Justia Antitrust & Trade Regulation Opinion Summaries

Gasoline consumers alleged that various oil producers colluded with the U.S. government, including then-President Trump, to negotiate with Russia and Saudi Arabia to cut oil production, limit future oil exploration, and end a price war on oil. Plaintiffs claimed this agreement fixed gas prices in violation of Sherman Act § 1, suppressed competition in violation of Sherman Act § 2, and involved anticompetitive mergers in violation of Clayton Act § 7.The United States District Court for the Northern District of California dismissed the case, finding it lacked subject-matter jurisdiction under the political question and act of state doctrines. The court also found that Plaintiffs failed to adequately plead an antitrust conspiracy. Additionally, the court dismissed Defendant Energy Transfer for lack of personal jurisdiction and denied Plaintiffs leave to amend their complaint, as well as requests for additional discovery and oral argument.The United States Court of Appeals for the Ninth Circuit affirmed the district court’s dismissal. The court held that the political question doctrine barred judicial review of the President’s foreign policy decisions, as these decisions are committed to the political branches of government. The court also found no judicially manageable standards to resolve the claims under antitrust laws. Additionally, the act of state doctrine barred the claims because they involved evaluating the petroleum policies of foreign nations. The court further held that Plaintiffs failed to state a plausible antitrust conspiracy claim regarding Defendants’ private conduct. Finally, the court found no abuse of discretion in the district court’s procedural rulings. View "D'Augusta v. American Petroleum Institute" on Justia Law

CSX Transportation, Inc. sued Norfolk Southern Railway Company and Norfolk & Portsmouth Belt Line Railroad Company in 2018, alleging that they conspired to exclude CSX from competing in the international shipping market at the Norfolk International Terminal by imposing an exclusionary switch rate starting in 2010. CSX claimed this rate caused ongoing injury to its business. The key issue was whether the Sherman Act’s four-year statute of limitations barred CSX’s claims or if an exception applied.The United States District Court for the Eastern District of Virginia granted summary judgment to the defendants, finding CSX’s claims time-barred. The court held that the continuing-violation doctrine did not apply because the decision to maintain the switch rate did not constitute a new act causing new injury within the limitations period. The court also found that CSX failed to show specific damages resulting from any acts within the limitations period.The United States Court of Appeals for the Fourth Circuit affirmed the district court’s judgment. The Fourth Circuit agreed that the continuing-violation doctrine did not apply because maintaining the switch rate was not a new act but a continuation of the initial decision. The court also found that CSX did not provide sufficient evidence of new antitrust injury within the limitations period. The court emphasized that for the continuing-violation doctrine to apply, there must be an overt act within the limitations period that causes new injury, which CSX failed to demonstrate. Therefore, the court held that CSX’s claims were time-barred and affirmed the district court’s judgment. View "CSX Transportation, Incorporated v. Norfolk Southern Railway Company" on Justia Law

A power company based in Florida sued a North Carolina-based power company, alleging that the latter had monopoly power in the wholesale power market in the Carolinas and maintained that power through anticompetitive conduct, violating § 2 of the Sherman Act. The plaintiff presented evidence that the defendant devised a plan to exclude the plaintiff from competing for the business of Fayetteville, North Carolina, the only major customer whose contract was expiring soon enough for the plaintiff to compete.The United States District Court for the Western District of North Carolina granted the defendant's motion for summary judgment. The court found that while there was a question of fact regarding the defendant's monopoly power, the plaintiff failed to show that the defendant engaged in anticompetitive conduct. The court concluded that the defendant's actions constituted legitimate competition to retain Fayetteville’s business.The United States Court of Appeals for the Fourth Circuit reviewed the case and found that the district court erred by compartmentalizing the defendant's conduct rather than considering it as a whole. The appellate court noted that the plaintiff presented sufficient evidence to show that the defendant's conduct, including a blend-and-extend strategy and interference with the plaintiff's interconnection efforts, could be seen as part of a coordinated anticompetitive campaign. The court held that genuine disputes of material fact existed regarding whether the defendant's actions were anticompetitive.The Fourth Circuit vacated the district court's summary judgment and remanded the case for further proceedings. The appellate court also ordered that the case be assigned to a different judge, citing the principle that once a judge recuses himself, he should remain recused from the case. View "Duke Energy Carolinas, LLC v. NTE Carolinas II, LLC" on Justia Law

The case involves the South Carolina Department of Parks, Recreation and Tourism (SCPRT) and Google LLC. The State of South Carolina, along with several other states, sued Google for violations of federal and state antitrust laws. Google subpoenaed SCPRT for discovery pertinent to its defense. SCPRT refused to comply, asserting Eleventh Amendment immunity and moved to quash the subpoena.The district court denied SCPRT's motion, holding that any Eleventh Amendment immunity that SCPRT may have otherwise been entitled to assert was waived when the State, through its attorney general, voluntarily joined the federal lawsuit against Google. SCPRT appealed this decision.The United States Court of Appeals for the Fourth Circuit affirmed the district court's decision. The court found that by joining the lawsuit against Google, the State voluntarily invoked the jurisdiction of a federal court, thereby effecting a waiver of its Eleventh Amendment immunity as to all matters arising in that suit. And because SCPRT’s immunity derives solely from that of the State, South Carolina’s waiver of Eleventh Amendment immunity equally effected a waiver of SCPRT’s immunity. The district court, therefore, properly denied SCPRT’s motion to quash. View "SC Dept of Parks, Recreation and Tourism v. Google LLC" on Justia Law

A class of individuals and businesses in Northern California, who paid health insurance premiums to certain health plans, sued Sutter Health, a healthcare system operator in the region. They alleged that Sutter abused its market power to charge supracompetitive rates to these health plans, which were then passed on to the class in the form of higher premiums. The case went to trial on claims under California’s Cartwright Act for tying and unreasonable course of conduct. The jury returned a verdict in favor of Sutter.The plaintiffs appealed, arguing that the district court erred by failing to instruct the jury to consider Sutter’s anticompetitive purpose and by excluding evidence of Sutter’s conduct before 2006. The United States Court of Appeals for the Ninth Circuit agreed with the plaintiffs. It held that the district court contravened California law by removing “purpose” from the jury instructions, and that the legal error was not harmless. The court also held that the district court abused its discretion under Federal Rule of Evidence 403 in excluding as minimally relevant all evidence of Sutter’s conduct before 2006. The court concluded that these errors were prejudicial and reversed the district court’s judgment, remanding the case for a new trial. View "SIDIBE V. SUTTER HEALTH" on Justia Law

The case involves a dispute over the antitrust implications of a settlement agreement between Forest Laboratories, a brand manufacturer of the high-blood pressure drug Bystolic, and seven manufacturers of generic versions of Bystolic. The settlement agreement was reached after Forest Laboratories initiated patent-infringement litigation against the generic manufacturers. As part of the settlement, Forest Laboratories entered into separate business transactions with each generic manufacturer, paying them for goods and services.The plaintiffs, purchasers of Bystolic and its generic equivalents, filed a lawsuit against Forest Laboratories and the generic manufacturers, alleging that the payments constituted unlawful “reverse” settlement payments intended to delay the market entry of generic Bystolic. The plaintiffs' claims were dismissed twice by the United States District Court for the Southern District of New York for failure to state a claim.The United States Court of Appeals for the Second Circuit affirmed the district court's decision. The court found that the plaintiffs failed to plausibly allege that any of Forest’s payments were unjustified or unexplained, instead of constituting fair value for goods and services obtained as a result of arms-length dealings. The court also held that the district court’s application of the pleading law was appropriate. The court concluded that the plaintiffs did not plausibly allege that Forest’s payments were a pretext for nefarious anticompetitive motives rather than payments that constituted fair value for goods and services obtained as a result of arms-length dealings. View "In re Bystolic Antitrust Litigation" on Justia Law

The case involves Symons Emergency Specialties (Symons), a provider of ambulance services, and the City of Riverside. The City regulates ambulance services within its limits under the Riverside Municipal Code (RMC), which requires operators to obtain a valid franchise or permit. Symons filed a civil complaint seeking declaratory and injunctive relief against the City, arguing that the RMC section requiring a permit is invalid under the Emergency Medical Services System and Prehospital Emergency Medical Care Act (EMS Act). The dispute centered on whether the City had regulated nonemergency ambulance services as of June 1, 1980, which would allow it to continue doing so under the EMS Act's grandfathering provisions.The trial court found in favor of the City, concluding that Symons had failed to meet its burden of proof. Symons appealed, arguing that the trial court erred in admitting certain testimonies, that the court's factual finding was not supported by substantial evidence, and that the RMC section violated federal anti-trust law.The Court of Appeal of the State of California Fourth Appellate District Division Two affirmed the trial court's decision. The appellate court found no error in the admission of testimonies, concluded that substantial evidence supported the trial court's findings, and rejected Symons's anti-trust argument. The court held that the City's regulation of ambulance services did not violate the EMS Act or federal anti-trust law. View "Symons Emergency Specialties v. City of Riverside" on Justia Law

This case involves a dozen gas stations in the Green Bay, Wisconsin area, who alleged that Costco Wholesale Corporation violated a Wisconsin law prohibiting the sale of gasoline below a statutorily defined cost. The plaintiffs sought an injunction to prevent Costco from selling gasoline below that level and damages of over half a million dollars each. Costco argued that it lowered its prices to match a competitor's price, which the statute allows, and that the plaintiffs failed to establish the causal element of the statutory claim.The case was initially heard in the United States District Court for the Eastern District of Wisconsin, which sided with Costco and awarded it summary judgment. The plaintiffs appealed this decision, challenging both the summary judgment and an evidentiary ruling made earlier in the proceedings.The United States Court of Appeals for the Seventh Circuit affirmed the lower court's decision. The court found that for 238 of the 256 days in question, Costco was immune from liability under the "meeting competition" exception in the Wisconsin law. For the remaining 18 days, the court found that the plaintiffs failed to show that they were injured or threatened with injury as a result of Costco's actions. The court also upheld the lower court's denial of the plaintiffs' request to supplement their expert report. View "Pit Row, Inc. v. Costco Wholesale Corporation" on Justia Law

The case in question is a petition for a writ of mandamus filed by Abbott Laboratories, Abbvie Inc., Abbvie Products LLC, Unimed Pharmaceuticals LLC, and Besins Healthcare, Inc. These petitioners were involved in a patent and antitrust lawsuit concerning the drug AndroGel 1%. They sought a writ of mandamus after a district judge ruled that the application of the crime-fraud exception to the attorney-client privilege justified an order compelling the production of certain documents. The Petitioners claimed those documents were privileged.The Court of Appeals for the Third Circuit denied their petition. The court reasoned that the petitioners failed to meet the high standard for granting a petition for writ of mandamus. Specifically, they failed to show a clear and indisputable abuse of discretion or error of law, a lack of an alternate avenue for adequate relief, and a likelihood of irreparable injury.The court also found that the district court did not err in its interpretation of the crime-fraud exception to the attorney-client privilege as it applies to sham litigation. The court held that sham litigation, which involves a client’s intentional “misuse” of the legal process for an “improper purpose,” can trigger the crime-fraud exception. The court also rejected the argument that a "reliance" requirement must be applied in this context. View "In re: Abbott Laboratories" on Justia Law

In this case before the United States Court of Appeals for the Second Circuit, the plaintiffs were U.S. investors who purchased Mexican government bonds. They alleged that the defendants, Mexican branches of several multinational banks, conspired to fix the prices of the bonds. The defendants sold the bonds to the plaintiffs through non-party broker-dealers. The defendants moved to dismiss the case for lack of personal jurisdiction, and the District Court granted the motion, concluding that it lacked jurisdiction as the alleged misconduct, price-fixing of bonds, occurred solely in Mexico.Upon appeal, the Second Circuit vacated and remanded the case. The court found that the defendants had sufficient minimum contacts with New York as they had solicited and executed bond sales through their agents, the broker-dealers. The plaintiffs' claims arose from or were related to these contacts. The court rejected the defendants' argument that the alleged wrongdoing must occur in the jurisdiction for personal jurisdiction to exist, stating that the defendants' alleged active sales of price-fixed bonds through their agents in New York sufficed to establish personal jurisdiction. The court remanded the case for further proceedings consistent with its opinion. View "In re: Mexican Government Bonds Antitrust Litigation" on Justia Law