State of Hawaii v. Standard Oil Company of California, Union Oil Company of California, Shell Oilcompany and Chevron Asphalt Company

This appeal presents the question whether a state can, under § 4 of the Clayton Act, 15 U.S.C. § 15 , maintain a suit for treble damages as parens patriae for injury done to the general economy of the state. We hold it cannot.

The amended complaint filed by the State of Hawaii alleges that appellants conspired to fix and maintain unreasonably high prices for motor gasoline and asphalt in Hawaii. Count I alleges losses suffered by the state in its proprietary capacity. Count II, with which we are concerned, alleges:

The complaint then continues:

Then are listed the seven specifications of injury set forth in the margin.

The prayer is for injunction and for treble damages under § 4 of the Clayton Act. Respecting damages under Count II, the complaint alleges:

Appellants moved to dismiss Count II on the ground that it failed to state a claim. The motion was denied. ****The opinion of the court in support of its order appears at 301 F.Supp. 982 (D.C. Hawaii 1969). This appeal is taken from the court’s order pursuant to 28 U.S.C. § 1292 (b).

Appellants attack Count II on many grounds. They contend that parens pa-triae suits will not lie to recover money damages. They contend that…