AT&T Mobility LLC, et al v. AU Optronics Corp., et al :: Ninth Circuit :: US Courts of ... - 0 views
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Justia.com Opinion Summary: Plaintiffs alleged that they purchased billions of dollars worth of mobile handsets containing defendants' LCD panels and that the prices they paid for those handsets were artificially inflated because defendants had orchestrated a global conspiracy to fix the prices of LCD panels. The district court certified to the court pursuant to 28 U.S.C. 1292(b) "the question whether the application of California antitrust law to claims against defendants based on purchases that occurred outside California would violate the Due Process Clause of the United States Constitution." Because the underlying conduct in this case involved not just the indirect purchase of price-fixed goods, but also the conspiratorial conduct that led to the sale of those goods, the court answered in the negative. To the extent a defendant's conspiratorial conduct was sufficiently connected to California, and was not "slight and casual," the application of California law to that conduct was "neither arbitrary nor fundamentally unfair," and the application of California law did not violate that defendant's rights under the Due Process Clause. Therefore, the court reversed the district court's order dismissing plaintiffs' California law claims and remanded for further proceedings.
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This page includes the opinion of the Ninth U.S. Circuit Court of Appeals on an interlocutory appeal from a district court decision to dismiss two California state law causes of action from an ongoing case, leaving only the federal law causes of action. The Ninth Circuit disagreed, vacated the district court's decision, and remanded for consideration of the dismissal issue under the correct legal standard. This was a pro-plaintiff decision that makes it very likely that the case will continue with the state law causes of action reinstated against all or nearly all defendants. This is an unusually important price-fixing case with potentially disruptive effect among mobile device component manufacturers and by such a settlement or judgment's ripple effects, manufacturers of other device components globally. Plaintiffs are several major voice/data communications services in the U.S. with the defendants being virtually all of the manufacturers of LCD panels used in mobile telephones. One must suspect that if price-fixing is in fact universal in the LCD panel manufacturing industry, price-fixing is likely common among manufacturers of other device components. According to the Ninth Circuit opinion, the plaintiffs' amended complaint includes detailed allegations of specific price-fixing agreements and price sharing actions by principles or agents of each individual defendant company committed within the State of California, which suggests that plaintiffs have very strong evidence that the alleged conspiracy exists. This is a case to watch.
