American Passage Media Corporation v. Cass Communications, Inc., D/B/A Cass Student Advertising Services, Inc.

American Passage Media Corp. (AP) sued Cass Communications, Inc. (Cass), alleging violations of sections 1 and 2 of the Sherman Act. 15 U.S.C. §§ 1 , 2. The district court issued a preliminary injunction, enjoining Cass from enforcing certain exclusive dealing contracts.

The issues on appeal: (1) did the district court apply the proper standard in granting the preliminary injunction; (2) was there sufficient evidence of irreparable injury; and (3) is AP likely to succeed on the merits?

FACTS:

National advertisers use advertising agencies and multi-media means to reach their targeted audience. Approximately 1,300 college newspapers accept national advertising and their representatives serve as middlemen between the advertisers or their agencies and the newspapers.

National Educational Advertising Service, Inc. (NEAS) was the only company representing college newspapers in 1969 when Cass entered the business. NEAS had 1,103 agreements to represent college papers, of which 87% were exclusive. Cass brought an antitrust action against NEAS in 1973. The trial court originally denied injunctive relief. Cass v. NEAS, 374 F.Supp. at 803. The Seventh Circuit reversed. Cass v. NEAS, 516…