Gulf States Reorganization Grp., Inc. v. Nucor Corp.

• Decision Date: 29 September 2011
• Docket Number: Case No. 1:02–CV–2600–RDP.
• Citation: 822 F.Supp.2d 1201
• Parties: GULF STATES REORGANIZATION GROUP, INC., Plaintiff, v. NUCOR CORPORATION, et al., Defendants.
• Court: U.S. District Court — Northern District of Alabama

822 F.Supp.2d 1201

GULF STATES REORGANIZATION GROUP, INC., Plaintiff,

v.NUCOR CORPORATION, et al., Defendants.

Case No. 1:02–CV–2600–RDP.

United States District Court, N.D. Alabama, Eastern Division.

Sept. 29, 2011.

Philip Clark Jones, Philip Clark Jones, Greenburg, Spence & Taylor, PC, Rockville, MD, Ralph K. Strawn, Jr., Henslee Robertson Strawn & Sullivan LLC, Gadsden, AL, for Plaintiff.

Joseph Wendell Carlisle, Clark R. Hammond, R. Marcus Givhan, Johnston Barton Proctor & Rose LLP, Thad G. Long, Bradley Arant Boult Cummings LLP, Birmingham, AL, Joshua W. Abbott, Bert W. Rein, D. Mark Renaud, John B. Wyss, Wiley Rein LLP, Washington, DC, for Defendants.

MEMORANDUM OPINION

R. DAVID PROCTOR, District Judge.

This matter is presently before the court on the Third Report and Recommendation of the Special Master Regarding Summary Judgment on Counts I and III of Gulf States Reorganization Group's Amended Complaint ¹ (“Third Report”) (Doc. # 249), and the Report and Recommendation of the Special Master Regarding the Admissibility of Expert Testimony and Nucor's Motion for Summary Judgment (“Fourth Report”) (Doc. # 305).

I. IntroductionA. Appointment of the Special Master

In light of the novelty of Plaintiff's theories in this case,² and with the full consent of the parties ( see Federal Rule of Civil Procedure 53(a)(1)(A)), the court appointed James F. Rill, Esq. as Special Master and referred certain matters—including the motions addressed herein—to him for report and recommendation. (Doc. # 181). The parties had jointly proposed Mr. Rill as the best qualified candidate for Special Master. (Doc. # 180). Mr. Rill has served as Assistant Attorney General in charge of the U.S. Department of Justice's Antitrust Division and as the Chairman of the ABA's Antitrust Section. (Doc. # 180). He is without question one of the leading antitrust lawyers in the United States. The court is indebted to him for his high quality service and excellent work in this case.

B. Procedural History

In 2002, Gulf States Reorganization Group, Inc. (“GSRG” or “Plaintiff”) filed suit against Nucor Corporation (“Nucor”), Casey Equipment Corporation (“Casey”), and Gadsden Industrial Park, LLC (“Park”) alleging that they conspired to restrain trade and assist Nucor to monopolize the hot rolled coil steel industry. ( See Doc. # 17). This court first dismissed this case upon Defendants' motion to dismiss; however, on appeal, the Eleventh Circuit found that Plaintiff had pled a cognizable antitrust injury and had standing to bring suit. Gulf States Reorganization Group, Inc. v. Nucor Corp., 466 F.3d 961, 966–68 (11th Cir.2006).

Upon remand, the court permitted Plaintiff to amend its complaint. ( See Doc. # 115). GSRG's Amended Complaint alleges three counts. Count I alleges that Casey/Park and Nucor violated Section 1 of the Sherman Act by entering a contract or combination in restraint of trade. (Doc. # 115 at ¶¶ 39–42). Count II alleges that Nucor violated Section 2 of the Sherman Act by an “attempt to monopolize.” (Doc. # 115 at ¶¶ 43–45). Count III alleges that Nucor and Casey/Park violated Section 2 of the Sherman Act by a conspiracy to monopolize. (Doc. # 115 at ¶¶ 46–48). The First Amended Complaint makes no claim of “actual monopolization” in violation of Section 2 of the Sherman Act.³

The Special Master reviewed the record and the briefs submitted by the parties, and entertained oral argument. Thereafter, the Special Master submitted his Reports and Recommendations. (Docs. # 249, 305). After intense motions practice in this case, the court conducted a thorough review of the copious materials submitted in support of, and in opposition to, those motions.

The Special Master issued his First Report on Casey/Park's Motion for Summary Judgment recommending summary judgment in favor of Casey/Park. (Doc. # 188). Thereafter, GSRG sought to have the Special Master consider supplemental evidence in connection with Casey/Park's Motion. (Doc. # 199). The Special Master then re-considered Casey/Park's motion in light of the supplemental evidence, and issued his Second Report and Recommendation affirming that summary judgment was still appropriate on Counts I and III even in light of the additional evidence. (Doc. # 207). Thereafter, GSRG and Casey/Park resolved all issues between them. (Doc. # 208).

Remaining to be decided, however, was Nucor's motion for summary judgment (or, rather, Nucor's joinder in Casey/Park's motion). (Docs. # 124, 210). On September 29, 2009, the Special Master issued his Third Report and Recommendation recommending that Nucor be awarded summary judgment on Counts I and III, the Section 1 and Section 2 conspiracy claims. (Doc. # 249).

The Special Master then considered the following motions: Nucor's motion to exclude the testimony of Robert Crandall (Doc. # 261); Nucor's motion to exclude the testimony of Michael Locker (Doc. # 172); Nucor's motion to exclude the testimony of John Correnti (Doc. # 175); GSRG's motion to exclude the testimony of Andrew Dick (Doc. # 235); GSRG's Motion to exclude the testimony of Dr. Seth Kaplan (Doc. # 237); and Nucor's motion for summary judgment on all claims (Doc. # 269). In his Fourth Report, the Special Master recommended the following: Nucor's motion to exclude the testimony of Robert Crandall (Doc. # 261) be denied; Nucor's motion to exclude the testimony of Michael Locker (Doc. # 172) be granted; Nucor's motion to exclude the testimony of John Correnti (Doc. # 175) be granted; GSRG's motion to exclude the testimony of Andrew Dick (Doc. # 235) be granted; GSRG's Motion to exclude the testimony of Dr. Seth Kaplan (Doc. # 237) be denied; and that Nucor's Motion for Summary Judgment (Doc. # 269) be granted. (Doc. # 305).

Having now carefully reviewed and considered de novo all of the materials in the court file, including the Third Report and the Fourth Report, the objections, responses, and replies thereto, and oral argument by the parties on the objections to the Third Report,⁴ the court has made its own independent determination that the Third and Fourth Reports of the Special Master are due to be adopted and accepted. The court writes further to address some of Plaintiff's objections.

II. Standard of Review

This case is before the court on objections filed by GSRG as to the Reports filed by the Special Master. The court reviews de novo all objections to legal conclusions recommended by the Special Master. See Fed.R.Civ.P. 53(f)(4). A different standard of review applies to the Special Master's decisions regarding procedural matters. Those rulings may only be set aside for an abuse of discretion. See Fed.R.Civ.P. 53(f)(5).

The principal legal issues presented here are the propriety of summary judgment and the admissibility and effect of certain expert witnesses proffered by GSRG.

A. Summary Judgment Standard

Summary judgment is appropriate when “the pleadings, the discovery and disclosure materials on file, and any affidavits show that there is no genuine issue as to any material fact and that the movant is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(c).⁵ “Genuine disputes are those in which the evidence is such that a reasonable jury could return a verdict for the non-movant.” Mize v. Jefferson City Bd. of Educ., 93 F.3d 739, 742 (11th Cir.1996) (quoting Hairston v. Gainesville Sun Publ'g Co., 9 F.3d 913, 918 (11th Cir.1993)). In making this assessment, the court must view the evidence “in the light most favorable to the nonmoving party.” Thomas v. Cooper Lighting, Inc., 506 F.3d 1361, 1363 (11th Cir.2007) (citing Damon v. Fleming Supermarkets of Fla., Inc., 196 F.3d 1354, 1357 (11th Cir.1999)). But while that is the case, “[a] court need not permit a case to go to a jury ... when the inferences that are drawn from the evidence, and upon which the non-movant relies, are ‘implausible.’ ” Mize, 93 F.3d at 743 (quoting Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 592–94, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986)).

Alternatively, there is no genuine issue of material fact if “the nonmoving party fails to make a showing sufficient to establish the existence of an element essential to that party's case and on which the party will bear the burden of proof at trial.” Jones v. Gerwens, 874 F.2d 1534, 1538 (11th Cir.1989) (citing Celotex Corp. v. Catrett, 477 U.S. 317, 322–24, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986)). Consequently, the court “must view the evidence presented through the prism of the [movant's] substantive evidentiary burden.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 254, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986).

To respond, the non-moving party “may not rely merely on allegations or denials in its own pleadings; rather, its response must ... set out specific facts showing a genuine issue for trial. If the opposing party does not so respond, summary judgment should, if appropriate, be entered against that party.” Fed.R.Civ.P. 56(e)(2). Importantly, “[t]he mere existence of a scintilla of evidence in support of the plaintiff's position will be insufficient; there must be evidence on which the jury could reasonably find for the plaintiff.” Anderson, 477 U.S. at 250, 106 S.Ct. 2505.

Contrary to GSRG's suggestion,⁶ Rule 56 is no longer a disfavored procedural shortcut. Celotex Corp., 477 U.S. at 327, 106 S.Ct. 2548 (“Summary judgment procedure is properly regarded not as a disfavored procedural shortcut, but rather as an integral part of the Federal Rules as a whole, which are designed ‘to secure the just, speedy and inexpensive determination of every action.’ ”) (quoting Fed.R.Civ.P. 1). This is true even in antitrust cases, “where motive and intent play leading roles, the proof is largely in the hands of the alleged conspirators, and hostile witnesses thicken the plot.” Poller v. Columbia Broadcasting System, Inc., 368 U.S. 464, 473, 82 S.Ct. 486, 7 L.Ed.2d 458 (1962). See Matsushita Elec. Indus. Co., Ltd. v. Zenith Radio Corp., 475...