United States v. Standard Oil Company of California

Standard Oil Company of California (“SOCAL”) filed a Rule 60 motion to set aside an antitrust judgment against it for claimed fraud on the court. SOCAL lost the motion, and the district court imposed $88,253.52 attorney’s fees and costs upon SOCAL on the ground that SOCAL had filed the motion “vexatiously and for oppressive reasons.” The district court did not find any bad faith on the part of SO-CAL in filing or prosecuting the motion, and the Government does not contend that any bad faith was involved. SOCAL’s conduct did not come within the very narrow exceptions to the American rule preventing an award of attorney’s fees to the successful party in absence of a statute or enforceable contract. Accordingly, we reverse.

The lengthy history of this case begins in 1969, when the Government brought an antitrust action against SOCAL charging it with violating section 3 of the Sherman Act by conspiring unreasonably to restrain and monopolize the distribution and sale of petroleum products in American Samoa. The district court awarded judgment to the Government. (United States v. Standard Oil Co. v. Cal. (N.D.Cal.1972) 362 F.Supp. 1331 .) The Supreme Court summarily affirmed the…