Justia Antitrust & Trade Regulation Opinion Summaries
Shah v. VHS San Antonio Partners, LLC
Shah, a board-certified pediatric anesthesiology specialist, joined STAR, which became the exclusive provider of anesthesia services at several San Antonio-area acute-care hospitals, including NCB. BHS guaranteed STAR $500,000 in collections for pediatric anesthesia services provided at NCB. In 2012, STAR became the exclusive provider of anesthesia services at four BHS hospitals. Shah was not a party to the 2012 agreement, nor was he named in the pediatric income guarantee but he continued to practice as a STAR pediatric anesthesiologist, becoming the primary beneficiary of STAR’s guaranteed collections. In 2016, STAR and BHS amended the 2012 agreement, eliminating the pediatric income guarantee. The exclusivity provision remained. STAR terminated its relationship with Shah. Shah could no longer provide pediatric anesthesia services at NCB or any other BHS facility included in the exclusivity agreement. Shah requested authorization to provide pediatric anesthesia care at NCB; BHS responded that Shah’s reappointment to the Medical Staff of BHS and his privileges were approved but the exclusivity provision precluded Shah from providing pediatric anesthesia services at six BHS facilities (including NCB). After unsuccessfully suing STAR in Texas state court, Shah sued under the Sherman Act.The Fifth Circuit affirmed summary judgment in favor of the BHS parties. Shah’s definition of the relevant market is insufficient as a matter of law; it does not encompass all interchangeable substitute products because it does not include the two non-BHS facilities that the BHS parties contend serve as viable alternatives to BHS facilities. View "Shah v. VHS San Antonio Partners, LLC" on Justia Law
DiCesare v. Charlotte-Mecklenburg Hosp. Auth
In this dispute in which Plaintiffs sought reimbursement for healthcare costs based upon claims for restraint of trade and monopolization pursuant to N.C. Gen. Stat. Chapter 75 and N.C. Const. art. I, 34, the Supreme Court affirmed in part and reversed in part the order of the trial court deciding issues arising from the Charlotte-Mecklenburg Hospital Authority's motion for judgment on the pleadings, holding that the trial court erred in part.Plaintiffs were a group of current and former North Carolina residents who were covered under the commercial health insurance obtained through the Hospital Authority, a non-profit corporation providing healthcare services with a principal place of business in Charlotte. The trial court granted the Hospital Authority's motion for judgment on the pleadings with respect to Plaintiffs' restraint of trade and monopolization claims but denied the motion with respect to Plaintiffs' monopolization claim. The Supreme Court affirmed in part and reversed in part, holding that the trial court (1) did not err in granting judgment on the pleadings with respect to Plaintiffs' Chapter 75 restraint of trade and monopolization claims; but (2) erred by denying the motion for judgment on the pleadings with respect to Plaintiffs' claim pursuant to article I, section 34. View "DiCesare v. Charlotte-Mecklenburg Hosp. Auth" on Justia Law
Wooster Floral & Gifts, LLC v. Green Thumb Floral & Garden Center, Inc.
The Supreme Court affirmed the decision of the court of appeals affirming the trial court's judgment concluding that Green Thumb did not violate Ohio's Deceptive Trade Practices Act, holding that Wooster Floral & Gifts, LLC failed to demonstrate that Green Thumb Floral & Garden Center, Inc.'s use of the domain name www.woosterfloral.com caused a likelihood of confusion as to the source of goods sold on the website.Green Thumb owned the domain name www.woosterfloral.com. Wooster Floral & Gifts, a competing flower shop, brought this lawsuit under the Deceptive Trade Practices Act seeking to block Green Thumb from using the address. The trial court ruled in favor of Green Thumb, finding that Green Thumb's use of the domain name was unlikely to cause confusion as to the source of goods or services because the home page was clearly identified as "Green Thumb Floral" and there was no use of the trade name "Wooster Floral" within the website. The court of appeals affirmed. The Supreme Court affirmed, holding that, under both federal precedent and the plain terms of the Ohio statute, a consumer landing on Green Thumb's website was unlikely to be confused about the entity that would be fulfilling the consumer's order. View "Wooster Floral & Gifts, LLC v. Green Thumb Floral & Garden Center, Inc." on Justia Law
Federal Trade Commission v. AbbVie Inc
AndroGel, a testosterone replacement therapy, generated billions of dollars in sales, The Federal Trade Commission sued the owners of an AndroGel patent under Section 13(b) of the Federal Trade Commission Act, 21 U.S.C. 301, alleging that they filed sham patent infringement suits against Teva and Perrigo and entered into an anticompetitive reverse-payment agreement with Teva. The FTC accused the defendants of trying to monopolize and restrain trade over AndroGel. The District Court dismissed the FTC’s claims to the extent they relied on a reverse-payment theory but found the defendants liable for monopolization on the sham-litigation theory. The court ordered the defendants to disgorge $448 million in profits but denied the FTC’s request for an injunction.The Third Circuit reversed in part. The district court erred by rejecting the reverse-payment theory and in concluding that the defendants’ litigation against Teva was a sham. The court did not err in concluding the Perrigo litigation was a sham and that the defendants had monopoly power in the relevant market. The FTC has not shown that monopolization entitles it to any remedy. The court did not abuse its discretion in denying injunctive relief. The court erred by ordering disgorgement because that remedy is unavailable under Section 13(b). View "Federal Trade Commission v. AbbVie Inc" on Justia Law
State ex rel. Morrisey v. Diocese of Wheeling-Charleston
The Supreme Court considered a question certified by the circuit court and answered that the deceptive trade practices provisions of the West Virginia Consumer Credit and Protection Act (the Act), W. Va. Code 46A-6-101 to -106, do not apply to educational and recreational services offered by a religious institution.The Attorney General sued the Diocese of Wheeling-Charleston and Michael Bransfield, in his capacity as former bishop of the Diocese, alleging (1) the Diocese knowingly employed persons who admitted to sexually abusing others or who were credibly accused of sexual abuse at its camps and schools, and (2) by misrepresenting or hiding that danger, the Diocese violated the deceptive practices provisions of the West Virginia Consumer Credit and Protection Act. The circuit court dismissed the Attorney General's claims but stayed its order and certified a question of law to the Supreme Court. The Supreme Court answered the question in the negative, holding that the deceptive practices provisions of the Act do not apply to educational and recreational services offered by a religious institution. View "State ex rel. Morrisey v. Diocese of Wheeling-Charleston" on Justia Law
Quidel Corporation v. Super. Ct.
Quidel Corporation (Quidel) petitioned for a writ of mandate and/or prohibition to direct the trial court to vacate its order granting summary adjudication. Quidel contended the trial court incorrectly concluded a provision in its contract with Beckman Coulter, Inc. (Beckman) was an invalid restraint on trade in violation of Business and Professions Code, section 16600. Quidel argued the trial court improperly extended the holding from Edwards v. Arthur Andersen LLP, 44 Cal.4th 937 (2008) beyond the employment context to a provision in the parties’ 2003 BNP Assay Agreement (the Agreement). In its original, published opinion, the Court of Appeal concluded it was not, granted the petition and issued a writ instructing the trial court to vacate the December 2018 order granting summary judgment on the first cause of action. The California Supreme Court then granted review of the Court of Appeal's opinion and ordered briefing deferred pending its decision in Ixchel Pharma, LLC v. Biogen, Inc., S256927. On August 3, 2020, the Supreme Court issued Ixchel Pharma, LLC v. Biogen, Inc., 9 Cal.5th 1130 (2020), which held “a rule of reason applies to determine the validity of a contractual provision by which a business is restrained from engaging in a lawful trade or business with another business.” The Quidel matter was transferred back to the Court of Appeals with directions to vacate its previous opinion and reconsider the case in light of Ixchel. The appellate court issued a new opinion in which it concluded the trial court’s decision was incorrect. The trial court was directed to vacate the December 7, 2018 order granting summary adjudication on the first cause of action. View "Quidel Corporation v. Super. Ct." on Justia Law
Louisiana Real Estate Appraisers Board v. Federal Trade Commission
The Fifth Circuit vacated the district court's order staying administrative proceedings that were initiated by the FTC against the Board under the Federal Trade Commission Act. The district court concluded that it lacked jurisdiction over the Board's lawsuit because the Act vests exclusive jurisdiction to review challenges to Commission proceedings in the courts of appeals.The court held that, even if the Act does not preclude the Administrative Procedure Act's default review provision, 5 U.S.C. 704,—an issue the court need not address—the Board fails to meet Section 704's jurisdictional prerequisites. The court explained that case law does not support jurisdiction based on the collateral order doctrine as applied through Section 704. In this case, the issues relevant to immunity pertain to the reach of the Sherman Act and thus a judicial decision at this point would not resolve an issue completely separate from the merits of the action. Therefore, the April 10, 2018 order does not constitute final agency action under Section 704, and the collateral order doctrine does not apply. View "Louisiana Real Estate Appraisers Board v. Federal Trade Commission" on Justia Law
Flagship Theatres of Palm Desert, LLC v. Century Theatres, Inc.
In this antitrust dispute involving licensing of motion pictures to movie theaters for public exhibition, Flagship obtained a jury verdict against Century. Flagship owned the Palme d'Or theater and Century owned The River theater. The jury found true Flagship's allegations that Century had engaged in "circuit dealing" by entering into licensing agreements with film distributors that covered licenses to play films not just at The River, but at multiple other Century-owned theaters as well, and using these agreements to pressure distributors into refusing to license films to Palme d'Or.The Court of Appeal agreed with Century that Flagship did not present substantial evidence of anticompetitive effects in the relevant market. The court also agreed with Century that this failure of proof warrants reversal, as circuit dealing based on multi-theater licensing agreements is not per se illegal under the Cartwright Act. Therefore, the court reversed the judgment and need not reach Century's remaining arguments on appeal. The court also did not need to address Flagship's case from the court's postjudgment order awarding Flagship attorney fees in an amount lower than Flagship had requested. View "Flagship Theatres of Palm Desert, LLC v. Century Theatres, Inc." on Justia Law
In re: Allergan ERISA Litigation
The plaintiffs are participants in the Allergan Savings and Investment Plan, which provides various investment options, including an employee stock ownership feature for buying Allergan stock. According to the plaintiffs, the defendants were Plan fiduciaries and owed them commensurate duties under the Employee Retirement Income Security Act (ERISA). They claim that, although the public was unaware, the defendants knew or should have known that, before the divestiture of its generic-drug business, Allergan had conspired with other generic-drug manufacturers to fix prices, thereby artificially boosting its financial performance and its stock price. The plaintiffs cited inquiries from members of Congress and the Antitrust Division of the Department of Justice, seeking information about large price increases in certain generic drugs. The plaintiffs do not allege that Allergan was ever charged in connection with the investigation but claim that the defendants’ failure to remove Allergan stock as a Plan investment option or otherwise take action to protect Plan participants, violated ERISA.The Third Circuit affirmed the dismissal of the complaint. Even viewed in the light most favorable to the plaintiffs, the well-pled factual allegations fail to support a plausible inference that Allergan conspired with competitors to fix prices. Because all of the plaintiffs’ causes of action ultimately rest on the premise that the defendants knew or should have known about that supposed illegal conduct, the absence of allegations sufficient to support the existence of it is fatal to each of their claims. View "In re: Allergan ERISA Litigation" on Justia Law
Aerotek v. Johnson Group Staffing Co.
Porter Scott, P.C. (hereafter, “Porter Scott”) defended The Johnson Group Staffing Company, Inc. (hereafter, “TJG” or “Johnson Group”) through two rounds of litigation with its chief competitor, Aerotek, Inc. (hereafter, “Aerotek”). Aerotek first sued TJG after TJG’s founder, Chris Johnson, left Aerotek to form TJG. In the lawsuit, Aerotek alleged that TJG and Johnson, among other things, misappropriated trade secrets by soliciting Aerotek’s customers. TJG and Johnson settled with Aerotek a little over a year later. The issue presented for the Court of Appeal's review concerned the ownership of fees awarded under Civil Code 3426.4, and whether the prevailing litigant (here, The Johnson Group Staffing Company, Inc.) or the prevailing litigant’s attorney (here, Porter Scott, P.C.) were entitled to the fees awarded to the “prevailing party.” The Court concluded that, absent an enforceable agreement to the contrary, these fees belonged to the attorney to the extent they exceeded the fees the litigant already paid. Furthermore, the Court concluded that, although the parties here entered into a fee agreement, that agreement did not alter the default disposition of fees in favor of the attorney. Because the trial court reached the same conclusion, the Court of Appeal affirmed its judgment. View "Aerotek v. Johnson Group Staffing Co." on Justia Law