Saturday, April 13, 2013

Goldfarb v. Virginia State Bar case brief

Goldfarb v. Virginia State Bar case brief summary
421 U.S. 773 (1975)

SYNOPSIS:
Petitioners sought review by certiorari of a judgment of the United States Court of Appeals for the Fourth Circuit, which reversed a district court decision that held that respondents, state and county bar associations, violated the Sherman Act, 15 U.S.C.S. § 1, by promulgating and enforcing a minimum fee schedule for lawyers.

FACTS:
-Petitioners, a husband and wife who contracted to purchase a home, contacted a lawyer to provide a title examination.
-The lawyer quoted the fee suggested in a minimum fee schedule published by respondent county bar association.
-When petitioners were unable to find a lawyer who would examine the title for less than the fee fixed by the schedule, petitioners commenced action against respondent state and county bar associations, alleging they violated the Sherman Act, 15 U.S.C.S. § 1, by promulgating and enforcing a minimum fee schedule for lawyers.
-Petitioners challenged court of appeals ruling reversing a district court decision in favor of petitioners, on grounds those respondents were immune from antitrust liability. The court reversed the court of appeals decision because anti-competitive conduct by lawyers was within the reach of the Sherman Act.

HOLDING:
The court noted that the fact that the state bar association was a state agency for some limited purposes did not create an antitrust shield.

ANALYSIS:
Hence, the court ruled that respondents were liable since their activities involved blatant price-fixing, which restrained competition and harmed consumers.

OUTCOME: The court reversed the judgment and the case was remanded to the appeals court with orders to remand back to the district court.

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