Sam Dunnivant v. Bi-State Auto Parts

851 F.2d 1575, 1988 U.S. App. LEXIS 11137
CourtCourt of Appeals for the Eleventh Circuit
DecidedAugust 15, 1988
Docket87-7652
StatusPublished
Cited by1 cases

This text of 851 F.2d 1575 (Sam Dunnivant v. Bi-State Auto Parts) 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
Sam Dunnivant v. Bi-State Auto Parts, 851 F.2d 1575, 1988 U.S. App. LEXIS 11137 (11th Cir. 1988).

Opinion

851 F.2d 1575

1988-2 Trade Cases 68,181

Sam DUNNIVANT, d/b/a Sammy's Auto Parts, Plaintiff-Appellant,
v.
BI-STATE AUTO PARTS; Ardmore Parts; Mid-State Distributing
Company; Don's Foreign Auto Electric; Parts Industry
Corporation; Parts Distributors Warehouse, Inc., Auto
Electric Service of Huntsville, Inc., Harris Welding Supply;
Billy Harris, individually; and Paul Spence, individually
and as a partner d/b/a Ardmore Parts, and W.C. Butler and
Shirley Butler, individually and as partners d/b/a Harris
Welding Supply; Mid-State Automotive Distributors, Inc.,
and S & S Parts Distributors Warehouse, Inc., Thomas W.
Harris and Doyle Posey, individually and d/b/a Bi-State Auto
Parts, Defendants-Appellees.

No. 87-7652.

United States Court of Appeals,
Eleventh Circuit.

Aug. 15, 1988.

Charles A. Dauphin, Kearney Dee Hutsler, Baxley, Dillard & Dauphin, Birmingham, Ala., for plaintiff-appellant.

L. Tennent Lee, III, Cleary, Lee, Morris, Smith, Evans & Rowe, P.C., Huntsville, Ala., for Harris Welding Supply.

Thad G. Long, Bradley, Arant, Rose & White, Michael J. Brandt, Birmingham, Ala., for Auto Elec. Service.

Barry A. Ragsdale, Sirote, Permutt, McDermott, Slepian, Friend, Friedman, Held & Apolinsky, P.C., James A. Harris, Jr., Birmingham, Ala., for Parts, Inc.

James Francis, Decatur, Ala., for Harris, Posey and Bi-State Auto Parts.

John McQuiston, II, Goodman, Glazer, Grenner, Schneider & McQuiston, Memphis, Tenn., for S & S Auto Parts, Inc.

Ernest L. Potter, Huntsville, Ala., for Paul Spence and Ardmore Parts.

Appeal from the United States District Court for the Northern District of Alabama.

Before HATCHETT and COX, Circuit Judges, and GIBSON*, Senior Circuit Judge.

HATCHETT, Circuit Judge:

In this Sherman Act antitrust case, we apply the teachings of Helicopter Support Systems v. Hughes Helicopter, 818 F.2d 1530 (11th Cir.1987) to affirm the district court's ruling that no violation of the Sherman Act occurred as a result of the proof developed in this case.

FACTS

In October, 1982, Sam Dunnivant, the appellant, opened an automotive parts store (Sammy's Auto Parts) in Ardmore, Alabama, and continued operation until March, 1985. Three other automotive retail businesses were also located in Ardmore: Ardmore Parts, Inc. (Spence), Bi-State Auto Parts, and the Otasco Store. Ardmore has a population of less than 2,000.

S & S Auto Parts (S & S), Auto Electric Service, Inc. (Auto Electric), Don's Foreign Auto Electric, Inc. (Don's Foreign Auto), and Mid-State Automotive Distributors, Inc. (Mid-State) are suppliers of automotive parts in the Ardmore area. Dunnivant contacted these suppliers in an effort to stock automotive parts. Initially, Dunnivant could not find a supplier who delivered in Ardmore to sell him automotive parts. As a result, Dunnivant purchased parts from suppliers in Huntsville, Alabama, and transported the parts to his store in Ardmore.

Dunnivant also sold oxygen and acetylene which he purchased from Thompson Welding and Supply in Gurley, Alabama. Alabama Oxygen provided Thompson Welding with oxygen supplies. Because Dunnivant's customers brought their empty gas cylinders to Ardmore Parts (Spence), Paul Spence complained to Alabama Oxygen Company. Spence was accountable to Alabama Oxygen for cylinders used in retail sales and sought to avoid liability for cylinders--valued at $200--purchased from Dunnivant. Spence advised Alabama Oxygen that he would no longer purchase its cylinders because of its business with Dunnivant. To appease Spence, Alabama Oxygen advised Thompson Welding and Supply that it could no longer sell to Dunnivant.1 Dunnivant then attempted to purchase oxygen from Harris Welding Supply Company. Harris Welding decided against conducting business with Dunnivant because it was also in the retail market; the oxygen market averages only $300 a month; and Spence had promised Harris Welding all of his business. As a result, Dunnivant discontinued oxygen sales.

In March, 1984, Auto Electric, a supplier to the three retail competitors, began selling automotive parts to Dunnivant, but Dunnivant was still required to supplement his inventory through purchases from Huntsville, Alabama. On April 3, 1984, Paul Spence returned parts and accessories to Auto Electric for credit asserting that he could no longer do business with Auto Electric because of its business relationship with Dunnivant. Spence's purchases from Auto Electric during the three months prior to April, 1984 averaged over $1000 per month. Notwithstanding Spence's actions, Auto Electric remained Dunnivant's primary supplier for thirteen months after the loss of the Spence account. During this period, Dunnivant never stocked a full line of inventory and purchased goods only as needed, averaging $403 per month in merchandise. Because of Dunnivant's refusal to stock inventory, Auto Electric terminated business relations with Dunnivant and reestablished a business relationship with Spence. Again, Dunnivant attempted to contact suppliers who delivered automotive parts in Ardmore. The suppliers either advised Dunnivant of existing agreements with retailers in Ardmore or determined that Ardmore's small market made a business relationship unprofitable. Because it was economically unfeasible for Dunnivant to continue to transport parts from Huntsville, and because suppliers refused to sell parts to Dunnivant, he went out of business.

PROCEDURAL HISTORY

Dunnivant filed this lawsuit alleging violations of sections 1 and 2 of the Sherman Antitrust Act (see 15 U.S.C. Secs. 1 and 2) and tort claims against his competitors for interference with business relations. All appellees except Mid-State filed motions to dismiss, and Auto Electric and S & S filed motions for summary judgment. The district court entered summary judgment in favor of all appellees except Mid-State. The district court held that Dunnivant "failed to come forward with specific facts showing that there is a genuine issue for trial ... and that [Dunnivant] has failed to present evidence ... to exclude the possibility that the alleged conspirators were acting independently." Dunnivant failed to take a default judgment against Mid-State, and the district court dismissed the complaint for lack of prosecution. Dunnivant filed this appeal.

The issues are: (1) whether the district court applied an improper standard of review in granting summary judgment; (2) whether the evidence shows a concerted refusal to deal; and (3) whether the retailers tortiously interfered with Dunnivant's business relations.

Section 1 of the Sherman Act provides that "[e]very contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several states, or with foreign nations is declared to be illegal." 15 U.S.C. Sec. 1.

STANDARD OF REVIEW

In Helicopter Support Systems v.

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Related

City of Tuscaloosa v. Harcros Chemicals, Inc.
877 F. Supp. 1504 (N.D. Alabama, 1995)

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Bluebook (online)
851 F.2d 1575, 1988 U.S. App. LEXIS 11137, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sam-dunnivant-v-bi-state-auto-parts-ca11-1988.