673 F.2d 1161 (10th Cir. 1982), 82-1149, Hospah Coal Co. v. Chaco Energy Co.

Docket Nº:82-1149.
Citation:673 F.2d 1161
Party Name:HOSPAH COAL COMPANY, a Delaware corporation, Santa Fe Industries, Inc., a Delaware corporation, The Atchison, Topeka & Santa Fe Railway Company, a Delaware corporation, and Santa Fe Mining, Inc., a Kansas corporation, Plaintiffs-Appellees, v. CHACO ENERGY COMPANY, a New Mexico corporation, and Texas Utilities Company, a Texas corporation, Defendant
Case Date:March 29, 1982
Court:United States Courts of Appeals, Court of Appeals for the Tenth Circuit
 
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Page 1161

673 F.2d 1161 (10th Cir. 1982)

HOSPAH COAL COMPANY, a Delaware corporation, Santa Fe

Industries, Inc., a Delaware corporation, The Atchison,

Topeka & Santa Fe Railway Company, a Delaware corporation,

and Santa Fe Mining, Inc., a Kansas corporation, Plaintiffs-Appellees,

v.

CHACO ENERGY COMPANY, a New Mexico corporation, and Texas

Utilities Company, a Texas corporation,

Defendants-Appellants.

No. 82-1149.

United States Court of Appeals, Tenth Circuit

March 29, 1982

John R. Cooney of Modrall Sperling Roehl Harris & Sisk, Albuquerque, N. M. (Gus Svolos, Chicago, Ill., and Allen C. Dewey, Peter J. Adang, and John S. Thal of Modrall Sperling Roehl Harris & Sisk, Albuquerque,

Page 1162

N. M., with him on the brief), for plaintiffs-appellees.

Gordon B. Spivack of Lord, Day & Lord, New York City (M. D. Sampels, Richard L. Adams, and Max E. Freeman II of Worsham, Forsythe & Sampels, Dallas, Tex., John N. McBaine, Jonathan M. Jacobson, Jonathan E. Clune, and Elinor R. Hoffmann of Lord, Day & Lord, New York City, James C. Ritchie and Rex Throckmorton of Rodey, Dickason, Sloan, Akin & Robb, P. A., Albuquerque, N. M., and Walter A. Steele of White & Steele, P. C., Denver, Colo., with him on the briefs), for defendants-appellants.

Before BARRETT, DOYLE and McKAY, Circuit Judges.

BARRETT, Circuit Judge.

This is an appeal from a grant of a preliminary injunction by the United States District Court for the District of New Mexico. The pertinent facts follow:

On December 18, 1981 Chaco Energy Company (Chaco) and Texas Utilities Company (TUC), defendants-appellants herein, filed suit in the United States District Court for the Northern District of Texas naming as defendants, among others with whom we are not now concerned, Santa Fe Industries, Inc. (SFI), the Atchison, Topeka and Santa Fe Railway Co. (SFR) and Santa Fe Mining, Inc. (SFM). The complaint in the Texas action alleged a conspiracy on the part of SFI, SFR, SFM and others amounting to a violation of the federal and New Mexico antitrust laws. The complaint further alleged common law fraud in the inducement and sought declaratory judgment, rescission of contracts, treble damages and injunctive relief.

Three days later, on December 21, 1981, SFI, SFR, SFM and Hospah Coal Company, a non-party defendant, co-conspirator in the Texas action, filed a declaratory judgment action in the United States District Court for the District of New Mexico, naming TUC and Chaco as defendants. The complaint in the New Mexico action requested a declaration that the plaintiffs had not violated the antitrust laws and it sought an injunction against TUC and Chaco to prohibit them from proceeding with the Texas action. The basis for the requested preliminary injunction was a venue selection clause in a certain coal lease placing venue in New Mexico for all suits "arising out of or relating to" the coal lease. 1 The coal lease was signed by Hospah Coal Company and Chaco. A surety agreement between TUC and Hospah purportedly adopted the venue selection clause of the coal lease. It should be noted that Hospah Coal Company, SFM and SFR are all subsidiaries of SFI. Chaco is a subsidiary of TUC.

Service of process was accomplished in the New Mexico action prior to service in the Texas action. In response to the filing of the New Mexico action, TUC and Chaco sought a temporary restraining...

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