United States v. BLISS & LAUGHLIN, INCORPORATED
UNITED STATES of America, Plaintiff, v. BLISS & LAUGHLIN, INCORPORATED, Defendant
- Proceeding
- district
- Area
- civil
- Panel
- Thurmond Clarke
Analysis
The United States sought a temporary injunction to block Bliss & Laughlin's acquisition of Sierra Drawn Steel Corporation, alleging it violated Section 7 of the Clayton Act by tending to substantially lessen competition in cold finished steel bars in the West. The court denied the motion, finding the plaintiff failed to prove a reasonable probability of lessened competition given the market's abundance of capacity, competing sellers, and lack of entry barriers.
| What the court decided | The model |
|---|---|
Motion for temporary injunction denied“The plaintiff’s motion for a temporary injunction will be denied” | agree with court The court applied the standard for a preliminary injunction in an antitrust context, requiring the government to show a reasonable probability of substantial lessening of competition. The court found this standard not met based on the specific market conditions described (abundance of capacity, many sellers, low entry barriers). The reasoning is consistent with the legal requirements for such relief. |
The order itself: sound — The order is a short memorandum opinion. It correctly identifies the legal standard (reasonable probability of substantial lessening of competition) and applies it to the specific facts of the record (capacity, number of sellers, entry barriers). It distinguishes the primary precedent relied upon by the plaintiff (Crown Zellerbach) and cites a relevant Supreme Court case (Tampa Electric) to support the market analysis. The reasoning is concise but sufficient for a preliminary injunction denial.
Opinion — Clarke
THURMOND CLARKE, District Judge.
This is a civil antitrust action brought by the United States against Bliss & Laughlin, .Incorporated, of Harvey, Illinois, defendant, for alleged violation of Section 7 of the Clayton Act (15 U.S.C.A. § 18). Plaintiff alleges that the defendant’s purchase of the assets of Sierra Drawn Steel Corporation in February, 1960, then located at Los Angeles, California, may tend to substantially lessen competition in the production and sale of cold finished steel bars in the four-state area of California, Oregon, Washington and Arizona.
The plaintiff has failed to prove that the challenged acquisition has the reasonable probability of substantially lessening competition in the production or sale of cold- finished steel bars in these four western states. This case is distinguishable on the significant facts from Crown Zellerbach Corp. v. Federal Trade Commission, 9 Cir., 296 F.2d 800, upon which the plaintiff places much reliance. The defendant and most of the other com *335 panies selling cold finished steel bars in this area, collectively ship substantial tonnage into the four-state area from various producing locations in the Midwest and the East. Cf. Tampa Electric Co. v. Nashville Coal Co., 365 U.S. 320, 81 S.Ct. 623, 5 L.Ed.2d 580 (1961). Prior to the acquisition, the defendant owned no mills located in the four-state area and the overwhelming preponderance of its sales were made elsewhere.
The record in this case shows an abundance of capacity and of competing sellers, a wide choice of suppliers among which the purchasers may choose, a lack of obstacles restraining new entrants into the business, and a lack of power in the defendant to control prices, supply or entry. All of these factors tend to insure vigorous competition.
The plaintiff’s motion for a temporary injunction will be denied and the defendant will submit findings of fact and conclusions of law consistent with this memorandum within 30 days.
It is ordered that the Clerk shall this day serve copies of this Memorandum Opinion by United States mail upon the attorneys for the parties appearing in this cause.