Opinion

United States v. Grinnell Corp.

  • 384 U.S. 563
  • 1966 Trade Cas. (CCH) 71,459
  • 86 S. Ct. 1698
  • 16 L. Ed. 2d 778
  • 1966 U.S. LEXIS 2988
Court
Supreme Court of the United States
Filed
Jun 13, 1966
Status
Published
Author
Hablan
On the bench
Fortas, Douglas, Hablan, Stewart
Cited by
2,388 cases
Authority
More cited than 24.0%

stating that, to prevail on a claim of monopolization under § 2 of the Sherman Act, a plaintiff must prove: “(1) the possession of monopoly power in the relevant market and (2) the willful acquisition or maintenance of that power as distinguished from growth or development as a consequence of a superior product, business acumen, or historic accident” (emphasis added)

How later courts described this case

  • stating that, to prevail on a claim of monopolization under § 2 of the Sherman Act, a plaintiff must prove: “(1) the possession of monopoly power in the relevant market and (2) the willful acquisition or maintenance of that power as distinguished from growth or development as a consequence of a superior product, business acumen, or historic accident” (emphasis added)
  • holding that recusal was not required when “[a]ny adverse attitudes that [the judge] evinced toward the defendants were based on his study of the depositions and briefs which 5 the parties had requested him to make [prior to trial]”
  • holding that Section 2 punishes only “willful acquisition or maintenance [of monopoly power] as distinguished from growth or development as a consequence of a superior product, business acumen, or historic accident”
  • stating that judicial bias “must stem from an extrajudicial source and result in an opinion on the merits on some basis other than what the judge learned from his [or her] participation in the case”

Written by the judges who cited it.

Distinguished

  • Distinguished by State v. McKenzie, 186 Mont. 481 (1980)

    The rule of United States v. Grinnell Corp. (1966), 384 U.S. 563, 86 S.Ct. 1698, 16 L.Ed.2d 778, is inapplicable to establish bias and prejudice.
    Montana Supreme CourtMar 27, 1980Read it

The opinion

Me. Justice Hablan,

dissenting.

I cannot agree with the Court that the relevant market has been adequately proved. I do not dispute that a *584 national market may be found even though immediate competition takes place only within individual communities, some of which are themselves natural monopolies. For a national monopoly of such local enterprises may still have serious long-term impact on competition and be vulnerable on its own plane to the antitrust laws. In the product market also the Court seems to me to make out a good enough case for lumping together the different kinds of central station protective service (CSPS). But I cannot agree that the facts so far developed warrant restricting the product market to accredited CSPS.

Because the ultimate issue is the effective power to control price and competition, this Court has always recognized that the market must include products or services “reasonably interchangeable” with those of the alleged monopolist. United States v. du Pont & Co., 351 U. S. 377, 395 . In this instance, there is no doubt that the accredited CSPS business does compete in some measure with many other forms of hazard protection: watchmen, local alarms, proprietary systems, telephone-connected services, unaccredited CSPS, direct-connected (to police and fire stations) systems, and so forth. The critical question, then, is the extent of competition from these rivals.

The Government and the majority have stressed that differences in cost, reliability and insurance discounts may disqualify a competing form of protection for a particular customer. For example, it is said that proprietary systems are too expensive for any but large companies and local alarms may go unanswered in some neighborhoods. But if in general a CSPS customer has a feasible alternative to CSPS, it does not much matter that other ones are foreclosed to him, nor that other CSPS customers have different second choices. From this record, it may well be that other forms of protection are each competitive enough with segments of the CSPS *585 market so that in sum CSPS rarely has a monopoly position.

From the defense standpoint, there is substantial evidence showing that the defendants do feel themselves under pressure from other forms of protection, that they do compete for customers, and that they do lower prices even in areas where no CSPS competition is present. This concrete evidence of market behavior seems to me to rank higher than the kind of inference proof heavily relied on by the Government — physical differences between competing forms of protection, self-advertising claims of CSPS companies that they represent a superior service, and varying insurance discounts. Given that the burden of proof rests upon the Government, the record leaves me with such misgivings as to the validity of the District Court’s findings on this score that I am not prepared to agree that the Government has made the showing of market domination that the law demands before a business is sundered.

At the same time the case must be recognized as a close one, a,nd I am not ready to say at this stage that the findings and conclusions of the District Court might not be supportable. All things considered, I join with my Brothers Fortas and Stewart to the extent of voting to remand the case for further proceedings so that new findings can be made as to the relevant product market. This course seems to me the more appropriate in light of the fact that because of the Expediting Act, 15 U. S. C. § 29 (1964 ed.), we have not had the benefit of any intermediate appellate sifting of this record. In view of the disposition I propose, I do not consider any of the other questions in the case.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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