Document: 370 U.S. 690 82 S.Ct. 1404 8 L.Ed.2d 777 CONTINENTAL ORE COMPANY et al., Petitioners,v.UNION CARBIDE AND CARBON CORPORATION al. No. 304. Argued April 16 and 17, 1962. Decided June 25, Joseph L. Alioto, San Francisco, Cal., for petitioners. Josiah G. Holland, Denver, Colo., respondent Vanadium Corp. of America. Richard J. Archer, respondents Union Carbide United States Mr. Justice WHITE delivered the opinion Court. 1 This is a private treble damage action under anti-trust laws.1 Continental Ore Company, partnership, its individual partners, who were plaintiffs in trial court, are petitioners here.2 Henry Leir, principal party Continental, had engaged buying selling metals, including vanadium products, Europe prior to 1938, which year he immigrated States. case concerns his subsequent efforts this country build successful business production sale vanadium. 2 metal obtained from certain ores which, country, mined principally on Colorado plateau. The ore processed at mills near mines into substance commonly known as oxide. oxide then transported East converted ferrovanadium,3 purchased chiefly by steel companies use an alloy hardening steels. 3 defendants named complaint Corporation America (VCA), fully integrated miner manufacturer Carbon (Carbide), following four wholly owned subsidiary corporations latter company: (USV), mining processing oxide; Electro Metallurgical Company (Electro Met), making ferrovanadium; Sales Met Sales), Canada, Ltd. Canada), products Canada. was filed November 15, 1949, service VCA, USV. There no Met, or acquired assets dissolution merger during filing herein. 4 alleged that, beginning about 1933, others acting concert with them violated §§ Sherman Act4 conspiring restrain, monopolizing, attempting monopolize, trade commerce ferrovanadium charged purchasing acquiring control over substantially all accessible vanadium-bearing deposits produced States, refusing sell other potential producers ferrovanadium, associates, apportioning dividing sales among themselves proportions, fixing identical prices purchase ore, mutual arrangements whereby one more subsidiaries supplied VCA substantial quantities preferential VCA. stated that between 1933 1949 99% 90% same period sold country.5 5 According complaint, proximate consequence defendants' monopolistic restrictive practices, independent distributors oxide, eliminated business. Specifically, detailed several made enter maintain itself business, allegedly frustrated Act violations: (1) In negotiated contract Apex Smelting Chicago operate plant conversion aluminothermic process. share profits venture. On part, agreed obtain raw materials finished product. Operations began spring 1940, but terminated agreement 1942 because illegal activities prevented obtaining sufficient supply (2) Meanwhile, begun produce compound called 'Van-Ex,' composed materials, designed direct introduction steel-making process without ferrovanadium. venture 1944 difficulty securing caused unlawful ownership Continental's suppliers. (3) developed Canadian customer 1942. When Canada appointed Government exclusive wartime agent allocate industries, company, it alleged, direction parent, Carbide, entirely market divided solely defendants. (4) Defendants 1943, open threats reprisals, Climax Molybdenum manufacture (5) January 1944, contracted Imperial Paper & Color act output. abandoned end inability secure left altogether, result practices 6 Trial jury verdict returned appealed, asserting error court's exclusion various evidentiary items, instructions given jury, refusal give instructions, rulings court. Court Appeals Ninth Circuit announced task review correctness judgment below, not reasons therefor, basis affirmed judgment, 289 F.2d 86, holding there insufficient evidence justify finding acts fact cause failure hence, should have been directed. reaching decision, court considered only admitted judge, also offered judge excluded. did deal rule upon any errors relied except issue relating market. Certiorari granted, limited issues required examination light previous decisions presented important questions antitrust laws. 368 886, 141, 7 87. We concluded, discussed hereafter, Appeals' decision must be reversed remanded new trial. I. was, course, bound view most favorable benefit inferences fairly supports, even though contrary might reasonably drawn.6 From our rather extensive record, we concluded departed erred support respondents' conduct injury fundamental claim throughout inadequate supplies available violations contributed shortage. acknowledged principle cases 'where plaintiff proves loss, violation defendant laws such nature likely type say trier facts, permitted draw circumstantial inference necessary causal relation exists.'7 assumed adequate committed specific done performed part basic plan monopolize Nor take express averments unavailable periods argument shortage would expected flow conspiratorial arrangement controlling country. nevertheless effect, before could showing least infer lack material chargeable respondents, demonstrate both timely demands exhausted possible sources material. 9 examined seriatim Apex, Van-Ex, Climax, ventures ruled separately connection each these episodes. As Imperial, said sufficiently contemporaneous subject liability. Van-Ex period, blameless requested failed, view, exhaust source. disposed different grounds. 10 It apparent foregoing approached claims if they five completely separate unrelated lawsuits. think improper. this, full their proof tightly compartmentalizing factual components wiping slate clean after scrutiny each. '* * (T)he character effect conspiracy judged dismembering viewing parts, looking whole. v. Patten, 226 525, 544, 33 57 L.Ed. 333 *; like us, duty look whole picture merely figures it.' American Tobacco Co. 147 93, 106 (C.A.6th Cir.). See Montague Lowry, 193 38, 45—46, 24 307, 309, 48 608. 11 Furthermore, do believe liability can measured rigid mechanical formula requiring demand supply. appears accorded weight show interferred with, acquired, destroyed small Continental. Under criteria used Appeals, could, impunity, concertedly refuse while able some sources, proceed leisure dry up those finally insist make repeated incurring Appeals8 clearly cannot deem monopolist's elimination one's suppliers so 'remote' let damages go jury.9 12 Our record discloses petitioners' injury. concluding either overlooked interpreted insignificance approaches July October 1939, March 1940 1941. failed notice communications September December 1941, saying partial capacity due materials. mention testimony officer Apex's irregular intermittent unavailability capacity. 'critical period' demanded preceding termination contract, placed But quite plain notified determination terminate February 1942, followed much closely refusals Apex. 13 Undoubtedly, does point drawn it. however, 'weighs contradictory inferences' draws 'the ultimate conclusion facts.' Tennant Peoria P.U.R. Co., 321 29, 35, 64 409, 412, 88 520. 14 During so-called exculpate request supposedly advantage source supplies. just read manner may misapprehended significant parts record.10 event, interpretation significance jury. 15 contribute acknowledged, Imperial's based concern steady reliable USV provide sizable monthly bracketed sought being negotiated. signing carefully surveyed foreign vanadium, determined reliable, long-range available. spite 1943 months years, almost signed 1944. allowed determine whether materially venture, damage. II. raises issues. At introduced shipped month remainder year. received letter dated 19, New York City reciting allocation system Canada11 January, inquired matter Metals Controller referred Met. struck rejected offer prove excluded corporation operating purpose carrying out overall restrain industry. To end, former correspondence memorandum proposed vice president concerning conversations employee communicated response denied entire 'for reason transaction hands within Government.' legally entitled recover destruction imported anyone than Government's agent, refused Thus, according 'even assume Ltd., acted entrenching monopoly position arm Government, see how appellants took persuade influence through purview Act.' F.2d, 94. ruling erroneous hold relevant inadmissible grounds courts below. 17 Respondents Banana Fruit 213 347, 29 511, 53 826, shields held collect influenced government seize plaintiff's properties. later reliance misplaced. A domestic outside reach complained occurs countries. 221 106, 31 632, 55 663; Pacific Arctic R. Navigation 228 87, 443, 742; Thomsen Cayser, 243 66, 37 353, 61 597; Sisal Corp., 274 268, 47 592, 71 1042. Cf. Steele Bulova Watch 344 280, 73 252, 97 252; Branch Federal Trade Comm'n, 141 (C.A.7th Aluminum America, 148 416 (C.A.2d Cir.); National Lead 63 F.Supp. 513 (D.C.S.D.N.Y.), aff'd 332 319, 67 1634, 91 2077.12 18 case, supra, combination entered article abroad violate aided discriminatory legislation established official agency sole buyer product became governmental authority. Since impact trade, expressly controlling.13 19 Olsen Smith, 195 332, 25 52, 49 224; Rock Royal Co-op, 307 533, 59 993, 83 1446; Parker Brown, 317 341, 87 315, help respondents. These decisions, sustained validity mandatory state federal regulations against illegality, wide mark. present question taken Controller. served. What here contend liable actions jointly took, conspiracy, Sisal, laid effectuated abroad, insulated involved government. 20 lost indication structure approved joint directed purchases stopped. exclusion, claims, resulted area discretionary powers granted jury's resolution loss occasioned activities. afforded defense bare law. nothing indicate law way compelled purchasing, well settled legal lose when become constituent elements scheme. Swift 196 375, 396, 276, 279, 518; 328 781, 809, 66 1125, 1138, 90 1575; 287, 256, 252. Georgia Pennsylvania 324 439, 457—458, 65 716, 726, 89 1051; Slick Airways Airlines, 107 199, 207 (D.C.N.J.). 21 Eastern Railroad Presidents Conf. Noerr Motor Freight, Inc., 365 127, 81 523, 464, cited below here, plainly inapposite. cognizable charging, essence, concerted publicity campaign foster adoption enforcement inimical plaintiffs' Finding imputing regulate political activity, encountered serious constitutional barriers, ban 'at insofar comprised mere solicitation respect passage laws.' U.S., 138, S.Ct., 530. dissimilar Noerr. commercial element seeking procure eliminating competitor exercise power conferred effectuate purposes remotely infringe constitutionally protected freedoms spoken III. 22 will event require close interconnection issues, shall remand District further proceedings. therefore appropriate pass raised passing understood expressing views merits matters here. 23 An perhaps understandable preceded Court's Klor's, Broadway-Hale Stores, 359 207, 79 705, 741, 'public injury' charge. Although pleaded price-fixing customers, per se § Act, proved 'which calculated prejudice public interest unduly' restraining intended 'to injure general by' trade. charge error. treatment monopolization. Initially, defined 'monopolize' referring acquisition maintenance members formed purpose, dominate interstate commodity extent able, group, exclude actual competitors field, accompanied intention power.' related definition 'attempt monopolize' conspiracy. instructed 'an essential monopolization existence acquire power' 'if you find conspiracy.' Petitioners duly excepted ground prevail monopolized unilaterally. Petitioners' preclude unilateral misinterpretation defining 'monopolization' attempted monopolization' terms 'conspiracy prejudicial harmless. trial.14 26 persistent pre-1938 since Leir came 1938 transpired earlier suit. introduce early 1930's, overt furtherance thereof occurred pursuant anticompetitive scheme eliminate industry 1938. industry, thereof.15 mean place reasonable limits set cut-off date, too remote probative value burdening it.16 exclusionary ruling. 27 conclude vacated proceedings consistent opinion. ordered. 28 Judgment remanded. FRANKFURTER consideration case. brought Clayton U.S.C. U.S.C.A. 15: 'Any person injured property anything forbidden sue therefor district threefold him sustained, cost suit, attorney's fee.' partnership successor Corporation, organized dissolved. years accomplished electric furnaces. process, claimed efficient economical method. 1—2, 1, 2, pertinent part: 'Every form trust otherwise, restraint nations, declared *. attempt combine conspire persons, deemed guilty misdemeanor *.' approximately two-thirds (which amount consumed States), (a subsidiary) one-third. evidence, group 77% 65% Professor Moore has indicated, 'In motion (for verdict) whom made. appeal, likewise, appellate consider strongest favor made, every fair intendment justify.' Moore's Practice 2316 (2d ed., 1951). Pawling Cranch 219, 601; Gunning Cooley, 281 90, 50 231, 74 720; Smith Reinauer Oil Transport, 256 646, 649 (C.A.1st governs motions suits Schad Twentieth Century-Fox Film 136 991, 993 (C.A.3d Wisconsin Liquor Park Tilford Distillers 267 928, 930 Diebold, 369 654, 655, 993; Poller Columbia Broadcasting System, 473, 486, 491, 458. 90. For statement, Bigelow RKO Radio Pictures, 327 251, 574, 652; Eastman Kodak Southern Photo Materials 273 359, 400, 684; Story Parchment Paterson 282 555, 51 248, 75 544; Martin Herzog, N.Y. 164, 170 171, 126 N.E. 814, 816. Thus stated: '(I)n absence precise proof, wrongful tendency decline prices, values, shown attributable causes, plaintiffs.' 264, 579. 'The elementary conceptions justice policy wrongdoer bear risk uncertainty own wrong created.' Id., 265, 580. Bordonaro Bros. Theatres Paramount 176 594, 597 Atlas Building Prod. Diamond Block Gravel 269 950, 957—959 (C.A.10th Royster Drive-In Theatres, Broadcasting-Paramount Cir., 268 246, 251; Standard California Moore, 251 188, 198; Congress Bldg. Loew's, 246 587, 596—598; Milwaukee Towne 190 561, 568. Klor's 741. declined Nisley Wilson, producer particularly effort Wilson's flaked when, buy 300,000 pounds 'oxide' Wilson time went furnished obtainable War Production Board. toward postwar relationship, statement cooperate keep latter's mill running peacetime. actually Government. Canada's entry World II prompted extraordinary measures assure optimum availability strategic industries war effort. Pursuant measures, Office broad procurement industrial users. Order Governor General Council, P.C. 3187, 1940. enlisted aid delegating them. delegations contested. Reference Re Regulations (Chemicals) Measures D.L.R. (1943) 248. Brewster, Antitrust Business Abroad 65—75 (1958); Fugate, Foreign Commerce Laws Atty.Gen.Nat. Comm. Rep. 66—77 (1955); Kramer, Application Commerce, Bull. 387 Carlston, Policy Abroad, N.W.U.L.Rev. 569 (1954). circumstances controversy radically doctrine 'Here parties effective therein. object importation sisal complete internal external complain territory jurisdiction, something another instigation parties. True, conspirators discriminating legislation, deliberate acts, elsewhere, results They jurisdiction punished offenses 275—276, 593. Among condemned Maryland Virginia Milk Producers Ass'n 362 458, 468, 80 847, 854, 880; Lorain Journal 342 143, 154, 72 181, 186, 96 162. Shoe Mach. 110 295 (D.Mass.), aff'd, 347 521, 699, 98 910. Jersey 75—76, 502, 619, 1879—1882, Act's 1890, order ascertain intent founders Trust. And Kansas Star 240 643, 650—651 (C.A.8th Cir.), criminal statute limitations course indicated retain immediate pre-indictment period. Socony-Vacuum 310 150, 228—231, 60 811, 848, 84 1129.

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