Car Carriers, Inc. v. Ford Motor Company

Car Carriers, Inc. (Car Carriers) (plaintiff) transported cars for Ford Motor Company (Ford) (defendant). Car Carriers alleged that Ford controlled the rates Car Carriers received for work and that Ford persuaded Car Carriers to invest in new equipment and facilities by promising increased rates and more business in return, but then prevented Car Carriers from getting increased rates and terminated Car Carrier’s business. Car Carriers sued Ford and Nu-Car Carriers, Inc. (Nu-Car) in 1982 alleging antitrust law violations and several state law claims. The district court dismissed the antitrust claim, the only federal claim in the suit, with prejudice. The court decided not to exercise pendent jurisdiction over the state claims and dismissed Car Carrier’s entire suit. This Court affirmed the district court’s decision on appeal. In 1983, Car Carriers brought a second suit against Ford and Nu-Car that included allegations of racketeering and violating the Interstate Commerce Act (ICA), along with several state law violations. The district court dismissed Car Carriers’ entire suit again, holding that the federal claims in this second suit were barred by the doctrine of res judicata because they stem from the same basic facts as the 1982 antitrust claim. Car Carriers appealed the district court’s dismissal. The appellate court held that Car Carriers’ federal claims in the second law suit were barred by the doctrine of res judicata and affirmed the district court’s order to dismiss.