Corporate & Securities Law

The United States Court of Appeals for the Second Circuit Dismisses Robinson-Patman Act Claim on Summary Judgment for Failure to Prove Injury to Competition

By Matthew S. Wild

In United Magazine Co., Inc. v. Curtis Circulation Co., 06-3212 (2d Cir., Mar. 25, 2008), the Court affirmed summary judgment dismissing plaintiffs’ Robinson-Patman Act claims against certain defendants.  This decision is significant in that it shows the difficulty for Robinson-Patman Act plaintiffs to meet the injury-to-competition requirement under Volvo Trucks N. Am., Inc. v. Reeder-Simco GMC, Inc., 546 U.S. 164, 180 (2006).  In United Magazine, plaintiffs came forward with proof that defendants sold magazines to one customer on better terms than to plaintiffs.  The Second Circuit held that even accepting plaintiffs’ proof as true, plaintiffs’ proof of injury was insufficient for two independent reasons.  Plaintiffs failed to show that they competed head-to-head for any bids with the favored customer.  Second, plaintiffs failed to show that “‘any price discrimination between’ [them] and the favored customer] was ‘of such magnitude as to affect substantially competition between’ the two competitors.”  Id. at 6 (quoting Volvo Trucks, 546 U.S. at 180).  The Second Circuit’s decision is attached.  United Magazine v. Curtis Circulation

Full post as published by Antitrust Commentary on March 30, 2008 (boomark / email).