Mogul Steamship co. v. McGregor, Gow & Co.

23 Q.B.D. 598 (1889), affirmed [1892] A.C. 25

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Mogul Steamship co. v. McGregor, Gow & Co.

House of Lords
23 Q.B.D. 598 (1889), affirmed [1892] A.C. 25

Facts

McGregor, Gow & Co. (McGregor) (defendant) represented a group of ship merchants engaged in the Chinese tea trade. Mogul Steamship (Mogul) (plaintiff) was also a ship merchant engaged in the tea trade. All the McGregor ships formed an agreement with each other to drastically undercut the price of tea for the purpose of driving away all other competitors, including Mogul. Additionally, the McGregor group offered a five percent rebate to all local shippers and agents who agreed to exclusively deal with them. Mogul brought suit against McGregor for unfair competition. The lower court held for McGregor, and Mogul appealed.

Rule of Law

Issue

Holding and Reasoning (Bowen, L.J.)

Dissent (Lord Esher, M.R.)

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