Walker Distributing Company v. Lucky Lager Brewing Company

323 F.2d 1, 7 Fed. R. Serv. 2d 96, 1963 U.S. App. LEXIS 4268, 1963 Trade Cas. (CCH) 70,886
CourtCourt of Appeals for the Ninth Circuit
DecidedSeptember 6, 1963
Docket18222_1
StatusPublished
Cited by89 cases

This text of 323 F.2d 1 (Walker Distributing Company v. Lucky Lager Brewing Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Walker Distributing Company v. Lucky Lager Brewing Company, 323 F.2d 1, 7 Fed. R. Serv. 2d 96, 1963 U.S. App. LEXIS 4268, 1963 Trade Cas. (CCH) 70,886 (9th Cir. 1963).

Opinions

DUNIWAY, Circuit Judge.

This case presents the question of the sufficiency of counts two and three of a second amended countex’claim, i. e., does either of those counts state a claim upon [3]*3which relief can be granted? (F.R.Civ.P. 12(b) (6)) The trial court ruled that they do not, having similarly ruled upon similar counts which appeared for the first time in an amended counterclaim. Thereafter, the counterclaimants, appellants here, made a motion for final judgment in which they stated:

“That the counter-defendants [sic] herein do not desire to and cannot further amend the second amended complaint [sic]. That all the facts that can now be pleaded are now before the Court and further amendment is undesirable and impossible.”

The court granted this motion and entered a final judgment against appellants. In that judgment it dismissed the entire counterclaim, but the only error asserted here relates to counts two and three. Appellants rely upon sections 1 and 2 of the Sherman Act (15 U.S.C. §§ 1, 2) and section 3 of the Clayton Act (15 U.S.C. § 14. We are reversing the judgment in part.

The action began as a diversity suit by appellee Lucky Lager Brewing Company (Lucky) against Walker Distributing Company, Inc., (Walker) and T. C. Walker and his wife, Rose, who were its stockholders and had guaranteed its obligations to Lucky. The claim was for $17,763.02 for beer purchased by Walker from Lucky. Summary judgment was entered for Lucky based upon admissions that the money was owing, so that only appellants’ counterclaim remains to be disposed of.

The only question now before us is whether, on the face of the counterclaim, a claim is stated upon which relief can be granted. We must construe the pleading in the manner most favorable to appellants and must bear in mind the policy that, unless there is no doubt as to the result, cases should be disposed of upon their merits. (See White Motor Co. v. United States, 1963, 372 U.S. 253, 83 S.Ct. 696, 9 L.Ed.2d 738; Sidebotham v. Robison, 9 Cir., 1954, 216 F.2d 816, 826-827, 831).

Although there are some decisions that appear to take a contrary position, we are of the opinion that there are no special rules of pleading in antitrust cases. Rule 8, F.R.Civ.P., is applicable here as in any other case. Nowhere in the Rules is there any contrary indication. The fact that Rule 9(b) requires particularity of statement of circumstances constituting fraud or mistake indicates that such particularity is not required in other cases, including antitrust cases. (See Thomason v. Hospital T.V. Rentals, Inc., 8 Cir., 1959, 272 F.2d 263; Niagara of Buffalo, Inc. v. Niagara Mfg. & Distrib. Corp., 2 Cir., 1958, 262 F.2d 106; Central Ice Cream Co. v. Golden Rod Ice Cream Co., 7 Cir., 1958, 257 F.2d 417; Sandidge v. Rogers, 7 Cir., 1958, 256 F.2d 269, 276; New Home Appliance Center, Inc. v. Thompson, 10 Cir., 1957, 250 F.2d 881; Nagler v. Admiral Corp., 2 Cir., 1957, 248 F.2d 319, 322-326; Lloyd v. United Liquors Corp., 6 Cir., 1953, 203 F.2d 789; Package Closure Corp. v. Sealright Co., 2 Cir., 1944, 141 F.2d 972; Louisiana Farmers’ Protective Union v. Great Atl. & Pac. Tea Co., 8 Cir., 1942, 131 F.2d 419, 422; F. Freund, The Pleading and Pre-Trial of an Anti-trust Claim, 1961, 46 Cornell L.Q. 555, 558.)

In several cases, the Supreme Court has indicated that we should be liberal in construing antitrust complaints. (See Radiant Burners, Inc. v. Peoples Gas, Light & Coke Co., 1961, 364 U. S. 656, 659-660, 81 S.Ct. 365, 5 L.Ed. 2d 358 (per curiam); Radovich v. National Football League, 1957, 352 U.S. 445, 453-454, 77 S.Ct. 390, 1 L.Ed.2d 456; United States v. Employing Plasterers’ Ass’n, 1954, 347 U.S. 186, 188-189, 74 S.Ct. 452, 98 L.Ed. 618.) In the Employing Plasterers case, the Court made it clear that, “whether these charges be called ‘allegations of fact’ or ‘mere conclusions of the pleader,’ * * * they must be taken into account in deciding” whether a claim for relief is stated. (Id. at 188, 74 S.Ct. at 453-454, 98 L.Ed. 618). Indeed, as we understand it, one purpose of Rule 8 was [4]*4to get away from the highly technical distinction between statements of fact and conclusions of law, and other similar technicalities, that often made a party’s success depend upon the skill of his counsel as a pleader rather than upon the merits of his case. The official forms, and rules 1 and 84, confirm this view. Most of the forms contain more “legal conclusions” than they do “facts.”

This court is not committed to a contrary view. In Bolick-Gillman Co. v. Continental Baking Co., 9 Cir., 1960, 278 F.2d 649, we reversed a dismissal for failure to state a claim under the antitrust laws because “[i]t cannot be said * * * that it ‘appears beyond doubt that the plaintiff can prove no set of facts in support of his claim which would entitle him to relief.’ ” (Id. at 650)

We think that the language of certain decisions goes too far in requiring details in an antitrust complaint, and insofar as it does, we decline to follow. Among such cases are Crummer Co. v. Du Pont, 5 Cir., 1955, 223 F.2d 238; Kinnear-Weed Corp. v. Humble Oil & Refining Co., 5 Cir., 1954, 214 F.2d 891; Nelson Radio & Supply Co. v. Motorola, Inc., 5 Cir., 1952, 200 F.2d 911; Feddersen Motors, Inc. v. Ward, 10 Cir., 1950, 180 F.2d 519; Black & Yates, Inc. v. Mahogany Ass’n, 3 Cir., 1941, 129 F.2d 227.

The sketchy and disconnected nature of appellants’ allegations, when coupled with their written judicial admissions in the trial court that they cannot further amend, may make us suspect that appellants may be unable to prove their case. It may well turn out, as Lucky suggests, that the counterclaim is without merit, and is an unjustified afterthought, filed in an effort to avoid paying a wholly legitimate commercial debt. There are ways by which appellee can justify these suspicions. (See Sidebotham v. Robison, supra, at 826-827) But the existence of doubt as to a party’s ability to prove his case is not a reason for dismissing for failure to state a claim.

Nor are we impressed with Lucky’s suggestion that “this is not a pleading case” because appellants confess that they cannot further amend. No authority is cited for this notion, nor can we find any. It is still true that, if the counterclaim states a claim, a dismissal under Rule 12(b) (6) is improper. We do think, however, that in construing the counterclaim we are entitled to take appellants at their word, and need not conjure up ways in which they might amend if permitted to do so.

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Bluebook (online)
323 F.2d 1, 7 Fed. R. Serv. 2d 96, 1963 U.S. App. LEXIS 4268, 1963 Trade Cas. (CCH) 70,886, Counsel Stack Legal Research, https://law.counselstack.com/opinion/walker-distributing-company-v-lucky-lager-brewing-company-ca9-1963.