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General Leaseways, Inc. v. National Truck Leasing Association

United States Court of Appeals for the Seventh Circuit
744 F.2d 588 (1984)


Facts

The National Truck Leasing Association (NTLA) (defendant) was formed to allow small local truck lessors to compete with national truck-leasing companies. The NTLA enabled its member companies to lease trucks on a full-service basis, which required that the trucks be serviced and repaired at different locations throughout the country. Members of the NTLA agreed to provide repair services to each other on a reciprocal basis, which gave local truck lessors the geographic reach necessary to compete with national companies. Each NTLA member was given a franchise restricted to a particular location. Franchisees could not conduct operations outside of their designated area. General Leaseways, Inc. (General Leaseways) (plaintiff) disobeyed these restrictions and obtained a preliminary injunction in district court against the NTLA. The preliminary injunction maintained General Leaseways’ membership in the NTLA until resolution of the matter at trial. The NTLA appealed the district court’s entry of the preliminary injunction.

Rule of Law

Issue

Holding and Reasoning (Posner, J.)

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