Justia Antitrust & Trade Regulation Opinion Summaries

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

Veritext filed suit challenging the Board's enforcement of La. Code Civ. Proc. Ann. art. 1434(A)(1), which provides that depositions shall be taken before an officer authorized to administer oaths, who is not an employee or attorney of any of the parties or otherwise interested in the outcome of the case. In 2012, the Board began enforcing Article 1434 more aggressively, declaring that the law prohibits all contracts between court reporters and party litigants, including volume-based discounts and concessions to frequent customers.The Fifth Circuit held that the district court was correct to dismiss all of the constitutional claims brought by Veritext as a matter of Supreme Court precedent. The court explained that Louisiana's interest in the integrity of its court reporting system was legally sufficient, and Veritext failed to clearly identify a burden on interstate commerce imposed by the Board's enforcement of Article 1434 that exceeds its local benefits. However, the court held that Veritext pled facts sufficient to support a finding that the Board's conduct did restrain trade and remanded so that Veritext could proceed on its Sherman Act claim. View "Veritext Corp. v. Bonin" on Justia Law

Defendant Samer Shami was charged with violating the Tobacco Products Tax Act (TPTA) for possessing, acquiring, transporting, or offering for sale tobacco products with an aggregate wholesale price of $250 or more as a manufacturer without a license in violation of MCL 205.423(1) and MCL 205.428(3). Defendant was the manager of Sam Molasses, a retail tobacco store owned by Sam Molasses, LLC. Investigation revealed that the labels on several plastics tubs of tobacco in the store’s inventory did not match those listed on the invoices from tobacco distributors. Defendant explained that he had mixed two or more flavors of tobacco to create a new “special blend,” which was then placed in the plastic tubs and relabeled. Defendant also explained that he repackaged bulk tobacco from a particular distributor by taking the packets of tobacco out of the boxes, inserting them into metal tins, and placing his own label on the tins, which were then sold at the store. The issue presented in this case for the Michigan Supreme Court's review was whether an individual who combined two different tobacco products to create a new blended product or repackages bulk tobacco into smaller containers with a new label was considered to be a manufacturer of a tobacco product and must have the requisite license. The Court of Appeals held that, in either instance, such a person was a manufacturer. According to that Court, manufacturing simply requires a change from the original state of an object or material into a state that makes it more suitable for its intended use, and a person who changes either the form or delivery method of tobacco constitutes a manufacturer for purposes of the TPTA. Although the Supreme Court agreed with the Court of Appeals’ conclusion that an individual combining two different tobacco products to create a blended product, relabeling that new mixture, and making it available for sale to the public is a manufacturer of a tobacco product, the Court disagreed with the Court of Appeals that merely repackaging bulk tobacco into smaller containers renders an individual a manufacturer under the TPTA. Therefore, the Court affirmed in part and reversed in part the judgment of the Court of Appeals. This case was remanded to the Circuit Court for further proceedings. View "Michigan v. Shami" on Justia Law

Defendant Samer Shami was charged with violating the Tobacco Products Tax Act (TPTA) for possessing, acquiring, transporting, or offering for sale tobacco products with an aggregate wholesale price of $250 or more as a manufacturer without a license in violation of MCL 205.423(1) and MCL 205.428(3). Defendant was the manager of Sam Molasses, a retail tobacco store owned by Sam Molasses, LLC. Investigation revealed that the labels on several plastics tubs of tobacco in the store’s inventory did not match those listed on the invoices from tobacco distributors. Defendant explained that he had mixed two or more flavors of tobacco to create a new “special blend,” which was then placed in the plastic tubs and relabeled. Defendant also explained that he repackaged bulk tobacco from a particular distributor by taking the packets of tobacco out of the boxes, inserting them into metal tins, and placing his own label on the tins, which were then sold at the store. The issue presented in this case for the Michigan Supreme Court's review was whether an individual who combined two different tobacco products to create a new blended product or repackages bulk tobacco into smaller containers with a new label was considered to be a manufacturer of a tobacco product and must have the requisite license. The Court of Appeals held that, in either instance, such a person was a manufacturer. According to that Court, manufacturing simply requires a change from the original state of an object or material into a state that makes it more suitable for its intended use, and a person who changes either the form or delivery method of tobacco constitutes a manufacturer for purposes of the TPTA. Although the Supreme Court agreed with the Court of Appeals’ conclusion that an individual combining two different tobacco products to create a blended product, relabeling that new mixture, and making it available for sale to the public is a manufacturer of a tobacco product, the Court disagreed with the Court of Appeals that merely repackaging bulk tobacco into smaller containers renders an individual a manufacturer under the TPTA. Therefore, the Court affirmed in part and reversed in part the judgment of the Court of Appeals. This case was remanded to the Circuit Court for further proceedings. View "Michigan v. Shami" on Justia Law

In 2017, Maryland enacted “An Act concerning Public Health – Essential Off-Patent or Generic Drugs – Price Gouging – Prohibition.” The Act, Md. Code, Health–General 2-802(a), prohibits manufacturers or wholesale distributors from “engag[ing] in price gouging in the sale of an essential off-patent or generic drug,” defines “price gouging” as “an unconscionable increase in the price of a prescription drug,” and “unconscionable increase” as “excessive and not justified by the cost of producing the drug or the cost of appropriate expansion of access to the drug to promote public health” that results in consumers having no meaningful choice about whether to purchase the drug at an excessive price due to the drug’s importance to their health and insufficient competition. The “essential” medications are “made available for sale in [Maryland]” and either appear on the Model List of Essential Medicines most recently adopted by the World Health Organization or are “designated . . . as an essential medicine due to [their] efficacy in treating a life-threatening health condition or a chronic health condition that substantially impairs an individual’s ability to engage in activities of daily living.” The Fourth Circuit reversed the dismissal of a “dormant commerce clause” challenge to the Act, finding that it directly regulates the price of transactions that occur outside Maryland. View "Association for Accessible Medicine v. Frosh" on Justia Law

This case arose from an allegedly forged home-equity loan. Plaintiff sued the lenders, bringing several claims, including statutory fraud and violations of the Texas Finance Code and Texas Deceptive Trade Practices Act. The trial court granted summary judgment for the lenders without stating its reasons. The court of appeals affirmed. The Supreme Court affirmed in part and reversed and remanded in part, holding that the court of appeals (1) properly affirmed summary judgment on Plaintiff’s constitutional forfeiture claim; and (2) erred in holding that Plaintiff’s remaining claims were barred on statute of limitations and waiver grounds. View "Kyle v. Strasburger" on Justia Law

From 1992-2013, a Milwaukee ordinance limited taxicab permits to those in existence on January 1, 1992 that were renewed. The ordinance lowered the ceiling over time by virtue of the nonrenewals. By 2013 the number of permits had diminished from 370 to 320. The price of permits on the open market soared as high as $150,000. In 2013, after a successful equal protection and substantive due process challenge, the city conducted a lottery, which attracted 1700 permit seekers. Milwaukee had only one taxicab per 1850 city residents, a much lower ratio than comparable cities. The city eliminated the cap in 2014. In the meantime, “ridesharing” companies such as Uber, had diminished the profitability of the existing taxi companies. Plaintiffs, cab companies, alleged that the increased number of permits has taken property without compensation. The Seventh Circuit affirmed dismissal. The taxi companies were aware that there was no guarantee that the ordinance would remain in force indefinitely, and that, were it repealed, they would be faced with new competition that would threaten their profits. The ordinance gave them no property right; its repeal invaded no right conferred by the Constitution. The court similarly rejected state-law claims of breach of contract, promissory estoppel, and equitable estoppel. View "Joe Sanfelippo Cabs, Inc. v. City of Milwaukee" on Justia Law

Plaintiffs own and operate Chicago taxicabs or livery vehicles or provide services to such companies, such as loans and insurance. Taxi and livery companies are tightly regulated by the city regarding driver and vehicle qualifications, licensing, fares, and insurance. Ride-share services, such as Uber, are less heavily regulated and have a different business model. Chicago’s 2014 ride-share ordinance allows the companies to set their own fares. The plaintiffs challenged the ordinance on four Constitutional and three Illinois-law grounds. The district judge dismissed all but the two claims that accuse the city of denying the equal protection of the laws by allowing the ride-shares to compete with taxi and livery services without being subject to the same regulations. The Seventh Circuit ordered dismissal of all seven claims. There are enough differences between taxi service and ride-share service to justify different regulatory schemes. Chicago has legally chosen deregulation and competition over preserving the traditional taxicab monopolies. A legislature, having created a statutory entitlement, is not precluded from altering or even eliminating the entitlement by later legislation. View "Ill. Transp. Trade Ass'n v. City of Chicago" on Justia Law

The Robbinses provide towing and wrecker services along the I-44 corridor in eastern Missouri. State Highway Patrol (MSHP) Troops C and I, pursuant to MSHP policy, used a “rotation list” of approved towing and wrecking companies to determine which company to call to the scene of a disabled vehicle if the vehicle owner had no preference. The Robbinses were on both lists until they were removed, reportedly because Robbins had been charged with shooting at a competitor’s truck in 1999. The Robbinses alleged the criminal charge resulted from a “sham investigation” and that their competitor used a friendship with an MSHP officer, with whom Robbins had had a confrontation, to harm the Robbinses’ business. A jury acquitted Robbins, but they were never reinstated to either list. In 2005, the Robbinses sued the MSHP. The state court determined the MSHP lacked statutory authority to create a rotation list. In 2010, the Robbinses sued officers in their individual capacities, alleging due process and equal protection violations and conspiracy to violate those rights under 42 U.S.C. 1983 and violations of the Sherman Act, 15 U.S.C. 1, 2, claiming that the officers conspired to deny them work and disparaged their business. The Eighth Circuit affirmed summary judgment in favor of the officers. View "Robbins v. Becker," on Justia Law

After receiving treatment from St. Peter’s Hospital, Plaintiff filed suit alleging that the Hospital violated Montana anti-trust laws and the Montana Constitution by discriminating against her based on her lack of health insurance. After concluding that Plaintiff had standing, the district court awarded summary judgment to the Hospital, determining that uninsured persons are not a protected class under the Montana Constitution. The Supreme Court (1) affirmed the district court’s standing determination; but (2) reversed the court’s entry of summary judgment on the merits, holding that the determinations that the district court made in its summary judgment order did not resolve all of Plaintiff’s claims. Remanded. View "Gazelka v. St. Peter’s Hosp." on Justia Law