United States v. A. Lanoy Alston, D.M.D., P.C. Ronald D. Walker Desert Valley Dental, Ltd. Richard B. Meyer Aaron L. ("Lanoy") Alston

974 F.2d 1206, 92 Daily Journal DAR 12622, 92 Cal. Daily Op. Serv. 7764, 1992 U.S. App. LEXIS 21103, 1992 WL 217065
CourtCourt of Appeals for the Ninth Circuit
DecidedSeptember 11, 1992
Docket91-10040
StatusPublished
Cited by91 cases

This text of 974 F.2d 1206 (United States v. A. Lanoy Alston, D.M.D., P.C. Ronald D. Walker Desert Valley Dental, Ltd. Richard B. Meyer Aaron L. ("Lanoy") Alston) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. A. Lanoy Alston, D.M.D., P.C. Ronald D. Walker Desert Valley Dental, Ltd. Richard B. Meyer Aaron L. ("Lanoy") Alston, 974 F.2d 1206, 92 Daily Journal DAR 12622, 92 Cal. Daily Op. Serv. 7764, 1992 U.S. App. LEXIS 21103, 1992 WL 217065 (9th Cir. 1992).

Opinion

KOZINSKI, Circuit Judge.

We examine three dentists’ criminal antitrust convictions.

Background

Aaron Lanoy Alston, Richard B. Meyer and Ronald D. Walker provide dental services for members of prepaid dental plans in Tucson, Arizona. 1 They and other providers receive two kinds of payments: capitation fees, which are paid by the plans to the dentists based on the number of plan-member patients they see, and co-payment fees, which are paid by the patients to the dentists based on the services performed. The plans, not the dentists, determine both fee amounts.

Co-payment fees in Tucson had not risen for ten years, although they had in other cities, including nearby Phoenix. Some Tucson dentists were failing to break even on the most commonly performed services, such as porcelain crowning. Several Tucson dentists had individually approached the plans about increasing the fee schedule; their efforts proved unsuccessful. Drs. Alston, Meyer and Walker were among the dentists who felt the fees were too low. They met with about fifty local dentists at Dr. Alston’s office to discuss the fees, after which many of those present at the meeting mailed letters to the plans requesting *1208 higher fees. 2 The plans did in fact revise their fee schedules, resulting in higher costs to plan members for some services.

This practice drew immediate fire from the Justice Department, which obtained an indictment against Alston, Meyer and Walker for conspiring to fix prices in violation of section 1 of the Sherman Act. 3 The jury convicted all three defendants, but the district court granted judgments of acquittal notwithstanding the verdict to Meyer and Walker and a new trial to Alston. United States v. Alston, 1991-1 Trade Cas. ¶ 69,366 (D.Ariz.1990). The government appeals. 4

Discussion

I

We begin with the Supreme Court’s most recent per se case, FTC v. Superior Court Trial Lawyers Association, 493 U.S. 411, 110 S.Ct. 768, 107 L.Ed.2d 851 (1990) (SCTLA). About 100 private lawyers in Washington, D.C., regularly served as court-appointed attorneys for indigent defendants. More than 90 percent of them agreed to stop providing legal representation until the District of Columbia government increased their compensation. Because of the boycott’s detrimental effect on the quality of criminal justice, the District government acceded to the lawyers’ demands. The Federal Trade Commission brought a civil action against SCTLA, alleging that the boycott constituted an unfair method of competition in violation of section 5 of the FTC Act. 5 After hearings before an AU, the Commission and the D.C. Circuit, the case came before the Supreme Court. The Court held that the lawyers' boycott was “a plain violation of the antitrust laws,” 493 U.S. at 428, 110 S.Ct. at 778, and that it was prohibited per se.

In so holding, the Court made clear that the per se condemnation of price fixing is a substantive rule of antitrust law, not merely a device of administrative convenience: “The per se rules are, of course, the product of judicial interpretations of the Sherman Act, but the rules nevertheless have the same force and effect as any other statutory commands.” Id. at 432-33, 110 S.Ct. at 779-80. Price fixing is illegal regardless of pro-competitive justifications offered therefor: “[I]t is not our task to pass upon the social utility or political wisdom of price-fixing agreements,” id. at 421-22, 110 S.Ct. at 774; “[ejvery such horizontal arrangement among competitors poses some threat to the free market,” id. at 434, 110 S.Ct. at 781; “[price-fixing agreements] are all banned because of their actual or potential threat to the cen-tra] nervous system of the economy,” id. at 435, 110 S.Ct. at 781 (quoting United States v. Socony-Vacuum Oil Co., 310 *1209 U.S. 150, 226 n. 59, 60 S.Ct. 811, 845 n. 59, 84 L.Ed. 1129 (1940)).

The government analogizes the dentists here to the lawyers in SCTLA, and argues that the per se rule is thus applicable. Amici supporting the dentists argue that the case should be analyzed instead under the rule of reason. It’s true that in a very narrow class of cases, market arrangements involving horizontal restraints are nevertheless analyzed under the rule of reason rather than the per se approach. See NCAA v. Board of Regents, 468 U.S. 85, 98-104, 104 S.Ct. 2948, 2958-62, 82 L.Ed.2d 70 (1984) (limiting television coverage of members’ college football contests); Broadcast Music, Inc. v. CBS, 441 U.S. 1, 16-24, 99 S.Ct. 1551, 1560-65, 60 L.Ed.2d 1 (1979) (blanket licensing of copyrighted music at set fees). Such cases, however, involve industries “in which horizontal restraints on competition are essential if the product is to be available at all.” NCAA, 468 U.S. at 101, 104 S.Ct. at 2960; see also Robert H. Bork, The Antitrust Paradox 278 (1978).

The health-care market is not such an industry. As we recently had occasion to note:

The application of antitrust laws to medical markets dates at least as far back as American Medical Association v. United States, 317 U.S. 519, [63 S.Ct. 326, 87 L.Ed. 434] (1943), where the Supreme Court maintained that the “occupation of the individual physicians charged as defendants is immaterial.” Id. at 528, [63 S.Ct. at 328]. If the Supreme Court’s message in Arizona v. Maricopa County Med. Soc’y, 457 U.S. 332, 349-51 [102 S.Ct. 2466, 2475-77, 73 L.Ed.2d 48] (1982); Jefferson Parish Hosp. Dist. No. 2 v. Hyde, 466 U.S. 2, 25 n. 42 [104 S.Ct. 1551, 1565 n. 42, 80 L.Ed.2d 2] (1984); and FTC v. Indiana Fed’n of Dentists, 476 U.S. 447, 463 [106 S.Ct. 2009, 2020, 90 L.Ed.2d 445] (1986), was not clear enough, then its specific announcement in National Gerimedical Hosp. & Gerontology Ctr. v. Blue Cross, 452 U.S. 378[, 393, 101 S.Ct.

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

Related

United States v. James Cloud
Ninth Circuit, 2024
United States v. Bijan Rafiekian
68 F.4th 177 (Fourth Circuit, 2023)
United States v. Crittenden
46 F.4th 292 (Fifth Circuit, 2022)
United States v. Archer
977 F.3d 181 (Second Circuit, 2020)
United States v. Henderson
318 F. Supp. 3d 1221 (E.D. Washington, 2018)
United States v. Joseph Plany
711 F. App'x 392 (Ninth Circuit, 2017)
United States v. Alan Rodrigues
696 F. App'x 785 (Ninth Circuit, 2017)
United States v. Omar Fuentes Alarcon
682 F. App'x 556 (Ninth Circuit, 2017)
Experience Hendrix LLC v. Hendrixlicensing.Com Ltd.
742 F.3d 377 (Ninth Circuit, 2014)
Flextronics America v. Commissioner
499 F. App'x 725 (Ninth Circuit, 2012)
United States v. Eddie Paulino
495 F. App'x 799 (Ninth Circuit, 2012)
United States v. Mario Bernadel
490 F. App'x 22 (Ninth Circuit, 2012)
Correia v. Feeney
620 F.3d 9 (First Circuit, 2010)
Jennings v. Jones
587 F.3d 430 (First Circuit, 2009)
United States v. Inzunza
Ninth Circuit, 2009

Cite This Page — Counsel Stack

Bluebook (online)
974 F.2d 1206, 92 Daily Journal DAR 12622, 92 Cal. Daily Op. Serv. 7764, 1992 U.S. App. LEXIS 21103, 1992 WL 217065, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-a-lanoy-alston-dmd-pc-ronald-d-walker-desert-ca9-1992.