The Elder-Beerman Stores Corp. v. Federated Department Stores, Inc.

459 F.2d 138, 16 Fed. R. Serv. 2d 9
CourtCourt of Appeals for the Sixth Circuit
DecidedApril 11, 1972
Docket20716, 20762
StatusPublished
Cited by62 cases

This text of 459 F.2d 138 (The Elder-Beerman Stores Corp. v. Federated Department Stores, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The Elder-Beerman Stores Corp. v. Federated Department Stores, Inc., 459 F.2d 138, 16 Fed. R. Serv. 2d 9 (6th Cir. 1972).

Opinions

KENT, Circuit Judge.

This is an appeal from a jury verdict, in an anti-trust case, in favor of the plaintiff, The Elder-Beerman Stores Corp., in the amount of $1,275,097, which was trebled under the statute,1 and judgment entered in the amount of $3,825,291. Judgment for the plaintiff, The Elder-Beerman Stores Corp., was entered in only one of the two actions submitted to the jury. The first action was commenced on November 27, 1961, and was combined in trial with the second case which was commenced on June 30, 1966. Upon the trial the jury returned a verdict of “no cause for action” in the first case and announced the verdict which has been previously referred to in the second case.

The appeal now before the Court relates only to the verdict for the plaintiff in the second case. The defendants named in the complaint included Federated Department Stores, Inc., Associated Merchandising Corporation (A.M.C.), its wholly owned subsidiary AIMCEE Wholesale Corporation (A.W.C.), and 66 suppliers. The suppliers were severed from the ease for the purposes of this trial. Plaintiffs will be referred to as Elder-Beerman, and the defendants as Federated or Rike’s.

In the complaint Elder-Beerman made claims against Federated and the other defendants asserting that they had “combined and entered into combinations * - * * to injure and destroy the plaintiff Elder-Beerman * * * as competitors * * * to restrain interstate trade and commerce unreasonably and unlawfully * * * and establish a monopoly of and to attempt to monopolize the department store business in the Dayton, Ohio, area * * Before the cases came on for trial all but twelve of the supplier defendants had been dismissed from the case by the plaintiffs. In the complaint plaintiff also asserted that Federated had violated the Robinson-Patman Act,2 but this [140]*140claim was dropped prior to trial, and the Court submitted the case to the jury solely on the issues of violation of Sections 1 and 2 of the Sherman Act.3

The Court stated in ruling upon the defendant’s motion for new trial that “there was insufficient evidence to justify damages on any claims under the Clayton Act.” However, on this record it appears that any award of damages was by virtue of Section 4 of the Clayton Act4 for violations of Sections 1 and 2 of the Sherman Act.

Federated since 1959 has been the owner of Rike’s, the leading department store in Dayton for many generations. The guiding head of Elder-Beerman and the other plaintiffs was Arthur Beer-man who had been in the clothing business in Dayton for a number of years before 1945 when he opened Beerman Stores, Inc. for the sale of general merchandise. Subsequently the (Beerman) business expanded and grew by the opening of new stores and the acquisition of existing stores in the Dayton area. During the period from 1957 through 1965, the years involved in the lawsuits in question, the total sales of the Elder-Beerman Stores grew from $10,440,000 to $33,300,000.

The lawsuit upon which the judgment was based was commenced in 1966, and sought damages for the period commencing with 1962. In 1962 the plaintiffs did a gross business of $26,500,000, and in 1965 a gross business of $33,300,000. The plaintiffs conceded that Federated and its predecessor, the Rike-Kumler Company, were completely unsuccessful in monopolizing the department store business in Dayton.5 The lawsuits, the first of which was instituted in 1961, were successful in forcing the suppliers, willingly or unwillingly, to sell to Elder-Beerman, since, as stated in plaintiffs’ brief, by the time of trial “all but 14 of the supplier defendants had agreed to sell to Elder-Beerman without discrimination and were dismissed from the suit and Elder-Beerman dismissed two other supplier defendants in whom it had lost interest.”

Plaintiffs’ whole theory of liability was that there was a conspiracy between Federated (and/or its predecessor) and the suppliers for the purpose of destroying the plaintiffs’ ability to compete on fair terms, and for the purpose of attempting to obtain a monopoly

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

Related

West v. Media General Operations, Inc.
120 F. App'x 601 (Sixth Circuit, 2005)
In Re K-Dur Antitrust Litigation
338 F. Supp. 2d 517 (D. New Jersey, 2004)
Gravity Inc v. Microsoft Corp
309 F.3d 193 (Fourth Circuit, 2002)
No. 01-2458
309 F.3d 193 (Fourth Circuit, 2002)
Melnick v. Microsoft Corp.
Maine Superior, 2001
Young Refining Corp. v. Pennzoil Co.
46 S.W.3d 380 (Court of Appeals of Texas, 2001)
In re Auction Houses Antitrust Litigation
193 F.R.D. 162 (S.D. New York, 2000)
Rossi v. Standard Roofing Inc (Part II)
156 F.3d 452 (Third Circuit, 1998)
Rossi v. Standard Roofing, Inc.
156 F.3d 452 (Third Circuit, 1998)
Pennington v. Harvest Foods, Inc.
934 S.W.2d 485 (Supreme Court of Arkansas, 1996)
Virtual Maintenance, Inc. v. Prime Computer, Inc.
11 F.3d 660 (Sixth Circuit, 1994)
Beach v. Viking Sewing Machine Co.
784 F.2d 746 (Sixth Circuit, 1986)
Beach v. Viking Sewing Machine Company, Inc.
784 F.2d 746 (Sixth Circuit, 1986)

Cite This Page — Counsel Stack

Bluebook (online)
459 F.2d 138, 16 Fed. R. Serv. 2d 9, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-elder-beerman-stores-corp-v-federated-department-stores-inc-ca6-1972.