Opinion ID: 426310
Heading Depth: 1
Heading Rank: 2

Heading: Capacity to Conspire

Text: 8 Defendants first assert that the district court erred in instructing the jury that they were capable of conspiring to violate the antitrust laws although they were all owned by Conval. We agree. 9 In Murray v. Toyota Motor Distributors, Inc., 664 F.2d 1377, 1379 (9th Cir.), cert. denied, 457 U.S. 1106, 102 S.Ct. 2905, 73 L.Ed.2d 1314 (1982), this court held that the question of capacity to conspire is one of fact, and that it was reversible error to take the issue from the jury if reasonable minds could differ as to its resolution. Here, Conval, CIL, and TLC are all subsidiaries of Condec Corp., and there is evidence indicating that all of the defendants were publicly held out as parts of a single business entity known as the Condec Flow Control Group. If the jury found that the Group in fact could be viewed realistically as a single economic entity, it would be justified in concluding that the defendants were incapable of Sec. 1 conspiracy. General Business Systems v. North American Phillips Corp., 699 F.2d 965, 980 (9th Cir.1983); Thomsen v. Western Electric Co., 680 F.2d 1263, 1266-67 (9th Cir.), cert. denied, --- U.S. ----, 103 S.Ct. 348, 74 L.Ed.2d 387 (1982); Las Vegas Sun, Inc. v. Summa Corp., 610 F.2d 614, 617-18 (9th Cir.1979), cert. denied, 447 U.S. 906, 100 S.Ct. 2988, 64 L.Ed.2d 855 (1980); Harvey v. Fearless Farris Wholesale, Inc., 589 F.2d 451, 455-57 (9th Cir.1979). 10 Zidell argues that defendants waived their right to have the jury decide this issue, pointing to the following colloquy at trial: 11 THE COURT: Well, you know that I'm going to be the one that decides whether or not these companies are single economic entities and are capable of conspiring. You know that I'm going to decide that and not the jury, don't you? 12 MR. HILLIARD: Well, if that be the case, that's fine, Your Honor. Then this is testimony you should hear. 13 (Tr. at 1005.) Mr. Hilliard's remarks could be interpreted either as a waiver of his clients' right to a jury determination of that issue or a mere acquiescence in the trial judge's directive. However, a waiver of the right to trial by jury on an issue so triable must be clearly proved; equivocal remarks will not suffice. Palmer v. United States, 652 F.2d 893, 896 (9th Cir.1981); Pradier v. Elespuru, 641 F.2d 808, 811 (9th Cir.1981); Franks v. United States Lines Co., 324 F.2d 126, 127 n. 1 (2d Cir.1963). 14 Zidell also points out that Murray was decided subsequent to the verdict in this case, and that the question of whether capacity to conspire was an issue of fact or of law was unresolved prior to Murray. See, e.g., Murphy Tugboat Co. v. Shipowners & Merchants Towboat Co., 467 F.Supp. 841, 859 n. 15 (N.D.Cal.1979), aff'd sub nom. Murphy Tugboat Co. v. Crowley, 658 F.2d 1256 (9th Cir.1981), cert. denied, 455 U.S. 1018, 102 S.Ct. 1713, 72 L.Ed.2d 135 (1982). Even if we were to decide that Murray should only be prospectively applied, however, the district court did have the Murray decision before it on a post-trial motion. At that point, the litigation had not been terminated so Murray would have to be applied. Linkletter v. Walker, 381 U.S. 618, 627, 85 S.Ct. 1731, 1736, 14 L.Ed.2d 601 (1965); 1B J. Moore, Moore's Federal Practice p 0.404, at 575-76 (2d ed. 1965).