ILNews

7th Circuit upholds antitrust suit dismissal

Back to TopCommentsE-mailPrintBookmark and Share

The 7th Circuit Court of Appeals affirmed a decision by a U.S. District Court in Indiana which threw out a case involving Marathon Petroleum Company and its dealers because the dealers couldn't prove the company violated the Sherman Act.

The Circuit Court upheld the U.S. District Court, Southern Division of Indiana, Indianapolis Division's dismissal of John D. Sherman's complaint in John D. Sherman and S&D Holdings, Inc., on their own behalf and that of all others similarly situated v. Marathon Petroleum Company LLC and Speedway SuperAmerica LLC, No. 07-3543.

Sherman filed the suit against Marathon under Section 1 of the Sherman Act, charging the company with tying the processing of credit card sales to the Marathon franchise and also conspiring with banks to fix the price of processing these transactions.

Marathon dealers had to agree to process Marathon credit cards through a processing service designated by the company; the requirement only applies to Marathon's cards. Dealers are free to use other processing services for other credit cards, but would have to duplicate the system provided by Marathon. Marathon's processing system also can be used for other credit cards, so dealers aren't required to purchase other equipment.

Citing previous caselaw in their decision, the 7th Circuit found flaws in the plaintiffs' charge of illegal tying.

"The additional cost of using multiple card processing systems is not a penalty imposed by Marathon to force the use of its system, but an economy that flows directly from Marathon's offering its own credit card and credit card processing service," wrote Judge Richard Posner. "To call this tying would be like saying that a manufacturer of automobiles who sells tires with his cars is engaged in tying because, although the buyer is free to buy tires from someone else, he is unlikely to do so, having paid for the tires supplied by the car's manufacturer."

Sherman's kickback complaint makes no sense, wrote the judge, because if Marathon is forcing its dealers to pay a lot of money for processing credit card sales, this would only hurt firms that offer credit cards. Judge Posner reasoned that fee would be passed along to the customer in a higher gas price, which will reduce the demand for gas and the credit cards.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. From his recent appearance on WRTV to this story here, Frank is everywhere. Couldn't happen to a nicer guy, although he should stop using Eric Schnauffer for his 7th Circuit briefs. They're not THAT hard.

  2. They learn our language prior to coming here. My grandparents who came over on the boat, had to learn English and become familiarize with Americas customs and culture. They are in our land now, speak ENGLISH!!

  3. @ Rebecca D Fell, I am very sorry for your loss. I think it gives the family solace and a bit of closure to go to a road side memorial. Those that oppose them probably did not experience the loss of a child or a loved one.

  4. If it were your child that died maybe you'd be more understanding. Most of us don't have graves to visit. My son was killed on a state road and I will be putting up a memorial where he died. It gives us a sense of peace to be at the location he took his last breath. Some people should be more understanding of that.

  5. Can we please take notice of the connection between the declining state of families across the United States and the RISE OF CPS INVOLVEMENT??? They call themselves "advocates" for "children's rights", however, statistics show those children whom are taken from, even NEGLIGENT homes are LESS likely to become successful, independent adults!!! Not to mention the undeniable lack of respect and lack of responsibility of the children being raised today vs the way we were raised 20 years ago, when families still existed. I was born in 1981 and I didn't even ever hear the term "CPS", in fact, I didn't even know they existed until about ten years ago... Now our children have disagreements between friends and they actually THREATEN EACH OTHER WITH, "I'll call CPS" or "I'll have [my parent] (usually singular) call CPS"!!!! And the truth is, no parent is perfect and we all have flaws and make mistakes, but it is RIGHTFULLY OURS - BY THE CONSTITUTION OF THIS GREAT NATION - to be imperfect. Let's take a good look at what kind of parenting those that are stealing our children are doing, what kind of adults are they producing? WHAT ACTUALLY HAPPENS TO THE CHILDREN THAT HAVE BEEN RIPPED FROM THEIR FAMILY AND THAT CHILD'S SUCCESS - or otherwise - AS AN ADULT.....

ADVERTISEMENT