United National Maintenance, Inc. v. San Diego Convention Center, Inc.

concurring:

I concur in Judge Farris’ thorough opinion. I write separately only to emphasize that the judgment as a matter of law as to UNM’s antitrust claims also comfortably rests on another ground identified by the district judge: No jury could reasonably find that SDC engaged either in monopolization or an attempt to monopolize by mandating that its own employees clean its building. See Cal. Computer Prods., Inc. v. Int’l Bus. Machs. Corp., 613 F.2d 727, 734 (9th Cir.1979) (“[A] directed verdict is proper, even in an antitrust case, when ‘there is no substantial evidence to support the claim.’ ” (quoting Santa Clara Valley Distrib. Co. v. Pabst Brewing Co., 556 F.2d 942 , 945 n. 1 (9th Cir.1977))).

To succeed on its Sherman Act monopolization claims, UNM had the burden of proving that SDC possessed monopoly power over a specific product in a specific geographic market. 15 U.S.C. § 2 ; Allied Orthopedic Appliances Inc. v. Tyco Health Care Grp. LP, 592 F.3d 991, 998 (9th Cir.2010). The district court concluded that the relevant downstream market was, at best, trade show cleaning services for exhibition and meeting spaces in the San Diego area. Despite the testimony of UNM’s…

United National Maintenance, a nationwide vendor of trade show cleaning services, sued the San Diego Convention Center Corporation, alleging claims for 1) intentional interference with contractual relationship, 2) antitrust violations, and 3) intentional interference with prospective economic advantage. A jury returned a verdict in favor of United National on the intentional interference with contractual relationship claim but could not reach a verdict on the other claims. On a renewed motion for judgment as a matter of law by SDC, the district court found in favor of the convention center on all of the claims. The maintenance company appealed.

I

California has granted cities the statutory authority to construct public assembly or convention halls. Cal. Gov’t Code §§ 37500-37506. Cities may appoint a commission to manage the use of the facilities. § 37506. Funds gained from operation of the convention center first go to paying the assorted expenses associated with its operation; any remaining money may then go to the city’s general fund. § 37505.

In 1984, the San Diego City Council created the San Diego Convention Center Corporation to manage the operations of the San…

FOR PUBLICATION

UNITED STATES COURT OF APPEALS

FOR THE NINTH CIRCUIT

UNITED NATIONAL MAINTENANCE, No. 12-56809 INC., a Nevada corporation, Plaintiff-Appellant, D.C. No. 3:07-cv-02172- v. AJB-JMA

SAN DIEGO CONVENTION CENTER,

INC., a California corporation, OPINION Defendant-Appellee.

Appeal from the United States District Court for the Southern District of California Anthony J. Battaglia, District Judge, Presiding

Argued and Submitted April 8, 2014—Pasadena, California

Filed May 14, 2014

Before: Myron H. Bright,* Jerome Farris, and Andrew D. Hurwitz, Circuit Judges.

Opinion by Judge Farris; Concurrence by Judge Hurwitz

* The Honorable Myron H. Bright, Senior Circuit Judge for the U.S. Court of Appeals for the Eighth Circuit, sitting by designation. 2 UNITED NAT’L MAINT. V. SAN DIEGO CONVENTION CTR.

SUMMARY**

Antitrust/California tort law

The panel affirmed in part and reversed in part the district court’s judgment after a jury trial in favor of the San Diego Convention Center Corporation on claims by United National Maintenance, a vendor of trade show cleaning services, for intentional…