Wynn Oil Co. v. Purolator Chemical Corp., 71-864-Civ-J-S.
| Decision Date | 11 July 1974 |
| Docket Number | No. 71-864-Civ-J-S.,71-864-Civ-J-S. |
| Citation | 403 F. Supp. 226 |
| Parties | WYNN OIL COMPANY, a corporation, Plaintiff, v. PUROLATOR CHEMICAL CORPORATION, a corporation et al., Defendants, v. Carl E. WYNN and Wesley E. Bellwood, Additional Defendants to the Counterclaim. |
| Court | U.S. District Court — Middle District of Florida |
John F. Corrigan, Corrigan, Werber & Moore, Jacksonville, Fla., for plaintiff.
John A. Devault III and Chester Bedell, Bedell, Bedell, Dittmar, Smith & Zehmer, Jacksonville, Fla., Denis McInerney, Cahill, Gordon & Reindel, New York City, for defendants.
The written briefs of defendants supporting their motions for Judgment Notwithstanding the Verdict and New Trial were thoroughly read and considered by the Court prior to oral argument of those motions on June 10, 1974. After closely following the arguments, which concluded shortly after mid-day, the Court immediately began a final review of the briefs and of each contention of defendants in the light of both supporting and opposing briefs and the arguments of counsel. Upon that basis the court concluded late in the evening that defendants' motions should be denied except for reduction of a Count V punitive damage award. An order to that effect was drafted, typed and entered the next morning, the court advising therein that a Memorandum of Decision would be entered at or before entry of final judgment at the time of a hearing upon an award of attorneys' fees as to the Sherman Act violations of which the jury found defendants liable on Count III.
In briefs supporting their Judgment Notwithstanding the Verdict and New Trial motions defendants asserted a considerable number and variety of contentions. However, the only grounds urged in oral argument were confined to: (1) errors in the verdict (allegedly duplicative damage awards); (2) excessive punitive damage awards; and (3) jury instructions on conspiracy. The Court having fully considered defendants' written briefs and finding the contentions therein, other than those presented in oral argument, to be entirely without merit, this memorandum will be confined to discussion of contentions presented by defendants in oral argument on their post trial motions.
Without careful review and knowledge of the entire record, especially including the trial transcript of which copies were available to counsel at the end of every trial day, it would be impossible for anyone, however able and experienced, to fully comprehend or fairly determine the merit or lack thereof, of each particular ground asserted by defendants in briefs and in oral argument. Defendants had a minimum of four attorneys in constant attendance every trial day, although only two of them interrogated witnesses and took part in final argument to the jury. Nevertheless, the oral argument for defendants on their post verdict motions, which presumably covered the main thrust of defendants' contentions, was presented by a then recently engaged attorney, who had not participated in the trial and who, in response to inquiry by the Court, admitted he had not read the entire transcript but only selected portions pertaining primarily to the verdict form and jury damage awards. This attorney criticized the form and substance of the verdict form, although he had no first hand knowledge of how the verdict form was developed through a series of drafts, with the final form approved in all particulars by defendants' trial counsel with three exceptions, none of which, because of the jury findings, is now significant.
SUMMARY OF RECOVERY SOUGHT AND EACH JURY VERDICT THEREON.
Plaintiff sought recovery against defendants on eight counts, each of which was based on alleged facts and legal grounds distinct and different from all other counts:
1. In Count I plaintiff sought recovery against Purolator Chemical Corporation and Adams and Newman, individually, for an alleged unpaid balance for goods sold and delivered. Defendants denied that the amount sought was due and owing and alleged set offs against the amount claimed in various particulars. The jury found defendants liable for an amount of $31,713.46, which was $7,056.41 less than the amount claimed by plaintiff.
2. In Count II plaintiff sought recovery against Purolator Chemical, as successor to Adams and Company, for alleged breaches of distributor agreements between plaintiff and Adams and Company in one or more of four alleged particulars chargeable to Adams and Company and Purolator. Defendants denied breach of contract or misconduct in any particular alleged or damage resulting therefrom. The jury found in favor of plaintiff and awarded damages for breach of contract in the sum of $200,000.00.
3. In Count III plaintiff sought damages against Adams, Newman, Purolator Chemical and Purolator, Inc. for alleged Sherman Act violations in three different categories, all of which alleged violations and damages therefrom were denied by defendants:
(a) Horizontal or vertical price fixing; or horizontal or vertical territorial and customer allocations;
The jury found in favor of plaintiff against all defendants under category (a) and awarded compensatory damages therefor in the sum of one million dollars.
(b) Conspiracy to monopolize commerce in the automotive petrochemical additive domestic market;
The jury found in favor of plaintiff against all defendants under category (b) and awarded compensatory damages in the sum of one million dollars. In response to Verdict question 3.2(d) the jury found against plaintiff on its contention that one or more of defendants violated the Sherman Act by means of tie-in sales and accordingly the jury did not award damages therefor.
(c) Attempt to monopolize a part of trade or commerce in the automotive petrochemical additive domestic market.
The jury found in favor of all defendants and awarded no damages under category (c).
Under Section 4 of the Clayton Act, 15 U.S.C. § 15, both awards under Count III must be trebled and attorney's fees and costs awarded.
4. In Count IV plaintiff sought recovery of compensatory and punitive damages against Purolator, Inc. for unlawful and/or malicious interference with contractual and business relationships between plaintiff and Adams and Company. Defendants denied unlawful conduct in the particulars alleged by plaintiff or any damage resulting therefrom. The jury found in favor of plaintiff, awarding compensatory damages in the sum of one million dollars and punitive damages in the sum of four million dollars.
5. In Count V plaintiff sought compensatory and punitive damages against Purolator, Inc. and Purolator Chemical for alleged wrongful interference with contractual relationships between Wynn Oil and certain of its domestic distributors. Defendants denied any wrongful conduct in any alleged particular or damage resulting therefrom. The jury found in favor of plaintiff and awarded compensatory damages in the sum of one million dollars and punitive damages against Purolator Inc. in the sum of two million dollars and against Purolator Chemical in the sum of four million dollars. (The court has reduced this latter award to one million dollars).
6. In Count VI plaintiff sought an injunction restraining defendants from conduct alleged to be violative of antitrust and unfair competition laws. Determination of this claim being solely a matter for decision by the court, the jury was directed not to consider this claim or return a verdict thereon.
7. In Count VII plaintiff sought recovery of damages against all defendants for alleged violation of Florida unfair competition and state antitrust laws. Defendants denied wrongful conduct in any particular alleged or damage sustained therefrom. The jury found in favor of plaintiff against all defendants and awarded compensatory damages in the sum of one million dollars.
8. In Count VIII plaintiff sought damages and injunctive relief against Purolator Chemical for alleged disruptive use by defendants of the term "Friction Free" and for infringement of plaintiff's trade mark "Friction Proofing." Defendants denied wrongful conduct in any particular alleged or damage resulting therefrom. The jury found in favor of defendants and made no award of damages.
9. In their counterclaim, defendants asserted two counts in which they sought recovery of compensatory and punitive damages against plaintiff and individual counterclaim defendants Wynn & Bellwood for:
In summary: of the seven counts asserted by plaintiff and submitted to the jury in the verdict form, count by count and item per item, defendants prevailed to the extent that the jury: (1) reduced the amount sought by plaintiff on Count I by approximately 18.2%, allowing for off set of certain items claimed by defendants; (2) denied plaintiff's tie-in sales contentions in Count III; (3) found in favor of defendants on plaintiff's claim of alleged attempt to monopolize in Count III; and (4) found wholely in favor of defendants on Count VIII.
Defendants' oral argument on their Judgment Notwithstanding the Verdict and New Trial motions was principally directed to three contentions: (1) that the verdict form submitted to the jury invited conflicting findings and duplicate damage awards, and that the verdict returned by the jury...
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