Knutson

Knutson v. Daily Review, Inc.

Good Law
468 F. Supp. 226·4 Media L. Rep. (BNA) 2424·1979 U.S. Dist. LEXIS 13593
United States District Court, Northern District of CaliforniaMarch 21, 1979C-73-1354-CBRCalifornia9,732 words

Opinion

Opinion

Renfrew, J.

MEMORANDUM OF OPINION

In August 1973 a group of independent newspaper dealers brought suit in this Court against the publishers and certain officers of the newspapers they distributed, alleging violations of Sections 1 and 2 of the Sherman Act, 15 U.S.C. §§ 1 , 2. After extensive discovery and a lengthy trial, this Court on September 23, 1974, rejected three of plaintiffs’ claims for relief but found that the publisher’s written Dealership Agreement, which prohibited the dealers from selling their papers to subscribers at a price above the publisher’s suggested price, constituted a vertical price restraint that violated Section 1 of the Act. See Knutson v. Daily Review, 383 F.Supp. 1346, 1357 (N.D.Cal.1974). Because plaintiffs had failed to prove either the fact or amount of their injury, however, the Court declined to award damages. 383 F.Supp. at 1384 .

On appeal, the Court of Appeals for the Ninth Circuit affirmed in part and reversed in part. It agreed that plaintiffs were not entitled to recover on the three claims for relief this Court had rejected. However, it disagreed with the Court’s reasons for denying plaintiffs damages for the Section 1 violation. Noting that…

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