Timberlane Lumber Company v. Bank of America National Trust and Savings Association

In this antitrust action, Timberlane Lumber Company (Timberlane) alleged that Bank of America, its officers, and other individuals conspired to prevent Timberlane from milling lumber in Honduras and exporting it to the United States. The suit was consolidated with three independent tort actions brought by Timberlane employees for individual injuries suffered during the alleged illegal conduct. The district court dismissed the antitrust action under the act of state doctrine and for lack of subject matter jurisdiction. The consolidated tort actions were dismissed under the doctrine of forum non conveniens.

This case has been before us previously. On that appeal, Timberlane Lumber Co. v. Bank of America, N.T. & S.A., 549 F.2d 597 (9th Cir.1976) (Timberlane I), we established a tripartite test for determining the extent of federal jurisdiction in cases alleging illegal antitrust behavior abroad. We then vacated the dismissals and remanded the case for additional discovery in light of the new jurisdictional “rule of reason.” After allowing additional discovery, the district court granted Bank of America’s motion to dismiss the antitrust action for lack of subject matter jurisdiction.…