Monday, August 06, 2018

Arandell Corp. v. CenterPoint Energy Svcs (9th Cir. - Aug. 6, 2018)

The Supreme Court held that you can't find a parent and subsidiary guilty of conspiracy under the Sherman Act because it's impossible for such entities to actually conspire.  The Ninth Circuit uses that decision to hold that a subsidiary can be liable under the Sherman Act.

You might think that gets the thing exactly backwards.  But the Tenth Circuit allegedly did the same thing, albeit in a Section 2 (monopolization) case, rather than a Section 1 (conspiracy) case as here.

I know a little bit about that because I published a long piece in the Stanford Law Review entitled Intracorporate Conspiracies that talks a lot about the underlying principle.  I'll forthrightly concede that I never thought about how that doctrine could allegedly be used to expand corporate liability.

It's a weird world.

P.S. - The times of my postings this week will likely be a bit off, since I'm in Serbia all week, and the time change is a killer.  But rest assured I'll be keeping up as much as I can.