Bunker's Glass Co. v. PILKINGTON, PLC

75 P.3d 99, 206 Ariz. 9, 415 Ariz. Adv. Rep. 33, 2003 Ariz. LEXIS 109
CourtArizona Supreme Court
DecidedAugust 25, 2003
DocketCV-02-0140-PR, CV-02-0175-PR
StatusPublished
Cited by39 cases

This text of 75 P.3d 99 (Bunker's Glass Co. v. PILKINGTON, PLC) is published on Counsel Stack Legal Research, covering Arizona Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bunker's Glass Co. v. PILKINGTON, PLC, 75 P.3d 99, 206 Ariz. 9, 415 Ariz. Adv. Rep. 33, 2003 Ariz. LEXIS 109 (Ark. 2003).

Opinions

OPINION

BERCH, Justice.

¶ 1 The Arizona Antitrust Act provides that “[a] person ... injured in his business or property by a violation of this article may bring an action for ... damages sustained.” Ariz.Rev.Stat. (“A.R.S.”) § 44-1408(B) (2003). The Defendants in these consolidated cases ask us to hold that an indirect purchaser who is able to prove injury to business or property from an antitrust violation does not fall within the scope of this provision. We conclude that Defendants’ interpretation contravenes the language of the statute, the goals of antitrust regulation expressed in the Arizona Constitution, and sound policy.

PROCEDURAL HISTORY OF THE CASE

¶2 Plaintiffs in these consolidated cases filed separate class action suits against various flat glass and tobacco manufacturers for alleged violations of the Arizona Antitrust Act. See A.R.S. §§ 44-1401 to -1416 (2003). The respective trial courts granted Defendants’ motions to dismiss for failure to state a claim for relief, precluding Plaintiffs from pursuing a civil antitrust claim under A.R.S. § 44-1408. The court of appeals in each ease reversed. Gray v. Philip Morris Inc., 2 CA-CV 2001-0121 (Ariz.App. May 7, 2002) (mem.decision); Bunker’s Glass Co. v. Pilkington plc (Bunker’s I), 202 Ariz. 481, 47 P.3d 1119 (App.2002). We granted Defendants’ petitions for review to resolve whether indirect purchasers may sue under the Arizona Antitrust Act.

DISCUSSION

¶ 3 This case continues the debate over whether indirect purchasers should be allowed to sue for injury resulting from antitrust violations, or whether such suits should be restricted to direct purchasers of goods. One goal of antitrust law is to prevent entities that possess monopoly power from using that power to illegally overcharge purchasers. Presumably this goal has force whether the purchasers buy directly from the manufacturer, and hence are direct purchasers, or [12]*12whether they purchase farther down the distribution line from retailers, and hence are indirect purchasers. A purchaser who buys directly from the manufacturer may be injured by manufacturer overcharges. In some cases, however, a direct purchaser who resells the goods may pass on the overcharge from the manufacturer to later (indirect) purchasers by raising the price of the item. The question presented in this case is whether indirect purchasers so injured should be allowed to make their case to recover the overcharges they have paid.

¶ 4 This case turns upon the interpretation of a provision of the Arizona Antitrust Act that permits a “person” to sue to redress an antitrust injury. A.R.S. § 44r-1408(B). Generally, the best indicator of the meaning of a statute is its plain language. Powers v. Carpenter, 203 Ariz. 116, 118, ¶ 9, 51 P.3d 338, 340 (2002). The Act defines “person” as including “an individual, corporation, ... or any other legal entity.” A.R.S. § 44-1401. Nothing in this language restricts the right of action to direct purchasers injured by violations of the Arizona Antitrust Act or precludes indirect purchasers from suing. Indeed the Court of Appeals reasoned, and we agree, that by defining the term “person” to include an “individual,” the legislature signaled its intent to allow indirect purchasers to sue, because individuals are rarely direct purchasers. Bunker’s I, 202 Ariz. at 485, ¶ 12, 47 P.3d at 1123.

¶ 5 The Defendants’ main argument, however, does not rely on the plain language of A.R.S. § 44-1408, but on the judicial construction of a federal antitrust provision, § 4 of the Clayton Act, 15 U.S.C. § 15(a) (2000), which is phrased almost identically to A.R.S. § 44-1408. In Illinois Brick Co. v. Illinois, 431 U.S. 720, 728-29, 97 S.Ct. 2061, 2066, 52 L.Ed.2d 707 (1977), the United States Supreme Court held that only a direct purchaser may bring an action under § 4 of the Clayton Act. The Defendants contend that by enacting A.R.S. § 44^-1412, the legislature expressed its desire that Arizona courts apply Illinois Brick and similarly preclude indirect purchasers from suing under the Arizona statute. We disagree.

¶ 6 As the court of appeals observed in Gray, the “limitation [to direct purchasers] was imposed by Illinois Brick based more on policy considerations than on an interpretation of the actual words of the federal statute.” Gray, 2 CA-CV 2001-0121, slip op. at 6, ¶ 10. We consider those policy matters later in this opinion. For now, we simply note that nothing in the plain language of A.R.S. § 44-1408 prohibits indirect purchasers who suffer injury from illegal anti-competitive conduct from suing.

¶ 7 Our current antitrust statutes were adopted from the Uniform State Antitrust Act in 1974, three years before Illinois Brick was decided. See 1974 Ariz. Sess. Laws, ch. 26, § 1. Section 44-1412 contains a sentence from the Uniform Act and a sentence added by the Arizona legislature. The first sentence states: “This article shall be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of this article among those states that enact it.” Id. To this “uniformity clause” the legislature added a sentence that we shall call the “federal guidance clause”: “It is the intent of the legislature that in construing this article, the courts may use as a guide interpretations given by the federal courts to comparable federal antitrust statutes.” Id.; Unif. State Antitrust Act § 12, 7C U.L.A. 369 (2000). The Defendants argue that the federal guidance clause directs the court to follow the Supreme Court’s holding in Illinois Brick and precludes indirect purchasers from asserting a private right of action. We find that argument unpersuasive for several reasons.

¶ 8 First, we do not read the federal guidance clause as manifesting a legislative intent to rigidly follow federal precedent on every issue of antitrust law regardless of whether differing concerns and interests exist in the state and federal systems, and irrespective of whether uniformity among the states or between the states and the federal system could be achieved by doing so.

¶ 9 Second, by using the word “may” in drafting the statute, the legislature made the application of A.R.S. § 44-1412 permissive rather than mandatory. Bunker’s I, 202 Ariz. at 488-89, ¶ 29, 47 P.3d at 1126-27 [13]*13(concluding that the legislature’s use of the word “may” in § 44-1412 describes permissive conduct);

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Bluebook (online)
75 P.3d 99, 206 Ariz. 9, 415 Ariz. Adv. Rep. 33, 2003 Ariz. LEXIS 109, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bunkers-glass-co-v-pilkington-plc-ariz-2003.