Southern Anchor Bolt Co. v. Atlantic Steel Co.

96 F.R.D. 15, 35 Fed. R. Serv. 2d 910, 1982 U.S. Dist. LEXIS 15545
CourtDistrict Court, S.D. Georgia
DecidedOctober 7, 1982
DocketCiv. A. No. 182-58
StatusPublished

This text of 96 F.R.D. 15 (Southern Anchor Bolt Co. v. Atlantic Steel Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Southern Anchor Bolt Co. v. Atlantic Steel Co., 96 F.R.D. 15, 35 Fed. R. Serv. 2d 910, 1982 U.S. Dist. LEXIS 15545 (S.D. Ga. 1982).

Opinion

ORDER

BOWEN, District Judge.

This matter is before the Court on two motions: (1) the defendant’s motion of June 1, 1982, in which the defendant asked this Court to exercise its discretion pursuant to Rule 42(b) Fed.R.Civ.P. to sever the plaintiff’s antitrust claims from defendant’s counterclaims and to stay discovery pertaining to the antitrust claims pending an advanced resolution of defendant’s counterclaims; and (2) the plaintiff’s subsequent motion to compel discovery pursuant to Rule 37, Fed.R.Civ.P. which was filed when plaintiff was unable to secure satisfactory responses from the defendant to certain interrogatories and requests for production of documents. It appears that the defendant’s objections to plaintiff’s attempted discovery were based primarily on the pendency of defendant’s previous motion to stay discovery. The defendant at no time has filed a motion for a protective order pursuant to Rule 26(c), Fed.R.Civ.P.

I. The Defendant's Motion

The plaintiff filed its complaint on April 6, 1982 to “recover damages for injury by the Defendant to the business and property of the Plaintiff sustained by reason of violations by the Defendant ... of 15 U.S.C. §§ 13 and 13(a).” Plaintiff complains, of defendant’s conduct over a four year period and asks for $98,600.00 in damages. On May 6, 1982 the defendant filed its answer to plaintiff’s complaint and asserted three counterclaims. In Count I of its counterclaims, the defendant asserts that beginning in December of 1981 the plaintiff refused to pay for the products it ordered and received from the defendant. The defendant therefore seeks to recover $15,850.07 on its open-account agreement with the plaintiff. Defendant also seeks to recover damages, in Count II of its counterclaims, for plaintiff’s conversion of the products for which payment has not yet been received. [17]*17Finally, in Count III of its counterclaims, the defendant seeks to recover the expenses of this litigation, including attorney’s fees, by alleging that the plaintiff acted in bad faith in filing its complaint and that the plaintiff has been stubbornly litigious.

Under Rule 42(b), Fed.R.Civ.P., this Court has the discretion to separate its consideration of plaintiff’s antitrust claim from any consideration of' defendant’s counterclaims “in furtherance of convenience or to avoid prejudice, or .. . [if] separate trials [would] be conducive to expedition and economy A separation of issues is often appropriate in cases containing antitrust claims where such claims are certain to “prolong and complicate” a more basic contractual dispute. See Dickstein v. duPont, 443 F.2d 783, 786 (1st Cir.1971). The presence of an antitrust claim, however, does not justify separate trials in every case. See Gutor International Ag. v. Raymond Packer Co. Inc., 493 F.2d 938, 947 (1st Cir.1974).

In determining whether the defendant’s motion should be granted under the facts of this case, it must be recognized at the outset that, as a general rule, a claim of price discrimination under the RobinsonPatman Act, 15 U.S.C. § 13(a), is not a valid defense to the nonpayment of an underlying contractual obligation. See Bruce’s Juices v. American Can Co., 330 U.S. 743, 67 S.Ct. 1015, 91 L.Ed. 1219 (1947). As the Supreme Court noted in reference to the Sherman Antitrust Act:1

Past the point where the judgment of the Court would itself be enforcing the precise conduct made unlawful by the Act [in this case the Robinson-Patman Act], the courts are to be guided by the overriding general policy ... “of preventing people from getting other people’s property for nothing when they purport to be buying it.”

Kelly v. Kosuga, 358 U.S. 516, 520-21, 79 S.Ct. 429, 431-32, 3 L.Ed.2d 475 (1959) (quoting Continental Wall Paper Co. v. Louis Voight & Sons Co., 212 U.S. 227, 271, 29 S.Ct. 280, 296, 53 L.Ed. 486 (1909) Holmes, J., dissenting); see Kaiser Aluminum & Chemical Sales, Inc. v. Avondale Shipyards, Inc., 677 F.2d 1045, 1057-60 (5th Cir.1982).

A review of the relevant authorities establishes that the plaintiff in this case may not raise illegality as a defense to the defendant’s counterclaims for payment. Cf. Continental Wall Paper Co. v. Louis Voight & Sons Co., 212 U.S. 227, 261-62, 29 S.Ct. 280, 291-92, 53 L.Ed. 486 (1909) (suit based on an account which was made up, within the knowledge of both the seller and buyer, with direct reference to and in execution of certain agreements under which an illegal combination, represented by the seller was organized); see also Kaiser Steel Corp. v. Mullins, 455 U.S. 72, 102 S.Ct. 851, 70 L.Ed.2d 833 (1982). The defendant’s counterclaims in this case center on a sale on open account, and therefore must be construed as an attempt to recover the reasonable value of the goods which the defendant delivered to the plaintiff after the first of December, 1981. See Ga.Code Ann. § 30-107. Since the defendant can only recover the reasonable value of the delivered goods under its contract on open account with the plaintiff, there is no way in which any judgment by the Court on defendant’s counterclaims could operate to enforce a discriminatory pricing scheme in contravention of the intent of the Robinson-Patman Act. See Kaiser Aluminum & Chemical Sales, Inc. v. Avondale Shipyards, Inc., 677 F.2d 1045, 1060 (5th Cir.1982); Carpa, Inc. v. Ward Foods, Inc., 536 F.2d 39, 54-55 (5th Cir.1976). Thus, the plaintiff’s antitrust allegations cannot be considered as an actual defense to any of the defendant’s counterclaims.

Just because the plaintiff’s antitrust claim may not be considered as a defense to the defendant’s counterclaims does not mean, however, that considerations of judicial economy would be furthered by sever[18]*18ing consideration of the plaintiff’s contentions from consideration of the defendant’s counterclaims.

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Related

Bruce's Juices, Inc. v. American Can Co.
330 U.S. 743 (Supreme Court, 1947)
Kelly v. Kosuga
358 U.S. 516 (Supreme Court, 1959)
J. Truett Payne Co. v. Chrysler Motors Corp.
451 U.S. 557 (Supreme Court, 1981)
Kaiser Steel Corp. v. Mullins
455 U.S. 72 (Supreme Court, 1982)
Gutor International Ag v. Raymond Packer Co., Inc.
493 F.2d 938 (First Circuit, 1974)
El Salto, S.A. v. PSG Co.
444 F.2d 477 (Ninth Circuit, 1971)
Carpa, Inc. v. Ward Foods, Inc.
536 F.2d 39 (Fifth Circuit, 1976)

Cite This Page — Counsel Stack

Bluebook (online)
96 F.R.D. 15, 35 Fed. R. Serv. 2d 910, 1982 U.S. Dist. LEXIS 15545, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southern-anchor-bolt-co-v-atlantic-steel-co-gasd-1982.