Hertz Corp. v. City of New York
United States Court of Appeals for the Second Circuit
1 F.3d 121 (1993)
- Written by Heather Whittemore, JD
Facts
In 1992 Hertz Corp. (plaintiff), a rental-car company, decided to increase its daily car-rental fees for most residents of New York City. Hertz explained its decision by claiming that renting cars to those residents resulted in high liability expenses. In response, New York City (defendant) passed a local law forbidding rental-car companies from imposing a fee based on a customer’s residence. Hertz sued New York City in federal court, arguing that the local law was an anticompetitive restraint of trade that violated § 1 of the Sherman Act. Hertz sought a declaratory judgment invalidating the local law. New York City moved to dismiss the complaint, arguing that it was not liable under antitrust laws because the local law was an acceptable unilateral restraint imposed by the government and because it was immune under the state-action doctrine. The district court dismissed Hertz’s complaint for failure to state a claim.
Rule of Law
Issue
Holding and Reasoning (Pratt, J.)
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