United States Postal Service v. Flamingo Industries (USA) LTD. et al. (540 U.S. 736)

U.S. Supreme Court · decided February 25, 2004 · Supreme Court Database (Spaeth)

Citation
540 U.S. 736 · 124 S. Ct. 1321
Decided
February 25, 2004
Term
October Term 2003
Vote
9–0
Majority author
Justice Kennedy
Issue area
Economic Activity
Disposition
Reversed
Outcome
Petitioning party won
Ideological direction
Conservative

Opinion excerpt

Justice Kennedy delivered the opinion of the Court. This case requires us to consider whether the United States Postal Service is subject to liability under the federal antitrust laws. Flamingo Industries (USA) Ltd., a private corporation, and its owner and principal officer are the respondents here. Flamingo had been making mail sacks for the Postal Service, but then its contract was terminated. The respondents sued in United States District Court alleging that the Postal Service had sought to suppress competition and create a monopoly in mail sack production. (They also brought claims against the Postal Service under federal procurement law and state law, but those claims are not before us.) The Dis-triet Court dismissed the antitrust claims, concluding that the Postal Service is not subject to liability under federal antitrust law. The Court of Appeals reversed. It held that the Postal Service can be liable but that it has a limited immunity from antitrust liability for conduct undertaken at the command of Congress. 302 F. 3d 985, 993 (CA9 2002). We granted certiorari to consider the question whether the United States Postal Service is a “person” amenable to suit under the controlling antitrust statute. 538 U. S. 1056 (2003). We hold it is not subject to antitrust liability, and we reverse. After the Revolution, both the Articles of Confederation and the Constitution…

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