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Timberlane Lumber Co. v. Bank of America, N.T. & S.A.
United States Court of Appeals for the Ninth Circuit
549 F.2d 597 (9th Cir. 1976)
Timberlane Lumber Co. (Timberlane) (plaintiff) was a lumber company based in Oregon. Timberlane wanted to acquire a mill in Honduras. The mill had gone bankrupt and was owned by several creditors. Some of the creditors were former employees. Two creditors were competing lumber companies backed by Bank of America (defendants). Timberlane purchased a controlling interest in the mill from the former employees, but the two lumber companies refused to sell their interests. Instead, the lumber companies went to Honduran court and obtained a judgment for the mill. The parties enforced the judgment and shut the mill down. Timberlane sued Bank of America, the two competing lumber companies, and individual Honduran citizens (defendants). Timberlane alleged a conspiracy to eliminate competition from Timberlane in the import market for Honduran lumber. The district court dismissed the case for two reasons. First, the court held the state-action doctrine deprived the court of jurisdiction. Second, the court held there was no direct and substantial effect on United States commerce. Timberlane appealed.
Rule of Law
Holding and Reasoning (Choy, J.)
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