Fifth Circuit Dismisses Leegin Resale Price Maintenance Case Anew, Following Supreme Court Remand


In 2007, the United States Supreme Court, updating the application of the cumulative advances in antitrust economics as applied to vertical restraint cases, overruled the venerable Dr. Miles Med. Co. v. John D. Park & Sons Co., 220 U.S. 373 (1911). The Court held that because economic learning now demonstrates that there may be a number of procompetitive justifications for the imposition of vertically imposed resale price maintenance ("RPM"), such cases should now be evaluated under a rule of reason. See Leegin Creative Leather Prods., Inc. v. PSKS, Inc., 551 U.S. 877 (2007) ("Leegin"). The Supreme Court remanded Leegin back to the Fifth Circuit. Previously, the District Court for the Eastern District of Texas had granted Defendant Leegin's motion to dismiss on the merits, only to be overruled in the Fifth Circuit by the application of the per se rule of Dr. Miles. See PSKS, Inc. v. Leegin Creative Leather Prods., 498 F.3d 486 (5th Cir. 2007). On remand from the Fifth Circuit's reversal by the Supreme Court, the Eastern District of Texas again granted Leegin's motion to dismiss. See PSKS, Inc. v. Leegin Creative Leather Prods., Inc., No. 2:03-CV-107, 2009 WL 938561 (E.D. Tex., April 6, 2009). On appeal again to the Fifth Circuit, the court now affirmed. Case dismissed. PSKS, Inc. v. Leegin Creative Leather Products, Inc., No. 09-40506 (5th Cir. August 17, 2010).

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