United States v. Standard Oil Co.

73 F.R.D. 612, 1977 U.S. Dist. LEXIS 17703
CourtDistrict Court, N.D. California
DecidedJanuary 25, 1977
DocketNo. C-52334 SC
StatusPublished
Cited by6 cases

This text of 73 F.R.D. 612 (United States v. Standard Oil Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Standard Oil Co., 73 F.R.D. 612, 1977 U.S. Dist. LEXIS 17703 (N.D. Cal. 1977).

Opinion

FINDINGS OF FACT AND CONCLUSIONS OF LAW

CONTI, District Judge.

I. PREFACE.

This action was brought by the United States under Section 4 of the Sherman Act (15 U.S.C. § 4) alleging that Standard Oil Company of California (SoCal) had violated Section 3 of the Sherman Act (15 U.S.C. § 3) by engaging, since 1956, in a continuing combination and conspiracy to unreasonably restrain and monopolize the distribution and sale of petroleum products in American Samoa. Specifically, the complaint alleged that SoCal had entered into long term petroleum requirements contracts with the primary nongovernmental consumers of petroleum in American Samoa, thereby causing an unreasonable restraint of trade.

On December 14, 1972, this court entered its judgment against SoCal adjudging it to have violated Section 3 of the Sherman Act. Prior to the entry of the judgment, on October 26, 1972, the court filed its Findings of Fact and Conclusions of Law, finding in part that SoCal, in combination with certain tuna canners doing business in American Samoa, conspired to reduce the price of petroleum products thereby preventing certain specified competitors from entering the petroleum market.

In May, 1974, a treble damage plaintiff (McCook) brought suit against SoCal in the Central District of California under Section 4 of the Clayton Act (15 U.S.C. § 15) alleging that he was a potential entrant into the petroleum market in American Samoa who had been excluded by the illegal conduct of SoCal. The complaint against SoCal was based, in part, upon the findings entered by this court in the government case, including a specific finding that McCook had been wrongfully excluded by SoCal from the petroleum market in Samoa (Finding # 67).

During the course of pre-trial discovery in the treble damage action, in response to requests for production of documents and subpoenas duces tecum issued by SoCal, approximately seventy-eight documents which were not previously disclosed to SoCal were discovered in the files of plaintiff (McCook), his agent in American Samoa (Turnbull), his attorney in the government case (Lynn), and in the files of a San Diego law firm retained by McCook’s attorney during the government case to evaluate a possible treble damage action. SoCal contends that these documents were relevant to its defense in the government case and show (1) that McCook was not excluded from the market in American Samoa due to SoCal’s price reductions, and (2) that the canners did not conspire with SoCal to go along with the price reductions in order to exclude McCook from the market.

Also, during pre-trial discovery in the treble damage action, SoCal noticed the deposition of Mr. Bernard M. Hollander, the Justice Department trial attorney in the government’s ease. Mr. Hollander was also served with a subpoena duces tecum. The government moved for a protective order. [614]*614Attached to the government’s motion was an affidavit by Mr. Hollander attesting that he had received no documents from McCook’s agent not already produced. At this time the government also produced a letter to Mr. Hollander from McCook’s agent with fourteen attachments. This letter was written after this court entered judgment in the government case. SoCal contends that these attachments contain information relevant to SoCal’s defense in the government case. The district court granted the protective order vacating Mr. Hollander’s deposition.

Additionally, SoCal sought from the government certain internal memoranda, correspondence, and notes made in preparation of the government case. SoCal also sought similar documents from McCook, Turnbull, Lynn and other attorneys consulted by Turnbull and Lynn to evaluate the probability of success in the treble damage action. These documents, both from the government and McCook, were twenty-nine in number. The district court protected from discovery the documents sought from the government, ruling that the documents were either privileged or not relevant. The documents sought from the treble damage plaintiff were simply withheld under a claim of privilege. The court did not rule on these claims of privilege, and SoCal has not attempted further production of these documents in the treble damage action.

On December .6, 1976, after receiving leave from the Supreme Court, SoCal filed a motion to set aside this court’s judgment in the government case pursuant to Rule 60(b) F.R.C.P., for fraud upon the court. SoCal asserts two alternative theories for its claim of fraud: (1) that McCook, his agent Turnbull, and attorney Lynn conspired prior to trial in the government case to suppress from discovery certain documents relevant to SoCal’s defense and that the government, although not aware of this suppression until after this court entered its judgment, failed at that time to inform either SoCal or the court of these documents, thereby precluding SoCal from bringing a motion to set aside the judgment pursuant to Rule 60(b)(2) or (3) F.R.C.P. within one year of its entry by the court; or (2) that McCook, Turnbull, and Lynn conspired to suppress relevant documents prior to trial and that the government, though not a party to this conspiracy, was aware of the suppression, failed to produce relevant documents from its own files, and finally failed to inform either SoCal or the court of the suppression.

On December 9, 1976, this court ordered that an evidentiary hearing be held on So-Cal’s motion to set aside the judgment for fraud upon the court, on January 17, 1977. On January 14, 1977, the court denied So-Cal’s motions to continue the evidentiary hearing and for leave to undertake further discovery as well as its motion to compel the production of certain documents previously withheld by McCook, Turnbull, and the government under claim of privilege.

Rule 60(b) F.R.C.P.: Fraud upon the Court:

Rule 60(b) F.R.C.P. permits a court to set aside a final judgment for fraud. Rule 60(b)(3) F.R.C.P. provides that a judgment may be set aside for “fraud (whether heretofore denominated intrinsic or extrinsic), misrepresentation, or other misconduct of an adverse party”. A motion under Rule 60(b)(3) F.R.C.P. must be made not more than one year from the entry of the judgment sought to be set aside. However, Rule 60(b) F.R.C.P. goes on to provide as follows: “This rule does not limit the power of a court to entertain an independent action to relieve a party from a judgment, * * * or to set aside a judgment for fraud upon the court”. In the instant action, SoCal did not file its motion within one year of entry of this court’s judgment. As a result, SoCal’s motion is not cognizable under Rule 60(b)(3) F.R.C.P. The motion can be granted only if SoCal can demonstrate “fraud upon the court”.

The type of behavior required to set aside a judgment for fraud upon the court in the Ninth Circuit is as follows:

“In order to set aside a judgment or order because of fraud upon the court under [615]*615Rule 60(b), F.R.C.P., 28 U.S.C.A., it is necessary to show an unconscionable plan or scheme which is designed to improperly influence the court in its decision. Hazel-Atlas Glass Co. v. Hartford-Empire Co., 322 U.S. 238

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Bluebook (online)
73 F.R.D. 612, 1977 U.S. Dist. LEXIS 17703, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-standard-oil-co-cand-1977.