Justia Antitrust & Trade Regulation Opinion Summaries
Ninth Inning, Inc. v. DirecTV
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
Posted in: Antitrust & Trade Regulation, Entertainment & Sports Law, US Court of Appeals for the Ninth Circuit
JB & Associates, Inc. v. Nebraska Cancer Coalition
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
U.S. Commodity Futures Trading Commission v. Monex Credit Co.
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
Paramount Media Group, Inc. v. Village of Bellwood
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
Posted in: Antitrust & Trade Regulation, Business Law, Civil Rights, Communications Law, Constitutional Law, Government & Administrative Law, US Court of Appeals for the Seventh Circuit
Llacua v. Western Range Association
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
Posted in: Antitrust & Trade Regulation, Government & Administrative Law, Immigration Law, Labor & Employment Law, US Court of Appeals for the Tenth Circuit
Alarm Detection Systems, Inc. v. Village of Schaumburg
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
Posted in: Antitrust & Trade Regulation, Business Law, Constitutional Law, Government & Administrative Law, US Court of Appeals for the Seventh Circuit
Alarm Detection Systems, Inc. v. Orland Fire Protection District
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
Posted in: Antitrust & Trade Regulation, Constitutional Law, Government & Administrative Law, Government Contracts, US Court of Appeals for the Seventh Circuit
GN Netcom Inc. v. Plantronics Inc.
GN and Plantronics manufacture telephone headsets, selling the headsets to customers through distributors. Under the voluntary Plantronics-Only Distributor (POD) program, distributors receive incentives such as favorable credit terms, rebates, and website support in exchange for not purchasing headsets directly from other manufacturers and not marketing competitors’ products on resellers’ websites. GN sent Plantronics a demand letter and filed suit in 2012, alleging that Plantronics’ POD program constituted monopolization. Plantronics issued a litigation hold to relevant employees, provided training sessions to ensure compliance, and sent quarterly reminders requiring acknowledgment of compliance. Plantronics’ Senior Vice President of Sales, Houston, nonetheless instructed employees to delete emails that referenced Plantronics’ competitive practices or its competitors. In 2014, Plantronics’ Associate General Counsel learned of Houston’s conduct, instituted a litigation hold on Houston’s assistant, and requested back-up tapes of Houston’s email account. Plantronics engaged its discovery vendor and a leading forensics expert to try to recover Houston’s emails. Some were recovered. The spoliation, however, continued. Plantronics did not complete its recovery efforts and destroyed the back-up tapes. During depositions, Plantronics executives were evasive. GN moved for a default liability judgment in light of the spoliation. The district court found that Plantronics acted in “bad faith” with an “intent to deprive GN” but denied the motion and issued a permissive adverse inference instruction to the jury, fined Plantronics three million dollars, and ordered it to pay GN’s spoliation-related fees. GN subsequently unsuccessfully sought to present evidence of spoliation. The jury returned a verdict in favor of Plantronics. The Third Circuit reversed in part and remanded for a new trial, after upholding the denial of the motion for default judgment. The court committed reversible error when it excluded GN’s expert testimony on the scope of Plantronics’ spoliation. View "GN Netcom Inc. v. Plantronics Inc." on Justia Law
Spartan Concrete Products LLC v. Argos USVI Corp.
Spartan, which operated on St. Croix, sought to displace Heavy Materials as the sole provider of ready-mix concrete on St. Thomas. Upon entering the St. Thomas market, Spartan started a price war that caused financial losses to Spartan while Heavy Materials retained its dominant position. After three years of fierce competition, the companies reached a truce: Spartan agreed to sell on St. Croix while Heavy Materials would keep selling on St. Thomas. Spartan then sued Argos, a bulk cement vendor, alleging violations of the Robinson-Patman Act, 15 U.S.C. 13(a), by giving Heavy Materials a 10 percent volume discount during the price war. The district court entered judgment for Argos and denied Spartan leave to amend its complaint to include two tort claims, finding undue delay and prejudice. The Third Circuit affirmed. Although Argos gave Heavy Materials alone a 10 percent volume discount on concrete, Spartan presented no evidence linking this discount to its inability to compete in the St. Thomas market. Spartan did compete with Heavy Materials for three years and not only lowered its retail prices, but also began a price war and achieved a nearly 30 percent share of the St. Thomas retail ready-mix concrete market. View "Spartan Concrete Products LLC v. Argos USVI Corp." on Justia Law
Posted in: Antitrust & Trade Regulation, Business Law, Commercial Law, US Court of Appeals for the Third Circuit
California v. Native Wholesale Supply Co.
Defendant Native Wholesale Supply Company (NWS), an Indian-chartered corporation headquartered on a reservation in New York, sold over a billion contraband cigarettes to an Indian tribe in California, which then sold the cigarettes to the general public in California. The cigarettes were imported from Canada, stored at various places in the United States (not including California), and then shipped to California after they were ordered from the reservation in New York. The California Attorney General succeeded on his motion for summary judgment holding NWS liable for civil penalties in violation of two California cigarette distribution and sale laws and Business and Professions Code section 17200 (the unfair competition law), and obtained a permanent injunction precluding NWS from making future sales. The Attorney General further obtained an award of attorney fees and expert expenses. NWS appealed the judgment and the attorney fee order. Finding no reversible error, the Court of Appeal affirmed. View "California v. Native Wholesale Supply Co." on Justia Law
Posted in: Antitrust & Trade Regulation, California Courts of Appeal, Civil Procedure, Native American Law