Fine Airport Parking, Inc. v. City of Tulsa

2003 OK 27, 71 P.3d 5, 74 O.B.A.J. 954, 2003 Okla. LEXIS 31, 2003 WL 948975
CourtSupreme Court of Oklahoma
DecidedMarch 11, 2003
Docket96,748
StatusPublished
Cited by16 cases

This text of 2003 OK 27 (Fine Airport Parking, Inc. v. City of Tulsa) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fine Airport Parking, Inc. v. City of Tulsa, 2003 OK 27, 71 P.3d 5, 74 O.B.A.J. 954, 2003 Okla. LEXIS 31, 2003 WL 948975 (Okla. 2003).

Opinion

BOUDREAU, Justice.

¶ 1 Fine Airport Parking, Inc. (Fine) appealed the district court’s dismissal of its state antitrust cause of action against the City of Tulsa and its public authorities, the Tulsa Airport Authority and the Tulsa Airports Improvement Trust (collectively Tulsa). The dispositive issue in this appeal is whether the district court erred in dismissing Fine’s petition. The appeal presents two underlying questions: 1) Is the federal doctrine of state action immunity incorporated into the Oklahoma Antitrust Reform Act, 79 O.S.2001, §§ 201, et seq. and 2) Is Tulsa’s operation of an airport parking facility as authorized by the Municipal Airports Act, 3 O.S.2001, §§ 65.1, et seq. subject to the Oklahoma Antitrust Reform Act. We answer both questions in the negative. We vacate the opinion of the Court of Civil Appeals and affirm the district court’s dismissal order.

I. Background

¶ 2 Tulsa, through its Airport Authority, operates Tulsa International Airport and various related facilities and services on the airport grounds, including parking facilities for use by the airport customers. Fine operates an off-airport parking business and competes with the Airport Authority to provide parking to the airport customers.

¶ 3 In May 2001, Fine filed suit in the state district court in Tulsa County alleging that Tulsa violated the state antitrust statutes by its exclusionary practices in operating its parking facilities at the Tulsa Airport. Specifically, Fine alleged that Tulsa excluded competition by setting and maintaining parking prices with unreasonably low profit expectation, a practice that has prevented Fine’s off-airport parking business from successfully competing for airport parking customers. Tulsa moved to dismiss Fine’s petition for failure to state a claim on the grounds that it is immune from antitrust liability for the conduct at issue under the federal doctrine of state action immunity because its conduct is specifically authorized by state statute. Tulsa also sought dismissal because Fine failed to allege a relevant market and specific intent to monopolize. 1

¶ 4 The trial court determined that the federal doctrine of state action immunity, as enunciated in Parker v. Brown, 317 U.S. 341, 63 S.Ct. 307, 87 L.Ed. 315 (1943) and its progeny, is incorporated into the Oklahoma Antitrust Reform Act. The trial court found that the doctrine immunized Tulsa from antitrust liability because its conduct was authorized by the Municipal Airports Act. Accordingly, the trial court dismissed Fine’s petition.

¶ 5 The Court of Civil Appeals affirmed the trial court. It determined that Tulsa is immune from liability under the state antitrust law by virtue of the federal doctrine of state action immunity. It also affirmed the trial court on an independent ground that Tulsa’s conduct was immunized because the operation of the airport parking facility is within the city’s police powers. We previously granted Fine’s petition for certiorari review.

II. Standard of Review

¶ 6 The function of a dismissal motion is to test the law’s support for a claim, not the sufficiency of the facts. Zaharias v. Gammill, 1992 OK 149, ¶ 6, 844 P.2d 137, 138. In this case, the trial court dismissed Fine’s petition for want of any legal liability on the part of the Tulsa defendants. The *9 order dismissing Fine’s petition for failure to state a claim upon which relief may be granted is reviewed de novo. Lockhart v. Loosen, 1997 OK 103, ¶ 4, 943 P.2d 1074, 1077.

¶ 7 Further, the underlying questions presented on certiorari call for interpretation and construction of the Oklahoma Antitrust Reform Act and the Municipal Airports Act. Statutory construction presents a question of law that is subject to an appellate court’s plenary, independent and nondeferential reexamination. Arrow Tool & Gauge v. Mead, 2000 OK 86, ¶ 6, 16 P.3d 1120, 1122-23.

III. The Federal Antitrust State Action Immunity Doctrine

¶ 8 The Sherman Antitrust Act, 15 U.S.C. § 1, expresses our national policy against concerted activity that results in monopolies and restraints of trade. 2 However, in our federal system of dual sovereigns, federal law against anti-competitive conduct is not applied to governmental activities of the sovereign states. Parker v. Brown, supra, enunciated the doctrine of state action immunity from federal antitrust liability. Analyzing and interpreting the federal antitrust statute, Parker found no suggestion of congressional intent to restrain state action directed by state statute. 317 U.S. at 350-51, 63 S.Ct. at 313. Relying on fundamental principles of federalism and preemption, Parker concluded that the federal antitrust statute did not undertake to prohibit restraint on competition imposed by a sovereign state as an act of government. 317 U.S. at 352, 63 S.Ct. at 314. See also, Milton Handler, Antitrust, 78 Columbia L.R. 1363, 1374-80 (1978).

¶ 9 For purposes of federal antitrust law, a sovereign state can also immunize a municipality’s conduct. However, to afford immunity to a municipality, the state must do something more than simply direct the municipality’s conduct. City of Lafayette, La. v. Louisiana Power & Light Co., 435 U.S. 389, 414-15, 98 S.Ct. 1123, 1137-38, 55 L.Ed.2d 364 (1978). The state action immunity doctrine will protect a municipality’s anti-competitive conduct from federal antitrust liability only where 1) there is a clearly expressed state policy to displace competition with municipal regulation and 2) the anti-competitive regulation is supervised by the state. California Retail Liquor Dealers Assoc. v. Midcal Aluminum, Inc., 445 U.S. 97, 105, 100 S.Ct. 937, 943, 63 L.Ed.2d 233 (1980). The first prong of this two-prong analysis is satisfied if the restraint on competition is a foreseeable result of the activity authorized by state statute. City of Columbia v. Omni Outdoor Advertising, Inc., 499 U.S. 365, 373, 111 S.Ct. 1344, 1350, 113 L.Ed.2d 382 (1991). The second prong is satisfied if the municipality actively supervises the regulation. Town of Hallie v. City of Eau Claire, 471 U.S. 34, 47, 105 S.Ct. 1713, 1720, 85 L.Ed.2d 24 (1985).

IY. In the Oklahoma Antitrust Reform Act, 79 O.S.2001, §§ 201, et seq., the Legislature has made unlawful those restraints on trade that prejudice the public.

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2003 OK 27, 71 P.3d 5, 74 O.B.A.J. 954, 2003 Okla. LEXIS 31, 2003 WL 948975, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fine-airport-parking-inc-v-city-of-tulsa-okla-2003.