United States v. Parke, Davis & Co.

Background

This case involves the United States and a company called Parke Davis. When the Court previously reviewed the case it found the Government had presented enough evidence to show Parke Davis broke the Sherman Act, a federal antitrust law banning certain anticompetitive sales practices. The case was sent back so the company could present more evidence about whether an injunction should issue.

Reasoning

On remand Parke Davis offered evidence not to deny the earlier proof of wrongdoing but to show it had abandoned the challenged sales policy and so an injunction was unnecessary. The District Court denied the Government’s request for an injunction and also refused to enter a formal judgment that Parke Davis had violated the law. The Supreme Court reviewed the supplemented record and concluded the Government was entitled to a judgment on the merits as the complaint requested. The Court therefore vacated the District Court’s order and directed the lower court to enter judgment finding a violation.

Real world impact

The ruling requires the District Court to declare that Parke Davis violated federal antitrust law and leaves the case on the docket. Keeping the case open means the Government can seek further relief, like an injunction, if the company resumes the illegal conduct. The order is not a new trial; it enforces the earlier finding and directs a specific judgment now.

Dissents or concurrances

Justice Harlan, joined by Justice Frankfurter, suggested delaying consideration of a jurisdictional question until the merits stage.