United States v. National Ass'n of Leather Glove Mfrs., Inc.

15 F.R.D. 285, 1950 U.S. Dist. LEXIS 3617
CourtDistrict Court, N.D. New York
DecidedOctober 19, 1950
DocketCiv. Nos. 3715, 3716
StatusPublished
Cited by1 cases

This text of 15 F.R.D. 285 (United States v. National Ass'n of Leather Glove Mfrs., Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. National Ass'n of Leather Glove Mfrs., Inc., 15 F.R.D. 285, 1950 U.S. Dist. LEXIS 3617 (N.D.N.Y. 1950).

Opinion

BRENNAN, Chief Judge.

Plaintiff in each of the above named actions seeks a decree adjudging that the defendants have conspired to restrain interstate trade and commerce in violation of the Sherman Act, 15 U.S.C.A. §§ 1-7, 15 note. An injunction restraining the defendants is the principal relief sought in the complaint.

Both complaints are similar in form and substance. The defendants are not identical, although some of the parties are named defendants in both actions. In action No. 3715 the allegations of the complaint refer to the manufacture and sale of leather gloves and the defendants are engaged in that business. In action No. 3716 the allegations refer to the manufacture and sale of knitted gloves, and the defendants are engaged in that business. Since the allegations of the complaints are very similar, the motions as addressed to each complaint will be disposed of together.

Motions to Dismiss

Motions to dismiss the complaint are made in each action in behalf of at least two of the defendants named therein. The basis of each motion is the alleged failure to state a claim upon which relief can be granted. Rule 12(b), Federal Rules of Civil Procedure, 28 U.S.C.A.

The burden of defendants’ contention is that the allegations of the complaint are conclusive in nature, and that the combination or conspiracy alleged in the complaint is not supported by sufficient detailed allegations of fact as to show its unlawfulness within the provisions of the Sherman Act. The complaint itself must furnish an answer to such contentions.

Concisely stated, the complaint, involving leather glove manufacturers, alleges that members of the defendant Leather Glove Association control approximately 90% of the domestic leather glove production. A similar allegation is found in the action involving knitted glove manufacturers. Each defendant is then charged with a violation of the Sherman Act in that they engage in a conspiracy in unreasonable restraint of interstate trade and commerce, in that the selling price of gloves would be stabilized by the defendant by agreeing upon prices, terms of sale and exchanging information concerning costs, production, and sales. It is further alleged that the defendants maintained a blacklist among the members of the association, which blacklist contained the names of retailers and jobbers who refused to accept the selling price, terms and conditions, and that such retailers and jobbers would be coerced into the acceptance of same by the threat to name them in the blacklist. Retailers and jobbers would be further coerced to pay amounts claimed by members of the association to be due them under the threat of being named in the blacklist. The complaint contains a further allegation that the conspiracy had the effect of suppressing and eliminating competition and that such effect was intended by the defendants.

The Rules of Civil Procedure require that pleadings are to be construed liberally, and since the case of Leimer v. State Mutual Life Assurance Co., 8 Cir., 108 F.2d 302, it has been uniformly recognized that there is no justification for the dismissal of a complaint for insufficiency of statement, except where it ap[288]*288pears to a. certainty that the plaintiff would be entitled to no relief under any of the facts which could be proved in support of the claim. This rule has been uniformly recognized and liberally construed. The Supreme Court in Hickman v. Taylor, 329 U.S. 495 at page 501, 67 S.Ct. 385, 91 L.Ed. 451, states in substance that under the rules the task of the pleadings is to give notice to the defendant of the nature of the claims made by the plaintiff, the details of which may be ascertained through the deposition-discovery process. It is recognized that in anti-trust cases to require the allegation of details of an alleged unlawful combination or conspiracy would result in a complaint of such length as to conflict with the provisions of the rule, which requires a conciseness in pleadings. The case of U. S. v. Socony Vacuum Oil Co., 310 U.S. 150, 60 S.Ct. 811, 84 L.Ed. 1129, states plainly that any combination or conspiracy which tampers with price structure is engaged in an unlawful activity. The maintenance and use of a blacklist has been held unlawful since Eastern States Retail Lumber Dealers Association v. United States,. 234 U.S. 600, 34 S.Ct. 951, 58 L.Ed. 1490, cited as authority in U. S. v. U. S. Alkali Export Association, D.C., 86 F.Supp. 59. at page 77. The complaint here charges a combination which violates the Sherman Act in the two particulars referred to above, and this Court cannot say that plaintiff is not entitled to relief under the present liberal interpretation of pleadings, and the tendency of trial courts to admit evidence which is within its framework. United States v. Standard Oil Co. of California, D.C., 7 F.R.D. 338; United States v. Johns-Manville, D.C., 1 F.R.D. 548.

The Court has not overlooked the cases cited by the moving parties, especially Shotkin v. General Electric Company, 10 Cir., 171 F.2d 236, and Feddersen Motors v. Ward, 10 Cir., 180 F.2d 519. Each of these cases was brought to obtain a money judgment to redress a private wrong. They are based upon an asserted violation of the Sherman Act with resulting injury. The court held therein that the' complaints contained no sufficient allegation of restraint of interstate commerce. Here there is a direct allegation of unreasonable restraint together with the allegation showing that a high percentage of the manufactured articles are controlled by the defendants.

The pleading is sufficient to show an interest and tendency to interrupt and restrain the free flow of interstate commerce.

The motions to dismiss are denied.

Motions for More Definite Statements

Motions are made on behalf of several defendants for more definite statements as to certain allegations of the complaints. These motions are based upon the provisions of Rule 12(e) of the Federal Rules of Civil Procedure, and the language of the Rule imposes the burden of satisfying the Court that the allegations in the complaint are so vague or ambiguous that the defendant cannot reasonably be required to frame an answer thereto.

At the time of the argument of these motions, the Court indicated that its attitude in anti-trust cases is to keep the pleadings as concise as possible, and to be more liberal in the application of the procedural rules relating to discovery and inspection. This attitude is warranted by the language of the Rules relating to pleadings and by characteristics of anti-trust litigation. Generally the plaintiff’s complaints are based upon information obtained through the inspection of the books, records and papers of the defendant.

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Cite This Page — Counsel Stack

Bluebook (online)
15 F.R.D. 285, 1950 U.S. Dist. LEXIS 3617, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-national-assn-of-leather-glove-mfrs-inc-nynd-1950.