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Antitrust Keyed to Gavil, 5th Ed.
Illinois Brick Co. v. Illinois
Citation:
431 U.S. 720, 431 U.S. 720, 52 L.Ed.2d 707 (1977)Facts
The petitioners manufactured and distributed concrete block in the Greater Chicago area, selling primarily to masonry contractors who submitted bids to general contractors for construction projects. The general contractors then submitted bids to customers including the respondents (the State of Illinois and 700 local governmental entities). The respondents were thus indirect purchasers of concrete block, which passed through two separate levels in the distribution chain before reaching them. The respondents brought an antitrust treble-damages action under Section 4 of the Clayton Act, alleging that petitioners had engaged in a price-fixing conspiracy in violation of Section 1 of the Sherman Act. The complaint alleged that respondents paid more than $3 million in overcharges for concrete block. The only way the alleged violation could have injured respondents is if all or part of the overcharge was passed on by the masonry and general contractors to respondents. Petitioners moved for partial summary judgment against all plaintiffs that were indirect purchasers, contending that as a matter of law only direct purchasers could sue for the alleged overcharge.
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