Commonwealth of Pennsylvania on Its Own Behalf and as Parens Patriae v. Mid-Atlantic Toyota Distributors, Inc., Carecraft Industries, Ltd., Frederick R. Weisman, and Al Sweet Motor Sales, Inc., Allegheny Toyota, Inc., Bel Air Motors, Inc., Bergman Toyota, Inc., Bob Mayberry Chevrolet-Toyota, Inc., Bud Haas Toyota Motors, Inc., Falconi Toyota Motors, Inc., Joel Confer Amc, Inc., Knobloch Toyota Park, Inc., McCracklin Toyota, Inc., Meadville Toyota, Inc., Montgomery Toyota, Inc., Rohrich Cadillac, Inc., Suburban Toyota, Inc., Trostle Oldsmobile, Inc., University Toyota, Inc., Belvin J. Kishbaugh, Inc., Bobart, Inc., Continental Motor Sales Co., Inc., Hartman Motorcars Co., J.H. Bennett, Inc., James W. Halterman, Inc., Lancaster Toyota, Inc., Performance Motors, Inc., R.D. Ertley Toyota, Inc., Richard Auto Sales, Inc., Valley Toyota, Inc., A.S. Berman, Inc., Airport Toyota, Inc., Central City Toyota, Inc., Charles A. Bott, Inc., Chester Mack Toyota, Inc., Foster Toyota, Inc., Henry Kehl Enterprises, Inc., Peter Alan Toyota, Inc., Sloane Toyota, Inc., Speedcraft Enterprises, Inc., Thompson Toyota, Inc., Tony Biscotte, Inc., District of Columbia Ex Rel. Rogers v. Mid-Atlantic Toyota Distributors, Inc., Carecraft Industries, Ltd., Frederick R. Weisman, and Rosenthal Toyota, Inc., Silver Spring Toyota, Inc., Maryland Ex Rel. Sachs, Delaware Ex Rel. Gebelein v. Mid-Atlantic Toyota Distributors, Inc., Carecraft Industries, Ltd., Frederick R. Weisman, Anton Motors, Inc., Schaefer/may Motors Sales, Ltd., Torrey, Inc., Castle Toyota, Inc., Croyste Toyota, Inc., Waldorf Toyota, Inc., Younger Toyota, Inc., Annapolis-Toyota, Inc., Rosenthal Toyota, Inc., Silver Spring Toyota, Inc., Fulker Toyota, Inc., Jones Plymouth, Inc., Fredericktown Toyota, Inc., Toyota Village, Inc., R & H Motor Cars, Ltd., Russell Motor Cars, Inc., Schaefer & Strohminger, Inc., Best Toyota, Inc., Laurel Toyota, Inc., Premier Motor Co., Inc., Timonium Toyota, Inc., Royal Imports of Delaware, Inc., Airport Toyota, Inc., C.F. Schwartz Motor Company, Inc.

704 F.2d 125
CourtCourt of Appeals for the Fourth Circuit
DecidedMarch 24, 1983
Docket82-1131
StatusPublished
Cited by1 cases

This text of 704 F.2d 125 (Commonwealth of Pennsylvania on Its Own Behalf and as Parens Patriae v. Mid-Atlantic Toyota Distributors, Inc., Carecraft Industries, Ltd., Frederick R. Weisman, and Al Sweet Motor Sales, Inc., Allegheny Toyota, Inc., Bel Air Motors, Inc., Bergman Toyota, Inc., Bob Mayberry Chevrolet-Toyota, Inc., Bud Haas Toyota Motors, Inc., Falconi Toyota Motors, Inc., Joel Confer Amc, Inc., Knobloch Toyota Park, Inc., McCracklin Toyota, Inc., Meadville Toyota, Inc., Montgomery Toyota, Inc., Rohrich Cadillac, Inc., Suburban Toyota, Inc., Trostle Oldsmobile, Inc., University Toyota, Inc., Belvin J. Kishbaugh, Inc., Bobart, Inc., Continental Motor Sales Co., Inc., Hartman Motorcars Co., J.H. Bennett, Inc., James W. Halterman, Inc., Lancaster Toyota, Inc., Performance Motors, Inc., R.D. Ertley Toyota, Inc., Richard Auto Sales, Inc., Valley Toyota, Inc., A.S. Berman, Inc., Airport Toyota, Inc., Central City Toyota, Inc., Charles A. Bott, Inc., Chester Mack Toyota, Inc., Foster Toyota, Inc., Henry Kehl Enterprises, Inc., Peter Alan Toyota, Inc., Sloane Toyota, Inc., Speedcraft Enterprises, Inc., Thompson Toyota, Inc., Tony Biscotte, Inc., District of Columbia Ex Rel. Rogers v. Mid-Atlantic Toyota Distributors, Inc., Carecraft Industries, Ltd., Frederick R. Weisman, and Rosenthal Toyota, Inc., Silver Spring Toyota, Inc., Maryland Ex Rel. Sachs, Delaware Ex Rel. Gebelein v. Mid-Atlantic Toyota Distributors, Inc., Carecraft Industries, Ltd., Frederick R. Weisman, Anton Motors, Inc., Schaefer/may Motors Sales, Ltd., Torrey, Inc., Castle Toyota, Inc., Croyste Toyota, Inc., Waldorf Toyota, Inc., Younger Toyota, Inc., Annapolis-Toyota, Inc., Rosenthal Toyota, Inc., Silver Spring Toyota, Inc., Fulker Toyota, Inc., Jones Plymouth, Inc., Fredericktown Toyota, Inc., Toyota Village, Inc., R & H Motor Cars, Ltd., Russell Motor Cars, Inc., Schaefer & Strohminger, Inc., Best Toyota, Inc., Laurel Toyota, Inc., Premier Motor Co., Inc., Timonium Toyota, Inc., Royal Imports of Delaware, Inc., Airport Toyota, Inc., C.F. Schwartz Motor Company, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Commonwealth of Pennsylvania on Its Own Behalf and as Parens Patriae v. Mid-Atlantic Toyota Distributors, Inc., Carecraft Industries, Ltd., Frederick R. Weisman, and Al Sweet Motor Sales, Inc., Allegheny Toyota, Inc., Bel Air Motors, Inc., Bergman Toyota, Inc., Bob Mayberry Chevrolet-Toyota, Inc., Bud Haas Toyota Motors, Inc., Falconi Toyota Motors, Inc., Joel Confer Amc, Inc., Knobloch Toyota Park, Inc., McCracklin Toyota, Inc., Meadville Toyota, Inc., Montgomery Toyota, Inc., Rohrich Cadillac, Inc., Suburban Toyota, Inc., Trostle Oldsmobile, Inc., University Toyota, Inc., Belvin J. Kishbaugh, Inc., Bobart, Inc., Continental Motor Sales Co., Inc., Hartman Motorcars Co., J.H. Bennett, Inc., James W. Halterman, Inc., Lancaster Toyota, Inc., Performance Motors, Inc., R.D. Ertley Toyota, Inc., Richard Auto Sales, Inc., Valley Toyota, Inc., A.S. Berman, Inc., Airport Toyota, Inc., Central City Toyota, Inc., Charles A. Bott, Inc., Chester Mack Toyota, Inc., Foster Toyota, Inc., Henry Kehl Enterprises, Inc., Peter Alan Toyota, Inc., Sloane Toyota, Inc., Speedcraft Enterprises, Inc., Thompson Toyota, Inc., Tony Biscotte, Inc., District of Columbia Ex Rel. Rogers v. Mid-Atlantic Toyota Distributors, Inc., Carecraft Industries, Ltd., Frederick R. Weisman, and Rosenthal Toyota, Inc., Silver Spring Toyota, Inc., Maryland Ex Rel. Sachs, Delaware Ex Rel. Gebelein v. Mid-Atlantic Toyota Distributors, Inc., Carecraft Industries, Ltd., Frederick R. Weisman, Anton Motors, Inc., Schaefer/may Motors Sales, Ltd., Torrey, Inc., Castle Toyota, Inc., Croyste Toyota, Inc., Waldorf Toyota, Inc., Younger Toyota, Inc., Annapolis-Toyota, Inc., Rosenthal Toyota, Inc., Silver Spring Toyota, Inc., Fulker Toyota, Inc., Jones Plymouth, Inc., Fredericktown Toyota, Inc., Toyota Village, Inc., R & H Motor Cars, Ltd., Russell Motor Cars, Inc., Schaefer & Strohminger, Inc., Best Toyota, Inc., Laurel Toyota, Inc., Premier Motor Co., Inc., Timonium Toyota, Inc., Royal Imports of Delaware, Inc., Airport Toyota, Inc., C.F. Schwartz Motor Company, Inc., 704 F.2d 125 (4th Cir. 1983).

Opinion

704 F.2d 125

1983-1 Trade Cases 65,291

COMMONWEALTH OF PENNSYLVANIA on its own behalf and as Parens
Patriae, Appellee,
v.
MID-ATLANTIC TOYOTA DISTRIBUTORS, INC., Carecraft
Industries, Ltd., Frederick R. Weisman, and Al Sweet Motor
Sales, Inc., Allegheny Toyota, Inc., Bel Air Motors, Inc.,
Bergman Toyota, Inc., Bob Mayberry Chevrolet-Toyota, Inc.,
Bud Haas Toyota Motors, Inc., Falconi Toyota Motors, Inc.,
Joel Confer AMC, Inc., Knobloch Toyota Park, Inc.,
McCracklin-Sturman Toyota, Inc., Meadville Toyota, Inc.,
Montgomery Toyota, Inc., Rohrich Cadillac, Inc., Suburban
Toyota, Inc., Trostle Oldsmobile, Inc., University Toyota,
Inc., Belvin J. Kishbaugh, Inc., Bobart, Inc., Continental
Motor Sales Co., Inc., Hartman Motorcars Co., J.H. Bennett,
Inc., James W. Halterman, Inc., Lancaster Toyota, Inc.,
Performance Motors, Inc., R.D. Ertley Toyota, Inc., Richard
Auto Sales, Inc., Valley Toyota, Inc., A.S. Berman, Inc.,
Airport Toyota, Inc., Central City Toyota, Inc., Charles A.
Bott, Inc., Chester Mack Toyota, Inc., Foster Toyota, Inc.,
Henry Kehl Enterprises, Inc., Peter Alan Toyota, Inc.,
Sloane Toyota, Inc., Speedcraft Enterprises, Inc., Thompson
Toyota, Inc., Tony Biscotte, Inc., Appellants.
DISTRICT OF COLUMBIA ex rel. ROGERS, Appellee,
v.
MID-ATLANTIC TOYOTA DISTRIBUTORS, INC., Carecraft
Industries, Ltd., Frederick R. Weisman, and
Rosenthal Toyota, Inc., Silver Spring
Toyota, Inc., Appellants.
MARYLAND ex rel. SACHS, Delaware ex rel. Gebelein, Appellees,
v.
MID-ATLANTIC TOYOTA DISTRIBUTORS, INC., Carecraft
Industries, Ltd., Frederick R. Weisman, Anton Motors, Inc.,
Schaefer/May Motors Sales, Ltd., Torrey, Inc., Castle
Toyota, Inc., Croyste Toyota, Inc., Waldorf Toyota, Inc.,
Younger Toyota, Inc., Annapolis-Toyota, Inc., Rosenthal
Toyota, Inc., Silver Spring Toyota, Inc., Fulker Toyota,
Inc., Jones Plymouth, Inc., Fredericktown Toyota, Inc.,
Toyota Village, Inc., R & H Motor Cars, Ltd., Russell Motor
Cars, Inc., Schaefer & Strohminger, Inc., Best Toyota, Inc.,
Laurel Toyota, Inc., Premier Motor Co., Inc., Timonium
Toyota, Inc., Royal Imports of Delaware, Inc., Airport
Toyota, Inc., C.F. Schwartz Motor Company, Inc., Appellants.

Nos. 82-1131 to 82-1133.

United States Court of Appeals,
Fourth Circuit.

Argued Oct. 7, 1982.
Decided March 24, 1983.

William J. Murphy, Washington, D.C. (Raymond W. Bergan, Scott Blake Harris, Williams & Connolly, Washington, D.C., on brief), Michael G. Charapp, Washington, D.C. (Basil J. Mezines, Jacob A. Stein, Stein, Mitchell & Mezines, Washington, D.C., on brief), Francis P. Newell, Philadelphia, Pa. (Craig E. Zeigler, Montgomery, McCracken, Walker & Rhoades, Philadelphia, Pa., on brief), for appellants.

Robert W. Hesselbacher, Jr., Asst. Atty. Gen., Baltimore, Md. (Stephen H. Sachs, Atty. Gen., Charles O. Monk, II, Asst. Atty. Gen. and Chief, Antitrust Div., Michael F. Brockmeyer, Francis John Gorman, Asst. Attys. Gen., Baltimore, Md., on brief), for appellees.

Before PHILLIPS and CHAPMAN, Circuit Judges, and WALTER E. BLACK, Jr., United States District Judge, sitting by designation.

JAMES DICKSON PHILLIPS, Circuit Judge:

This interlocutory appeal has been certified, pursuant to 28 U.S.C. Sec. 1292(b), on the question whether the state attorneys general of Maryland, Delaware, and Pennsylvania, and the Corporation Counsel of the District of Columbia, may maintain statutory parens patriae damage actions under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, 15 U.S.C. Secs. 15c-15h (1976) (the Act), in the names of their respective jurisdictions on behalf of their natural-person residents injured by an alleged price-fixing conspiracy in violation of the Sherman Act, 15 U.S.C. Sec. 1. While departing somewhat from the reasoning of the district court, we affirm its ruling that the state attorneys general1 involved here may prosecute these statutory parens patriae actions under the antitrust laws.

* Between December 1980 and August 1981, the states of Maryland, Delaware, Pennsylvania, Virginia, and West Virginia, and the District of Columbia, instituted civil antitrust actions in federal district courts in their respective jurisdictions against Toyota automobile dealers and distributors in the middle-Atlantic region. These actions, brought pursuant to the Antitrust Improvements Act of 1976, 15 U.S.C. Secs. 15c-15h, have been consolidated along with two private actions in the District of Maryland by the Judicial Panel on Multidistrict Litigation. The state attorneys general, acting in their statutory parens patriae capacity, seek damages on behalf of their natural-person residents injured by an alleged conspiracy to fix the prices of Toyotas.2

Defendants moved to dismiss the states' actions, alleging inter alia that the attorneys general lack authority to bring parens patriae damage actions under the federal antitrust laws.3 The district court denied the motion to dismiss, ruling (1) that the state attorneys general were authorized by federal law, irrespective of local law, to maintain these actions, or alternatively (2) that state law provided the attorneys general with authority independent of federal law to bring these actions. Following certification by the district court under 28 U.S.C. Sec. 1292(b), we granted defendants' petition to appeal from this interlocutory order.

II

The Antitrust Improvements Act provides that an "attorney general of a State may bring a civil action in the name of such State, as parens patriae on behalf of natural persons residing in such State," to secure treble money damages for injury to their property flowing from violations of the antitrust laws.4 15 U.S.C. Sec. 15c(a)(1). See generally Scher, Emerging Issues Under the Antitrust Improvements Act of 1976, 77 Colum.L.Rev. 679 (1977). While the structure of this statutory scheme--whether it deals essentially with notions of cause of action, right of action, party capacity, real party in interest, representative action, or other concepts--may not be the clearest, its essence is plain enough.

It creates in the states a new right of action under existing substantive federal antitrust law. See Reiter v. Sonotone Corp., 442 U.S. 330, 344 n. 7, 99 S.Ct. 2326, 2333 n. 7, 60 L.Ed.2d 931 (1979) ("the statute authorizes the states to assert [consumers' causes of action] in a parens patriae capacity"); Illinois v. Sangamo Construction Co., 657 F.2d 855, 859 (7th Cir.1981); S.Rep. No. 803, 94th Cong., 2d Sess. 42 (1976) (the Act "creates a new statutory cause of action for States"). Because it involves no change in the substantive basis for antitrust liability, it is purely procedural5 in its effect. Illinois Brick Co. v. Illinois, 431 U.S. 720, 734 n. 14, 97 S.Ct. 2061, 2068 n. 14, 52 L.Ed.2d 707 (1977); In re Montgomery County Real Estate Antitrust Litigation, 452 F.Supp.

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