Stearns Airport Equipment Co. v. FMC Corp.

977 F. Supp. 1269, 1997 U.S. Dist. LEXIS 15487, 1997 WL 573089
CourtDistrict Court, N.D. Texas
DecidedMarch 26, 1997
DocketNo. 4:95-CV-880-A
StatusPublished

This text of 977 F. Supp. 1269 (Stearns Airport Equipment Co. v. FMC Corp.) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stearns Airport Equipment Co. v. FMC Corp., 977 F. Supp. 1269, 1997 U.S. Dist. LEXIS 15487, 1997 WL 573089 (N.D. Tex. 1997).

Opinion

MEMORANDUM OPINION AND ORDER

McBRYDE, District Judge.

Came on for consideration the motion of defendant, FMC Corporation, (“FMC”) for summary judgment (“Motion”). Plaintiff, Stearns Airport Equipment Co., Inc., (“Stearns”) has made a response (“Response”), to which FMC has replied. Upon consideration of the Motion, the Response, the reply, the record, the summary judgment evidence and applicable authorities, the court concludes that the motion should be granted.

[1271]*1271i.

History and Nature of the Action

The nature of the action is described in the memorandum opinion and order the court signed May 31,1996, granting FMC’s motion for partial summary judgment. The May 31 order dismissed count three (alleged violations of section 1 of the Sherman Act) and limited count two (alleged violations of section 2(a) of the Robinson-Patman Act) to sales made to non-governmental .entities. The claims that remain pending are alleged violations of section 2 of the Sherman Act (count one), alleged price discrimination in sales to non-governmental entities in violation of section 2(a) of the Robinson-Patman Act (count two), unfair competition (count four), and tortious interference (count five).

II.

Grounds of the Motion

FMC contends that count one, alleging a violation of the Sherman Act § 2 for monopolization or attempted monopolization, is barred as a matter of fact and law. Specifically, FMC contends that there is no evidence that it engaged in any anticompetitive conduct, that Stearns has suffered, or will suffer, antitrust injury, or that FMC has, or will have, monopoly power in a properly defined relevant market. FMC contends that if count one is dismissed, the court should dismiss count two as well in that the Robinson-Patman Act uses the same predatory pricing standard that applies to a claim under § 2 of the Sherman Act. Furthermore, as to count two, FMC asserts that there is no evidence that it made any discriminatory sales to at least two non-governmental entities. FMC argues that the state law claims should be dismissed either because there is no evidence to support these claims or because they are pendent claims that should not survive dismissal of the federal claims, if the federal causes of action are barred.

III.

The Response

Stearns contends in its response that the summary judgment evidence raises genuine issues of fact as to all essential elements of each of its theories of recovery.

IV.

Analysis

A. Applicable Summary Judgment Principles.

The summary judgment principles applicable to FMC’s motion are described at page 3 and 4 of the May 31, 1996, memorandum opinion and order in this action.

B. Plaintiffs’ Count One: Alleged Violations of § 2 of the Sherman Act.

The court has concluded that count two should be dismissed because Stearns has not met its burden to adduce evidence of the existence of all elements of a § 2 monopolization or attempted monopolization claim.

In order to prevail on his § 2 claim for attempted monopolization, Stearns must prove that (1) defendant engaged in predatory or anticompetitive conduct with (2) a specific intent to monopolize, and (3) there is a dangerous probability of defendant achieving monopoly power. Spectrum Sports, Inc. v. McQuillan, 506 U.S. 447, 456, 113 S.Ct. 884, 890, 122 L.Ed.2d 247 (1993); C.A.T. Indus. Disposal, Inc. v. Browning-Ferris Indus., Inc., 884 F.2d 209, 210 (5th Cir.1989). The elements of Stearns’s monopolization claim are (1) the possession of monopoly power in the relevant market and (2) willful acquisition or maintenance of that power as distinguished from growth or development as a consequence of a superior product, business acumen, or historic accident. Eastman Kodak Co. v. Image Technical Servs., Inc., 504 U.S. 451, 481, 112 S.Ct. 2072, 2089, 119 L.Ed.2d 265 (1992); Domed Stadium Hotel, Inc. v. Holiday Inns, Inc., 732 F.2d 480, 487 (5th Cir.1984). In common with a claim for attempted monopolization, a § 2 claim based on monopolization requires proof that the defendant has engaged in predatory, or anti-competitive, behavior. See Northeastern Tel. Co. v. American Tel. & Telegraph Co., 651 F.2d 76, 85 (2d Cir.1981), cert. denied, 455 U.S. 943, 102 S.Ct. 1438, 71 L.Ed.2d 654 (1982) (holding that the plaintiff must demon[1272]*1272strate that the defendant engaged in anti-competitive behavior to prove either monopolization or an attempt to monopolize).

The court has concluded that the ground of FMC’s motion that there is no evidence that it engaged in any anticompetitive conduct has merit. Because of the conclusion of the court that the § 2 claims should be resolved on that basis, the court does not find it necessary to make a resolution of the other grounds urged by FMC in support of its contention that it is entitled to summary disposition of the § 2 claims. The failure of the court to decide the merits of those other grounds is not to be taken as any indication that the court has formed a judgment as to the merits of any of the other grounds.

The court concludes that Stearns has failed to adduce sufficient evidence in support of its monopolization or attempted monopolization claims to create a genuine issue that FMC engaged in any anticompetitive conduct.

1. No Evidence of Predatory Pricing:

In order to show predatory pricing, Stearns must at least show that either (1) FMC charged a price below its average variable cost in the relevant market or (2) FMC charged a price below its short-run profit-maximizing price and that barriers to entry into the relevant market are great enough to enable FMC to reap the benefits of predation before new entry is possible. Adjusters Replace-A-Car v. Agency Rent-A-Car, Inc., 735 F.2d 884, 890 (5th Cir.1984), cert. denied, 469 U.S. 1160, 105 S.Ct. 910, 83 L.Ed.2d 924 (1985).

As the summary judgment opponent, Stearns had the burden to “set forth specific facts showing a genuine issue for trial.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 256, 106 S.Ct. 2505, 2510, 2514, 91 L.Ed.2d 202 (1986). To meet its burden, Stearns was obligated to “identify specific evidence in the records and articulate the precise manner in which the evidence support[s][its] claim[s].” Forsyth v. Barr, 19 F.3d 1527, 1537 (5th Cir.), cert. denied, 513 U.S. 871, 115 S.Ct. 195, 130 L.Ed.2d 127 (1994).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Forsyth v. Barr
19 F.3d 1527 (Fifth Circuit, 1994)
Melvin Friedman v. United States
421 U.S. 1004 (Supreme Court, 1975)
Anderson v. Liberty Lobby, Inc.
477 U.S. 242 (Supreme Court, 1986)
Eastman Kodak Co. v. Image Technical Services, Inc.
504 U.S. 451 (Supreme Court, 1992)
Spectrum Sports, Inc. v. McQuillan
506 U.S. 447 (Supreme Court, 1993)
Superturf, Inc. v. Monsanto Company
660 F.2d 1275 (Eighth Circuit, 1981)
Triple M Roofing Corp. v. Tremco, Inc.
753 F.2d 242 (Second Circuit, 1985)
C.E. Services, Inc. v. Control Data Corporation
759 F.2d 1241 (Fifth Circuit, 1985)
Richard Hoffman Corp. v. Integrated Building Systems
610 F. Supp. 19 (N.D. Illinois, 1985)
Exxon Corp. v. Allsup
808 S.W.2d 648 (Court of Appeals of Texas, 1991)

Cite This Page — Counsel Stack

Bluebook (online)
977 F. Supp. 1269, 1997 U.S. Dist. LEXIS 15487, 1997 WL 573089, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stearns-airport-equipment-co-v-fmc-corp-txnd-1997.