Volvo North Amer. Corp. v. Men's Int'l Professional Tennis Council (MIPTC)

857 F.2d 55 (1988)

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Volvo North Amer. Corp. v. Men’s Int'l Professional Tennis Council (MIPTC)

United States Court of Appeals for the Second Circuit
857 F.2d 55 (1988)

Facts

Volvo North American Corporation (Volvo), as a sponsor of men’s professional tennis, and ProServ, and IMG as owners and producers of tennis events (collectively plaintiffs), brought suit against the Men’s International Professional Tennis Council (MIPTC) (defendant) alleging that the council used methods to limit the competitive opportunities of outsiders in violation of antitrust laws. Specifically, Plaintiffs claim that MIPTC acted as a vehicle through which certain sponsors, tournament owners, and producers established a cartel in the market for men’s professional tennis which resulted in reduced output and higher prices. ProServ and IMG alleged that, as a result of the cartel’s actions, it restricted their ability to obtain a sufficient supply of players’ services for special events; caused them to produce fewer special events; and caused the special events that did materialize to be less profitable. MIPTC argued that if the plaintiffs’ theory was correct, then they were members of the cartel and directly benefited from the activity in question. Thus, MIPTC claims that the plaintiffs lacked standing to bring suit. The district court granted MIPTC’s motion to dismiss and the plaintiffs appealed.

Rule of Law

Issue

Holding and Reasoning (Pierce, J.)

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