Regal Shipping, Ltd., is a publicly traded company incorporated in the United Kingdom. It carries freight between
Question:
Regal Shipping, Ltd., is a publicly traded company incorporated in the United Kingdom. It carries freight between Europe and the United States. Two years ago it lowered its fares to half those of its competitors. The competitors (i.e., Plebeian Shipping Lines, Ltd., a U.K. company, and seven other shipping companies incorporated in the United States, Canada, France, Germany, Italy, and Japan)
were enraged by Regal’s action, and they secretly agreed to lower their own prices until they could run Regal out of business. Regal suffered huge losses and is on the brink of bankruptcy. It hopes to recoup its losses and stay in business by bringing an anti-trust suit in the United States against its competitors.
a. In connection with its suit in the United States, Regal asks an English court to compel Plebeian to turn over corporate documents showing the extent of the conspiracy between Plebeian and the other seven of Regal’s competitors. Will Regal succeed? Discuss.
b. Plebeian brings an appropriate action in an English court asking the court to issue an injunction to bar Regal from suing Plebeian in the United States. Will Plebeian succeed? Discuss.
c. The other competitors bring a separate action in England asking the English court to enjoin Regal from continuing with its suit in the United States. Will they succeed? Discuss.
d. Assume that Regal was successful in its suit in the United States and that the U.S. court awarded it treble damages. Is there anything Plebeian can do to minimize the amount of the judgment it is supposed to pay Regal? Discuss.
Competition Law and Jurisdictional Rule of Reason lp5
Step by Step Answer:
International Business Law
ISBN: 9780133468717
6th Edition
Authors: Ray August, Don Mayer, Michael Bixby