Court Opinion

ID: 9482861
Source: CourtListenerOpinion
Date Created: 2023-08-05 09:03:00.555506+00
Date Added: 2024-06-11T17:40:00.586539
License: Public Domain

WILKINS, Circuit Judge,
concurring in part and dissenting in part:
I agree that the district court properly granted summary judgment in favor of Shell Oil Company on Hinkleman’s cause of action under the Petroleum Marketing Practices Act, 15 U.S.C.A. §§ 2801-41 (West 1982). I disagree, however, that a service station cannot, as a matter of law, constitute a “service or facility” within the meaning of Md.Com.Law Code Ann. § 11— 204(a)(5) (1990). :
As explained in the majority opinion, Hin-kleman alleges a violation of Maryland law, not § 2(e) of the Robinson-Patman Antidis-crimination Act, 15 U.S.C.A. § 13(e) (West 1973); however, interpretation of § 2(e) given by federal courts guides interpretation of the Maryland statute. Md.Com. Law Code Ann. § ll-202(a)(2) (1990). In reaching its conclusion, the majority confines the type of benefits encompassed within the phrase “services or facilities” to only those benefits that “promote” the resale of the commodity and adopts an unduly restrictive interpretation of -the term “promotes.” Because its conclusion is unsupported by the plain language of the state or federal statutes in question, prior federal court decisions interpreting § 2(e), or the underlying purpose of that statute, I would reverse the Federal Rule of Civil Procedure 12(b)(6) dismissal of Hinkle-man’s cause of action under section 11-204(a)(5) and remand for further proceedings.
“Statutory construction begins with an examination of the literal language of a statute,” and “in the absence of ‘a clearly expressed legislative intent to the contrary,’ ” unambiguous statutory language must be given its plain meaning. United States v. Blackwell, 946 F.2d 1049, 1052 (4th Cir.1991) (quoting Russello v. United States, 464 U.S. 16, 20, 104 S.Ct. 296, 299, 78 L.Ed.2d 17 (1983)). The plain language of sections 11-204(a)(5) and 2(e) prohibits the provider of a commodity intended for resale from discriminating among its customers by furnishing any “service or facility” connected with the offering for sale of the purchased commodity that is not fur*382nished to its other customers on substantially- equal terms. Thus, the sole issue before the court1 is whether Shell’s furnishing a service station to one of its customers from which gasoline is marketed for resale to the public amounts to furnishing a “service or facility.”
The plain language of the Maryland Antitrust Act dictates that the lease of the service station is a service within the meaning of that Act. Section ll-201(g) of the Maryland Act defines the term “service” to include “any sale, rental, leasing, or licensing for use.” Md.Com.Law Code Ann. § ll-201(g) (1990). The word “any” modifies each of the words following it, unambiguously stating that any “leasing” is a service within the meaning of the Act. The Robinson-Patman Act contains no such definition. Thus, while interpretations of § 2(e) should be used to guide those of section ll-204(a)(5), because the Maryland Act contains a provision not included in the Robinson-Patman Act that specifically defines this critical term, the plain language of that definition must control. This definition compels the conclusion that the lease of a service station is a “service” under section ll-204(a)(5).
Neither the state nor federal statutory schemes clarifies the meaning of the term “facility.” A service station, however, qualifies as a “facility” in common parlance. A “facility” generally is defined as “something ... that is built, constructed, installed, or established to perform some particular function or to serve or facilitate some particular end” and “something that promotes the ease of any action, operation, transaction, or course of conduct.” Webster’s Third New International Dictionary 812-13 (1981). Consequently, I believe that a service station is a “facility” within the plain language of the statutes.
Federal courts consistently have interpreted the phrase “services or facilities” in § 2(e) to apply “to various benefits which facilitate the resale of a product by the favored customer.” 3 Earl W. Kintner & Joseph P. Bauer, Federal Antitrust Law, § 27.6, at 544 (1983) (noting that § 2(e) prohibits the furnishing of “benefits] which will make it easier for the favored customer to resell the product”) [hereinafter Kintner]. Section 2(e) prohibits a supplier from furnishing on substantially unequal terms benefits connected to the resale of a commodity purchased for resale, as opposed to benefits relating to the original sale. See, e.g., Foremost Pro Color, Inc. v. Eastman Kodak Co., 703 F.2d 534, 546 (9th Cir.1983), cert. denied, 465 U.S. 1038, 104 S.Ct. 1315, 79 L.Ed.2d 712 (1984); see also 16 C.F.R. § 240.7 (1991); Kintner § 27.6. Compare those benefits constituting a violation of § 2(e), Federal Trade Comm’n v. Simplicity Pattern Co., 360 U.S. 55, 79 S.Ct. 1005, 3 L.Ed.2d 1079 (1959) (catalogues, storage cabinets, and transportation costs); P. Lorillard Co. v. FTC, 267 F.2d 439 (3d Cir.) (advertising), cert. denied, 361 U.S. 923, 80 S.Ct. 293, 4 L.Ed.2d 240 (1959), and Elizabeth Arden Sales Corp. v. Gus Blass Co., 150 F.2d 988 (8th Cir.) (salesrelated personnel), cert. denied, 326 U.S. 773, 66 S.Ct. 231, 90 L.Ed. 467 (1945), with those not violating § 2(e), Purdy Mobile Homes, Inc. v. Champion Home Builders Co., 594 F.2d 1313 (9th Cir.1979) (refusal to sell certain line of products to customer), and David R. McGeorge Car Co. v. Leyland Motor Sales, Inc., 504 F.2d 52 (4th Cir.1974) (quantity of product to be supplied to customer), cert. denied, 420 U.S. 992, 95 S.Ct. 1430, 43 L.Ed.2d 674 (1975). A review of the judicial decisions, scholarly writings, and regulatory clarification addressing the types of benefits encompassed in. the phrase “services or facilities” in § 2(e) clearly demonstrates that those benefits which relate to and facilitate the resale of the product are included and those benefits which relate to or facilitate the original sale between the supplier and customer are excluded.
*383The majority concedes that a service station facilitates the resale of gasoline, rather than the original sale. The majority, however, holds that in order to be a “service or facility” within the meaning of § 2(e) a benefit must-“promote” resale of the product and narrowly interprets what benefits in fact “promote” resale, ignoring that under prior interpretations of § 2(e) Hinkleman’s allegations would be sufficient to state a cause of action. This restricted interpretation of § 2(e) contravenes not only the plain meaning of the statute but also its purpose — to prohibit price discrimination in disguised forms. See discussion of legislative history at P. Lorillard Co., 267 F.2d at 443 (advertising and promotional services were regarded as the principal form of price discrimination to which the Robinson-Patman Act was di-. rected but the Act was intentionally drafted more broadly to encompass other practices that might accomplish price discrimination) and Frederick M. Rowe, Price Discrimination Under the Robinson-Patman Act, § 13.2, at 370 (1962); see also discussion of historical background of the Robinson-Patman Act at Simplicity Pattern Co., 360 U.S. at 68-69, 79 S.Ct. at 1013-14.
In Simplicity Pattern Co., a manufacturer of dress patterns discriminated in favor of department and variety stores and against smaller stores by furnishing, among other things, steel storage cabinets free of charge to the larger stores. 360 U.S. at 59-60, 79 S.Ct. at 1008-09. The Supreme Court affirmed the finding of the Federal Trade Commission that- Simplicity had violated § 2(e) by furnishing the larger stores “services and facilities not accorded to competing smaller customers on proportionally equal terms.” Id. at 56-59, 79 S.Ct. at 1008-09. Under the reasoning of the majority, if Simplicity had chosen to furnish on unequal terms the entire store, instead of merely storage cabinets, it would have committed no violation of § 2(e).
Similarly, under the rationale of the majority, if Shell furnishes pn unequal terms signs to be affixed to the front of its gasoline purchasers’ service stations, § 2(e) is violated. But, if it furnishes the entire service station on unequal terms, § 2(e) is not violated.2 The violation is more egregious, rather than non-existent, in the latter instances.
The majority justifies its restrictive interpretation of § 2(e) on the basis that economic policy is better served by limiting those benefits cognizable under § 2(e). The Supreme Court has emphasized, however, that courts are “not in a position to review the economic wisdom of Congress.” Simplicity Pattern Co., 360 U.S. at 67, 79 S.Ct. at 1012. Thus, a court should not implement its notions of proper economic policy by ignoring that Congress has plainly chosen under § 2(e) to make furnishing on a substantially unequal basis “services or facilities” connected with the sale of commodities purchased for resale a per se violation of law.
Further, the Supreme Court has previously rejected essentially the same economic argument as that advanced by the majority. Refusing to read a cost justification defense or competitive injury requirement into § 2(e), it stated:
[W]e cannot say that the legislative decision to treat price and other discrimina-tions differently is without a rational basis. In allowing a “cost justification” for price discriminations and not for others, Congress could very well have felt that sellers would be forced to confine their discriminatory practices to price differentials, where they could be more readily detected and where it would be much easier to make accurate comparisons with any alleged cost savings.
Id. at 67-68, 79 S.Ct. at 1012-13. As recognized by the Supreme Court, we must defer to Congress’s decision concerning the merit of requiring competitive injury and should not legislate by attempting to restrict the scope of § 2(e) in order to force litigation of alleged violations to § 2(a) of the Act because the majority believes that this section advances sounder economic policy.
*384Moreover, the conclusion of the majority that a service station does not promote the resale of gasoline is dubious. Aside from the district court opinion in Rea v. Ford Motor Co., 355 F.Supp. 842 (W.D.Pa.1973), rev’d in part on other grounds, 497 F.2d 577 (3d Cir.), and cert. denied, 419 U.S. 868, 95 S.Ct. 126, 42 L.Ed.2d 106 (1974), which the majority concedes fails to provide any reasoning to justify its decision, the majority offers no authority for this conclusion. In my view, a service station does “promote” the resale of gasoline. To “promote” means “to contribute to the growth, enlargement, or prosperity of”; to further; to encourage; and “to present ... for public acceptance through advertising and publicity.” Webster’s Third New International Dictionary 1815 (1981). In the sense that a service station makes possible the resale of gasoline and presents gasoline to the public for resale, it promotes those sales. Thus, assuming the restrictive interpretation of “services or facilities” adopted by the majority is correct, it has been misapplied.
Assuming for purposes of Rule 12(b)(6) that Shell furnished service stations on unequal terms in connection with the sale of its gasoline through its variable rent program, that activity is prohibited by the plain language of the Maryland Antitrust Act. Additionally, a conclusion that Hin-kleman’s allegations state a cause of action is consonant with prior interpretations finding that § 2(e) prohibits the furnishing on an unequal basis benefits that facilitate the resale of the product and furthers legislative intent to prohibit disguised price dis-criminations. I would find that Hinkle-man’s allegations that Shell arbitrarily and discriminatorily established the thresholds above which its franchisees received a rent rebate on gasoline sales under its variable rent program, effectively supplying on unequal terms the service stations from which its franchisees resold gasoline purchased from Shell to the public, states a claim for relief under Md.Com.Law Code Ann. § 11 — 204(a)(5).

. The terms of the variable rent program and how those terms translate into furnishing a service station on unequal terms to Hinkleman are detailed in the majority opinion. The posture of the case before this court requires that we assume that the service station was furnished by Shell on substantially unequal terms. Thus, we need only decide whether furnishing- a service station through a lease amounts to furnishing a "service or facility.”

. One is left to wonder how the majority would resolve the issue if the service station that was furnished on unequal terms had the Shell logo painted on the front of the building.