Loewe v. Lawlor

208 U.S. 274, 28 S. Ct. 301, 52 L. Ed. 488, 1908 U.S. LEXIS 1769
CourtSupreme Court of the United States
DecidedFebruary 3, 1908
DocketNo 389
StatusPublished
Cited by280 cases

This text of 208 U.S. 274 (Loewe v. Lawlor) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Loewe v. Lawlor, 208 U.S. 274, 28 S. Ct. 301, 52 L. Ed. 488, 1908 U.S. LEXIS 1769 (1908).

Opinion

Mr. Chief Justice Fuller

delivered the opinion of the court:

This was an action brought in the Circuit Court for the District of Connecticut under § 7 of the Anti-Trust Act of July 2, 1890, c. 647, 26 Stat. 209, claiming threefold damages for injuries inflicted on plaintiffs by a combination or conspiracy declared to be unlawful by the act.

Defendants filed a demurrer to the complaint, assigning general and' special grounds. The demurrer was sustained as to the first six paragraphs, which rested on the ground that the combination stated was not within the Sherman Act, and this rendered it unnecessary to pass upon any other questions in the case; and upon plaintiffs declining to amend their complaint the court dismissed it with costs. 148 Fed. Rep. 924; and see 142 Fed. Rep. 216; 130 Fed. Rep. 633.

*284 The case was then carried by writ of error to the Circuit Court of Appeals for the Second Circuit, and that court,' desiring the instruction of this court upon a question arising on the writ of. error, certified that question to this court. The certificate consisted of a brief statement of facts, and put the question thus: “Upon this state of facts can plaintiffs maintain an action against defendants under section 7 of the Anti-Trust Act of July 2, 1890?”

After the case on certificate had been docketed here plaintiffs in error applied, and defendants in error joined in the application, to this court to require the whole record and cause to be sent up for its consideration. The application was granted and the whole record and cause being thus brought before this court it devolved upon the court, under § 6 of the Judiciary Act of 1891, to “decide the whole matter in controversy in - the same manner as if it had been brought there for review by writ of error or appeal.”

The case comes up, then, on complaint and demurrer, and we give the complaint in the margin. 1

*285 The question is whether upon the facts therein averred and admitted by the demurrer this action can be maintained under the Anti-Trust Act.

The first, second and seventh sections of that.act are as follows :

*286 1. “Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is hereby declared to be illegal. Every person who shall make any such *287 contract or engage in any such combination or conspiracy, shall be deemed guilty of a misdemeanor, and, on conviction thereof, shall be punished by fine not exceeding five thousand dollars, or by imprisonment not exceeding one year, or by both said punishments, in the discretion of the court.

*288 2. “ Every person who shall monopolize, or attempt to monop- . olize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty. *289 of a misdemeanor,, and, on conviction thereof, shall be punished by fine not exceeding five thousand dollars, or by imprisonment not exceeding one year, or by both said punishments, in the discretion of the court.”

*290 7. “Any person who shall be injured in his business or property by any other person or corporation by reason of anything forbidden or declared to be unlawful by this act, may sue therefor in any Circuit Court of the United States in the district in *291 which the defendant resides or is found, without respect to the amount in controversy, and shall recover three fold the dam- ■ ages by him sustained, and the costs of suit, including a reasonable attorney's fee.”

*292 In our opinion, the combination described in the declaration is a combination “in restraint of trade or commerce among the several States,” in the sense in which those words are used in the act, and the action can be maintained accordingly.

*293 And that conclusion rests on many judgments of this court, to the effect that the act prohibits any combination whatever to secure action which essentially obstructs the free flow of commerce, between the States, or restricts, in that regard, the liberty of a trader to engage in business.

*294 The combination charged falls within the class of restraints of trade aimed at compelling third parties and strangers involuntarily not to engage in the course of trade except on conditions that the combination imposes; and there is-no doubt *295 that (to quote from the well-known work of Chief Justice Erie on Trade Unions) “at common law every person has individually, and the public also has collectively, a right to require that the course of trade should be kept free from unreasonable *296 obstruction.” But the objection here is to the jurisdiction, .because, even conceding that the declaration states a case good at common law, it is contended that it does not state one within the statute. Thus, it is said, that the restraint alleged would operate to entirely destroy plaintiffs’. business and thereby include intrastate trade as well; that physical obstruc *297 tion is not alleged as contemplated; and that defendants are not themselves engaged in interstate trade.

We think none of these objections are tenable, and that they are disposed of by previous decisions of this court.

United States v. Trans-Missouri Freight Association, 166 U. S. 290; United States v. Joint Traffic Association, 171 U. S. 505; and Northern Securities Company v. United States, 193 U. S. 197, hold in effect that the Anti-Trust law has a broader application than the prohibition of restraints of trade unlawful at common law. Thus in the Trans-Missouri Case, 166 U. S. 290, it was said that,

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Bluebook (online)
208 U.S. 274, 28 S. Ct. 301, 52 L. Ed. 488, 1908 U.S. LEXIS 1769, Counsel Stack Legal Research, https://law.counselstack.com/opinion/loewe-v-lawlor-scotus-1908.