Edward J. Roberts v. Elaine Powers Figure Salons, Inc.

This is an appeal from entry of summary judgment on a claim of unlawful tying in violation of the Sherman Act. The district court held that there was no unlawful per se tying arrangement between the sale of a franchise (the alleged tying product) and bookkeeping services (the alleged tied product) provided by an independent corporation. We hold that this case is not appropriate for summary judgment because there are genuine issues of material fact. We reverse and remand for trial.

Background

Plaintiffs-appellants are Edward Roberts, a Michigan resident who purchased nine franchises from defendants-appellees, and nine corporations formed by Roberts to operate the franchises (“Roberts”). Defendants-appellees are Elaine Powers Figure Salons, Inc., No. 1 Elaine Powers Figure Salons, Inc., and Unicare, Inc. (“Elaine Powers”). Unicare purchased the Elaine Powers companies in 1970.

In 1973, Roberts filed suit against Elaine Powers alleging violations of the federal antitrust and securities laws and common law fraud. Several counts included in the original cause of action have been withdrawn. All that remains on appeal is Roberts’ claim that Elaine Powers violated section 1 of the…