United States v. Watchmakers of Switzerland Inf. Ctr.

• Citation: 168 F. Supp. 904
• Parties: UNITED STATES of America, Plaintiff, v. The WATCHMAKERS OF SWITZERLAND INFORMATION CENTER, Inc.; Federation Suisse Des Associations De Fabricants D'Horlogerie; Ebauches, S.A.; Foote, Cone & Belding; American Watch Association, Inc.; Bulova Watch Company, Inc.; Benrus Watch Company; Gruen Watch Company; Longines-Wittnauer Watch Company; Gruen Watch Manufacturing Company, S.A.; Eterna, A.G. Uhrenfabrik; Wittnauer et Cie, S.A.; Montres Rolex, S.A.; Concord Watch Co.; Eterna Watch Company of America; Diethelm and Keller (USA) Ltd.; The American Rolex Watch Corporation; Rodana Watch Company, Inc.; Movado Watch Agency, Inc.; Jean R. Graef, Inc.; Norman M. Morris Corporation; The Henry Stern Watch Agency, Inc.; Cyma Watch Co., Inc.; Wyler Watch Agency, Inc., Defendants.
• Decision Date: 23 December 1958
• Court: United States District Courts. 2nd Circuit. United States District Courts. 2nd Circuit. Southern District of New York

168 F. Supp. 904

UNITED STATES of America, Plaintiff, v. The WATCHMAKERS OF SWITZERLAND INFORMATION CENTER, Inc.; Federation Suisse Des Associations De Fabricants D'Horlogerie; Ebauches, S.A.; Foote, Cone & Belding; American Watch Association, Inc.; Bulova Watch Company, Inc.; Benrus Watch Company; Gruen Watch Company; Longines-Wittnauer Watch Company; Gruen Watch Manufacturing Company, S.A.; Eterna, A.G. Uhrenfabrik; Wittnauer et Cie, S.A.; Montres Rolex, S.A.; Concord Watch Co.; Eterna Watch Company of America; Diethelm and Keller (USA) Ltd.; The American Rolex Watch Corporation; Rodana Watch Company, Inc.; Movado Watch Agency, Inc.; Jean R. Graef, Inc.; Norman M. Morris Corporation; The Henry Stern Watch Agency, Inc.; Cyma Watch Co., Inc.; Wyler Watch Agency, Inc., Defendants.

United States District Court S. D. New York.

December 23, 1958.

Richard B. O'Donnell, Chief, New York Office, Anti-trust Division, New York City, Mary Gardiner Jones, Elliott H. Feldman, Averill M. Williams, and Donald Ferguson, Attys., Dept. of Justice, New York City, for the United States.

Robert Perret, New York City, for defendants, The Watchmakers of Switzerland Information Center, Inc., Federation Suisse des Associations de Fabricants D'Horlogerie, Ebauches, S.A. Uhrenfabrick and Eterna Watch Co. of America, by Solinger & Gordon, Eugene H. Gordon, New York City, of counsel.

William H. Fox, New York City, for defendant American Watch Ass'n, Inc., by Davies, Richberg, Tydings, Landa & Duff, Washington, D. C., J. Lee Murphy, of counsel.

Manning, Hollinger & Shea, New York City, for defendants Gruen Watch Co. and Gruen Watch Mfg. Co., S.A., by Donald W. Randall, New York City, of counsel.

Goodwin, Danforth, Savage & Whitehead, New York City, for defendants Longines-Wittnauer Watch Co., Wittnauer et Cie, S.A. and Diethelm and Keller (USA) Ltd., by Donovan, Leisure, Newton & Irvine, James V. Hayes, and William F. Clare, Jr., New York City, of counsel.

Winthrop, Stimson, Putnam & Roberts, New York City, for defendant American Rolex Watch Corp., by Peter H. Kaminer, New York City, of counsel.

CASHIN, District Judge.

This is a civil anti-trust action brought by the Government under the Sherman Anti-Trust Act (15 U.S.C.A. § 1) and the Wilson Tariff Act (15 U.S.C.A. § 8). The defendants are both American and Swiss corporations. Named as co-conspirators but not as defendants are Swiss corporations and organizations. For the purposes of this motion, it is not necessary to review the precise nature of the unlawful acts charged. Suffice it to say that what is generally alleged is that Swiss organizations, by agreement with American organizations, restrict manufacture and export of American made watches and parts in return for the American organizations' right to obtain Swiss watches and parts. Plaintiff has already had extensive discovery from defendants. The present motion is in the nature of a hearing on objections to defendants' interrogatories noticed by plaintiff.

Plaintiff objects to some of defendants' interrogatories on three grounds:

First: Plaintiff objects to identifying certain documents which could be used to support the general allegations made in the complaint;

Second: Plaintiff objects to those interrogatories which seek to elicit information concerning the effects of the conspiracy; and

Third: Plaintiff objects to those interrogatories which it claims seek legal conclusions.

Since the objections to the interrogatories of the various defendants have been categorized, my decision will be given in principle similarly covering the objections to all of the interrogatories.

I. Interrogatories Concerning Identification of Documents.

In the ordinary case, the latitude of discovery proceedings must, perforce, be prescribed by reference to the issues as framed by the pleadings. However, in certain cases, notably anti-trust suits, if those cases are to be kept within reasonable bounds, a different yardstick must be found. So recently, in another civil anti-trust case, I deferred production of documents by the defendants until the plaintiff had narrowed the issues at least to some extent. At the same time, I overruled defendants' objections to the plaintiff's interrogatories since plaintiff would need the information in the answers to the interrogatories before it would be able so to narrow the issues. After the narrowing of the issues "the balance of discovery could be measured against the frame of reference of the issues, as so narrowed, rather than against the broad frame of reference of the complaint * * *". United States v. Standard Oil Company (New Jersey), D. C., 23 F.R.D. 1.

In the instant case the proceedings have progressed to a further degree. Plaintiff has already completed its discovery and, apart from discovery, has obtained information from other Government sources and from a Grand Jury proceeding concerning the same subject matter as this civil action. Based upon the information thus obtained, plaintiff has prepared a statement of claims and a list of documents...