Laker Airways Ltd. v. Pan American World Airways, Inc.

604 F. Supp. 280, 1984 U.S. Dist. LEXIS 21058, 1984 WL 306903
CourtDistrict Court, District of Columbia
DecidedDecember 20, 1984
DocketCiv. A. 82-3362, 83-0416 and 83-2791
StatusPublished
Cited by8 cases

This text of 604 F. Supp. 280 (Laker Airways Ltd. v. Pan American World Airways, Inc.) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Laker Airways Ltd. v. Pan American World Airways, Inc., 604 F. Supp. 280, 1984 U.S. Dist. LEXIS 21058, 1984 WL 306903 (D.D.C. 1984).

Opinion

OPINION

HAROLD H. GREENE, District Judge.

This is an antitrust action brought by Laker Airways (Laker) against a number of American and foreign airlines. Presently before the Court is Laker’s motion for an injunction to restrain British Airways Board Ltd. (British Airways) and British Caledonian Airways (British Caledonian) from petitioning the British Parliament or the British executive authorities to enact legislation which would prohibit Laker, under threat of criminal punishment, from continuing with this lawsuit. For an understanding of the issues, it is appropriate, at the outset, to summarize the course of this litigation to date.

I

On November 24, 1982, Laker brought an action in this Court under the Sherman Act (15 U.S.C. §§ 1 and 1px solid var(--green-border)">2) and the Clayton Act (15 U.S.C. § 15) against four American defendants and four foreign airlines. 1 On February 15, 1983, Laker brought a second action, this one against Sabena Belgian World Airlines (Sabena) and KLM Royal Dutch Airlines (KLM), and on September 22, 1983, a third action was filed, naming Union de Transports Aeriens (UTA) and Scandanavian Airlines System (SAS) as defendants. All three actions, which have since been consolidated, allege that the defendants were involved in a conspiracy to destroy Laker’s transatlantic charters and its low-cost “Skytrain” service through a predatory pricing scheme and through interference with Laker’s attempts to obtain necessary financing. It is further alleged that, as a result of this conspiracy, Laker was forced into liquidation.

On January 21, 1983, British Airways filed an action against Laker in the Queen’s Bench Division, Commercial Court of the High Court of Justice, in Great Britain, seeking a permanent injunction 2 to prevent Laker from continuing with its suit against British Airways in the United States. 3 Im *283 mediately thereafter, British Caledonian, Lufthansa, and Swissair filed similar actions in the British courts.

The British High Court of Justice issued the requested injunctions, restraining Laker from taking “any further steps” to prosecute its claims in the courts of this country against the British airlines 4 or against Lufthansa and Swissair. 5

Faced with the fait accompli injunctions obtained by four of the defendants to this lawsuit, and concerned that the remaining defendants might take similar actions to frustrate the jurisdiction of this Court and Laker’s ability to maintain its suit, this Court, upon Laker’s request, enjoined the remaining four defendants — TWA, Pan Am, McDonnell Douglas, and McDonnell Douglas Finance — “from taking any action, in a foreign court or otherwise, that would in any way impair or otherwise interfere with the jurisdiction of this. Court over the matters alleged in the Complaint herein or the freedom of the plaintiff to prosecute the instant proceeding.” The Court subsequently issued essentially the same order against Sabena, KLM, UTA and SAS. 6 Laker Airways Ltd. v. Pan American World Airways, 559 F.Supp. 1124 (D.D.C.1983). Sabena and KLM — but not the other defendants — appealed, claiming that this Court had no authority to restrain them from seeking orders in the British courts to prevent Laker from further prosecuting this lawsuit. However, the Court of Appeals affirmed this Court’s decision in an exhaustive opinion which thoroughly discussed all the issues and canvassed all the relevant legal principles. Laker Airways v. Sabena Belgian World Airways, 731 F.2d 909 (D.C.Cir.1984).

While these matters were being litigated in this country, the litigation initiated by some of the defendant airlines continued in the British courts. The British Court of Appeal, on July 27, 1983 issued a permanent injunction against Laker restraining it from taking further proceedings in this Court, and that injunction effectively blocked Laker from even filing pleadings, briefs, or other papers in this, its own lawsuit. The.Court of Appeal injunction also ordered Laker to use its best endeavors to dismiss British Airways and British Caledonian Airways from this litigation.

However, the House of Lords granted Laker’s petition for leave to appeal, and on July 19, 1984, it overruled the Court of Appeal and dissolved the injunction which that court had issued. To forestall another round of applications and orders in Great Britain, Laker, immediately following the House of Lords decision, requested this Court to issue an injunction against the two British airlines similar to that which the Court had previously entered against the other defendants.

In response to Laker’s motion, the Court entered a temporary restraining order, prohibiting the defendants from taking steps *284 in a foreign court “or otherwise” that would impair the jurisdiction of this Court, and the parties subsequently extended the terms of that order by stipulation until October 9, 1984. On October 5, 1984, the Court heard oral argument on the proposed preliminary injunction which was to give more permanency to the temporary restraining order but to retain that order’s language.

In their briefs and in oral argument, British Airways and British Caledonian focused on the “or otherwise” language of the proposed injunction, claiming that it impermissibly infringed their right to seek relief from the British executive and legislative branches. Recognizing that this argument raised a complex question, the Court issued a temporary injunction only so as to preserve the status quo pending further briefing of the issue. 596 F.Supp. 202. Subsequently, in response to a request from British Airways, the Court agreed to set an expiration date of December 20, 1984, nine days after oral argument, on the status quo injunction. It is the “or otherwise” issue that is presently before the Court. 7

II

As is obvious from this chronology, the current controversy has its roots in the previous attempts of British Airways and British Caledonian — successful for about one and one-half years — to frustrate the jurisdiction of this Court and to interfere with Laker’s right to free access to the courts of this nation. 8 Rather than to defend this action in the normal, accepted manner, 9 these two defendants have consistently preferred to seek interdictory relief elsewhere.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Soojung Jang v. Trs. of St. Johnsbury Acad.
331 F. Supp. 3d 312 (D. Vermont, 2018)
Judicial Watch, Inc. v. United States Senate
340 F. Supp. 2d 26 (District of Columbia, 2004)
Desai v. Hersh
719 F. Supp. 670 (N.D. Illinois, 1989)
Adams v. Pan American World Airways, Inc.
640 F. Supp. 683 (District of Columbia, 1986)

Cite This Page — Counsel Stack

Bluebook (online)
604 F. Supp. 280, 1984 U.S. Dist. LEXIS 21058, 1984 WL 306903, Counsel Stack Legal Research, https://law.counselstack.com/opinion/laker-airways-ltd-v-pan-american-world-airways-inc-dcd-1984.