The Firestone Tire & Rubber Co. v. General Tire & Rubber Co.

264 F. Supp. 291, 152 U.S.P.Q. (BNA) 489, 1966 U.S. Dist. LEXIS 10380
CourtDistrict Court, D. Maryland
DecidedOctober 17, 1966
DocketCiv. A. No. 12932
StatusPublished

This text of 264 F. Supp. 291 (The Firestone Tire & Rubber Co. v. General Tire & Rubber Co.) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The Firestone Tire & Rubber Co. v. General Tire & Rubber Co., 264 F. Supp. 291, 152 U.S.P.Q. (BNA) 489, 1966 U.S. Dist. LEXIS 10380 (D. Md. 1966).

Opinion

MEMORANDUM ON DEFENDANT’S RENEWED MOTIONS TO TRANSFER AND TO IMPOSE SANCTIONS.

R. DORSEY WATKINS, District Judge.

The defendant, The General Tire & Rubber Company (General), has renewed [292]*292its motion of April 13, 1961 to dismiss or transfer, and its motion of September 6, 1963, to transfer, this case to the United States District Court for the Northern District of Ohio, Eastern Division. Defendant further moves that sanctions be imposed upon plaintiffs,1 including General’s attorney fees and expenses arising from the prosecution of Civil Action No. 12,932, and an equal amount “against plaintiffs payable to the Court to compensate for plaintiffs’ gross imposition upon the Court and hardship caused other litigants by plaintiffs’ fraudulent monopolizing of over two and one-quarter years of the Court’s time * * * [and] for such other penalties, sanctions, and relief as the Court may see fit.”

The Court is also requested to enter certain proposed Findings of Fact.

The motions are stated to be based, “in addition to the grounds set forth in the documents supporting the previous transfer motions, upon newly discovered evidence which was kept from defendant by plaintiffs, although it was in the possession and control of one or both plaintiffs and known by them prior to the transfer motions of April 13, 1961 and September 6, 1963. The motions are also brought following the suggestions of the Court of Appeals in Case No. 10,429, at pages seven and eight of its opinion. [General Tire & Rubber Company v. Watkins, 4 Cir. 1966, 363 F.2d 87, 89-90].”

Significantly, there is no renewal of, or even mention of, defendant’s motion of October 12, 1965, seeking, among other things, a dismissal of the declaratory judgment action of McCreary Tire & Rubber Company (McCreary), a dismissal of the declaratory judgment action of The Firestone Tire & Rubber Company (Firestone), or in the alternative, a dismissal of the non-infringement portion of the declaratory judgment action; and to charge Firestone and Mc-Creary “with costs, expenses and attorney fees resulting from their improper declaratory judgment action and conduct”, and such additional relief as the Court may consider proper.

No mention is made of the Supplemental Statement filed by defendant on October 26, 1965, in support of the motion filed October 12, 1965. This Supplement is primarily related to meetings in March 1961, purportedly involving the relationship of Goodyear Tire and Rubber Company and United States Tire and Rubber Company to this litigation.

Finally, no mention is made of this Court’s ruling on December 13, 1965, denying the motion of October 12, 1965 as supplemented on October 26, 1965, raising substantially the same contentions as are made herein, nor of the Court’s oral opinion thereon (Transcript, pages 26,987-27,010).

In General Tire and Rubber Company v. Watkins, supra, the Court of Appeals said (363 F.2d at pages 89-90):

“Since the oral argument McCreary and General Tire have filed certain papers in this court in an effort to amplify the record. They are bottomed upon what purports to be a tape recording of a telephone conversation between a former president of McCreary and one of the lawyers for Firestone. It is suggested that there was falsity in the plaintiffs’ representations — in opposition to General’s original motion to transfer the case to Ohio — that McCreary was an independent party prosecuting the case at its own expense. These representations may well have been the determinative factor in the denial of the transfer motion. If they were in fact untrue, it appears that the plaintiffs may have practiced a serious fraud upon the District Court.

“However, these papers are not germane to the present petition for mandamus to disqualify the District Judge, and the propriety of the earlier motion to transfer is not now before us. [293]*293If the tape recording constitutes newly discovered evidence warranting reconsideration of the motion to transfer or any other relief, or the imposition of any sanction, it should first be presented to the District Court, with a motion stating what relief is claimed. After a hearing, the District Court will be in position to determine the authenticity of the tape recording, the truth and materiality of any representations made to the court earlier, and to grant whatever relief may be appropriate.

“After the District Court has acted upon an amplified record, this court can entertain any issue appropriately brought up for review. Until then, any application based upon the tape recording or a claim of earlier misrepresentation should be addressed to the District Court.”

Neither side has asked to take further testimony, or otherwise to amplify the record. However, oral argument was had on September 19, 1966, and on September 26, 1966, the Court advised counsel that the motion had been denied — this memorandum states the reasons therefor.

In its Memorandum in support of the present Motions defendant says (pages 1-2):

“Pursuant to this clear invitation of the Court of Appeals, defendant has renewed its April 13, 1961 motion to dismiss or transfer and its September 6, 1963 renewed motion to transfer. The foundation for the present renewed motion is the newly discovered evidence comprising DX 1840, the ‘backfire’ memorandum, and the dicta-phone recording of the May 9, 1961 telephone conversation between Mr. Birch and Mr. Harry C. McCreary, Sr. R. 33,325-33,330.” (Emphasis supplied.)

DX 1840 was filed September 30, 1965, well before this Court’s opinion of December 13, 1965, denying defendant’s motion to dismiss as supplemented (which raised issues presently before the Court) so that the only “newly discovered evidence” is the dictaphone recording, certain papers in McCreary’s files (Mc-Creary Exhibits 1-7), and the testimony with respect thereto. This Court might well confine its consideration to the significance, if any, of this newly discovered evidence on the claim of fraud. Since, however, the charge is so serious, and defendant attacks the professional integrity of Firestone’s attorneys, including the credibility of Firestone’s house counsel, who is also an attorney, although not engaged in court appearances, the Court will consider all of the grounds advanced by defendant in defendant’s Memorandum and proposed Findings of Fact.

1. The Origin of this Litigation.

Defendant contends that Firestone brought this action at the invitation of Goodyear and U. S. Rubber to delay and disrupt the Ohio litigation. Reference is made to a claimed “backfire” suggestion of Mr. Kenyon; the significance of DX 1840; and the claim is made that the dictaphone recording showed that some secret agreement existed between Firestone and McCreary. The same contentions, including the one that there was an undisclosed agreement between Firestone and McCreary (but not, of course, relying upon the dictaphone belt), were made by defendant in its Memorandum in support of its October 12, 1965 motions; together with an attack upon the “chameleon testimony” of Clark, Firestone’s house patent counsel.2

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264 F. Supp. 291, 152 U.S.P.Q. (BNA) 489, 1966 U.S. Dist. LEXIS 10380, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-firestone-tire-rubber-co-v-general-tire-rubber-co-mdd-1966.