United States v. American Telephone & Telegraph Co.

84 F.R.D. 350, 1979 U.S. Dist. LEXIS 8613
District Court, District of Columbia·Decided November 9, 1979·No. Civ. A. No. 74-1698·Published·Cited by 1 cases

Opinion

MEMORANDUM

HAROLD H. GREENE, District Judge.

A number of issues have recently arisen concerning the conduct of current and future pretrial proceedings. The Court has considered these issues, and after a hearing has reached a number of conclusions which are embodied in the attached Pretrial Order No. 17. Other matters, raised at the hearing on November 7, 1979, will be addressed in subsequent orders.

I

On October 19, 1979, the Court issued a Memorandum and a Draft Pretrial Order. These documents had as their principal purpose the establishment of a mechanism for integrating the stipulation process with the development of a meaningful catalogue of contested issues. Logically and functionally these two processes are intimately linked and they must, of necessity, be examined together on a transaction or subject matter basis. Allegations and evidence that are stipulated to will obviously not remain for contest at trial; and genuinely contested matters will not be the subject of stipulation. It was the Court’s assumption that the parties’ first and second Statements of Contentions and Proof contained essentially all of their claims and defenses and the evidence to support them; that the third and fourth Statements of Contentions and Proof, as directed by Pretrial Order No. 12, would not enlarge upon those matters in significant respects; and that a basis for the complete development of stipulations and contested issues presently exists.

It now appears from the government’s submission of October 29, 1979, that it expects its third Statement of Contentions and Proof to accomplish more ambitious purposes than a mere narrowing of the earlier Statements. According to the government, its third Statement will summarize and organize the various procedures established by Pretrial Order No. 16; it will constitute in essence its first set of proposed findings of fact; it will identify those contentions in the government’s case about which the parties agree and those about which disputes remain; it will form the basis of requests to admit; and it will include a rebuttal to defendants’ regulatory [352]*352and other assertions organized along the lines of defendants’ allegations. Beyond that, the government suggests that this Statement will integrate the allegations in its first and second Statements “into a cohesive whole to demonstrate the broad themes that underly the government’s case.”

Although it might be said that some or most of these objectives should have been accomplished in the earlier Statements, the Court is not insensitive to the government’s current logistical problems and the time pressures upon both parties as well as upon the Special Masters under the Draft Pretrial Order. Moreover, it may well be that the purposes sought to be achieved by that document could also be attained under the more relaxed schedule proposed in the Special Masters’ letter to the Court of October 26, 1979, and that, indeed, such a schedule will permit consideration of and agreement on major as well as minor undisputed facts. An extension of the schedule appears to be also supported by defendants — whose position, at a minimum, may be characterized as not in substantial disagreement with the thrust of the government’s position1 — and most significantly, it would interfere neither with the over-all pretrial scheduling targets set by Pretrial Order No. 162 nor with the trial date. Accordingly, the draft pretrial order has been amended to provide the additional time sought by the government.

II

The government has filed an appeal from an order issued by the Special Masters on October 30, 1979, which requires the parties to submit detailed statements of facts concerning two discrete transactions more generally described in the first two Statements of Contentions and Proof.3 It is evidently the government’s contention that (1) little can be accomplished by way of substantive stipulations until its third Statement of Contentions and Proof is filed; (2) the Special Masters are in error in attempting to effect a recasting of the parties’ contentions in more neutral terms or in trying to weave the facts into a coherent whole; (3) the government is not able to comply with the Special Masters’ plan because it has not had an opportunity to review its evidence on a subject matter basis and is unable to provide anything more than a summary narrative; and (4) the Court’s draft order and the Special Masters’ plan are overly ambitious and would vest too much discretion in the Special Masters. Defendants have responded by urging that the appeal be dismissed. The Court agrees.

The government’s several submissions to the Court exhibit an excessive rigidity possibly borne of inadequate preparation. In September of last year the Court established an over-all framework and schedule for the development of contentions, the narrowing of issues, and the elimination from the case of matters which were not really in dispute. The procedures set forth in the Special Masters’ order — consideration of possible stipulations by substantive topics and a recasting of the parties’ contentions to the extent possible in neutral terms — not only do not represent a substantive departure from the design established by Pretrial Order No. 16 but they are clearly necessary if the stipulation process is to be meaningful and productive. Defendants are quite correct in their assertion (Memorandum, pp. 2-3) that “the stipulation negotiations must go beyond the narrow confines of the parties’ stipulation worksheets and build upon these worksheets to identify the true nature [353]*353of the dispute between the parties with respect to each episode.” Any effort to devote the negotiation conferences merely to the goal of arriving at the stipulation of a list of isolated, fragmentary facts would hardly advance the progress of this case or the cause of justice.4

Thus, the Court firmly supports the approach taken by the Special Masters. To the extent that the government suggests that it has not sufficiently reviewed its evidence by subject matter so as to be able to participate in stipulations on that basis, the answer is that it should have done so. Five years after the complaint was filed; more than one year after the Court had made it clear that the pretrial process would go forward; and following the filing of two Statements of Contentions and Proof government counsel may legitimately be expected to have the ability to discuss both the significance and the detail of its factual contentions. As indicated, Pretrial Order No. 17 extends the deadlines proposed in the Draft Pretrial Order, and the government is thus provided with another opportunity so to advance its preparations that it will be able to participate productively in the process of shaping both the stipulations and the catalogue of disputed contentions. That process will be governed by procedures and schedules as they have been or hereafter may be adopted by the Special Masters within the general framework of the orders of this Court.

Complex antitrust cases do not always move through the judicial process as expeditiously as the public has a right to expect. Delay and failure to develop the issues are usually laid at the doorstep of the corporate defendants on the theory that they sometimes employ such devices as means for defeating their adversaries through attrition.5

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United States v. American Telephone & Telegraph Co., 84 F.R.D. 350, 1979 U.S. Dist. LEXIS 8613 (D.D.C. 1979).

84 F.R.D. 350 (United States v. American Telephone & Telegraph Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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