Wall Products Co. v. National Gypsum Co.

326 F. Supp. 295, 1971 U.S. Dist. LEXIS 14129, 1971 Trade Cas. (CCH) 73,523
CourtDistrict Court, N.D. California
DecidedMarch 18, 1971
DocketCiv. 46414, 46455, 46487, 46640, 47195-47197, 47323, 48214, 48235, 48549, 48550, 48778-48784, 48787-48789, 48797 and 48798
StatusPublished
Cited by30 cases

This text of 326 F. Supp. 295 (Wall Products Co. v. National Gypsum 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
Wall Products Co. v. National Gypsum Co., 326 F. Supp. 295, 1971 U.S. Dist. LEXIS 14129, 1971 Trade Cas. (CCH) 73,523 (N.D. Cal. 1971).

Opinion

MEMORANDUM OPINION

ZIRPOLI, District Judge.

On October 27, 1969, pursuant to pretrial orders previously entered by this Court, trial began in the 24 above numbered civil actions filed by six different dealer plaintiffs 1 seeking to recover damages for alleged violations by four named defendants of the state and federal antitrust laws. By stipulation of the parties, filed November 27, 1968, jury trial was waived and trial was held before the Court sitting without a jury.

Pursuant to pretrial orders No. 15, dated April 1, 1969, and No. 17, dated June 26, 1969, the issues of the first phase of the trial were limited to alleged violations by defendants of Section 1 of the Sherman Act (15 U.S.C. § 1), and impact on the dealer plaintiffs. Broadly stated, the issue presented was whether any of the defendants combined, conspired, or agreed with any other defendant or co-conspirator in violation of Section 1 of the Sherman Act.

Defendants filed answers denying the material allegations of the complaint and after 23 pretrial orders had been entered, trial commenced before the Court on the date hereinabove stated.

Plaintiffs in their post-trial brief assert that the principal acts of the defendants’ combination and conspiracy were (1) the stabilization of prices and elimination of competition through verification of price and terms exceptions; and (2) direct price fixing through the concerted withdrawal of price and terms exceptions occurring on December 15, 1965 (price); on March 1, 1966 (credit) ; and in late 1966 (packaging) . 2

*297 After plaintiffs had presented their evidence and concluded their case, defendant Fibreboard Corporation moved for dismissal of the cases against it (Nos. 48549, 46640, 48797, 48214 and 48798). On February 19, 1970, the Court granted said motion and on April 17, 1970, made and entered its findings of fact, conclusions of law and judgment in favor of Fibreboard.

Following the granting of Fibreboard’s motion, the remaining defendants presented their evidence. The remaining defendants are United States Gypsum Company (hereinafter referred to as “USG”), National Gypsum Company (hereinafter referred to as “National”) and Kaiser Gypsum Company (hereinafter referred to as “Kaiser”) . 3 Plaintiffs offered no rebuttal evidence. On March 19, 1970, the taking of evidence was concluded and the Court took the cases under submission, subject to the presentation by the parties of proposed findings of fact and conclusions of law, together with supporting briefs.

The Court, having considered the evidence, the proposed findings, briefs and arguments of the parties, makes the findings and conclusions of law hereinafter set forth in this memorandum opinion.

In its consideration of the claims of plaintiffs that defendants engaged in the conspiratorial activities asserted in (1) and (2) above, the Court will treat each claim separately. Preliminary thereto, the Court deems it advisable to and makes its findings as to the Court’s jurisdiction, the parties to the litigation, the nature of the product involved, the structure and performance of the industry, the economic climate in which such industry operated during the years involved in this litigation and the pricing practices of the industry. The factual background relating to the withdrawal of price and terms exceptions occurring on December 15, 1965 and March 1, 1966 will be separately reviewed, following the Court’s ruling on the effect of the verification communications of the defendants as to price and terms exceptions (deviations from list or published prices and terms). 4

*298 Jurisdiction.

The Court has jurisdiction of the subject matter and the parties to this litigation. Its jurisdiction to adjudicate the claims of plaintiffs under Section 1 of the Sherman Act and the proper venue of these cases has been conceded by all parties. Except as otherwise stated or required by context, the facts found in this memorandum opinion occurred or existed within the period January 1,1959 to December 31,. 1968, and occurred or existed within the continental United States.

Parties Plaintiff.

Plaintiff Wall Products Co. is a California corporation organized in October, 1960. It actively engaged in business exclusively as a dealer in wallboard from July, 1963 to August or September, 1966, under various fictitious names, including “Delta Supply.”

Plaintiff Ranier Enterprises, Inc. is a California corporation organized in August, 1964. It actively engaged in business exclusively as a dealer in wallboard from September, 1965 through June 30, 1966, under the fictitious name of “Delta Counties Supply.”

Plaintiff Cover-All Building Materials, Inc. is a California corporation organized in February, 1964. It actively engaged in business exclusively as a dealer in wallboard from February, 1964 to 1967.

Plaintiff Di-Wal Building Materials was a partnership composed of David C. Walker and George DiCesare. It commenced business as a dealer in various building materials including wallboard in February, 1962. In early 1963 Walker purchased DiCesare’s partnership interest and thereafter operated Di-Wal Building Materials as a sole proprietorship engaged in business as a dealer in wallboard. At varying times from February, 1962 to early 1967 Walker operated yards in San Rafael, Vallejo, Santa Rosa, Berkeley, San Jose and Castro-ville, California. His expansions were financed largely through extensions of credit from the gypsum wallboard producers.

Plaintiff Di-Wal, Inc. is a California corporation organized in July, 1964. In July, 1964 Walker transferred the assets of Di-Wal Building Materials in San Rafael to Di-Wal, Inc., and Walker has always been its president and sole shareholder. Di-Wal, Inc. actively engaged in business exclusively as a dealer in wallboard from July, 1964 until early 1967.

Plaintiff Walker Wallboard Company, Inc. is a California corporation organized in May, 1965. It conducted business under the fictitious name of “DiWal, Ltd.” and actively engaged in business exclusively as a dealer in wallboard from May, 1965 until early 1967 with its principal place of business in San Francisco.

Plaintiff Klamath Lumber Company of San Carlos is a California corporation organized in 1952. It actively engaged in business as a distributor of building materials, including wallboard, from 1952 until approximately February, 1968.

Plaintiff E & M Supply Company is a California corporation organized in November, 1963-. It actively engaged in business as a dealer in gypsum products and roofing materials from November, 1963 to September, 1967. Since early 1965 it dealt exclusively in gypsum products.

Plaintiff California Supply Company of San Jose, Inc. is a California corporation organized in April, 1948. Plaintiff John Azland is-4he duly appointed trustee of the bankrupt estate of this plaintiff corporation (adjudicated December 30, 1966).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Lewis-Westco & Co. v. Alcoholic Beverage Control Appeals Board
136 Cal. App. 3d 829 (California Court of Appeal, 1982)
Catalano, Inc. v. Target Sales, Inc.
446 U.S. 643 (Supreme Court, 1980)
United States v. United States Gypsum Co.
438 U.S. 422 (Supreme Court, 1978)
The State Of Alabama v. Blue Bird Body Company
573 F.2d 309 (Fifth Circuit, 1978)
Alabama v. Blue Bird Body Co.
573 F.2d 309 (Fifth Circuit, 1978)
Duplan Corp. v. Deering Milliken, Inc.
444 F. Supp. 648 (D. South Carolina, 1977)
Bogosian v. Gulf Oil Corp.
561 F.2d 434 (Third Circuit, 1977)
United States v. United States Gypsum Company
550 F.2d 115 (Third Circuit, 1977)
United States v. United States Gypsum Co.
550 F.2d 115 (Third Circuit, 1977)
Response of Carolina, Inc. v. Leasco Response, Inc.
537 F.2d 1307 (Fifth Circuit, 1976)
United States v. United States Gypsum Company
404 F. Supp. 619 (District of Columbia, 1975)
Bogosian v. Gulf Oil Corporation
393 F. Supp. 1046 (E.D. Pennsylvania, 1975)
United States v. United States Gypsum Company
383 F. Supp. 462 (W.D. Pennsylvania, 1974)
In Re Gypsum Cases
386 F. Supp. 959 (N.D. California, 1974)
Bogosian v. Gulf Oil Corp.
62 F.R.D. 124 (E.D. Pennsylvania, 1973)
Wall Products Co. v. National Gypsum Co.
357 F. Supp. 832 (N.D. California, 1973)

Cite This Page — Counsel Stack

Bluebook (online)
326 F. Supp. 295, 1971 U.S. Dist. LEXIS 14129, 1971 Trade Cas. (CCH) 73,523, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wall-products-co-v-national-gypsum-co-cand-1971.