Vacco v. Microsoft Corp.

793 A.2d 1048, 260 Conn. 59, 2002 Conn. LEXIS 132
CourtSupreme Court of Connecticut
DecidedApril 16, 2002
DocketSC 16566
StatusPublished
Cited by93 cases

This text of 793 A.2d 1048 (Vacco v. Microsoft Corp.) is published on Counsel Stack Legal Research, covering Supreme Court of Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vacco v. Microsoft Corp., 793 A.2d 1048, 260 Conn. 59, 2002 Conn. LEXIS 132 (Colo. 2002).

Opinion

Opinion

ZARELLA, J.

This appeal raises two significant issues.1 First, as a matter of first impression, we must determine whether the plaintiff, Andrew Vacco,2 as an end user licensee3 of a software product manufactured by the defendant, Mircosoft Corporation, may maintain a claim against the defendant pursuant to the Connecti[62]*62cut Antitrust Act (Antitrust Act), General Statutes § 35-24 et seq. Second, we must determine whether the plaintiff may maintain a claim, predicated on the same factual allegations underlying the antitrust claim, pursuant to the Connecticut Unfair Trade Practices Act (CUTPA), General Statutes § 42-110a et seq. We conclude that the plaintiff, as an indirect purchaser of the defendant’s software product, may not recover under the Antitrust Act. We also conclude that the plaintiff is barred from bringing a claim under CUTPA because his alleged iiyuries are too remote with respect to the defendant’s alleged conduct. We, therefore, affirm the judgment of the trial court.

The following facts and procedural history are relevant to this appeal. In September, 1999, the plaintiff purchased from a retail store4 in Wallingford an Intel-based personal computer5 onto which Windows 986 had been preinstalled. As a precondition to using Windows 98, the plaintiff was required to enter into an end user licensee agreement with the defendant specifying that Windows 98 was licensed, as opposed to sold, to the end user.7 Thereafter, the plaintiff brought this action [63]*63against the defendant,8 alleging violations of the Antitrust Act and CUTPA.9 The gravamen of the plaintiffs complaint is that the defendant wielded monopoly power in the computer operating systems market and, in wielding that power, “knowingly licensed its Windows 98 operating system for Intel-based [personal computers] . . . without regard to competition, at a monopoly price in excess of what [the defendant] would have been able to charge in a competitive market.”

The defendant moved to strike the plaintiffs complaint on the ground that the plaintiff had failed to state a claim upon which relief could be granted. Specifically, the defendant contended that the plaintiff was an indirect purchaser of Windows 98 who was ineligible to [64]*64recover under the Antitrust Act and who, in the absence of a cause of action under the Antitrust Act, also was ineligible to recover under CUTPA. The trial court agreed with the defendant and granted the defendant’s motion to strike the plaintiffs complaint. The trial court thereafter rendered judgment in favor of the defendant, from which the plaintiff appealed to the Appellate Court.10 We transferred the appeal to this court pursuant to General Statutes § 51-199 (c) and Practice Book § 65-1.

I

ANTITRUST ACT

The plaintiff first claims that the trial court, in applying Illinois Brick Co. v. Illinois, 431 U.S. 720, 97 S. Ct. 2061, 52 L. Ed. 2d 707 (1977) (Illinois Brick), improperly concluded that the plaintiff was an indirect purchaser of Windows 98 and, therefore, was barred from bringing an antitrust action pursuant to General Statutes § 35-3511 to recover damages for the defendant’s allegedly anticompetitive practices.12 We agree with the trial court.

Before addressing the merits of the plaintiffs claim, we set forth the standard of review applicable to an appeal challenging the trial court’s granting of a motion to strike. “A motion to strike challenges the legal suffi[65]*65ciency of a pleading, and, consequently, requires no factual findings by the trial court. As a result, our review of the court,’s ruling is plenary. Napoletano v. CIGNA Healthcare of Connecticut, Inc., 238 Conn. 216, 232-33, 680 A.2d 127 (1996), cert. denied, 520 U.S. 1103, 117 S. Ct. 1106, 137 L. Ed. 2d 308 (1997). We take the facts to be those alleged in the complaint that has been stricken and we construe the complaint in the manner most favorable to sustaining its legal sufficiency. Bohan v. Last, 236 Conn. 670, 674, 674 A.2d 839 (1996); see also Mingachos v. CBS, Inc., 196 Conn. 91, 108-109, 491 A.2d 368 (1985). Thus, [i]f facts provable in the complaint would suppoit a cause of action, the motion to strike must be denied. Waters v. Autuori, 236 Conn. 820, 826, 676 A.2d 357 (1996).” (Internal quotation marks omitted.) Jewish Home for the Elderly of Fairfield County, Inc. v. Cantore, 257 Conn. 531, 537-38, 778 A.2d 93 (2001).

A

General Statutes § 35-44b provides: “It is the intent of the General Assembly that in construing sections 35-24 to 35-46, inclusive, the courts of this state shall be guided by interpretations given by the federal courts to federal antitrust statutes.” We, therefore, begin our analysis of the plaintiffs antitrust claim with a discussion of federal antitrust law. Section 4 of the Clayton Act, 15 U.S.C. § 15, as amended, the statute on which § 35-35 is modeled, provides in relevant part that “any person who shall be injured in his business or property by reason of anything forbidden in the antitrust laws may sue therefor in any district court of the United States in the district in which the defendant resides or is found or has an agent, without respect to the amount in controversy, and shall recover threefold the damages by him sustained, and the cost of suit, including a reasonable attorney’s fee. . . .” 15 U.S.C. § 15 (a) (2000). The United States Supreme Court has interpreted § 4 [66]*66of the Clayton Act as precluding an indirect purchaser of goods or services from bringing a private action against the seller who engages in anticompetitive practices in the sale of those goods or services. Kansas v. Utilicorp United, Inc., 497 U.S. 199, 207, 110 S. Ct. 2807, 111 L. Ed. 2d 169 (1990); California v. ARC America Corp., 490 U.S. 93, 103, 109 S. Ct. 1661, 104 L. Ed. 2d 86 (1989); see Illinois Brick Co. v. Illinois, supra, 431 U.S. 730, 746-47; Hanover Shoe, Inc. v. United Shoe Machinery Corp., 392 U.S. 481, 490-94, 88 S. Ct. 2224, 20 L. Ed. 2d 1231 (1968) (Hanover Shoe). Only those who purchase directly from such a seller may recover under the federal antitrust statutes. See, e.g., Kansas v. Utilicorp United, Inc., supra, 207 (in distribution chain, indirect purchasers are not “immediate buyers” of antitrust defendant).

In Hanover Shoe,

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Bluebook (online)
793 A.2d 1048, 260 Conn. 59, 2002 Conn. LEXIS 132, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vacco-v-microsoft-corp-conn-2002.