Southern Card v Lawson Mardon Label , 138 F.3d 869 ( 1998 )


Menu:
  •                                                                 [PUBLISH]
    IN THE UNITED STATES COURT OF APPEALS
    FOR THE ELEVENTH CIRCUIT
    ________________________________
    No. 96-3682
    ________________________________
    D.C. Docket No. 95-130-CIV-ORL-22
    SOUTHERN CARD & NOVELTY, INC.,
    Plaintiff-Appellant,
    versus
    LAWSON MARDON LABEL, INC. d.b.a.
    Lawson Mardon Post Card, and
    DANIEL J. SAUNDERS,
    Defendants-Appellees.
    ________________________________________________________________
    Appeal from the United States District Court
    for the Middle District of Florida
    _________________________________________________________________
    (April 7, 1998)
    Before HATCHETT, Chief Judge, EDMONDSON and COX, Circuit Judges.
    HATCHETT, Chief Judge:
    The appellant, Southern Card & Novelty, Inc. (Southern Card), a postcard
    distributor, challenges the district court’s grant of summary judgment for the appellees,
    Lawson Mardon Label, Inc. (Lawson), a manufacturer of postcards and related products,
    and Daniel Saunders, the vice-president in charge of Lawson’s postcard business, on its
    federal and state antitrust tying claims. We affirm.
    I. FACTS
    Lawson manufactures postcards and sells them to distributors throughout North
    America.1 Those distributors then sell the postcards to retail outlets, which in turn sell
    them to consumers. Over a decade ago, Lawson’s predecessor-in-interest, H.S. Crocker
    Company, Inc. (H.S. Crocker), secured a license agreement with the Walt Disney
    Company (Disney Company) that permits Lawson to manufacture postcards bearing the
    copyrighted images of Disney characters such as Mickey Mouse. Although the license
    agreement is “non-exclusive,” the Disney Company has not granted similar rights to any
    other postcard manufacturer. Thus, Lawson is the sole producer of postcards bearing
    Disney images. Lawson also makes “local view” postcards, i.e., postcards depicting non-
    licensed local images. In Florida, these postcards might present, for example, pictures of
    beaches, palm trees or alligators. Local view postcards comprise over ninety percent of
    Lawson’s total postcard production and accounted for over sixty percent of its sales in
    Florida in 1995. The parties do not dispute that at least six other postcard manufacturers
    produce postcards specific to areas in Florida.
    1
    Lawson has about an eleven percent market share of the North American
    postcard business.
    Southern Card, located in Daytona Beach, distributes postcards to retailers --
    primarily “chain stores” -- situated in central and northern Florida. Southern Card
    purchases its postcards from large commercial printers such as Lawson, and acts as a rack
    jobber in the stores it services.2 From 1986 -- the year Southern Card commenced
    business dealings with H.S. Crocker -- to 1991, Southern Card retained complete control
    over the quantity and types of postcards that it purchased from the manufacturer.3 During
    the late 1980s and early 1990s, Southern Card bought a percentage of its local view
    postcard stock from Lawson’s competitors, finding their products superior in terms of
    price and quality.4
    2
    Southern Card asserts that “[t]here are approximately eight main line independent
    postcard distributors in the state of Florida.”
    3
    It may well be that in the mid-to-late 1980s, Southern Card and Lawson entered
    into an informal arrangement whereby Southern Card acted as Lawson’s exclusive vendor
    to chain stores in exchange for Lawson’s promise not to sell Disney postcards to Southern
    Card’s competitors. On November 22, 1989, John Nyberg, Southern Card’s president,
    wrote to the chairman of the board of H.S. Crocker, detailing the “history of the
    relationship” between the two companies. Nyberg wrote that he had “wanted exclusivity
    on all H.S. Crocker postcard products, including all Walt Disney World items within
    [Southern Card’s] territorial area,” and that “[w]ith the understanding that H.S. Crocker
    would not manufacture for, or sell to any other distributor in the territory serviced by
    Southern Card & Novelty, our companies began to do business.” Nyberg also
    acknowledged the existence of this arrangement when deposed on April 18, 1996, stating,
    “So de facto, I became -- Southern Card & Novelty became the exclusive vendor to the
    chain stores. Although there was never any such agreement made between myself and
    Lawson Mardon, it had indeed evolved that way.” However, in an affidavit dated July
    30, 1996, Nyberg averred that while the parties had entered into an exclusivity agreement
    concerning retailers in Daytona Beach, they “had no territorial exclusive agreement for
    Orlando.” For purposes of this appeal, we accept this assertion as true.
    4
    About seventy percent of Southern Card’s revenue is attributable to its sale of
    local view postcards.
    3
    In late 1991, Lawson introduced a “Disney Product Plan” in Florida. In a letter
    dated December 12, 1991, Saunders put forth the terms of the agreement he hoped to
    reach with Southern Card pursuant to this plan:
    d) Distributor will purchase Local View and General Florida post cards and
    allied products from [Lawson] equal to his purchases from [Lawson] of
    Disney products. [For example,] if distributor purchases $100,000 in 1992
    of Disney product from [Lawson], distributor agrees to purchase a
    minimum of $100,000 in 1992 of Local View or General Florida product
    from [Lawson].
    e) Failure to meet the minimum requirement agreed to in d) above, may
    result in [Lawson’s] decision to not sell any product to distributor in
    following year.
    Because Southern Card feared losing its lone source of Disney postcards, it began buying
    Lawson’s local view postcards in amounts equal to its purchases of Disney postcards.
    In October 1993, Saunders wrote to Nyberg expressing his concern that Southern
    Card continued to buy a significant quantity of postcards from Lawson’s competitors.
    The next month, Saunders wrote to Nyberg asking that Southern Card commit to having
    Lawson postcards comprise one hundred percent of Southern Card’s business in the
    Orlando area. Southern Card refused, asserting that Lawson already received about
    seventy-five to eighty percent of its total business, and that it never committed to
    purchasing one hundred percent of its requirements from Lawson.
    A few months later, in February 1994, Lawson began recruiting Southern Card’s
    competitors to sell Lawson postcards to chain stores. The next month, Lawson limited
    Southern Card’s purchases of Disney postcards to those that Southern Card had bought in
    4
    1993.5 In the meantime, Lawson sold a number of Disney postcards that had been
    developed in 1994 to those distributors that bought only Lawson local view postcards.
    The district court found, and Southern Card does not dispute, that as a result of these
    developments, Southern Card “has faced new competition” in retail stores in the Orlando
    area.
    II. PROCEDURAL HISTORY
    Southern Card instituted this lawsuit in February 1995, and its amended complaint
    asserted federal and state claims of (1) illegal tying pursuant to section 1 of the Sherman
    Act, 
    15 U.S.C. § 1
    , section 3 of the Clayton Act, 
    15 U.S.C. § 14
    , and Florida Statutes
    section 542.18; and (2) monopolization and attempted monopolization under section 2 of
    the Sherman Act, 
    15 U.S.C. § 2
    , and Florida Statutes section 542.19. In outlining its
    tying claims, Southern Card stated that (1) Disney postcards constituted the “tying”
    product, and local view postcards were the “tied” product; (2) the “greater Orlando area”
    constituted the relevant geographic market or sub-market; and (3) the sale of local view
    postcards to distributors comprised the relevant product market. The crux of the tying
    claims was that Lawson “illegally compelled and coerced Southern Card and others to
    agree to purchase [local view postcards] from Lawson . . . as a condition of obtaining and
    retaining access to Disney Cards.” Southern Card sought treble damages, injunctive relief
    Since 1994, Southern Card has continued to purchase these Disney postcards
    5
    from Lawson but has acquired its entire local view stock from other manufacturers.
    5
    and attorneys’ fees.6
    After the parties conducted extensive discovery, Lawson filed a motion for
    summary judgment that Southern Card vigorously opposed. In November 1996, the
    district court granted Lawson’s motion. As to Southern Card’s federal tying claims, the
    court first considered whether to deem Lawson’s practices unlawful per se or subject to
    evaluation under the rule of reason. The court found that Lawson’s practices were
    “unlike traditional tying arrangements” “because Southern Card does not allege that the
    ultimate consumer must buy the tied product (a local view postcard) to buy the tying
    product (a Disney postcard).” The court thus considered the challenged conduct to
    represent “‘full’ or ‘representative’ line forcing,” that is, a vertical nonprice restraint
    “undeserving of per se treatment.” Applying the rule of reason, the court held that
    Southern Card failed to demonstrate that Lawson had unreasonably restrained
    competition in the local view postcard market.
    Notwithstanding its conclusion regarding the applicability of the rule of reason, the
    district court also went on to hold that even if it “were to use a per se analysis, Southern
    Card’s tying claims would fail” because “the alleged ‘Disney’ and non-Disney
    6
    Southern Card’s expert witness, Dr. Bruce Seaman, subsequently opined that
    Southern Card had suffered two types of injuries. According to Dr. Seaman, Southern
    Card “suffered economic damages linked to the overcharge on the tied non-Disney post
    cards.” Also, Lawson’s “refusal to allow Southern Card access to a full Disney array of
    post card products and other types of products has affected and will continue to affect
    Southern’s profits on existing chain store accounts as well as the likelihood that chain
    store clients will continue to be lost due to the resulting weakening of Southern’s relative
    competitive position.”
    6
    classifications are not separate products such that there can be a ‘tie-in’ between them . . .
    . Rather, all of Lawson Mardon’s postcards are sufficiently unitary to be considered a
    single product.” Next, the court rejected Southern Card’s federal monopolization and
    attempted monopolization claims on the grounds that Southern Card “failed to produce
    any admissible evidence that creates triable issues of fact with respect to the existence of
    a cognizable market or Lawson Mardon’s monopoly power in such a market.” Finally,
    the court turned away Southern Card’s state claims, recognizing that “Florida antitrust
    law mirrors federal law as applied to the tying, monopolization and attempted
    monopolization claims in the instant case.” On appeal, Southern Card challenges the
    district court’s grant of summary judgment only as to its federal and state tying claims.
    III. DISCUSSION
    We review the granting of summary judgment de novo, applying the same legal
    standards that bound the district court. Uniforce Temporary Personnel, Inc. v. National
    Council on Compensation Ins., Inc., 
    87 F.3d 1296
    , 1299 (11th Cir. 1996). “There is no
    genuine issue for trial unless the non-moving party establishes, through the record
    presented to the court, that it is able to prove evidence sufficient for a jury to return a
    verdict in its favor.” Cohen v. United Am. Bank of Cent. Fla., 
    83 F.3d 1347
    , 1349 (11th
    Cir. 1996).
    A.
    “A tying arrangement is ‘an agreement by a party to sell one product but only on
    the condition that the buyer also purchases a different (or tied) product, or at least agrees
    7
    that he will not purchase that product from any other supplier.’” Eastman Kodak Co. v.
    Image Technical Servs., Inc., 
    504 U.S. 451
    , 462 (1992) (quoting Northern Pac. Ry. Co. v.
    United States, 
    356 U.S. 1
    , 5-6 (1958)). Such arrangements can run afoul of the Sherman
    Act’s prohibition against agreements “in restraint of trade,” 
    15 U.S.C.A. § 1
     (West 1997),
    and section 3 of the Clayton Act, 
    15 U.S.C.A. § 14
     (West 1997). See Spartan Grain &
    Mill Co. v. Ayers, 
    581 F.2d 419
    , 428 (5th Cir. 1978) (“The Clayton Act, passed as a
    response to what Congress considered grudging constructions of the Sherman Act by the
    courts, specifically bans tying arrangements.”), cert. denied, 
    444 U.S. 831
     (1979). As our
    predecessor court made clear, the two statutory theories of liability are substantively
    synonymous. Bob Maxfield, Inc. v. American Motors Corp., 
    637 F.2d 1033
    , 1037 (5th
    Cir. Unit A Feb. 1981), cert. denied, 
    454 U.S. 860
     (1981); see also IX Phillip E. Areeda,
    Antitrust Law ¶ 1719b, at 254 (1991) (“Although their words differ, the two statutes
    apply a single substantive standard.”).7
    Although the Sherman Act, by its terms, prohibits every agreement
    “in restraint of trade,” this Court has long recognized that Congress
    intended to outlaw only unreasonable restraints. As a consequence, most
    antitrust claims are analyzed under a “rule of reason,” according to which
    the finder of fact must decide whether the questioned practice imposes an
    unreasonable restraint on competition, taking into account a variety of
    factors, including specific information about the relevant business, its
    condition before and after the restraint was imposed, and the restraint’s
    7
    Because Southern Card does not discuss its state tying claim independently and
    fails to cite any Florida case law, we assume that federal antitrust doctrine controls that
    claim as well. See 
    Fla. Stat. Ann. § 542.32
     (West 1997); see also Parts Depot Co. v.
    Florida Auto Supply, Inc., 
    669 So. 2d 321
    , 324 (Fla. 4th D.C.A. 1996) (“[T]he
    Legislature has directed courts to rely on comparable federal antitrust statutes in
    construing [Florida Statutes section 542.18].”).
    8
    history, nature, and effect.
    Some types of restraints, however, have such predictable and
    pernicious anticompetitive effect, and such limited potential for
    procompetitive benefit, that they are deemed unlawful per se. Per se
    treatment is appropriate once experience with a particular kind of restraint
    enables the Court to predict with confidence that the rule of reason will
    condemn it. Thus, we have expressed reluctance to adopt per se rules with
    regard to restraints imposed in the context of business relationships where
    the economic impact of certain practices is not immediately obvious.
    State Oil Co. v. Khan, 
    118 S. Ct. 275
    , 279 (1997) (internal quotation marks, citations and
    brackets omitted). See also Levine v. Central Fla. Med. Affiliates, Inc., 
    72 F.3d 1538
    ,
    1549 (11th Cir.) (“The presumption in cases brought under section 1 of the Sherman Act
    is that the rule-of-reason standard applies. We apply the per se rule only when history
    and analysis have shown that in sufficiently similar circumstances the rule of reason
    unequivocally results in a finding of liability, i.e., when the conduct involved always or
    almost always tends to restrict competition and decrease output.”) (internal quotation
    marks, citations and brackets omitted), cert. denied, 
    117 S. Ct. 75
     (1996).
    “[C]ertain tying arrangements pose an unacceptable risk of stifling competition
    and therefore are unreasonable ‘per se.’” Jefferson Parish Hosp. Dist. No. 2 v. Hyde, 
    466 U.S. 2
    , 9 (1984). “It is clear, however, that not every refusal to sell two products
    separately can be said to restrain competition.” Jefferson Parish, 
    466 U.S. at 11
    . “Thus,
    in a sense the question whether this case involves ‘tying’ is beside the point. The legality
    of [Lawson’s] conduct depends on its competitive consequences, not whether it can be
    labeled ‘tying.’” Jefferson Parish, 
    466 U.S. at
    21 n.34.
    9
    We believe that the terms that Lawson imposed on Southern Card pursuant to its
    “Disney Product Plan” -- that Southern Card purchase local view postcards in amounts
    equal to its purchases of Disney postcards -- are indicative of a manufacturer’s “line
    force” upon a distributor.8 “Line forcing, be it full or representative, is a vertical nonprice
    restraint -- an agreement between entities at different levels of distribution that does not
    purport to affect prices charged for the goods.” Smith Machinery, 878 F.2d at 1295.9 As
    the Supreme Court has made clear, “economic analysis supports the view, and no
    precedent opposes it, that a vertical restraint is not illegal per se unless it includes some
    agreement on price or price levels.” Business Electronics, 485 U.S. at 735-36. This is so
    because such restraints have the “real potential to stimulate interbrand competition, ‘the
    primary concern of antitrust law.’” Business Electronics, 485 U.S. at 724 (quoting
    Continental T.V., Inc. v. GTE Sylvania Inc., 
    433 U.S. 36
    , 51 n.19 (1977)).10
    As Professor Areeda has written, “requiring dealers to purchase a tied product
    8
    “Full-line” or “representative-line” forcing occurs when “a manufacturer agrees
    to license or franchise a dealer to sell its products, but only on condition that the dealer
    sell a full or representative line of those products.” Smith Machinery Co. v. Hesston
    Corp., 
    878 F.2d 1290
    , 1294 (10th Cir. 1989), cert. denied, 
    493 U.S. 1073
     (1990).
    9
    “Restraints imposed by agreement between competitors have traditionally been
    denominated as horizontal restraints, and those imposed by agreement between firms at
    different levels of distribution as vertical restraints.” Business Elecs. Corp. v. Sharp
    Elecs. Corp., 
    485 U.S. 717
    , 730 (1988).
    10
    “Interbrand competition is the competition among the manufacturers of the same
    generic product . . . . In contrast, intrabrand competition is the competition between the
    distributors -- wholesale or retail -- of the product of a particular manufacturer.” GTE
    Sylvania, 
    433 U.S. at
    51 n.19.
    10
    from the defendant need not impair consumers’ purchases from his rivals who sell
    directly to consumers or who continue to reach them through an ample number of other
    dealers.” IX Areeda, Antitrust Law ¶ 1725a, at 317. The Tenth Circuit has similarly
    stated -- in a case involving a distributor’s claim that a manufacturer tied the sales of its
    established, popular farm machinery to sales of its new, unestablished tractors -- that
    [i]n a line forcing situation, where a dealer is serving as an intermediate link
    in a distribution chain, if one manufacturer is foreclosed from selling to a
    dealer because of the arrangement, it is likely going to find another way to
    take its product to market, providing a profit potential continues to exist. In
    such a case, there is no ultimate foreclosure to the consumer of a choice of
    goods. In other more traditional tying arrangements there is an ultimate
    foreclosure of choice to the ultimate consumer. Thus, a foreclosure of
    choice to an ultimate consumer appears to be the principal key to a tie that
    is illegal per se. No such foreclosure occurs or is threatened in a typical line
    forcing situation such as that at bar.
    Smith Machinery, 
    878 F.2d at
    1297 (citing Jefferson Parish, 
    466 U.S. at 5
    ; United States
    v. Loew’s Inc., 
    371 U.S. 38
    , 40 (1962); Northern Pac. Ry., 
    356 U.S. at 3
    ; and
    International Salt Co. v. United States, 
    332 U.S. 392
    , 393 (1947)). See also Roy B.
    Taylor Sales, Inc. v. Hollymatic Corp., 
    28 F.3d 1379
    , 1383 (5th Cir. 1994) (“Ties that
    constrain only dealers . . . create relatively little danger to competition, provided
    consumers may purchase the two goods separately.”) (footnote omitted), cert. denied, 
    513 U.S. 1103
     (1995); Ransomes Am. Corp. v. Spartan Distribs., Inc., 
    914 F. Supp. 183
    , 185
    (W.D. Mich. 1996) (“Tying arrangements that constrain only dealers are not
    presumptively illegal because they pose little danger to competition, as long as consumers
    may purchase the two goods separately.”); Paul E. Volpp Tractor Parts, Inc. v.
    11
    Caterpillar, Inc., 
    917 F. Supp. 1208
    , 1229 (W.D. Tenn. 1995) (“Because consumers are
    not hurt by vertical non-price restraints between manufacturers and dealers, the type of
    line-forcing/exclusive arrangement found in this case should not be subject to the same
    per se treatment as traditional tying arrangements.”). Not surprisingly, then, “most courts
    dealing with the full-line force have not applied the per se rule against tying but have
    required proof in the particular case of a significant threat to competition.” IX Areeda,
    Antitrust Law ¶ 1725c, at 323.
    Southern Card has made no showing that line-forcing arrangements like the one at
    issue always or almost always tend to restrict competition and decrease output. This fact,
    coupled with the strength of the authorities cited above, leads us to conclude that it would
    be inappropriate to deem Lawson’s line-forcing practice unlawful per se. Thus, we will
    review the restraint under rule-of-reason analysis.
    For the same reasons, Lawson’s (unsuccessful) attempt to compel Southern Card
    to carry only Lawson-produced local view postcards does not require us to employ a
    different standard.
    The claimed arrangement between [Lawson] and [Southern Card]
    constituted a vertical nonprice restraint between a manufacturer and a dealer
    on goods that the dealer offered to customers independently. It was in
    effect an exclusive-dealing arrangement in which [Lawson] required
    [Southern Card] to sell [Lawson], and only [Lawson], [local view
    postcards]. Such an arrangement is not the sort that would always or almost
    always tend to restrict competition and decrease output. It does not threaten
    competition to the same extent as tying arrangements that bind ultimate
    customers. Regardless of whether the restraint also constituted a tying
    arrangement, subjecting it to per se analysis would ignore our directive
    from the Court. The measure of legality of relationships between
    12
    manufacturers and independent distributors must not be allowed to turn on
    labels.
    Taylor Sales, 
    28 F.3d at 1384-85
     (internal quotation marks and footnotes omitted).
    B.
    Under the rule of reason, a plaintiff must prove an anticompetitive effect of the
    defendant’s conduct on the relevant market, and that the conduct has no procompetitive
    benefit or justification. Levine, 
    72 F.3d at 1551
    . Southern Card argues that Lawson’s
    behavior generated anticompetitive effects because it (1) foreclosed the market to
    competitive manufacturers; (2) caused consumers to pay higher prices; and (3) resulted in
    a dilution in product quality and service. Southern Card thus attempts to prove that
    Lawson’s conduct had an actual detrimental effect on competition. Levine, 
    72 F.3d at 1551
    . We address Southern Card’s contentions in turn.
    1.
    Southern Card asserts that the “record clearly supports the existence of market
    preclusion of competitive manufacturers of local view cards in the Orlando area.” In
    support of this contention, Southern Card first argues that Lawson’s “specific attack” on
    the sales base of one of its competitors, John Hinde Curteich & Co. (Hinde), evidences an
    anticompetitive effect. In making this argument, Southern Card relies primarily on the
    affidavit of Hinde vice-president Don Moffet.
    Moffet’s affidavit, however, does little to advance Southern Card’s cause. Moffet
    avers that Lawson’s practices caused Hinde to lose “some”of its share of the local view
    13
    postcard market to Lawson. Moffet also states, however, that as Disney postcards
    increased in popularity in the late 1980s and early 1990s, Hinde’s sales of local view
    postcards “began to decrease.” We agree with Lawson that Moffet’s affidavit is woefully
    deficient, as it fails to (1) state with any degree of specificity just how much business
    Hinde lost to Lawson; (2) describe any competitive actions Hinde took in response to
    Lawson’s practices; or (3) explain away other potential reasons for Hinde’s loss of
    business.
    Unfortunately for Southern Card, none of the other evidence it proffers is even as
    probative as Moffet’s affidavit.11 In short, Southern Card has failed to show that
    Lawson’s dealings somehow either precluded other manufacturers from gaining access to
    the local view postcard market or adversely impacted upon consumer choice. Thus, we
    have little difficulty in turning away Southern Card’s contention here. As the Fifth
    Circuit has stated, “[s]peculation about anticompetitive effects is not enough.” Taylor
    Sales, 
    28 F.3d at 1385
    .
    2.
    Southern Card next asserts that as a result of Lawson’s practices, “the average
    price of local view postcards in the Orlando area was significantly higher than in any
    other part of [Florida].” In support of this assertion, Southern Card relies on a survey that
    11
    We reach this conclusion after carefully reviewing the record citations put forth
    at pages fourteen and forty-one through forty-four of Southern Card’s initial brief, and at
    pages seven through twelve of its reply brief.
    14
    its expert, Dr. Seaman, conducted.12 Dr. Seaman avers that “[t]he result of the survey was
    that the average price of non-Disney local view cards in the Orlando area, as sold in gift
    shops by Scenic Card[] [a distributor that purchased all of its local view postcards from
    Lawson] is $.30, which is . . . higher than the average price of $.25 charged in retail
    outlets served by Southern Card [and another distributor]. . . . The average price of local
    view post cards in the non-Orlando locations is also approximately $.25 . . . .”
    Southern Card’s evidence is again lacking. As the district court correctly pointed
    out, the cited price differential “is of little value” because it may result from “the biased
    sample of local view postcard purchases from Orlando gift and souvenir shops, rather
    than from lower-cost retail outlets served by Southern Card,” or from Dr. Seaman’s
    failure “to factor in differentials in the cost of living (or cost of a vacation) in the various
    parts of the state.” Moreover, Southern Card has not referenced any record evidence that
    enables this court to assess whether Lawson charged disproportionately higher prices for
    its local view postcards as compared to other manufacturers. In sum, Dr. Seaman’s
    conclusion, standing alone, would not enable reasonable jurors to conclude that Lawson’s
    practices caused consumers to pay more for local view postcards in the Orlando area.
    Southern Card’s purported proof regarding anticompetitive effects thus remains overly
    speculative.
    3.
    12
    Dr. Seaman surveyed postcard prices at over 200 retail stores located throughout
    approximately forty different vacation areas in Florida.
    15
    Finally, Southern Card argues that Lawson’s practices caused a dilution in local
    view postcard quality and service in the Orlando area. Southern Card, however, fails to
    present any expert testimony or consumer survey evidence to support this subjective
    assessment. Instead, Southern Card first refers to a number of internal memoranda from
    Lawson describing various quality and service difficulties it experienced in its production
    and delivery of certain postcards. These documents, however, do not address the relative
    quality of Lawson’s local view postcards. Southern Card also cites to the deposition
    testimony of Duncan Page, a president of both a postcard manufacturing company (i.e., a
    Lawson competitor) and a postcard distribution company, who, not surprisingly, states
    that he prefers to buy postcards from his own manufacturing company (even though
    “[t]he pricing is exactly the same as Lawson Mardon”) because the “quality of our
    postcard and our images are better.” Southern Card also references the affidavit of Joel
    Mittelberg, the president of Scenic Florida Distributors, Inc., who states, after noting that
    he purchases local view postcards from several manufacturers in addition to Lawson, that
    Lawson’s delivery times on new work orders are “generally slower than is standard in the
    post card industry.” The testimony of Page and Mittelberg, without more, certainly does
    not rise to the level of an anticompetitive effect in the relevant local view postcard
    market.13
    IV. CONCLUSION
    13
    Because we conclude that Southern Card has failed to establish a violation of the
    antitrust laws, we have no occasion to consider Lawson’s challenge to Southern Card’s
    standing to bring this lawsuit. See Levine, 
    72 F.3d at 1545
    .
    16
    For the foregoing reasons, we hold that the district court was correct (1) in
    evaluating Southern Card’s claims under the rule of reason, and (2) in concluding that
    Southern Card’s evidence was insufficient for a reasonable jury to find that Lawson’s
    sales practices generated an anticompetitive effect in the relevant market. Accordingly,
    we affirm the judgment of the district court.
    AFFIRMED.
    17
    

Document Info

Docket Number: 96-3682

Citation Numbers: 138 F.3d 869

Filed Date: 4/7/1998

Precedential Status: Precedential

Modified Date: 3/3/2016

Authorities (14)

United States v. Loew's Inc. , 83 S. Ct. 97 ( 1962 )

State Oil Co. v. Khan , 118 S. Ct. 275 ( 1997 )

Smith MacHinery Company, Inc. v. Hesston Corporation , 878 F.2d 1290 ( 1989 )

spartan-grain-mill-company-cross-appellee-v-virgil-ayers , 581 F.2d 419 ( 1978 )

bob-maxfield-inc-dba-bob-maxfield-american-and-william-fraker-and , 637 F.2d 1033 ( 1981 )

Paul E. Volpp Tractor Parts, Inc. v. Caterpillar, Inc. , 917 F. Supp. 1208 ( 1995 )

Ransomes America Corp. v. Spartan Distributors, Inc. , 914 F. Supp. 183 ( 1996 )

Eastman Kodak Co. v. Image Technical Services, Inc. , 112 S. Ct. 2072 ( 1992 )

Roy B. Taylor Sales, Inc. v. Hollymatic Corp. , 28 F.3d 1379 ( 1994 )

Cohen v. United American Bank , 83 F.3d 1347 ( 1996 )

Uniforce Temporary Personnel, Inc. v. National Council on ... , 87 F.3d 1296 ( 1996 )

Parts Depot Co. v. Florida Auto Supply , 669 So. 2d 321 ( 1996 )

scott-d-levine-md-v-central-florida-medical-affiliates-inc , 72 F.3d 1538 ( 1996 )

Northern Pacific Railway Co. v. United States , 78 S. Ct. 514 ( 1958 )

View All Authorities »