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Dr. Miles Medical Co. v. John D. Park & Sons, Co.
United States Supreme Court
220 U.S. 373 (1911)
Dr. Miles Medical Co. (Dr. Miles) (plaintiff) manufactured proprietary medicines (the medicines). Through contracts, Dr. Miles fixed the price at which its wholesale and retail dealers could sell the medicines to consumers. John D. Park & Sons Co. (Park) (defendant) was a wholesale medicine dealer. Park refused to sign a price-fixing contract with Dr. Miles and allegedly purchased the medicines from other vendors at reduced prices. Dr. Miles sued Park for intentional interference with contractual relations, accusing Park of inducing dealers to break their contracts with Dr. Miles and sell the medicines at prices lower than those stipulated by the contracts. In its defense, Park argued that the contracts were invalid because they illegally restrained trade. Dr. Miles defended the price-fixing contracts, insisting that manufacturers have the right to control the prices at which their goods are sold. The district court held that the contracts were invalid restraints of trade and dismissed the case. The court of appeals affirmed the district court, and Dr. Miles appealed.
Rule of Law
Holding and Reasoning (Hughes, J.)
Dissent (Holmes, J.)
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