O'Brien v. Leegin Creative Leather Products, Inc.

277 P.3d 1062, 294 Kan. 318, 2012 WL 1563976, 2012 Kan. LEXIS 246
CourtSupreme Court of Kansas
DecidedMay 4, 2012
Docket101,000
StatusPublished
Cited by63 cases

This text of 277 P.3d 1062 (O'Brien v. Leegin Creative Leather Products, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
O'Brien v. Leegin Creative Leather Products, Inc., 277 P.3d 1062, 294 Kan. 318, 2012 WL 1563976, 2012 Kan. LEXIS 246 (kan 2012).

Opinion

The opinion of the court was delivered by

Beier, J.:

This appeal and cross-appeal concern a dispute over retail pricing practices by a fashion accessories company.

Named plaintiff Sue O’Brien and a class of similarly situated consumers (O’Brien) sued the maker of Brighton handbags, other accessories, and luggage, defendant Leegin Creative Leather Products, Inc. (Brighton), alleging violations of the Kansas Restraint of Trade Act (KRTA), K.S.A. 50-101 et seq. We understand O’Brien to contend that Brighton’s practices as a wholesale supplier and retailer constituted illegal price-fixing in violation of K.S.A. 50-101 and K.S.A. 50-112, entitling her and other class members to recovery under K.S.A. 50-108, K.S.A. 50-115, K.S.A. 50-147, and K.S.A. 50-161.

*321 Brighton moved for summary judgment in the district court. In the alternative, it sought partial summary judgment and moved to decertify the class. District Judge Jeffrey E. Goering granted Brighton’s motion for summary judgment, granted its motion for partial summary judgment in part, and did not reach the issue of decer-tification.

O’Brien appealed, and Brighton cross-appealed. We transferred this matter from our Court of Appeals on O’Brien’s unopposed motion. We reverse and remand to the district court for further proceedings consistent with the rulings below.

Issues

We have reformulated and reorganized the questions presented by the parties for ease and flow of analysis. The six questions are:

(1) Did the district judge correctly interpret the KRTA on the issue of “antitrust injury”?

(2) Did the district judge err in relying on a “rule of reason” to evaluate whether there has been a violation of the KRTA?

(3) Does this case involve a claim for horizontal price-fixing as well as vertical price-fixing, and, if so, was summary judgment on that claim properly granted by the district judge?

(4) Did the district judge identify the correct statute of limitations applicable to a treble damages claim and to a full consideration claim under the KRTA?

(5) Did the district judge correctly determine that an explicit written agreement with each retailer was not a necessary prerequisite to liability under the KRTA?

(6) Did the district judge properly evaluate predominance when granting class certification?

Introduction

Before we set forth the pertinent factual and procedural background, a brief review of basic principles governing the relationship between Kansas and federal antitrust law and the types of price-fixing that can occur is in order.

Although there are federal antitrust statutes, e.g., the Sherman Act, 15 U.S.C. § 1 (2006) et seq., and a large body of interpreting *322 caselaw, antitrust law has traditionally been the province of the states. McShares, Inc. v. Barry, 266 Kan. 479, 488-89, 970 P.2d 1005, cert. denied 526 U.S. 1158 (1998) (citing California v. ARC America Corp., 490 U.S. 93, 109 S. Ct. 166, 104 L. Ed. 2d 86 [1989]). In addition, we have noted in the past that federal antitrust law is intended to supplement the remedies available under Kansas law, not to replace Kansas antitrust provisions. 266 Kan. at 488-89.

Kansas antitrust law under the KRTA, originally enacted in 1897, remains largely undeveloped; very few cases have reached this court. See Bergstrom v. Noah, 266 Kan. 829, 843, 974 P.2d 520 (1999). We have observed generally that the KRTA is broad in scope but that the bulk of its provisions have not been meaningfully interpreted by Kansas courts. 266 Kan. at 843.

While the KRTA and federal antitrust statutes share some similarities, they are not, in fact, the same. 266 Kan. at 844. Thus, “[w]hile . . . cases [interpreting federal antitrust statutes] may be persuasive authority for any state court interpreting its antitrust laws, such authority is not binding upon any court in Kansas interpreting Kansas antitrust laws.” 266 Kan. at 845.

In relation to price-fixing practices specifically, this court concluded more than 50 years ago that it “may not substitute [its] judgment for that of the legislature as to whether price fixing is good or bad for the economic life of the state.” Quality Oil Co. v. du Pont & Co., 182 Kan. 488, 495, 322 P.2d 731 (1958). It is the role of the legislature, not this court, to set antitrust policy.

This case concerns allegations that defendant engaged in price-fixing. Price-fixing maybe either “vertical” or “horizontal.” Vertical price-fixing involves participants at different rungs of the distribution ladder, e.g., a wholesaler and a retailer. Horizontal price-fixing involves participants who are at the same rung of the distribution ladder, e.g., two or more retailers. See Black’s Law Dictionary 1227-28 (8th ed. 2004).

Factual and Procedural Background

The bulk of the following facts are taken from District Judge Goering’s findings of uncontroverted fact. Neither party challenges *323 these facts on this appeal, making them conclusive for our purposes. See McShares, Inc., 266 Kan. at 480.

Brighton’s Business

Brighton is a designer, manufacturer, and retailer of fashion accessories and luggage. It primarily markets its accessories to independent retailers, but it also maintains retail stores of its own called “Brighton Collectibles.” The first Brighton Collectibles store opened in 1999, and there are now more than 100 stores nationwide. A substantial portion of Brighton’s profits come from its own retail stores.

Brighton’s Pricing Practices

Since April 1997, Brighton has provided its retailers with copies of its suggested pricing and promotional policy.

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

Related

In re Marriage of S.L.W. and S.M.W.
Court of Appeals of Kansas, 2025
In re Marriage of C.M. and M.M.
Court of Appeals of Kansas, 2024
State v. Sosebee
Court of Appeals of Kansas, 2024
Washburn South Apartments v. Zou
Court of Appeals of Kansas, 2024
Kansas State Board of Healing Arts v. Parcells
Court of Appeals of Kansas, 2022
In re Marriage of O'Malley
Court of Appeals of Kansas, 2022
Johnson v. Schnurr
Court of Appeals of Kansas, 2022
McCue v. Bruce
Court of Appeals of Kansas, 2022
In re Equalization Appeals of Walmart Stores
Court of Appeals of Kansas, 2021
Acord v. Porter
475 P.3d 665 (Court of Appeals of Kansas, 2020)
Riney v. McGuire
Court of Appeals of Kansas, 2020
In re Marriage of Madrigal
Court of Appeals of Kansas, 2020
Shriver v. Kansas Dept. of Revenue
Court of Appeals of Kansas, 2020
In re Marriage of Fellers
Court of Appeals of Kansas, 2020
Hill v. State
448 P.3d 457 (Supreme Court of Kansas, 2019)
State v.Lundberg
445 P.3d 1113 (Supreme Court of Kansas, 2019)
State v. Lundberg
445 P.3d 1113 (Supreme Court of Kansas, 2019)

Cite This Page — Counsel Stack

Bluebook (online)
277 P.3d 1062, 294 Kan. 318, 2012 WL 1563976, 2012 Kan. LEXIS 246, Counsel Stack Legal Research, https://law.counselstack.com/opinion/obrien-v-leegin-creative-leather-products-inc-kan-2012.