Federal Circuits, 4th Cir. (December 09, 2004)
Docket number: 03-2388
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U.S. Supreme Court - Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (1986)
U.S. Supreme Court - Copperweld Corp. v. Independence Tube Corp., 467 U.S. 752 (1984)
UNPUBLISHED
UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUITNo. 03-2388 SARAH FUTCH HALL, d/b/a Travel Specialist, onbehalf of themselves and all others similarlysituated; JEANINE FLAUGHER, d/b/a FlowersTravel; ASSOCIATION OF RETAIL TRAVEL AGENTS, Plaintiffs - Appellants, and PEOPLES TRAVEL LIMITED; JOHN FLAUGHER, d/b/aFlowers Travel; LANEY INTERNATIONAL TRAVEL;TRAVEL MANAGEMENT PROFESSIONALS, INCORPORATED,d/b/a Travel Is Fun, Plaintiffs, versus AMERICAN AIRLINES, INCORPORATED; DELTAAIRLINES, INCORPORATED; NORTHWEST AIRLINES,INCORPORATED; CONTINENTAL AIRLINES, INC.;MIDWEST EXPRESS AIRLINES, INCORPORATED;AIRTRAN HOLDINGS, INCORPORATED; AMERICAN WESTAIRLINES, INCORPORATED; FRONTIER AIRLINES,INCORPORATED; ALASKA AIR GROUP, INCORPORATED;ALASKA AIRLINES, INCORPORATED; HORIZON AIRINDUSTRIES, INCORPORATED; SOCIETE AIR FRANCE;KLM ROYAL DUTCH AIRLINES, Defendants - Appellees, and UNITED AIRLINES, INCORPORATED; DELTA AIRLINESGLOBAL SERVICES, INCORPORATED; U.S. AIRWAYS,INCORPORATED; TRANS WORLD AIRLINES; MIDWAY- 2 - AIRLINES CORPORATION; AIRTRAN AIRLINES,INCORPORATED; DEUTSCHE LUFTHANSA AG; ALITALIA,SPA; AIR CANADA, Defendants. Appeal from the United States District Court for the Eastern District of North Carolina, at Wilmington. W. Earl Britt, SeniorDistrict Judge. (CA-00-123-BR)Argued: October 27, 2004 Decided: December 9, 2004Before MOTZ and TRAXLER, Circuit Judges, and HAMILTON, SeniorCircuit Judge.Affirmed by unpublished per curiam opinion.ARGUED: Daniel Rees Shulman, GRAY, PLANT, MOOTY, MOOTY & BENNETT, P.A., Minneapolis, Minnesota, for Appellants. Lee H. Simowitz,BAKER & HOSTETLER, L.L.P., Washington, D.C., for Appellees. ON BRIEF: Dean C. Eyler, GRAY, PLANT, MOOTY, MOOTY & BENNETT, P.A., Minneapolis, Minnesota; Henry L. Anderson, Jr., A. L. ButlerDaniel, Bradley A. Coxe, ANDERSON, DANIEL & COXE, WrightsvilleBeach, North Carolina, for Appellants. Gary J. Rickner, WARD ANDSMITH, P.A., New Bern, North Carolina; Ronald F. Wick, Eric Berman,BAKER & HOSTETLER, L.L.P., Washington, D.C., for NorthwestAirlines, Inc., KLM Royal Dutch Airlines, Continental Airlines,Inc., Delta Air Lines, Inc., American Airlines, Inc., and SocieteAir France. James V. Dick, Marshall S. Sinick, SQUIRE, SANDERS &DEMPSEY, L.L.P., Washington, D.C., for Alaska Air Group, Inc.,Alaska Airlines, Inc., and Horizon Air Industries, Inc. Thomas W. Rhodes, Edward H. Wasmuth, Jr., SMITH, GAMBRELL & RUSSELL, L.L.P.,Atlanta, Georgia, for AirTran Holdings, Inc. Peter Huston, J. Thomas Rosch, LATHAM & WATKINS, L.L.P., San Francisco, California,for America West Airlines, Inc. John D. Shively, Heather T. Perkins, FAEGRE & BENSON, L.L.P., Denver, Colorado, for FrontierAirlines, Inc. Robert P. Silverberg, SILVERBERG, GOLDMAN & BIKOFF,L.L.P., Washington, D.C.; Pressly M. Millen, WOMBLE, CARLYLE,SANDRIDGE & RICE, P.L.L.C., Raleigh, North Carolina, for MidwestExpress Airlines, Inc. - 3 -- 4 - Unpublished opinions are not binding precedent in this circuit.See Local Rule 36(c).The defendant-airlines in this action are: Air Canada; Airtran Holdings, Inc. (Airtran); Alaska Air Group, Inc., AlaskaAirlines, Inc., and Horizon Air Industries, Inc. (collectivelyAlaska); Alitalia, SPA (Alitalia); America West Airlines, Inc. (America West); American Airlines (American); Continental Airlines,Inc. (Continental); Delta Air Lines (Delta); Delta Air Lines GlobalServices, Inc.; Deutsche Lufthansa AG (Lufthansa); FrontierAirlines, Inc. (Frontier); KLM Royal Dutch Airlines (KLM); MidwayAirlines, Corp. (Midway); Midwest Express Airlines, Inc. (MidwestExpress); Northwest Airlines, Inc. (Northwest); Societe Air France(Air France); Trans World Airlines, Inc. (TWA); United Airlines,Inc. (United); and US Airways, Inc. (US Airways). - 5 - PER CURIAM:This is a nationwide class action lawsuit by travel agents(the Travel Agents) against numerous foreign and domesticairlines. 1 The Travel Agents claim the defendant-airlines illegally conspired and executed a scheme to reduce and ultimatelyeliminate travel-agent-base-commissions on the sale of domestic andinternational airline tickets in a concerted effort to boostprofits of the defendant-a irlines and to force them (the Travel Agents) out of business, all in violation of § 1 of the ShermanAntitrust Act (the Sherman Act), 15 U.S.C. § 1. The Travel Agentsallege the conspiracy began in 1995 and ended by late summer 2002.Since the initial filing of this action on June 21, 2000, ithas been dismissed, on varying grounds, against Alitalia, Delta AirLines Global Services, Inc., Midway, and Lufthansa. The action hasalso been stayed against Air Canada, TWA, United, and US Airways,based upon notices of bankruptcy filed by those airlines.Here, the district court specifically found there was no just reason to delay the entry of final judgment with respect to the Airlines to await the conclusion of bankruptcy proceedings againstAir Canada, TWA, United, and US Airways. - 6 - The case proceeded against the remaining defendant-airlines(hereinafter collectively the Airlines): Airtran, Air France,Alaska, America West, American, Continental, Delta, Frontier, KLM,Midwest Express, and Northwest. After full discovery, the Airlinesmoved for summary ju dgment pursuant to Federal Rule of Civil Procedure 56. SeeFed. R. Civ. P. 56. On October 30, 2003, in a lengthy published opinion, thedistrict court exam ined the Travel AgentsÂ’ proffered evidence against the Airlines and found no triable issue of fact. Hall v. United Airlines, Inc. , 296 F. Supp. 2d 652 (E.D.N.C. 2003). Accordingly, the district court granted summary judgment in favorof the Airlines. Notably, the district court directed the clerk ofcourt to enter final judgment in favor of the Airlines pursuant toFederal Rule of Civil Procedure 54(b), which allows a districtcourt to order the entry of final judgment as to less than allparties and all claims in an action when there is no just reasonfor delay. 2 SeeFed. R. Civ. P. 54(b). The Travel Agents noted a timely appeal of this final judgment.We review the grant of summary judgment de novo. Higgins v. E.I. DuPont de Nemours & Co. , 863 F.2d 1162, 1167 (4th Cir. 1988). Summary judgment is appropriate “if the pleadings, depositions,- 7 - answers to interrogatories, and admissions on file, together withthe affidavits, if any, show that there is no genuine issue as toany material fact and that the moving party is entitled to ajudgment as a matter of law.” Fed. R. Civ. P. 56(c). Moreover, inassessing the merits of a motion for summary judgment, we view theevidence in the light most favorable to the non-moving party, herethe Travel Agents, and draw all reasonable inferences in thenon-moving partyÂ’s favor. Anderson v. Liberty Lobby, Inc. , 477 U.S. 242, 255 (1986).Section 1 of the Sherman Act provides, in pertinent part, that“[e]very contract, combination in the form of trust or otherwise,or conspiracy, in restraint of trade or commerce among the severalStates, or with foreign nations, is decl ared to be illegal.§ 1. Therefore, to establish a conspiracy in restraint oftrade in violation of § 1 of the Sherman Act, as the Travel Agentshave alleged, “a plaintiff must show: (1) a contract, combinationor conspiracy; (2) that imposed an unreasonable restraint oftrade.” American Chiropractic Assn., Inc. v. Trigon Healthcare,Inc. , 367 F.3d 212, 223 (4th Cir. 2004) (internal quotation marksomitted). Significantly, purely unilateral action does not violate§ 1 of the Sherman Act. Copperweld Corp. v. Independence TubeCorp., 467 U.S. 752, 767-68 (1984). Rather, concerted activitybetween at least two legally distinct persons or entities is at theheart of a § 1 Sherman Act violation. American Chiropractic Assn.,- 8 - Inc. , 367 F.3d at 223. To elaborate, “concerted activity susceptible to sanction by section 1 is activity in which multipleparties join their resources, rights, or economic power together inorder to achieve an outcome that, but for the concert, wouldnaturally be frustrated by their competing interests (by way ofprofit-maximizing choices).” Virginia Vermiculite, Ltd. v. Historic Green Springs, Inc. , 307 F.3d 277, 282 (4th Cir. 2002). We have carefully reviewed and considered the district courtÂ’sopinion, the voluminous appellate record, and the partiesÂ’ oral andwritten appellate arguments. We agree with the district court thatthe Travel Agents have not proffered sufficient evidence, whenviewed in the light most favorable to them and when drawing all reasonable inferences in their favor, to support a finding ofconcerted activity by the Airlines, which finding is necessary toestablish a § 1 Sherman Act violation. Accordingly, we find no error in the district courtÂ’s decision to grant summary judgment infavor of the Airlines, and we affirm entry of final judgment in favor of the Airlines on the reasoning of the district court. SeeHall, 296 F. Supp. 2d at 661-78, 680-81. AFFIRMEDTry vLex for FREE for 3 days
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