Justia Antitrust & Trade Regulation Opinion Summaries

After a creditor in a closed Chapter 7 bankruptcy case tried for a third time to bring a price-fixing claim against BMS, the district court granted BMS's motion to dismiss. The Seventh Circuit affirmed, holding that the creditor did not participate in the market for bankruptcy software services in any way that would make it a proper plaintiff to bring an antitrust claim against a firm that provides those services to bankruptcy trustees. Therefore, the creditor's injury was entirely derivative of the estate's injury and merely derivative injuries sustained by creditors of an injured company did not constitute antitrust injury sufficient to confer antitrust standing. View "McGarry & McGarry, LLC v. Bankruptcy Management Solutions, Inc." on Justia Law

Affliction Holdings, LLC (“Affliction”) sued Utah Vap or Smoke, LLC (“Utah Vap”) alleging trademark infringement. The district court granted Utah Vap’s motion for summary judgment, holding there was no likelihood of confusion between the parties’ marks. The Tenth Circuit concluded after review of the marks that Utah Vap did not meet its burden of showing that "no reasonable juror could find [a] likelihood of confusion." Because a genuine issue of material fact exists as to the likelihood of initial interest and post-sale confusion between the marks, the Court reversed the district court’s grant of summary judgment. View "Affliction Holdings v. Utah Vap Or Smoke" on Justia Law

In three consolidated actions, plaintiffs challenged the district court's grant of summary judgment for defendants and dismissal of their complaints alleging violations of Section 1 of the Sherman Act through a conspiracy to inflate prices in the primary aluminum market.The Second Circuit held that the district court erred by determining that plaintiffs failed to establish antitrust standing under In re Aluminum Warehousing Antitrust Litig. (Aluminum III), 833 F.3d 151 (2d Cir. 2016). The court held that the circumstances of these plaintiffs differed materially from those involved in Aluminum III, and the rationale of Aluminum III did not apply to their complaints. In this case, the evidence adduced by plaintiffs supported their contention that defendants' conspiratorial acts inflated a component of the price of primary aluminum. View "Eastman Kodak, Co. v. Henry Bath LLC" on Justia Law

The Ninth Circuit reversed the district court's dismissal of an antitrust action brought by a putative class of residential and commercial subscribers to DirecTV's NFL Sunday Ticket. NFL Sunday Ticket is a bundled package of all NFL games available exclusively to subscribers of DirecTV's satellite television service. Plaintiffs claimed that DirecTV's arrangement harms NFL fans because it eliminates competition in the market for live telecasts of NFL games.The panel held that, at this preliminary stage, plaintiffs have stated a cause of action for a violation of Sections 1 and 2 of the Sherman Act that survives a motion to dismiss. In this case, the complaint adequately alleged that DirecTV conspired with the NFL and the NFL Teams to limit the production of telecasts to one per game, and that plaintiffs suffered antitrust injury due to this conspiracy to limit output. The complaint also alleged that defendants conspired to monopolize the market for professional football telecasts and have monopolized it. View "Ninth Inning, Inc. v. DirecTV" on Justia Law

The Supreme Court affirmed the judgment of the district court dismissing Appellants' claims of defamation and product disparagement under Nebraska's Uniform Deceptive Trade Practices Act (UDTPA), Neb. Rev. Stat. 87-301 to 87-306, holding that the district court did not err in finding that Appellees were entitled to summary judgment on Appellants' claims.Appellants were tanning salons that, from 2015 to 2017, allegedly accounted for up to seventy-one percent of the known tanning salons in the Omaha and Lincoln, Nebraska markets. Appellees engaged in activities related to cancer education and prevention, focusing in 2014 on the dangers of indoor tanning. In 2015, Appellants filed a complaint alleging violations of the UDTPA for deceptive trade practices and product disparagement and defamation. The district court granted Appellees' motion for summary judgment and dismissed Appellants' claims. The Supreme Court affirmed, holding that the district court did not err in finding that there were no genuine disputes as to any material facts and that Appellees were entitled to summary judgment on Appellants' defamation and product disparagement claims. View "JB & Associates, Inc. v. Nebraska Cancer Coalition" on Justia Law

The Ninth Circuit reversed the district court's dismissal of the Commission's enforcement action against Monex for alleged fraud in precious metals sales.The panel held that the actual delivery exception to the Commodity Exchange Act (CEA) was an affirmative defense on which the commodities trader bears the burden of proof. Furthermore, "actual deliver" unambiguously requires the transfer of some degree of possession or control. Furthermore, it was possible for this exception to be satisfied when the commodity sits in a third-party depository, but not when, as here, metals are in the broker's chosen depository, never exchange hands, and are subject to the broker's exclusive control, and customers have no substantial, non-contingent interests. Therefore, because this affirmative defense did not, on the face of the complaint bar the Commission from relief on Counts I, II, and IV, the district court erred in dismissing those claims.The panel also held that, by its terms, section 6(c)(1) of the CEA applies broadly to commodities in interstate commerce, and the Commission may sue for fraudulently deceptive activity, regardless of whether it was also manipulative. Furthermore, when someone violates section 6(c)(1), the Commission can bring an enforcement action. The panel accepted as true the Commission's well-pleaded complaint and held that its claims were plausible, remanding for further proceedings. View "U.S. Commodity Futures Trading Commission v. Monex Credit Co." on Justia Law

In 2005 Paramount leased a parcel of highway-adjacent property in Bellwood, Illinois, planning to erect a billboard. Paramount never applied for a local permit. When Bellwood enacted a ban on new billboard permits in 2009, Paramount lost the opportunity to build its sign. Paramount later sought to take advantage of an exception to the ban for village-owned property, offering to lease a different parcel of highway-adjacent property directly from Bellwood. Bellwood accepted an offer from Image, one of Paramount’s competitors. Paramount sued Bellwood and Image, alleging First Amendment, equal-protection, due-process, Sherman Act, and state-law violations. The Seventh Circuit affirmed summary judgment in favor of the defendants. Paramount lost its lease while the suit was pending, which mooted its claim for injunctive relief from the sign ban. The claim for damages was time-barred, except for an alleged equal-protection violation. That claim failed because Paramount was not similarly situated to Image; Paramount offered Bellwood $1,140,000 in increasing installments over 40 years while Image offered a lump sum of $800,000. Bellwood and Image are immune from Paramount’s antitrust claims. The court did not consider whether a market-participant exception to that immunity exists because Paramount failed to support its antitrust claims. View "Paramount Media Group, Inc. v. Village of Bellwood" on Justia Law

Five Peruvian shepherds who worked in the Western United States pursuant to H-2A agricultural visas brought antitrust claims, on behalf of themselves and similarly situated classes of shepherds, against several sheep ranchers (the “Rancher Defendants”), two associations (the “Association Defendants”), and Dennis Richins (referred to collectively as the “Defendants”). The Shepherds alleged the Defendants “conspired and agreed to fix wages offered and paid to shepherds at the minimum DOL wage floor.” The Shepherds also brought class action RICO claims against Richins and the Association Defendants. The RICO claims focused on allegedly false assurances made by the Association Defendants to the federal government that H-2A shepherds were being properly reimbursed for various expenses. The district court dismissed as to both claims, finding the complaint did not plausibly allege an agreement to fix wages, and did not allege the existence of enterprises distinct from the persons alleged to have engaged in those enterprises. The trial court denied the Shepherds' request to amend their complaint. On appeal, the Shepherds argued there were valid antitrust and RICO claims, and that the district court abused its discretion in denying their motion to amend their complaint. The Tenth Circuit concluded the district court erred in dismissing the RICO claim naming Richins as a defendant. But in all other regards, the district court was affirmed. View "Llacua v. Western Range Association" on Justia Law

Schaumburg’s 2016 ordinance requires commercial buildings to send fire‐alarm signals directly to the local 911 dispatch center, NWCDS, which has an exclusive arrangement with Tyco. To send signals to NWCDS, local buildings must use Tyco equipment. Schaumburg’s notice of the ordinance referred to connection through Tyco and stated that accounts would be charged $81 per month to rent Tyco’s radio transmitters and for the monitoring service. Tyco pays NWCDS an administrative fee of $23 per month for each account it connects to the NWCDS equipment. Tyco’s competitors filed suit charging violations of constitutional, antitrust, and state tort law. The district court dismissed the case. The Seventh Circuit reversed the dismissal of the Contracts Clause claim against Schaumburg. The complaint alleges a potentially significant impairment, the early cancellation of the competitors’ contracts, and Schaumburg’s self‐interest, $300,000 it stands to gain. The court otherwise affirmed, noting that entities not alleged to have taken legislative action cannot be liable under the Contracts Clause. WIth respect to constitutional claims, the court noted the government’s important interest in fire safety. Rejecting antitrust claims, the court stated that the complaint did not allege a prohibited agreement, as opposed to an independent, legislative decision. View "Alarm Detection Systems, Inc. v. Village of Schaumburg" on Justia Law

Four Illinois Villages passed ordinances that require commercial buildings to send fire-alarm signals directly to the local 911 dispatch center through one alarm-system provider, Tyco, which services the area pursuant to an exclusive agreement with the dispatch center. An alarm-system competitor, ADS, sued, citing the Illinois Fire Protection District Act, the Sherman Act, and the Fourteenth Amendment. The district court granted the defendants summary judgment. The Seventh Circuit affirmed. The Sherman Act claims fail because they are premised on the unilateral actions of the Villages, which ADS did not sue. The court noted that ADS can compete for the contract now held by Tyco. ADS’s substantive due process claim asserted that the district acted arbitrarily and irrationally by going with an exclusive provider rather than entertaining ADS’s efforts at alternative, methods. The ordinances effectively require the district to work with an exclusive provider and there was thus a rational basis to choose an exclusive provider. View "Alarm Detection Systems, Inc. v. Orland Fire Protection District" on Justia Law