Schoolmaster's Case (case brief) 1410

Schoolmasters Case 1410

• There was a school in a small community, someone decided they wanted to open a second school. This created competition of the two schools in the small community. The original schoolmaster argued that the other schoolmaster was intentionally injuring his business, so the opening of the second school should be declared contrary to the common law. 
• The Court claimed that the first school bringing the action had no claims, and there was no sufficient injury that the law would recognize. They dismissed this cause of action. 
• The Court reasoned that there is an injury to be expected when going into business. Competition results in economic injury.
• KEY:  In order to have standing in order to bring an antitrust action, you must establish that you have a certain type of injury; resulting from a restraint of trade and not by normal means of business competition.

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Schoolmaster’s Case

(England 1410)

 

Facts: Attempt by private schoolmaster to legally prevent another schoolmaster from a establishing a competing private school.

 

Issue: Does the private schoolmaster have a legally valid claim to enjoin a potential competitor from entering the market?

 

Holding: No. Court held that movant had no cause of action—there was no legal injury.

 

Reasoning: Competition often results in economic injury, however, this is insufficient to institute a legal action.

 

Rule of Law: There must be a showing of antitrust injury in order to have standing to bring a cause of action.