Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_97-cv-04617/USCOURTS-cand-3_97-cv-04617-1/pdf.json

Nature of Suit Code: 410
Nature of Suit: Antitrust
Cause of Action: 15:1 Antitrust Litigation

---

United States District Court

For the Northern District of California

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

United States District Court

For the Northern District of California

IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF CALIFORNIA

THEME PROMOTIONS, INC, 

a California Corporation, d/b/a

THEME CO-OP PROMOTIONS,

Plaintiff and

Counterdefendant,

v

NEWS AMERICA MARKETING FSI, INC,

a Delaware Corporation,

Defendant and 

Counterclaimaint. /

No C 97-4617 VRW

ORDER

In this long-running antitrust action with accompanying

claims, the court following a jury trial entertained extensive

post-trial motions which the court ruled upon on March 2, 2006. 

The court requested the parties to submit a proposed form of

judgment based on the verdict and post-trial rulings.

The parties disagreed on the proper form of judgment. 

That disagreement centers on whether the jury’s award of $496,023

to Theme based on News America’s negligent interference with

Case 3:97-cv-04617-VRW Document 501 Filed 05/25/06 Page 1 of 3
United States District Court

For the Northern District of California

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

2

Theme’s prospective economic relationship with Campbells duplicates

the award the jury made on Theme’s Cartwright Act claim. The court

finds the awards are not duplicative for the reasons that follow.

The jury was instructed that there were four bases upon

which it could find the independent wrongful conduct necessary to

support a determination that News America negligently interfered

with Theme’s economic relationships, only two of which applied to

Campbells: (1) violation of the Cartwright Act or (2) intentional

misrepresentation by News America to Campbells that News America

had not changed its policy regarding the interpretation and

enforcement of its right-of-first-refusal (ROFR) agreements and

that Theme had always been subject to the terms of those ROFR

agreements.

There was substantial evidence in the trial record that

prior to 1997, News America did not use its ROFR agreements to keep

packaged goods companies (PGCs) such as Campbells from placing

their business through Theme with other producers of free-standing

inserts (FSIs). And there was some evidence that, on at least one

occasion, News America represented to Campbells and/or one of its

subsidiary/related entities, Pepperidge Farm, that a then-existing

agreement between News America and Campbells and/or Pepperidge Farm

required Campbells and/or Pepperidge Farm to place all FSI business

with News America when, in fact, the agreement contained “carveout” provisions allowing Campbells and/or Pepperidge Farm to place

FSI business with producers of FSIs other than News America under

certain circumstances. See Pl Ex 178. A rational jury could have

concluded from this evidence that News America intentionally

misrepresented to Campbells that News America had not changed 

Case 3:97-cv-04617-VRW Document 501 Filed 05/25/06 Page 2 of 3
United States District Court

For the Northern District of California

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

3

its policy regarding the interpretation and enforcement of its

right-of-first-refusal (ROFR) agreements and that Theme had always

been subject to the terms of those ROFR agreements.

The clerk is directed to enter judgment accordingly and

in accordance with the verdict and rulings on March 2, 2006.

SO ORDERED.

 

VAUGHN R WALKER

United States District Chief Judge

Case 3:97-cv-04617-VRW Document 501 Filed 05/25/06 Page 3 of 3