Nichols Motorcycle Supply Inc. v. Dunlop Tire Corp., 93 C 5578.

Document Cited authorities (103) Cited in (42) Precedent Map Related
CourtU.S. District Court — Northern District of Illinois
CitationNichols Motorcycle Supply Inc. v. Dunlop Tire Corp., 913 F.Supp. 1088 (N.D. Ill. 1995)
Decision Date18 September 1995
Docket NumberNo. 93 C 5578.,93 C 5578.
PartiesNICHOLS MOTORCYCLE SUPPLY INC., an Illinois corporation, Plaintiff, v. DUNLOP TIRE CORPORATION, a Delaware corporation, Ed Tucker Distributor, Inc. d/b/a Tucker-Rocky Distributing, a Texas corporation, and Lemans Corporation, a Wisconsin corporation, Defendants.

913 F. Supp. 1088

NICHOLS MOTORCYCLE SUPPLY INC., an Illinois corporation, Plaintiff, v. DUNLOP TIRE CORPORATION, a Delaware corporation, Ed Tucker Distributor, Inc. d/b/a Tucker-Rocky Distributing, a Texas corporation, and Lemans Corporation, a Wisconsin corporation, Defendants.

No. 93 C 5578.

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

September 6, 1995.

Order Vacating Decision in Part Pursuant to Settlement September 18, 1995.

COPYRIGHT MATERIAL OMITTED

COPYRIGHT MATERIAL OMITTED

COPYRIGHT MATERIAL OMITTED

COPYRIGHT MATERIAL OMITTED

COPYRIGHT MATERIAL OMITTED

COPYRIGHT MATERIAL OMITTED

Joseph G. Bisceglia, James A. McKenna, Royce Richard Bedward, Steven P. Blonder, Jenner & Block, Chicago, IL, Richard P. Campbell, Campbell & DiVincenzo, Chicago, IL, Anthony S. DiVincenzo, Campbell & DiVincenzo, Chicago, IL, for Nichols Motorcycle Supply, Inc.

Kenneth Henry Hoch, Robert Thomas Joseph, Patrick John Kelly, David E. Lieberman, Sonnenschein, Nath & Rosenthal, Chicago, IL, for Dunlop Tire Corp.

Joseph E. Coughlin, Terrence Patrick Canade, Michael J. Gaertner, Lord, Bissell & Brook, Chicago, IL, for Ed Tucker Distributor, Inc.

Ethan Edward Trull, Alexander S. Vesselinovitch, Seyfarth, Shaw, Fairweather & Geraldson, Chicago, IL, David J. MacDougall, Brennan, Steil, Basting & MacDougall, Janesville, WI, for Lemans Corp. 

                                   TABLE OF CONTENTS
                 I.  The Facts ................................................................................1097
                     A. Nichols ...............................................................................1097
                     B. Dunlop ................................................................................1098
                     C. Metzeler ..............................................................................1099
                     D. Tucker/Rocky ..........................................................................1099
                     E. Parts Unlimited .......................................................................1099
                     F. Combined Market Share .................................................................1100
                     G. The Economic Experts ..................................................................1100
                II.  The Antitrust Conspiracy Claims ..........................................................1100
                     A. The Sherman Act § 1 ..............................................................1100
                        1. Count I: Per Se Violations .........................................................1101
                           a. Legal Standards .................................................................1101
                           b. The Plaintiffs Evidence .........................................................1105
                              (i)   The Year 1991 .............................................................1105
                              (ii)  The Year 1992 .............................................................1105
                              (iii) The Year 1993 .............................................................1107
                              (iv)  March 1993-June 15, 1993 ..................................................1108
                                    (a)  March 15, 1993: Tucker/Rocky Article Quoting Bob Gregg (PX
                                         382) .................................................................1108
                                    (b)  The March 22, 1993 Gregg Letter (PX 4C) ..............................1108
                                    (e)  March 22, 1993: Parts Unlimited Revises Price List (PX 444) ..........1109
                                    (d)  March 31, 1993: Phone Call (PX 624) ..................................1110
                                    (e)  Late March 1993: Mike Buckley Replaces Pat Log-Lie as Dunlop's
                                         National Sales Manager ...............................................1110
                                    (f)  Late March 1993: Gregg Phone Call to Buckley Regarding Termination
                                         of Distributors ......................................................1110
                                    (g)  April 1, 1993: Buckley Memo To Dunlop Distributors (PX 2) ............1110
                                    (h)  The April 8, 1993 Gregg Letter (PX 5) ................................1110
                                    (i)  April Phone Call Between Buckley & Gregg Regarding April 8
                                         1992 Gregg Letter ....................................................1111
                                    (j)  April 30, 1993: Logue Conversation with Motorcycle Stuff Regarding
                                         Tucker/Rocky's Low Prices ............................................1111
                                    (k)  May 6, 1993: Buckley Visits Nichols, Meets Jack Jesse, and Writes
                                         Call Reports (PX 14) .................................................1111
                                    (l)  May 6, 1993: Buckley Spends Evening with Jeff Fox of Parts
                                         Unlimited ............................................................1112
                                    (m)  May 7, 1993: Buckley Visits Tucker/Rocky Warehouse in Chicago ........1112
                                    (n)  Early May 1993: "Firm Commitments" (PX 17) ...........................1112
                                    (o)  Late May 1993: Tucker/Rocky Issues Revised Price List (PX 214
                                         PX 645) ..............................................................1112
                                    (p)  May 20,1993: Buckley's "Price War" Memo (PX 3) .......................1112
                                    (q)  Buckley's Memos to Robin Mitchell (PX 17; PX 18) .....................1113
                                    (r)  June 15, 1993: Dunlop Terminates Nichols (PX 16) .....................1114
                              (v)   Post-Termination Evidence .................................................1114
                                    (a)  June 1993: Tucker/Rocky Branch Manager's Report (PX 277) .............1114
                                    (b)  Joe Piazza (PX 540) ..................................................1114
                                    (c)  Tucker/Rocky's Missing Branch Manager Reports ........................1114
                                    (d)  September 1993: Trade Show Memo (PX 206) .............................1114
                                    (e)  Metzeler Memo of October 5, 1993 on "Price Stability" (PX 303) .......1114
                                    (f)  Tucker/Rocky Memo Regarding "Market Stabilizing Programs"
                                         (PX 280) .............................................................1115
                                    (g)  Dunlop Raises MSD Mid-Year ...........................................1115
                
                    (h)  Rick Ward (DX 36) ....................................................1115
                                    (i)  1994 Price Increases .................................................1115
                                    (j)  Tom Peterich .........................................................1115
                               (vi) Inadmissible Testimony ....................................................1115
                                    (a)  James Stewart ........................................................1115
                                    (b)  Rocky Trevino (PX 622) ...............................................1116
                                    (c)  Terry Baisley-William Giacomelli Conversation (PX 643) ...............1116
                           c.  Analysis .......................................................................1116
                               (i)  The Horizontal Agreement ..................................................1117
                               (ii) The Vertical Agreement ....................................................1118
                           (a) There is no evidence of parallelism supporting the inference of an agreement
                               to terminate Nichols or to fix Prices ..........................................1118
                               (i)  Market Theory .............................................................1118
                               (ii) Three Examples of Non-Parallel Behavior ...................................1119
                                    (a)  Dunlop Unilaterally Decided to Reduce Its Distribution Network........1119
                                    (b)  Parts Unlimited's 1993 Price Increases ...............................1121
                                    (c)  Tucker/Rocky and Parts Unlimited's 1994 Price Increases ..............1122
                           (b) The Gregg letters are ambiguous evidence and therefore do not support a
                               inference of pricefixing or a termination agreement ............................1122
                               (i)   The March 22, 1993 Gregg Letter ..........................................1122
                               (ii)  The April 8, 1993 Gregg Letter ...........................................1124
                           (c) There is no other direct or circumstantial evidence of collusion supporting
                               Nichols' section 1 claim .......................................................1125
                        2. Count II: The Rule of Reason .......................................................1125
                           a. Legal Standards .................................................................1125
                           b. Analysis ........................................................................1126
                        3. Count III: Group Boycott ...........................................................1128
                     B. The Illinois Antitrust Act ............................................................1128
                        1. Count IV: Per Se Pricefixing .......................................................1128
                        2. Count V: Rule of Reason ............................................................1129
                        3. Count VI: Group Boycott ............................................................1129
                     C. The Robinson-Patman Act Claims ........................................................1129
                        1. The Facts ..........................................................................1129
                        2. The Merits .........................................................................1130
                           a. Dunlop: Section 2(a) ............................................................1130
                           b. Tucker/Rocky
...

Get this document and AI-powered insights with a free trial of vLex and Vincent AI

Get Started for Free

Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant

  • Access comprehensive legal content with no limitations across vLex's unparalleled global legal database

  • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

  • Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities

  • Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

vLex

Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant

  • Access comprehensive legal content with no limitations across vLex's unparalleled global legal database

  • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

  • Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities

  • Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

vLex

Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant

  • Access comprehensive legal content with no limitations across vLex's unparalleled global legal database

  • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

  • Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities

  • Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

vLex

Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant

  • Access comprehensive legal content with no limitations across vLex's unparalleled global legal database

  • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

  • Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities

  • Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

vLex

Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant

  • Access comprehensive legal content with no limitations across vLex's unparalleled global legal database

  • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

  • Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities

  • Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

vLex

Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant

  • Access comprehensive legal content with no limitations across vLex's unparalleled global legal database

  • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

  • Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities

  • Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

vLex

Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant

  • Access comprehensive legal content with no limitations across vLex's unparalleled global legal database

  • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

  • Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities

  • Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

vLex
15 cases
  • In re Potash Antitrust Litigation
    • United States
    • U.S. District Court — District of Minnesota
    • January 2, 1997
    ...See, e.g., Market Force Inc. v. Wauwatosa Realty Co., 906 F.2d 1167, 1172 (7th Cir.1990); Nichols Motorcycle Supply Inc. v. Dunlop Tire Corp., 913 F.Supp. 1088, 1117 (N.D.Ill.1995), vacated on other grounds, pursuant to settlement (September 18, 1995). Nevertheless, where an examination of ......
  • Avery v. State Farm Mut. Auto. Ins. Co.
    • United States
    • Illinois Supreme Court
    • September 26, 2005
    ...however, have expressly disagreed with the notion that the Act is limited geographically. See Nichols Motorcycle Supply Inc. v. Dunlop Tire Corp., 913 F.Supp. 1088, 1140 (N.D.Ill.1995) ("This Court believes that the Illinois Consumer Fraud Act, although intended to protect Illinois consumer......
  • Avery v. State Farm Mutual Automobile Insurance Company, Docket No. 91494 — Agenda 7 — May 2003 (IL 8/18/2005)
    • United States
    • Illinois Supreme Court
    • August 18, 2005
    ...however, have expressly disagreed with the notion that the Act is limited geographically. See Nichols Motorcycle Supply Inc. v. Dunlop Tire Corp., 913 F. Supp. 1088, 1140 (N.D. Ill. 1995) ("This Court believes that the Illinois Consumer Fraud Act, although intended to protect Illinois consu......
  • In re Oakwood Homes Corp.
    • United States
    • U.S. Bankruptcy Court — District of Delaware
    • November 15, 2007
    ...waiver. Other courts have reached the same conclusion in similar circumstances. See, e.g., Nichols Motorcycle Supply Inc. v. Dunlop Tire Corp., 913 F.Supp. 1088, 1146-47 (N.D.Ill.1995) (broad jury waiver in "Distributor Agreement" did not encompass any "claims that do not directly arise or ......
    • Get Started for Free
10 books & journal articles
  • Table of Cases
    • United States
    • ABA Antitrust Library Proving Antitrust Damages. Legal and Economic Issues. Third Edition Part III
    • December 8, 2017
    ...Antitrust Litig., In re , No. 13-MD-2460, 2015 WL 4197590 (E.D. Pa. July 9, 2015), 90 Nichols Motorcycle Supply v. Dunlop Tire Corp., 913 F. Supp. 1088 (N.D. Ill. 1995), 322, 323 NicSand, Inc. v. 3M Co., 507 F.3d 442 (6th Cir. 2007), 52 Nifedipine Antitrust Litig., In re , 246 F.R.D. 365 (D......
  • Limits On Termination Rights
    • United States
    • ABA Antitrust Library Franchise and Dealership Termination Handbook
    • January 1, 2012
    ...Supply Co. v. E.I. DuPont de Nemours & Co., 747 F. Supp. 1262 (N.D. Ill. 1990), with Nichols Motorcycle Supply v. Dunlop Tire Corp., 913 F. Supp. 1088 (N.D. Ill. 1995). 65. See, e.g. , Muha v. United Oil Co., 433 A.2d 1009 (Conn. 1980); Blankenship v. Dialist Int’l Corp., 568 N.E.2d 503 (Il......
  • Robinson-Patman Act
    • United States
    • ABA Antitrust Premium Library Antitrust Law Developments (Ninth Edition) - Volume I
    • February 2, 2022
    ...Fla. 1997) (finding “no causation between the discrimination and alleged injury”); Nichols Motorcycle Supply v. Dunlop Tire Corp., 913 F. Supp. 1088, 1131 (N.D. Ill. 1995) (holding that, under J. Truett Payne, plaintiff may claim lost profits resulting from being forced to sell at lower pri......
  • Table of Cases
    • United States
    • ABA Antitrust Library Franchise and Dealership Termination Handbook
    • January 1, 2012
    ...Newport Tire & Rubber Co. v. Tire & Battery Corp., 504 F. Supp. 143 (E.D.N.Y. 1980), 92 Nichols Motorcycle Supply v. Dunlop Tire Corp., 913 F. Supp. 1088 (N.D. Ill. 1995), 51 Nick v. Morgan’s Foods, 99 F. Supp. 2d 1056 (E.D. Mo. 2000), 106 Nieman v. Dryclean Franchise Co., 178 F.3d 1126 (11......
    • Get Started for Free
Add as a preferred source on Google