Court Opinion

ID: 9465613
Source: CourtListenerOpinion
Date Created: 2023-08-05 00:51:18.09534+00
Date Added: 2024-06-11T17:38:29.584416
License: Public Domain

HANSON, Senior District Judge,
dissenting in part.
I respectfully dissent from the holding in Part I of the majority’s opinion permitting contribution among joint tortfeasors in an antitrust action. I concur in the result reached in Part II of the opinion and in the Court’s reasoning to the extent it is not inconsistent with my views expressed below concerning the issue of contribution. In view of the Court’s holdings in Part I and Part II, I concur in the result reached in Part III of the majority opinion and in the judgment, but with the understanding that the district court retains discretion to dismiss pendent state claims.
Because I discern no compelling reason to allow contribution in antitrust causes, and strongly suspect that antitrust policy may be adversely affected by it, I would affirm the district court’s dismissal of National’s claim for contribution from La Maur under federal antitrust law.
As an initial observation, this cause of action is an inopportune one in which to fashion a broad rule allowing contribution among joint tortfeasors, in an antitrust action. The only violation of federal antitrust law alleged by Professional is found in Count I of its complaint. That count alleges a violation of Section 2 of the Sherman Act, 15 U.S.C. § 2. Section 2 proscribes monopolization, attempts to achieve a monopoly, and conspiracies to monopolize; and provides criminal penalties for those who violate its provisions. Under Section 4 of the Clayton Act, 15 U.S.C. § 15, a plaintiff such as Professional may recover treble damages for a Section 2 violation. The Court notes that under the allegations in Professional’s complaint Professional will have to show that National was an intentional wrongdoer in order to prevail, ante at 1186-1187 n. 9. This is clearly correct, for the substance of Professional’s complaint as I read it is that National’s acts were pursuant to an attempt or conspiracy to monopolize the sale of wholesale beauty supplies in Minnesota. Intent is an essential element of the proof of a Section 2 attempt or conspiracy to monopolize. See *1189e. g., United States v. Griffith, 334 U.S. 100, 105, 68 S.Ct. 941, 92 L.Ed. 1236 (1948); Stifel, Nicolaus & Co. v. Dain, Kalman & Quail, 578 F.2d 1256, 1262 (8th Cir. 1978); United States v. Empire Gas Corp., 537 F.2d 296, 298-99 (8th Cir. 1976), cert. denied, 429 U.S. 1122, 97 S.Ct. 1158, 51 L.Ed.2d 572 (1977); International Railways of Central America v. United Brands Co., 532 F.2d 231, 239 (2d Cir.), cert. denied, 429 U.S. 835, 97 S.Ct. 101, 50 L.Ed.2d 100 (1976). If National is found liable to Professional, National will have been found to have conspired or committed an unlawful attempt to monopolize trade with “an intent to control prices or restrict competition unreasonably.” United States v. Empire Gas Corp., supra at 302. See United States v. DuPont & Co., 351 U.S. 377, 389, 76 S.Ct. 994, 100 L.Ed. 1264 (1956).
If found to be an antitrust violator under these circumstances, I believe that National is in a poor position to complain of any unfairness in being forced to assume the burden of restitution for the loss occasioned by its intentional wrongdoing, and it is in even worse position to complain about being penalized to the full extent of the treble damages allowed to a plaintiff by the Clayton Act. At least since Lord Kenyon’s opinion in Merryweather v. Nixan, 8 Term.Rep. 186, 101 Eng.Rep. 1337 (K.B.1799), the common law has not allowed contribution in favor of an intentional wrongdoer on the theory that intentional wrongdoing is deterred by refusing to invoke equity to diminish the burden of liability otherwise incurred. See Wright v. Haskins, 260 N.W.2d 536, 538-39 (Iowa 1977). Whatever trend may exist in favor of contribution among nonintentional tortfeasors, the rule against contribution as between intentional wrongdoers is still generally adhered to. See W. Prosser, Law of Torts § 50, at 308 (4th ed. 1971).
With respect to Section 2 conspirators, the majority’s partial reliance on trends in contribution law and equitable principles is misplaced.
I realize, however, that allegiance to common law rules cannot be allowed to undermine the purposes of the antitrust laws. Perma Life Mufflers, Inc. v. International Parts Corp., 392 U.S. 134, 138-39, 88 S.Ct. 1981, 20 L.Ed.2d 982 (1968). In making the decision whether contribution is to be permitted or rejected in antitrust actions, the primary inquiry must be which course best furthers the public policy in favor of competition, or least detracts from it. Id. at 139, 88 S.Ct. 1981. The majority concludes that “[t]o deny contribution would be to dilute the deterrent effect of the antitrust laws, since a participant in an antitrust violation could escape all responsibility for its wrongdoing.” ante, at 1185. I am not convinced that this is so. First, the likelihood that a participant may escape responsibility for his antitrust violations is at best a speculative concern (particularly in non-class actions) since in any given case there may be any number of other potential plaintiffs who were damaged by the particular restraint of trade or monopoly in which the prospective third-party defendant has been a participant. Moreover, as the majority candidly observes, the question of deterrence “cuts both ways,” and it could well be argued that potential antitrust violators would be more likely to refrain from anticompetitive activities if they know that any injured party may impose the full burden of a treble damage recovery on them even though, for instance, the violator played a relatively minor part in a conspiracy to monopolize. See El Camino Glass v. Sunglo Glass Co., [1977-1] Trade Reg.Rep. (CCH) f 61,533 (N.D.Cal.1976), Or, inversely, the possibility of dissipating the impact of a treble damage award among antitrust co-conspirators may actually encourage anti-competitive activity. To me the arguments on either side of the deterrence question are inconclusive and as a result I find deterrence of potential violators insufficient as a basis on which to predicate a new rule permitting contribution.
In other respects, however, such a rule presents a substantial risk that antitrust lawsuits may become more difficult for trial courts to manage and, more importantly, the net result may be to deter private plaintiffs of relatively limited means from bring*1190ing or maintaining a meritorious suit. Of particular concern in my mind is the potential for confusion, delay, and complexity inherent in permitting antitrust defendants a right to implead other alleged antitrust violators who may distort the litigation because of their size, nature of involvement, or position in the marketplace. It is not difficult to conceive of many circumstances in which the original plaintiff may simply be overwhelmed by embroilment in a lawsuit of a scope and size it never contemplated and is ill-equipped to handle. See Sabre Shipping Corp. v. American President Lines, 298 F.Supp. 1339, 1346 (S.D.N.Y.1969). Aware that litigation may spiral out of their control, it is foreseeable that some plaintiffs will decide to forego a legitimate cause of action. Though district courts have the power to superintend complex litigation, the multiplication of issues and parties remains to be grappled with, and the chilling effect on the incentive to bring or pursue a lawsuit is unlikely to be diminished by the mere possibility of the favorable uses of district court discretion.
To a substantial extent, the enforcement of public antitrust policy depends on the attractiveness of litigation to private attorneys general. See Hawaii v. Standard Oil of California, 405 U.S. 251, 262, 92 S.Ct. 885, 31 L.Ed.2d 184 (1972). Mindful of this, the Supreme Court has recently shown itself to be sensitive to the danger of complicating issues in antitrust litigation to the point where a reduction in the incentive to sue is likely to result. See Illinois Brick Co. v. Illinois, 431 U.S. 720, 745-46, 97 S.Ct. 2061, 52 L.Ed.2d 707 (1977). Before formulating a rule which permits additional parties and issues to be joined in an antitrust case, we should be sure that we do not thereby counterbalance the motivation to sue provided by the treble damage award.
In any event, as the examples of the Antitrust Improvement Act of 1976, 15 U.S. C.A. §§ 15c-15h (Supp.1978), and the contribution sections of the Security Acts of 1933 and 1934 show, there is ample precedent for statutorily expanding the scope of antitrust litigation to include a right to seek contribution should Congress choose to do so. Congress has never acted despite the fact that those courts which have dealt with the issue have held against contribution, and despite the fact that the issue of contribution would appear to be fairly obvious. In view of the implications with respect to the effectiveness of antitrust law, and with no strong policy reason in favor of contribution, I believe this is an appropriate instance to await congressional directive without risk of abdicating judicial function.