Opinion ID: 331362
Heading Depth: 2
Heading Rank: 2

Heading: Possible Jury Findings

Text: 34 From this evidence, the jury could reasonably have concluded that defendant combined and conspired with managers of factory dealerships. It is well settled that, although a party cannot combine or conspire with itself, a parent corporation, such as the defendants here, can combine or conspire with its wholly owned subsidiaries. Perma Life Mufflers Inc. v. International Parts Corp., 392 U.S. 134, 141-42, 88 S.Ct. 1981, 20 L.Ed.2d 982 (1968); Kiefer-Stewart Co. v. Joseph E. Seagram & Sons, 340 U.S. 211, 215, 71 S.Ct. 259, 95 L.Ed. 219 (1951); Minnesota Bearing Co. v. White Motor Corp., 470 F.2d 1323, 1328--29 (8th Cir. 1973). Explicit agreement is not a necessary part of a Sherman Act conspiracy. United States v. General Motors Corp., 384 U.S. 127, 142--43, 86 S.Ct. 1321, 16 L.Ed.2d 415 (1966). The conspiracy or agreement may be proved entirely by circumstantial evidence such as the conduct of the parties. Industrial Building Materials, Inc. v. Interchemical Corp., 437 F.2d 1336, 1343 (9th Cir. 1970); Flintkote Co. v. Lysfjord, 246 F.2d 368, 374 (9th Cir. 1957), cert. denied, 355 U.S. 835, 78 S.Ct. 54, 2 L.Ed.2d 46 (1957). 'Where the circumstances are such as to warrant (the trier of fact) in finding that the (alleged) conspirators had a unity of purpose or a common design and understanding, or a meeting of minds in an unlawful arrangement, the conclusion that a conspiracy is established is justified.' American Motor Inns, Inc. v. Holiday Inns, Inc., 521 F.2d 1230 at 1243 (3d Cir. 1975), quoting American Tobacco Co. v. United States, 328 U.S. 781, 810, 66 S.Ct. 1125, 90 L.Ed. 1575 (1946). 35 Although the evidence is weak, the jury could have found further that Chrysler's actions were unfairly competitive and that their effect was to force plaintiff out of business. 10 We note that in the first years of the contractual dealership program, plaintiff's sales increased and it showed its first profits. However, from 1966 on it suffered losses until it went out of business in 1969. Plaintiff's expert, Dr. Rubin E. Slesinger, professor of Economics at Pittsburgh, testified that large infusions of funds to factory dealers, as subsidies to offset losses, and the expenditure for advertising of two to four times the amount spent by independent dealers, and other preferential treatment of factory dealers, would tend to monopolize the Dodge market in Allegheny County. The plain implication of his testimony is that factory dealers would take sales away from independent dealers by these practices. 36 The jury may also have determined that Chrysler deliberately took advantage of Coleman's financial situation. Plaintiff was in breach of its Direct Dealer Agreement because it had not met its minimum sales requirement between 1962 and 1969, except in 1963. Consequently, Chrysler had the right under the agreement to terminate plaintiff's franchise. Chrysler apparently chose to let plaintiff remain in existence and contribute to overall sales of Dodge vehicles. While plaintiff was losing money, 11 Chrysler was subsidizing factory dealer losses. When plaintiff went out of business, Boulevard Dodge lowered its advertising expenses and, after 1971, operated at a profit. 12 Thus, the jury could have concluded that Chrysler had accomplished its purposes of increasing Dodge sales and consolidating retail sales in the hands of several strong Chrysler-controlled dealerships.