Copperweld Corp. v. Independence Tube Corp.

Copperweld v. Independence Tube

Argued December 5, 1983
Decided June 19, 1984
Full case name Copperweld Corp. v. Independence Tube Corp.
Citations

467 U.S. 752 (more)

Holding
A parent company and its wholly owned subsidiary are incapable of conspiracy as defined by the Sherman Act.
Court membership
Chief Justice
Warren E. Burger
Case opinions
Majority Burger, joined by 5
Laws applied
Sherman Act

Copperweld Corp. v. Independence Tube Corp. 467 U.S. 752 (1984) is a major US antitrust law case decided by the Supreme Court concerning the Pittsburgh firm Copperweld Corporation and the Chicago firm Independence Tube.[1] It that held that a parent company is incapable of conspiring with its wholly owned subsidiary for purposes of Section 1 of the Sherman Act because they cannot be considered separate economic entities. Section 1 of the Sherman Act states that "Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal." However, for a condition of conspiracy to exist, there must be at least two parties involved. Copperweld held that separate incorporation was not enough to render a parent and its subsidiary capable of conspiring, since forcibly the economic interests of a wholly owned subsidiary must be those of its parent. It does not apply to partially owned subsidiaries.[2]

Facts

Copperweld...

Judgment

The Supreme Court held that an agreement between a wholly owned subsidiary and a parent was not affected by the Sherman Act §1 because the two companies, while legally separate, constituted a single economic entity. Burger CJ delivered the judgment, and Blackmun, Powell, Rehnquist and O'Connor JJ concurred.

Stevens, Brennan and Marshall JJ dissented.

See also

Notes

  1. ↑ http://www.independencetube.com/history
  2. ↑ Columbia Law Review, Vol. 86, No. 1, Jan., 1986


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