California CNG, Inc. v. Southern California Gas Co.

MEMORANDUM *

We affirm the district court’s grant of summary judgment to defendants Southern California Gas Company (“SoCalGas”) and Henderson Engineering Company, Inc. (“Henderson”). Because the parties are familiar with the facts and prior proceedings, we do not restate them unless necessary.

I

The district court granted summary judgment to SoCalGas on the ground that plaintiffs California CNG, Inc., California CNG, and Prime of California, Inc. (collectively, “CalCNG”) failed to demonstrate that the alleged anticompetitive practices of SoCalGas were a material cause of CalCNG’s economic misfortunes in the market for natural gas vehicle fueling stations.

Plaintiffs bore the burden of proving that the harm they suffered was “by reason of’ defendant’s illegal activity. 15 U.S.C. § 15 (a). According to the Supreme Court,

Zenith Radio Corp. v. Hazeltine Research, Inc., 395 U.S. 100 , 114 n. 9, 89 S.Ct. 1562 , 23 L.Ed.2d 129 (1969) (emphasis in original). In brief, the anticompetitive activity of the defendant need not be the only cause of plaintiffs injury, but it must be a material cause. See Dolphin Tours, Inc. v. Pacifico Creative Service, Inc., 773 F.2d 1506, 1509 (9th…