Opinion ID: 457723
Heading Depth: 1
Heading Rank: 2

Heading: requirement of injury and damages

Text: 10 Section 4 of the Clayton Act limits treble damages to a private litigant who shall be injured in his business or property by anything forbidden in the antitrust laws. 15 U.S.C. Sec. 15. Such a plaintiff must prove not only an antitrust violation, but also cognizable injury attributable to the violation, and ... at least the approximate amount of the damage. Chrysler Credit Corp. v. J. Truett Payne Co. Inc., 670 F.2d 575, 579 (5th Cir.), cert. denied, 459 U.S. 908, 103 S.Ct. 212, 74 L.Ed.2d 169 (1982). In particular, the plaintiff must prove antitrust injury, which is to say injury of the type the antitrust laws were intended to prevent and that flows from that which makes defendants' acts unlawful. Brunswick Corp. v. Pueblo Bowl-O-Mat, Inc., 429 U.S. 477, 489, 97 S.Ct. 690, 697, 50 L.Ed.2d 701 (1977) (emphasis in original). Injury is required in section 4 actions regardless of the nature of the underlying antitrust violation. See Bayou Bottling, Inc. v. Dr. Pepper Co., 725 F.2d 300, 304-05 (5th Cir.), cert. denied, --- U.S. ----, 105 S.Ct. 123, 83 L.Ed.2d 65 (1984) (monopolization, attempted monopolization, conspiracy in restraint of trade); Chrysler Credit Corp., 670 F.2d at 579 (price discrimination); Cash v. Arctic Circle, Inc., 85 F.R.D. 618, 622 (E.D.Wash.1979) (tying). While summary judgment is to be used cautiously in complex antitrust litigation, it is nevertheless available where no antitrust injury or damages have been presented. See Bayou Bottling, 725 F.2d at 303-05. 11 Olympia's theory of antitrust injury can be easily summarized. In its pretrial statement, the only element of injury or damages that Olympia attempted to identify and quantify was that attributable to the alleged price discrimination. Olympia stated that had it received the same five percent price reduction that Standard allegedly received, it would have made an increased profit of $38,157.65 from 1972 to 1976, and its sales would have increased by forty percent. However, in its pretrial statement Olympia failed to point to any evidence that would bear out this calculation. Instead, Olympia propose[d] to offer proof of damages using this basic methodology and employing a ten year 'straight-line' projection of sales and loss [sic] net profits for a 'future' period of ten years from and after 1976. Olympia on appeal has not presented any different theory of injury or damages, nor does it cite to any evidence that it contends creates a dispute of fact. 12 We agree with the district court's finding that Olympia's claim of injury and for damages amounts to nothing more than unsupported assumptions, conclusory allegations, and undocumented hypotheses. Olympia has not produced any evidence tending to show antitrust injury beyond evidence of price difference. It states in its briefs, without any accompanying explanation, that affidavits that it filed in 1979 were sufficient to avoid summary judgment, but these materials contain no information relevant to injury or damages. 1 Olympia's proposed methodology is insufficient to survive a summary judgment motion absent allegations of, and evidence to support, the fact of injury, which are not to be found in this voluminous record. Because Olympia apparently chose to rest upon its pleadings on this issue rather than substantiate its claims with evidence, summary judgment is permissible. See Fed.R.Civ.P. 56(e). Since Olympia created no genuine issue of the material matters of injury and damages, and since Celotex and Standard were entitled to judgment as a matter of law, the district court's entry of summary judgment was appropriate. See Fed.R.Civ.P. 56(c). 13 Moreover, evidence of price discrimination is not, by itself, adequate evidence of damages. [P]roof of a [price discrimination] violation does not mean that a disfavored purchaser had been actually 'injured' within the meaning of Sec. 4 of the Clayton Act. J. Truett Payne Co. v. Chrysler Motors Corp., 451 U.S. 557, 562, 101 S.Ct. 1923, 1927, 68 L.Ed.2d 442, 448 (1981). Price difference without more does not indicate the amount of lost sales or profits. Chrysler Credit Corp., 670 F.2d at 582. Olympia cannot rely on mere speculation and guesswork to substantiate its damages. See id. Olympia's bare projection of future profits is insufficient to meet its evidentiary burden. Any coincidental financial problems Olympia may have suffered at the time the alleged price discrimination occurred is not by itself enough to demonstrate antitrust injury. See id. at 581-82. 14 Even if Olympia had been able to factually substantiate its claims, its theory of damages would be unacceptable. Olympia may not base its damage claim on calculations showing what would have occurred had it received an allegedly discriminatory price. See M.C. Manufacturing Co., Inc. v. Texas Foundries, 517 F.2d 1059, 1063-65 (5th Cir.1975), cert. denied, 424 U.S. 968, 96 S.Ct. 1466, 47 L.Ed.2d 736 (1976). Instead, Olympia must show what would have happened had there been no discriminatory prices granted to Standard. Id. at 1064. Olympia cannot show damages merely by stating that it would have benefited by sharing in the lower, discriminatory prices with Standard. This is because 15 [r]estoration of the competitive freedom which the Sherman Act is designed to protect through elimination of the anticompetitive practice is accomplished here by disregarding the special conspiratorial price ..., not by hypothetical broadening of the conspiracy to give [the defendant/buyer's] abnormally low price to [the plaintiff] as well. Id. at 1065. 2