15 U.S.C. § 15c — Actions by State attorneys general

submitted 112 years ago by Pub. L. 94-435 to r/title-15-COMMERCE-AND-TRADE · 680 words · no verdicts yet

in plain englishAI-generated · not legal advice

A state attorney general can sue on behalf of residents hurt by antitrust violations, as parens patriae. The court awards triple damages plus costs, and any resident can opt out of the case. The court must approve any settlement and can award fees to either side.

(a) Parens patriae; monetary relief; damages; prejudgment interest — (1) A state's attorney general can bring a civil lawsuit, in the state's name, as "parens patriae" — meaning on behalf of the state's residents — in any federal district court that has jurisdiction over the defendant. The suit seeks money for injury those residents suffered to their property because of a violation of sections 1 to 7 of this title (the core antitrust laws). The court must subtract from any award: money that duplicates an award already given for the same injury, and money that would go to people who opted out under subsection (b)(2) or to any business (rather than a natural person). (2) The court must award the state three times the total damages, plus the cost of suit and a reasonable attorney's fee. The court can also add simple interest on the damages, if the state asks through a timely motion, covering the time from when the state's claim was served to judgment (or a shorter period) — but only if the court finds that's fair, based on three factors: whether either side made meritless motions or acted in bad faith; whether either side broke a rule or order meant to prevent delay; and whether either side acted mainly to delay the case or run up costs. (b) Notice; exclusion election; final judgment — (1) The state attorney general must publish notice of the lawsuit, following whatever timing, method, and content the court orders. If publication alone wouldn't give someone fair notice, the court can require extra notice for them. (2) Any resident on whose behalf the suit is brought can choose to opt out — excluding their own share of the state's claim — by filing notice with the court within the deadline set in the published notice. (3) The final judgment counts as res judicata (a binding, final decision) against anyone the suit covered who didn't opt out in time — meaning they can't separately sue under section 15 for the same claim later. (c) Dismissal or compromise of action — A lawsuit under this section cannot be dismissed or settled without court approval, and notice of any proposed dismissal or settlement must be given however the court directs. (d) Attorneys' fees — (1) The court decides the amount of the plaintiffs' attorney's fee. (2) The court can, at its discretion, award a reasonable fee to a winning defendant if it finds the state attorney general acted in bad faith, vexatiously, wantonly, or for oppressive reasons.

the actual law source: uscode.house.gov ↗public domain

(a) Parens patriae; monetary relief; damages; prejudgment interest

(1)

Any attorney general of a State may bring a civil action in the name of such State, as parens patriae on behalf of natural persons residing in such State, in any district court of the United States having jurisdiction of the defendant, to secure monetary relief as provided in this section for injury sustained by such natural persons to their property by reason of any violation of sections 1 to 7 of this title. The court shall exclude from the amount of monetary relief awarded in such action any amount of monetary relief (A) which duplicates amounts which have been awarded for the same injury, or (B) which is properly allocable to (i) natural persons who have excluded their claims pursuant to subsection (b)(2) of this section, and (ii) any business entity.

(2)

The court shall award the State as monetary relief threefold the total damage sustained as described in paragraph (1) of this subsection, and the cost of suit, including a reasonable attorney’s fee. The court may award under this paragraph, pursuant to a motion by such State promptly made, simple interest on the total damage for the period beginning on the date of service of such State’s pleading setting forth a claim under the antitrust laws and ending on the date of judgment, or for any shorter period therein, if the court finds that the award of such interest for such period is just in the circumstances. In determining whether an award of interest under this paragraph for any period is just in the circumstances, the court shall consider only—

(A)

whether such State or the opposing party, or either party’s representative, made motions or asserted claims or defenses so lacking in merit as to show that such party or representative acted intentionally for delay or otherwise acted in bad faith;

(B)

whether, in the course of the action involved, such State or the opposing party, or either party’s representative, violated any applicable rule, statute, or court order providing for sanctions for dilatory behavior or other wise providing for expeditious proceedings; and

(C)

whether such State or the opposing party, or either party’s representative, engaged in conduct primarily for the purpose of delaying the litigation or increasing the cost thereof.

(b) Notice; exclusion election; final judgment

(1)

In any action brought under subsection (a)(1) of this section, the State attorney general shall, at such times, in such manner, and with such content as the court may direct, cause notice thereof to be given by publication. If the court finds that notice given solely by publication would deny due process of law to any person or persons, the court may direct further notice to such person or persons according to the circumstances of the case.

(2)

Any person on whose behalf an action is brought under subsection (a)(1) may elect to exclude from adjudication the portion of the State claim for monetary relief attributable to him by filing notice of such election with the court within such time as specified in the notice given pursuant to paragraph (1) of this subsection.

(3)

The final judgment in an action under subsection (a)(1) shall be res judicata as to any claim under section 15 of this title by any person on behalf of whom such action was brought and who fails to give such notice within the period specified in the notice given pursuant to paragraph (1) of this subsection.

An action under subsection (a)(1) shall not be dismissed or compromised without the approval of the court, and notice of any proposed dismissal or compromise shall be given in such manner as the court directs.

(d) Attorneys’ fees

In any action under subsection (a)—

(1)

the amount of the plaintiffs’ attorney’s fee, if any, shall be determined by the court; and

(2)

the court may, in its discretion, award a reasonable attorney’s fee to a prevailing defendant upon a finding that the State attorney general has acted in bad faith, vexatiously, wantonly, or for oppressive reasons.

Source credit: (Oct. 15, 1914, ch. 323, § 4C, as added Pub. L. 94–435, title III, § 301, Sept. 30, 1976, 90 Stat. 1394; amended Pub. L. 96–349, § 4(a)(3), Sept. 12, 1980, 94 Stat. 1157.)

history & why it existsrecord from the source credit

1914Enacted · Pub. L. 94-435 · 90 Stat. 1394
1980Amended · Pub. L. 96-349 · 94 Stat. 1157

A history note hasn’t been published yet. The record shows enactment by Pub. L. 94-435 on 1914-10-15.

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