Document: 68 L.Ed.2d 442 101 S.Ct. 1923 451 U.S. 557 J. TRUETT PAYNE COMPANY, INC., Petitioner,v.CHRYSLER MOTORS CORPORATION. No. 79-1944. Argued Jan. 21, 1981. Decided May 18, Syllabus Petitioner, a former automobile dealer, brought suit against respondent manufacturer in Federal District Court, alleging that respondent's "sales incentive" programs over certain period violated the price-discrimination prohibition of § 2(a) Clayton Act, as amended by Robinson-Patman Act. Under its programs, paid bonus to dealers if they exceeded their quotas—set for each dealer—of cars be sold at retail or purchased from respondent. Petitioner alleged set petitioner's quotas higher than those competitors; extent it failed meet quotas, and competitors met lower petitioner received fewer bonuses; net effect was more automobiles did competitors. contended amount price discrimination difference multiplied number purchases—was $81,248, when went out business, going-concern value business ranged between $50,000 $170,000. Respondent maintained sales incentive were nondiscriminatory, not injure adversely affect competition. The jury returned verdict awarding $111,247.48 damages, which Court trebled. Appeals reversed, holding unnecessary consider whether violation had been proved, since introduce substantial evidence injury attributable much less such injury, required order recover treble damages under 4 Held: 1. Petitioner's contention once has proved is entitled minimum so-called "automatic damages" without merit. Section 2(a), prophylactic statute merely upon showing "the may substantially lessen competition," does require, purposes injunctive actions, must fact have harmed Corn Products Co. v. FTC, 324 726, 65 961, 89 L.Ed. 1320; FTC Morton Salt Co., 334 37, 822, 92 1196. However, essentially remedial providing any person "who shall injured his property reason anything forbidden antitrust laws," plaintiff make some actual something laws designed prevent. Thus prove proof establishes only result. Cf. Brunswick Corp. Pueblo Bowl-O-Mat, Inc., 429 477, 97 690, 50 701. Pp. 561-563. 2. rule excusing plaintiffs an unduly rigorous standard proving see, e. g., Zenith Radio Hazeltine Research, 395 100, 1562, 23 129, will applied here determine petitioner, though damages," produced enough sustain recovery. While close question would sufficient support award even rule, fundamental difficulty cases relied all depend greater lesser part on inequity wrongdoer defeating recovery him insisting proof. In this case, cannot said with assurance "wrongdoer" directly issue after bypassing 2(a). proper course remand case so pass insufficient finding violation. If court determines violate should then sufficiency injury. 563-568. 607 F.2d 1133, vacated remanded. C. Lee Reeves, Birmingham, Ala., petitioners. Ross Forman, III, Justice REHNQUIST delivered opinion Court. 1 presented appropriate measure Act.1 2 several decades Chrysler-Plymouth dealer 1974. subsequently United States Northern Alabama, January 1970 1974 various one type program, assigned participating objective car excess objective. another purchase quota before pay sale retail. depended (or wholesale purchases) made dealer's objective, could hundred dollars. objectives competitors, requiring sell purchase) obtain To objectives, bonuses. this, according money It discrimination—the $81,248. also claimed 3 denied motion directed verdict. awarded Fifth Circuit reversed instructions dismiss complaint. 1133 (1979). found (1) laws, (2) cognizable violation, (3) least approximate damage. because, view, "failed injury." Id., 1135. Rejecting theory mere held "[c]onclusory statements plaintiff, evidentiary support." 1136-1137. concluded erred refusing denying judgment notwithstanding We granted certiorari, 449 819, 70, 66 20 (1980), review decision Appeals. 5 * first contends discrimination. concedes establish approximation Brief 9. insists, however, permitted infer requisite damage notes consistently inferred actions enforce 1196 (1948), argues private suits treated no differently. disagree.2 6 By terms competition." (Emphasis supplied.) As our recognized, "require discriminations Refining 742, 969, 1320 (1942); supra, 46, S.Ct., 828 ("the require Commission find actually resulted"). contrast, statute. provides "[a]ny who laws. . ." then, Perkins Standard Oil 642, 648, 1871, 1874, 599 (1969) (plaintiff "must, course, able show causal connection Act suffered.") 7 Our virtually governed reasoning 701 (1977). There we rejected prohibits mergers competition, gives rise claim 4. explained "to [under 4] respondents 7, result." 486, 696. Likewise mean disfavored purchaser "injured" within meaning 8 legislative history buttresses view. Both Patman bill, H.R.8442, 2(d), 74th Cong., 1st Sess. (1935), introduced House, Robinson S.3154, 2d Senate, provided plaintiff's presumed provision, encountered strong opposition both Houses House Committee eliminated H.R.Rep.No.2287, Sess., 16 (1936), Senate modified provision authorize presumptive shows "fact damage." S.Rep.No.1502, (1936). Conference compromise, passed present form. Congress thus very concept seeks judicially legislate. Gulf Copp Paving 419 186, 199-201, 95 392, 400, 42 378 (1974).3 II 9 next survive That consisted primarily testimony owner, Mr. Payne, expert witness, professor economics. Payne testified causes dealership going business. contention, he salesmen told lost market share Birmingham area 24% 1970, 27% 1971, 23% 1972, 25% 1973. 4% drop 1972 result programs. He caused "force" quotas. is, desire induced "overallow" trade-ins, reducing profits used operation. App. 51-52. adduced average gross profit below same revealed new higher. 269. 10 Neither nor witness offered documentary prices. Although asserted customers being undersold, id., 35-37, 92, 95, admitted know costs customers. 44, 57. took somewhat different position. believed ultimately cause prices artificially high level, reduce done equal 103, 135. favored purchasers prices, per car.4 139. 11 Even construed most favorably weak. nevertheless asks us light traditional 123-124, 1576, 129 (1969), example, discussed length fixing involving exclusion. accepted proposition basis estimate absent violation: 12 "[D]amage issues these are rarely susceptible kind concrete, detailed available other contexts. repeatedly absence precise proof, factfinder 'conclude matter just reasonable inference defendants' wrongful acts tendency plaintiffs' decline values, shown causes, plaintiffs.' Bigelow RKO Pictures, supra [327 U.S.], 264 [66 579]. See Eastman Kodak Southern Photo Materials 273 359, 377-379 [47 404, 405, 71 684] (1927); Story Parchment Paterson Paper 282 555, 561-566, 51 248, 250, 75 544 (1931)." Ibid. 13 327 251, 574, 90 652 (1946), Zenith, film distributors conspired deny theater access first-run films. based comparison contemporaneous competing Plaintiff comparing during conspiracy first-runs. thought too imprecise award, but because "just inference" explained: 14 "Any enable wrongdoing expense victim. inducement effective complete every preclude recovery, rendering uncertain. Failure apply grievous wrong done, likelihood there recovery." U.S., 264-265, 580. 15 willingness accept degree uncertainty rests ascertaining compared, resulting personal condemnation parcel land. vagaries marketplace usually sure knowledge what situation defendant's But principle articulated Bigelow, " 'come good grace' insist specific itself inflicted. Hetzel Baltimore & Ohio R. 169 26, 39, 18 255, 260, 648 (1898) (quoting Trust O'Brien, 143 N.Y. 284, 289, 38 N.E. 266, 267 (1894). Accord, 563, (1931) ("Where tort nature ascertainment certainty, perversion principles justice relief person, thereby relieve making amend acts"); 379, 47 684 (1927). Applying foregoing difficulty. place, relaxed rules. where permit here. compared Canada, subject States, not. And competitor time immediately preceding violation.5 17 confronts case. say "wrongdoer." Because bypassed liability simply do benefit views Absent finding, lenient rules previous cases. Had confidently adequacy evidence. Accordingly, think trial ordinarily address addressed, poor depart practice. above. We, intimate how decided. emphasize excused burden damages. established, lightened. 19 For reasons, vacated, remanded proceedings consistent opinion. ordered. 21 POWELL, whom BRENNAN, MARSHALL BLACKMUN join, dissenting part. 22 I concur Part Court's opinion, affirm [respondent's program], today reviews evidence, vacates Appeals, remands resifting determination identifies error law finds "unclear" undertaking second-guess 24 satisfactory relatively uncomplicated plainly correct competitive enacted 488-489, 697, makes unlawful "may Thus, behavior A show, allowed draw him, unfavored competitor. Enterprise Industries, Inc. Texas 240 457, 458 (CA2), cert. denied, 353 965, 77 1049, 914 (1957). "weak," ante, 565, amounts nothing declined temporarily 1972. program shrink. Indeed, 4-year challenged increased 1%. Rather, president's conclusory testimony, major hearsay salesmen. Hypothetical analysis "predicted effects" economics One hardly expect reject flimsy go jury. 25 My concern goes beyond reviewing understood preponderance (1969). Only properly requires 562, (1931). apparent adequately recognizes distinction. 26 seems me today's measurably increases inherent generalities dissent. Stat. 730, 49 1526, U.S.C. 13(a), pertinent part: "It engaged commerce, either indirectly, discriminate commodities like grade quality, purchases involved use, consumption, resale competition tend create monopoly line injure, destroy prevent grants knowingly receives benefits discrimination, them. 731, 15, provides: sue therefor district defendant resides agent, respect controversy, three-fold sustained, cost suit, including attorney's fee." automatic-damages split courts. leading approving Fowler Manufacturing Gorlick, 415 1248 (CA9 1969), 396 1012, 571, 503 (1970). Elizabeth Arden Sales Gus Blass 150 988 (CA8) (involving §§ 2(d) 2(e) Act), 326 773, 231, 467 (1945); Grace E. Kozin 538 170 (CA7 1976) 2(c) Act). rejecting 457 Edward Sweeney Sons, Texaco, 637 105 (CA3 1980); McCaskill 351 F.Supp. 1332 (SD Ala.1972), affirmance order, 486 1400 (CA5 1973); Kidd Esso 295 497 (CA6 1961). Relying Bruce's Juices, American Can 330 743, 757, 67 1015, 1021, 91 1219 (1947), previously theory. stated can illegal "it right three times discriminatory illegality prices." statement dictum, affirmative defense void contract. suggests inability lowered defeat argument assumes sine qua non unless price. price, lose match Similarly, matches profits. arguably foreclosed Cardozo seemingly adopted position ICC 289 385, 390-391, 53 607, 609, 1273 (1933), rate Interstate Commerce Act: "If preferred producers divert otherwise gone shipper, resulted diverted force shipper reduction. none consequences necessary more." overly narrow view goods compete. funds advertise, capital expenditures, like. retailers particularly weak, decide failure demonstrates (1931), similarly distinguishable. upholding Sherman observed: true damage, damage; clear distinction sustained fix amount. precludes uncertain applies wrong, definitely 250. certain, 566, 251.

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