concluding that because a Kentucky court “held that a more specific statute controls over a more general one [under Kentucky law],” “a claim for damages for antitrust violations cannot be asserted under the Kentucky Consumer Protection Act where they cannot be asserted under Kentucky’s version of the Sherman Act” and “[t]his same reasoning equally applies to a common law claim for unjust enrichment arising from antitrust violations”
How later courts described this case
- concluding that because a Kentucky court “held that a more specific statute controls over a more general one [under Kentucky law],” “a claim for damages for antitrust violations cannot be asserted under the Kentucky Consumer Protection Act where they cannot be asserted under Kentucky’s version of the Sherman Act” and “[t]his same reasoning equally applies to a common law claim for unjust enrichment arising from antitrust violations”
- holding that Kentucky’s statutory bar on indirect-purchaser recovery also prohibits common law unjust enrichment claims under Kentucky law
- interpreting Kentucky law and preventing indirect purchasers from recovering on their unjust enrichment claim for antitrust violations where they could not recover under state antitrust law
- indirect purchasers cannot sue for antitrust violations under the KCPA
Written by the judges who cited it.
The opinion
MEMORANDUM
MOTZ, District Judge.
Microsoft has filed a motion to dismiss certain complaints asserting state law claims. Specifically, Microsoft seeks to dismiss in their entirety the complaints filed in
Howard v. Microsoft Corp., Moscowitz v. Microsoft Corp., Prentice v. Microsoft Corp.,
and
Strickley v. Microsoft Corp.,
and the complaint in
McCall v. Microsoft Corp.
to the extent that plaintiffs in that action seek relief other than injunctive relief.
Microsoft’s motion will be granted in all respects. In an opinion issued on January 12, 2001, I deferred ruling on Microsoft’s motion to dismiss with respect to certain state law claims to “await guidance from the appellate courts in those states.”
In re Microsoft Corp. Antitrust Litig.,
127 F.Supp.2d 702, 722-23 (D.Md.2001). Microsoft’s present motion is based upon state appellate court decisions that have been rendered since my January 12, 2001 Opinion.
Connecticut
— Moscowitz
In
Vacco v. Microsoft Corp.,
260 Conn. 59 , 793 A.2d 1048 (2002), the Connecticut Supreme Court affirmed the trial court’s dismissal of claims asserted by the plaintiff under the Connecticut Antitrust Act and under the Connecticut Unfair-Trade Practices Act. Plaintiffs in this action concede that they cannot distinguish the claim they have asserted under the Connecticut Unfair Trade Practices Act (the sole claim they have asserted) from the similar claim asserted in Vacco.
Kentucky
— Strickley
and Howard
In
Arnold v. Microsoft Corp.,
No.2000CA-002144-MR, 2001 WL 1835377 (Ky.Ct. App. Nov. 21, 2001), the Kentucky Court of Appeals held that
Illinois Brick
bars suits by indirect purchasers of Microsoft operating software licenses under Kentucky’s version of the Sherman Act and Kentucky’s Consumer Protection Act.
Id.
at *7. On November 13, 2002, the Supreme Court of Kentucky denied discretionary review of the
Arnold
decision.
Plaintiffs here seek to distinguish
Arnold
on the ground that the
Arnold
plaintiffs did not assert a claim for unjust enrichment under Kentucky common law. However, in
Arnold
the court held that a more specific statute controls over a more general one.
Id.
Therefore, under
Arnold
a claim for damages for antitrust violations cannot be asserted under the Kentucky Consumer Protection Act where they cannot be asserted under Kentucky’s version of the Sherman Act. This same reasoning equally applies to a common law claim for unjust enrichment arising from antitrust violations.
Maryland
— McCall
In
Davidson v. Microsoft Corp.,
143 Md.App. 43 , 792 A.2d 336, 344 ,
cert. denied,
369 Md. 571 , 801 A.2d 1032 (2002), the Maryland Court of Special Appeals held that
Illinois Brick
bars actions brought by indirect purchasers of licenses to Microsoft software. Plaintiffs in this action ask that this court certify the
Illinois Brick
question to the Maryland Court of Appeals. In light of a recent amendment to the Maryland Uniform Certification of Questions of Law Act, Md.Code Ann., Cts.
&
Jud. Proc. § 12-603, which permits certification only where “there is no controlling appellate decision ... there is no statutory authority for the certification plaintiffs request. In any
*566
event, in light of the Maryland Court of Appeals’ exercise of its discretionary power to deny certiorari in the
Davidson
case, I would not certify the question even if the Maryland certification statute so allowed.
Oklahoma
— Prentice
In
Major v. Microsoft Corp.,
60 P.3d 511 (Okla.Ct.App. Div. 3 2002), the Oklahoma Court of Civil Appeals held that the “holdings of
Illinois Brick”
apply to claims brought under the Oklahoma Antitrust Reform Act.
Id.
at 513 . The claims asserted in
Major
are the same as those asserted in
Prentice.
The
Prentice
plaintiffs point out that opinions of the Oklahoma Court of Civil Appeals are not precedential and are merely persuasive in nature. However, “[wjhere an intermediate appellate state court rests its considered judgment upon the rule of law which it announces, that is a datum for ascertaining state law which is not to be disregarded by a federal court unless it is convinced by other persuasive data that the highest court of the state would decide otherwise.”
Hicks v. Feiock,
485 U.S. 624 , 630 n. 3, 108 S.Ct. 1423 , 99 L.Ed.2d 721 (1988);
see also Assicurazioni Generali, S.p.A. v. Neil,
160 F.3d 997, 1003 (4th Cir.1998) (“Generally, only if the decision of a state’s intermediate court cannot be reconciled with state statutes, or decisions of the state’s highest court, or both, may a federal court sitting in diversity refuse to follow it.”);
O’Neil v. Great Plains Women’s Clinic, Inc.,
759 F.2d 787, 790 (10th Cir.1985) (“[I]n examining Oklahoma law, in the absence of a state supreme court ruling, the federal court must follow an intermediate state court decision unless other authority is convincing that the state supreme court would decide otherwise.”). Here, there is no basis for inferring that the holding in
Major
does not reflect Oklahoma law, particularly since the Oklahoma Supreme Court denied a petition for certiorari on November 19, 2002.
A separate order effecting the rulings made in this memorandum is being entered herewith.
ORDER
For the reasons stated in the accompanying memorandum, it is, this 27th day of January 2003
ORDERED
1. Microsoft’s motion to dismiss certain complaints asserting state law claims is granted;
2.
Howard v. Microsoft Corp.
is dismissed in its entirety;
3.
Moscowitz v. Microsoft Corp.
is dismissed in its entirety;
4.
Prentice v. Microsoft Corp.
is dismissed in its entirety;
5.
Strickley v. Microsoft Corp.
is dismissed in its entirety; and
6. The claims in
McCall v. Microsoft Corp.,
other than the claims for injunctive relief, are dismissed.