Lehrer

Introduction

Plaintiffs,Hi-Top Steel Corporation, doing business as Weiner Steel Corporation, and Hiuka America Corporation appeal from a judgment on the pleadings in favor of defendants Bernard Lehrer, Sam Adíen and Aadlen Bros. Auto Wrecking, Inc.

Statement of Facts

Plaintiff Hiuka America Corporation (Hiuka) exports scrap steel from Southern California. One method of preparing scrap steel for export is shredding. One part of the market for shredded steel is for shredded automobile bodies. Approximately 50,000 tons of automobile bodies are shredded monthly in Southern California; this is done by only 4 companies.

Defendant Aadlen Bros. Auto Wrecking, Inc. (Aadlen Bros.), owned by defendant Sam Adíen (Adíen), owns automobile dismantling yards which supply automobile bodies for shredding. From September 1987 through August 1989, Adíen negotiated with Hiuka regarding the possibility of entering into a joint venture to construct an automobile body shredding facility on property Adíen owned in Sun Valley, California. As part of the joint venture, Adíen would open an automobile dismantling yard next to Hiuka’s facility in Wilmington, California and would ship the…