Reid v. Doubleday & Co.

Decision Date30 December 1952
Docket NumberCiv. 6718.
Citation109 F. Supp. 354
PartiesREID v. DOUBLEDAY & CO., Inc. et al.
CourtU.S. District Court — Northern District of Ohio

Edward G. Harris, of Harris & Sell, Toledo, Ohio, for plaintiff.

Donald F. Melhorn, of Marshall, Melhorn, Bloch & Belt, Toledo, Ohio, for defendant.

KLOEB, District Judge.

This matter comes before the Court on plaintiff's motion to strike from defendant's answer, and motion for a more definite statement.

Memoranda are filed in support of and in opposition to the motions as required by the rule.

In specification 1 of the motion to strike, plaintiff seeks to have stricken out, under Rule 12(f) of the Federal Rules of Civil Procedure, 28 U.S.C.A., the phrase "as a sub-jobber".

Rule 8 provides, with reference to defenses:

"A party shall state in short and plain terms his defenses to each claim asserted and shall admit or deny the averments upon which the adverse party relies".

Rule 12 (f) provides that upon a motion made by a party the court "may order stricken from any pleading any insufficient defense or any redundant, immaterial, impertinent, or scandalous matter".

Paragraph 1 of the complaint and the corresponding paragraph of the answer, in which the objected to words appear, are as follows:

                Complaint Answer
                1. "That at all times between the                "1. Denies the allegations of this
                3rd day of April, 1941 and the date              paragraph except that it admits at all
                of the filing of this complaint, the             times between the 3rd day of April
                plaintiff was engaged in the business            1941, and the date of filing of the
                of being a wholesale jobber of                   complaint the plaintiff was engaged
                books, printed publications and material         in the business of selling books as
                published for resale or consumption              a sub-jobber, and during said times
                by the general public, and                       was doing business under the name
                during said times was doing business             and style of Edwin M. Reid, doing
                under the name and style of Edwin                business during said time at 1825
                M. Reid, doing business as College               Collingwood Avenue, Toledo, Ohio
                Book Exchange; and, plaintiff conducted          1114 Jackson Street, Toledo, Ohio
                said business during said time                   and 4558 Monroe Street, Toledo
                at 1825 Collingwood Avenue, Toledo,              Ohio."
                Ohio; 1114 Jackson Street, Toledo
                Ohio; and 4558 Monroe Street, Toledo,
                Ohio."
                

It does not seem to us that the words objected to come within the meaning of Rule 12 (f). The clause in which the words appear is not a statement of defense, but a statement of an alleged fact. It does not seem redundant or scandalous. Whether or not it is material or pertinent does not appear at this time.

The same comment applies to specification 6, in which plaintiff seeks to have stricken out from paragraph 26 of the answer the words: "except that it admits that plaintiff has requested defendant to grant to him the same prices and terms as then being offered by defendant to its jobbers", following a general denial of the allegations of paragraph 26 of the complaint.

The motion of plaintiff for more definite statement, as an alternative to specification 1, asks the Court for an order requiring the defendant to make definite the meaning of the words "as a sub-jobber" in paragraph 1 of the first defense. We are of the opinion that this motion should be overruled, for the reason that under Rule 12 (e) a motion for a more definite statement may be made only to a pleading to which a responsive pleading is permitted, and under Rule 7 (a) a responsive pleading is not permitted to the answer unless ordered by the Court. The information desired may no doubt be obtained by interrogatory or other discovery means under the rules.

Specification 2 seeks to have stricken out paragraph 32 of the second defense, reading as follows:

"32. Defendant states that the discount schedules offered to certain of its customers which are more favorable than the discount schedule offered to plaintiff do not represent differences or discriminations in the consideration received by defendant for the sale of books to plaintiff and its other customers, but are in the nature of payment by defendant to its customers receiving such more favorable discounts as compensation for services and facilities of value to defendant furnished and made available by such customers, and not furnished or made available by plaintiff, which payment has been made available on proportionally equal terms to plaintiff."

This defense is based upon Sec. 2(d) of the Robinson-Patman Price Discrimination Act, Title 15, § 13 (d), U.S.C.A., reading as follows:

"(d) It shall be unlawful for any person engaged in commerce to pay or contract for the payment of anything of value to or for the benefit of a customer of such person in the course of such commerce as compensation or in consideration for any services or facilities furnished by or through such customer in connection with the processing, handling, sale, or offering for sale of any products or commodities manufactured, sold, or offered for sale by such person, unless such payment or consideration is available on proportionally equal terms to all other customers competing in the distribution of such products or commodities."

Plaintiff contends that the defense is insufficient in that the proviso in the statute states the payment or consideration for services or facilities furnished by customers shall be "available on proportionally equal terms to all other customers competing in the distribution of such products or commodities", whereas the language of the defense is that such payment "has been made available on proportionally equal terms to plaintiff." We are unable to agree with this contention, for the reason stated in the case of Midland Oil Co. v. Sinclair Refining Co., D.C.Ill.1941, 41 F. Supp. 436, at page 438, wherein the Court said:

"This is not an action by public authority under the Robinson-Patman Act, for the enjoining of some act considered detrimental to the public welfare, and therefore it is not necessary as contended by defendant for the public interest to have been affected by the extent of the defendant's activities. Section 15 gives the right to an individual to sue for damage that he has sustained whether or not the public interest is affected thereby. * * * The requirements of the Act are met if the defendant is engaged in interstate commerce and has discriminated between some of its purchasers and the plaintiff damaged thereby."

It seems to us the gravamen of the complaint is that the plaintiff was not accorded by the defendant equal treatment with other customers of the defendant of the same class, and that it is immaterial to the issues here whether defendant made equal terms available to all other competing customers.

Specification 3 seeks to have stricken out paragraph 33 of the third defense, reading as follows:

"33. Defendant states that the discounts in excess of 43% on trade books made available to The Baker & Taylor Co.; A. C. McClurg Co.; The American News Company, Inc.; J. K. Gill; Diamondstein Book Company and Bookazine were made in good faith to meet an equally low price of a competitor."

This defense seems to be pleaded in the language of the statute, Title 15, § 13 (b), reading as follows:

"* * * That nothing contained in sections 12, 13, 14-21, and 22-27 of this title shall prevent a seller rebutting the prima-facie case thus made by showing that his lower price or the furnishing of services or facilities to any purchaser or purchasers was made in good faith to meet an equally low price of a competitor, or the services or facilities furnished by a competitor."

In the case of Standard Oil Co. v. Federal Trade Commission, 1951, 340 U.S. 231, 71 S.Ct. 240, 248, 95 L.Ed. 239, the Court held:

"(c) There has been a widespread understanding that, under the Robinson-Patman Act, it is a complete defense to a charge of price discrimination for the seller to show that its price differential has been made in good faith to meet a lawful and equally low price of a competitor; and this Court sees no reason to depart now from that interpretation."

It seems to us that this specification should be overruled.

In specification 4, plaintiff seeks to have stricken out the defense of res adjudicata set forth in paragraph 34 of the fourth defense, reading as follows:

"34. Defendant states that the same issues raised in this case were heretofore raised in the action entitled Doubleday and Company, Inc. v. Edwin M. Reid in the Municipal Court of Toledo, Lucas County, Ohio, a court of record, being Case No. 177662 on the docket of said court; that said issues were determined adversely to said Edwin M. Reid and final judgment in said action was rendered upon the merits in favor of this defendant, Doubleday and Company, Inc. and against said Edwin M. Reid, plaintiff herein; that no appeal was had or can now be had from said judgment, and that by reason thereof, the said judgment is res adjudicata as to the claim of plaintiff in this present action."

It seems to us whether or not the defense of res adjudicata is a good defense in this case depends upon evidence as to the issues involved and the determination made in the prior action, and perhaps other matters of evidence, and that the question cannot be determined upon this motion.

In specification 5, plaintiff seeks to have stricken out paragraph 35 of the fifth defense, involving the statute of limitations of Ohio which may be applicable, reading as follows:

"35. Defendant states that any claim alleged in plaintiff's complaint herein which accrued prior to February 19, 1951, is barred by the applicable statute of limitations of the State of Ohio, to wit Section 11225 of the General Code of Ohio."

This action is brought under the Robinson-Patman Act, 15 U.S.C.A. § 13 et seq., which...

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