Bunker's Glass Co. v. Pilkington PlC

47 P.3d 1119, 202 Ariz. 481
CourtCourt of Appeals of Arizona
DecidedJune 28, 2002
Docket1 CA-CV 01-0046
StatusPublished
Cited by21 cases

This text of 47 P.3d 1119 (Bunker's Glass Co. v. Pilkington PlC) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona 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, 47 P.3d 1119, 202 Ariz. 481 (Ark. Ct. App. 2002).

Opinion

*484 OPINION

WEISBERG, Judge.

¶ 1 In this appeal, we consider whether an indirect purchaser of goods may bring an action to recover damages resulting from the alleged price-fixing by the manufacturers of those goods. For the reasons that follow, we hold that such an action is allowed under Arizona law.

BACKGROUND

¶ 2 Flat glass production is a multibillion dollar industry in the United States. In re Flat Glass Antitrust Litig., 191 F.R.D. 472, 475 (W.D.Pa.1999). The appellees are the principal manufacturers of all flat glass products sold in the United States, including Arizona.

¶3 “Flat glass” refers to glass products manufactured through the float process 1 and includes glass that is transparent, opaque, translucent, or reinforced. Id. at 475 n. 6. Fabricated flat glass is used primarily for glass windows and doors in residential and commercial structures and for automobile windshields and windows. Id. at 476.

¶ 4 Appellant Bunker’s Glass is a business located in Maricopa County that regularly purchased flat glass products from wholesale distributors. Thus, Bunker’s Glass purchased these products indirectly from appellees.

¶ 5 In February 2000, Bunker’s Glass filed an antitrust class action complaint against appellees on behalf of itself and all other commercial indirect purchasers of flat glass products in Arizona. In its complaint, brought under Arizona’s Antitrust Act, Arizona Revised Statutes (“A.R.S.”) sections 44-1402, -1403, -1408 (1994) and related statutes, it alleged that beginning in August 1991 and continuing for at least four years, appellees entered into a conspiracy to fix the prices of flat glass products sold in the United States, including Arizona.

¶ 6 Bunker’s Glass further alleged that as a result of such combination and conspiracy: (1) appellees sold flat glass products to direct purchasers of the products at artificially high and noncompetitive levels; (2) competition for the sale of flat glass products in Arizona was restrained; (3) the artificially high prices for flat glass products were passed on by distributors and wholesalers to Bunker’s Glass and other indirect commercial purchasers in Arizona; and (4) Arizona purchasers were damaged in their businesses by having to pay artificially high prices for flat glass products.

¶7 Appellees moved to dismiss the complaint, arguing that indirect purchasers lacked standing to recover damages from flat glass manufacturers. They asserted that the rule announced in Illinois Brick Co. v. Illinois, 431 U.S. 720, 97 S.Ct. 2061, 52 L.Ed.2d 707 (1977), in which the United States Supreme Court held that indirect purchasers of a product could not sue under federal antitrust laws for damages caused by price-fixing, should be followed in Arizona. The trial court agreed and granted appellees’ motion to dismiss. 2

¶8 Bunker’s Glass timely appealed from the judgment dismissing its complaint. We have jurisdiction under A.R.S. § 12-2101(B) (1994).

DISCUSSION

A. Standard of Review

¶ 9 In reviewing the trial court’s dismissal of a complaint for failure to state a claim, we consider the facts alleged in the complaint to be true and will not affirm the dismissal unless we conclude as a matter of law that the plaintiff would not be entitled to relief under any interpretation of the facts. *485 Fid. Sec. Life Ins. Co. v. State Dep’t of Ins., 191 Ariz. 222, 224, ¶ 4, 954 P.2d 580, 582 (1998). We review the legal issues de novo. Transp. Ins. Co. v. Bruining, 186 Ariz. 224, 226, 921 P.2d 24, 26 (1996). To the extent that our review involves questions of statutory construction, we are not bound by the trial court’s conclusion and need accord it no deference. Babe’s Cabaret v. City of Scottsdale, 197 Ariz. 98, 101, ¶ 6, 3 P.3d 1018, 1021 (App.1999); Tobel v. Ariz. Dep’t of Pub. Safety, 189 Ariz. 168, 173-74, 939 P.2d 801, 806-07 (App.1997).

B. Indirect Purchaser Standing

1. Arizona’s antitrust laws

¶ 10 In determining whether Arizona law permits an indirect purchaser to recover for antitrust violations, we first look to the language of the relevant statutes because, when interpreting a statute, we primarily examine its language and give effect to its terms according to their ordinary meanings unless the legislature has provided a specific definition or the context indicates that a term carries a special meaning. Wells Fargo Credit Corp. v. Tolliver, 183 Ariz. 343, 345, 903 P.2d 1101, 1103 (App.1995). If it is clear and unambiguous, we give effect to the statutory language without resorting to other forms of statutory construction. Id.

¶ 11 Arizona law provides that “[a] contract, combination or conspiracy between two or more persons in restraint of, or to monopolize, trade or commerce, any part of which is within this state, is unlawful.” A.R.S. § 44-1402. Private actions to seek damages for violation of this statute may be brought under A.R.S. § 44-1408(B), which provides:

A person threatened with injury or injured in his business or property by a violation of this article may bring an action for appropriate injunctive or other equitable relief, damages sustained and, as determined by the court, taxable costs and reasonable attorney’s fees. If the trier of fact finds that the violation is flagrant, it shall increase recovery to an amount not in excess of three times the damages sustained.

A “person” for the purposes of this statute is defined as “an individual, corporation, business trust, partnership, association or any other legal entity.” A.R.S. § 44-1401 (1994).

¶ 12 Although, as Bunker’s Glass points out, nothing in § 44-1408(B) or any other Arizona antitrust statute indicates that a “person” is limited to one who purchases directly from an alleged antitrust law violator, neither does its language preclude such an interpretation.

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Bluebook (online)
47 P.3d 1119, 202 Ariz. 481, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bunkers-glass-co-v-pilkington-plc-arizctapp-2002.