United States v. Standard Oil Co. of California

7 F.R.D. 338, 1947 U.S. Dist. LEXIS 1669
CourtDistrict Court, S.D. California
DecidedJuly 14, 1947
DocketNo. 6159
StatusPublished
Cited by5 cases

This text of 7 F.R.D. 338 (United States v. Standard Oil Co. of California) is published on Counsel Stack Legal Research, covering District Court, S.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. of California, 7 F.R.D. 338, 1947 U.S. Dist. LEXIS 1669 (S.D. Cal. 1947).

Opinion

YANKWICH, District Judge.

In this action brought by the United States to enjoin certain practices of the defendant corporations, which the complaint alleges to be in violation of the Sherman, 15 U.S.C.A. §§ 1 to 4, and the Clayton 15 U.S.C.A. § 25, Anti-Trust Acts, several motions have been interposed by the defendants.

The complaint, generally, charges certain practices in controlling 8000 stations in eight Western States — California, Oregon, Washington, Arizona, Nevada, New Mexico, Idaho, Utah — and in controlling [339]*339oil, gasoline, tires, and other products to be sold at these stations to the exclusion of competitors in the same fields.

The motions, heretofore argued and submitted, are now decided as follows:

Motion No. I

(For a Stay of Proceedings)

This motion seeks to stay proceedings in this cause until the final termination or determination of an anti-trust action instituted by the United States, in the District of Columbia, against the American Petroleum Institute and many other defendants, including the defendant here. The action just mentioned was filed on September 30, 1940. We have had no indication as to its status, whether issue has been joined, whether any attempt has been made to set it for trial; and, if so, when it will be tried.

A comparison of the complaint in the case before us, with the complaint in the case just referred to, shows that while both of them charge violations-of the Sherman Anti-Trust Act, 15 U.S.C.A. § 4, and the Clayton Act, 15 U.S.C.A. § 25, the issues are entirely different. The present action is against two defendants. The action in the District of Columbia is directed at practically the entire oil industry. It is true that some of the practices charged in this complaint as violations of the anti-trust laws, are also charged in the other complaint. But there, they are incidental to other charges directed at other companies. Here, the control of gasoline stations through the so-called “Iowa Plan” of leasing and like practices, are of the very essence of the charge, and are directed specifically at the two companies.

The complaint in this case is strictly regional. It seeks judicial condemnation of certain practices in eight western states. The complaint in the other case is of a national scope. The dissimilarity between the two actions, the present one which seeks to condemn only certain practices relating to the marketing of products through stations in a limited number of states, and the other, which attacks many practices indulged in by practically the entire oil industry, is so great as to forbid stay of the present action pending the determination of the broader issues involved in the action pending in the District of Columbia.

The motion is, therefore, denied.

Motion No. II (To Dismiss)'

While the motion was not pressed, it is apparent to me that the grounds alleged for dismissal, namely, the present location of witnesses and documents at the defendant’s headquarters in the City and County of San Francisco, are insufficient to call for the application of the doctrine of forum non conveniens, even if we assume that the principle applies to an action of this character, in which the statute permits the action to be brought not only in the “district whereof it is an inhabitant, but also in any district wherein it may be found or transacts business.” 15 U.S.C.A. § 22. And see, Eastman Kodak Co. v. Southern Materials Photo Co., 1925, 273 U.S. 359, 47 S.Ct. 400, 71 L.Ed. 684; Baltimore & Ohio Ry. Co. v. Kepner, 1941, 314 U.S. 44, 62 S.Ct. 6, 86 L.Ed. 28, 136 A. L.R. 1222; Miles v. Illinois Central, 1942, 315 U.S. 698, 62 S.Ct. 827, 86 L.Ed. 1129, 146 A.L.R. 1104.

The complaint here alleges that the defendants transact business in this district.

Motion No. Ill

(To Dismiss for Failure to State a Claim and for Lack of Jurisdiction)

The time which has elapsed since the presentation of these motions has permitted me to make a more detailed study of the complaint in this case than I had occasion to do before their presentation, and when they were argued.

Such study leads me to the conclusion that the complaint states a claim and states with sufficient certainty violation of both the Sherman and the Clayton Acts. It is to be borne in mind that this is a civil action. And while it is of a serious nature, [340]*340it still conforms, to the pattern which the Federal Rules of Civil Procedure, 28 U.S. C.A. following section 723c, put into effect and under which pleadings are, in effect, notice pleadings. This, of course, does not mean that a complaint cannot be dismissed for insufficiency of allegations. It does mean, however, that if a complaint states a claim in the manner required by Rule 8, it is good against a motion to dismiss. Whether a complaint satisfies this requirement is a question to be determined, in each case, by reference to its allegations.

In the complaint before us, we have a detailed description of the business of the defendants and of the relations between the two. The trade terms to be referred to are defined. The nature of the interstate commerce is described in great detail. The restraint through various forms of agreements, the aim of which is to monopolize certain stations as outlets for petroleum and other products in interstate commerce to the exclusion of competitors are described in great detail. So also is the effect of these agreements on interstate commerce.

These allegations satisfy the requirements of the statutes under which the action is brought and of accepted rules of pleading. They are of the type which the courts have held sufficient even in a criminal indictment. See United States v. General Motors Corporation, 1941, 7 Cir., 121 F.2d 376; and see my opinion in United States v. Heating, Piping & Air Conditioning Contractors Association, 1940, D.C.Cal., 33 F.Supp. 978.

In fact, if we gauge this complaint by the standards sanctioned by our Ninth Circuit Court of Appeals for actions brought by private parties to recover damages resulting from violations of the anti-trust acts — in which greater certainty is required, in the allegations — the complaint meets them. See, Hicks v. Bekins Moving & Storage Co., 1937, 9 Cir., 87 F.2d 583; Lynch v. Magnavox Company, et al., 1938, 9 Cir., 94 F.2d 883; and see, Louisiana Farmers’ Protective Union, Inc. v. Great Atlantic & Pacific Tea Co., 1942, 8 Cir., 131 F.2d 419, 422-423, where the Court, in referring to the difficulties of pleading in anti-trust cases, uses this very language highly pertinent to this case:

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Bluebook (online)
7 F.R.D. 338, 1947 U.S. Dist. LEXIS 1669, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-standard-oil-co-of-california-casd-1947.