotec Industries, Inc. v. Mitsubishi Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rotec Industries, Inc. v. Mitsubishi Corp., 181 F. Supp. 2d 1173, 2002 U.S. Dist. LEXIS 4791, 2002 WL 125527 (D. Or. 2002).

Opinion

OPINION

KING, District Judge.

This action concerns the Three Gorges Dam project (“Project”) on the Yangtze River in China. When completed, the Three Gorges Dam will be the largest hydropower project in the world. It is being built in multiple stages, beginning in 1993 with completion expected in 2009. Stage I of the Project involved excavating and diverting the Yangtze River into a side channel. It was completed in 1997. Stage II involves construction of a large portion of the main section of the dam. It requires the placement of a huge volume of concrete.

Plaintiff Rotee Industries, Inc. (“Ro-tee”), and defendant Mitsubishi Corporation competed for contracts awarded for the purchase of equipment to place concrete in Stage II of the Project. The equipment contracts were split between the. two companies. Rotec’s claims concern conduct leading up to the award of these contracts, allegedly including bribery in the form of monetary payments and a job offer made to' a man on the Bid Evaluation Committee.

On September 14, 2001, I granted summary judgment against Rotec’s RICO and Robinson-Patman Act claims and denied summary judgment against the claim for tortious interference with prospective economic advantage. I stated:

The parties devoted their main efforts to extensive briefing of the federal statutory claims. They also relied on the assumption that if the federal claims failed, the state tort would also fail, and may not have raised all possible arguments against the tort.
I conclude that Rotee has raised a factual issue that it can prove all of these elements. In particular, the improper means could be satisfied by the single predicate act under the RICO analysis, the quality control job offer.

In a telephone conference, I invited defendants to file a second motion for summary judgment against the remaining claim, supported by more complete briefing. Although Rotee contends that the law of the case doctrine precludes me from taking a second look at the claim, I do not feel so constrained due to the lack of argument from any of the parties at the time of the original motion.

Before the court is defendants’ motion for summary judgment on plaintiffs tor-tious interference with prospective economic advantage claim (# 71). For the reasons below, I grant summary judgment against the claim.

*1175 FACTS

Many of these facts are taken from the evidentiary record filed with the original motion for summary judgment.

Plaintiff Rotee, based in Illinois, designs, manufactures, sells, leases, and services heavy construction machinery, including the Tower Belt, a crane-based concrete conveyor system. Defendant Mitsubishi Corporation, based in Japan, engages in construction projects but does not design or manufacture equipment. Mitsubishi teamed with CS Johnson, an American company, and Potain, a French company, on the Project. Defendant Garry Tucker is president of defendant Tucker Associates, Inc. (jointly, “Tucker defendants”), an engineering consulting company based in Oregon. Tucker Associates was a consultant to CS Johnson on the Project.

China Yangtze Three Gorges Project Development Corporation (“China Three Gorges Development”) is the owner of the Project. China Resources National Corporation and China Resources Machinery Corporation, two separate corporations, are subsidiaries of China Resources (Holdings) Co., Ltd. All of these Chinese entities are owned in whole or in part by the Chinese government.

CS Johnson hired Arvin Yu, a Chinese national, to be its sales agent in China. Yu also traveled with Tucker in China to act as his interpreter. Tucker described Yu as CS Johnson’s “eyes and ears in China,” providing information on various construction projects that he received from the Chinese government and other sources.

Mitsubishi began pursuing sales at the Project in 1992. It supplied numerous types of construction equipment in Stage I, including excavators, dump trucks, passenger buses, and a concrete batching plant.

In 1994 during Stage I of the Project, Rotee supplied one Tower Belt and two cranes, as well as trucks, associated equipment, and spare parts.

Also in 1994 during Stage I of the Project, CS Johnson sold a concrete batching plant to the Project. Tucker was consulting for CS Johnson at that time. One of CS Johnson’s contacts at China Three Gorges Development for the batching plant was Zhuang Ming Xiang, a member of the Bid Evaluation Committee. The Bid Evaluation Committee, made up of at least 60 people, was responsible for evaluating and comparing the bids for the Project, including the concrete conveyor systems to be purchased in Stage II.

In connection with the Stage I batching plant contract, CS Johnson needed a person to supervise the quality of the steel being fabricated in China. In early 1995, Zhuang Ming Xiang was critical of the CS Johnson design drawings made pursuant to the contract.

On June 8, 1995, Arvin Yu sent a fax to Tucker in which he relays a message from Ruan Guanghua, a senior consultant of China Three Gorges Development and member of the Bid Evaluation Committee, stating:

I am working for review and revising the tendering documents on Proposal Concrete Conveying System and Placement.
In the 3GPC working group, every one knows that C.S. Johnson will cooperate with Potain for now, no bad comment on CSJ but Mr. Zhuang Mingxiang, he complained and made bad words. “CSJ design drawings is delay and could not satisfy requirement, less details.”
I know that Mr. Zhuang Mingxiang hopes to take fabrication QC, but to quote price and sign official contract *1176 with CSJ for him is dangerous. So, he will never quote price directly.
So, I think you should to close Zhuang’s mouth with QC job, and the contract or agreement has to be through Third Party. It’s safety for Zhuang. The high level leaders are impressed with Zhuang’s comment, as he is Machinery Department Manager.

Bernard Decl. Ex. 39 (emphasis in the original) 1 . A few weeks later, Tucker, on behalf of CS Johnson, authorized Zhuang Ming Xiang to be its quality control representative on the batching plant contract.

Tucker testified they offered the CS Johnson quality control job to Zhuang Ming Xiang so that Zhuang Ming would stop being critical of CS Johnson. He also maintains that the job offer had nothing to do with the upcoming bids for the Stage II contracts.

Allen Seeland, former president of CS Johnson, stated in a declaration that CS Johnson understood at the time that offering the job would gain Zhuang Ming’s support in the bidding negotiations on Stage II concrete construction, quite his criticism of CS Johnson’s drawings for fabrication of the batch plant, and keep him from making negative comments about CS Johnson during contract negotiations for Stage II concrete construction.

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181 F. Supp. 2d 1173, 2002 U.S. Dist. LEXIS 4791, 2002 WL 125527, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rotec-industries-inc-v-mitsubishi-corp-ord-2002.