Laker Airways Ltd. v. Sabena, Belgian World Airlines

731 F.2d 909 (1984)

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Laker Airways Ltd. v. Sabena, Belgian World Airlines

United States Court of Appeals for the District of Columbia Circuit
731 F.2d 909 (1984)

  • Written by Elizabeth Yingling, JD

Facts

Laker Airways Ltd. (Laker) (plaintiff), a British company, operated low-cost flights between London and New York. Laker’s primary customers and creditors were American. Laker claimed that Sabena, KLM, British Airways, British Caledonian, and other domestic and foreign airlines (collectively, Sabena) (defendants) conspired to charge lower prices for the same routes Laker operated, diverted business away from Laker, and pressured Laker’s lenders not to refinance loans. Laker alleged it was forced into bankruptcy as a result. Laker brought an antitrust suit against Sabena in a United States district court. The United States’ antitrust laws conferred jurisdiction in a U.S. court if the alleged wrongful conduct was intended to, and resulted in, substantial effects within the United States. By contrast, United Kingdom laws were designed to thwart implementation of U.S. antitrust laws in order to protect foreign interests. Sabena obtained an injunction in the United Kingdom enjoining Laker from pursuing the federal-court action. Laker then requested the district court to enjoin Sabena from obtaining an antisuit injunction in the United Kingdom. The district court granted the injunction against Sabena. Sabena appealed.

Rule of Law

Issue

Holding and Reasoning (Wilkey, J.)

Dissent (Starr, J.)

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