Eastland Construction Co., Inc. v. Keasbey and Mattison Company

On June 1,1962, an indictment was returned in the Eastern District of Pennsylvania charging the Keasbey and Mat-tison Company and the Johns-Manville Corporation with restraining and monopolizing commerce in asbestos-cement pipe in violation of the Sherman Act. On the same day, Keasbey sold its asbestos-cement pipe business, including a plant located within the Northern District of California, and has done no business in California since.

On November 18, 1964, Eastland Construction Company, Inc., filed a treble damage action against Keasbey and Johns-Manville based upon the antitrust violation alleged in the June 1, 1962, indictment. The complaint alleged that Eastland, whose principal place of business was in the Northern District of California, purchased substantial quantities of Johns-Manville asbestos-cement pipe from 1952 to the date of the filing of the complaint, and was compelled to pay substantially higher prices because of the antitrust violation alleged in the indictment.

The district court granted Keasbey’s motion to dismiss the complaint for improper venue because Keasbey was not transacting business in the Northern District of California on the date the complaint…