David Devoto and Charles F. Volk v. Pacific Fidelity Life Insurance Co. And Bankers Mortgage Co. Of California

Appellants appeal from an order of the district court granting summary judgment of dismissal. They allege a violation of Section 1 of the Sherman Act. The court concluded that the acts complained of did not affect interstate commerce or manifest an anticompetitive purpose or effect.

Appellee Bankers Mortgage Company of California (hereinafter “Bankers”) is in the business of making real estate loans in California and Nevada. Appellee Pacific Fidelity Life Insurance Co. (hereinafter “Pacific”) sells life, health and accident insurance throughout the United States. At all times relevant to this action both appellees were subsidiaries of the Transamerica Corporation.

One aspect of Pacific’s business is the sale to mortgagors of mortgage protection insurance that guarantees payment of the mortgage in the event of the death or disability of the mortgagor. Bankers does not sell mortgage protection insurance, but in 1967 and 1968 it had an exclusive arrangement with Pacific whereby it supplied Pacific with a list of its mortgagors and cooperated in their direct mail solicitation. In exchange for these services, Bankers received commissions on mortgage protection policies sold…