Opinion ID: 389315
Heading Depth: 3
Heading Rank: 3

Heading: The Antitrust Suit.

Text: 131 The plaintiffs also contend that the bringing of the antitrust suit against CHH was a breach of the directors' fiduciary duty. Because it is the duty of the directors to file an antitrust suit when in their business judgment a proposed combination would be illegal or otherwise detrimental to the corporation, see Chemetron Corp. v. Crane Co., 1977-2 Trade Cas. P 61,717 at 72,933 (N.D.Ill.1977); Gulf & Western Industries, Inc. v. Great A & P Tea Co., 476 F.2d 687, 698 (2d Cir. 1973), their decision to file an antitrust suit is also within the scope of the business judgment rule. There was substantial evidence before the court that the defendants were fairly and reasonably exercising their business judgment to protect the corporation against the perceived damage an illegal merger could cause, see Copperweld Corp. v. Imetal, 403 F.Supp. 579, 607 (W.D.Pa.1975) (no doubt that (divestiture) would have a debilitating effect on the acquired company ). 132 Not only were the directors acting in good faith reliance on the advice of experienced and knowledgeable antitrust counsel, which in itself satisfies the requirements of the business judgment rule, Spirt v. Bechtel, 232 F.2d 241, 247 (2d Cir. 1956); Voege v. Magnavox Co., 439 F.Supp. 935, 942 (D.Del.1977), but one member of the board was an experienced antitrust lawyer with a background of experience to evaluate the soundness of the legal claims. See Abramson v. Nytronics, Inc., 312 F.Supp. 519, 531-32 (S.D.N.Y.1970) (Boards of directors are deliberately chosen from the ranks of businessmen, bankers, and lawyers because of their expertise in evaluating the merits of precisely this sort of proposal.). The plaintiffs have introduced no evidence that the suit was brought in bad faith, but merely cite it as an example of the defendants' desire to perpetuate their control. However, because the bringing of the suit clearly served the rational business purpose of protecting Field's from the damage forced divestiture would cause, it is protected by the business judgment rule. Field's decision to resolve the antitrust question through litigation in federal court rather than some other method or in some other forum is a matter for the discretion of the directors when it is exercised within the scope of the rule. 133 Because we find insufficient evidence on which a jury could base a rational verdict that the defendants breached any fiduciary duty, neither can any claim of concealment of bad faith activity give rise to a jury question. We therefore affirm the district court's ruling on the state law claims of breach of fiduciary duty. 134