OCTOBER TERM 2004 · DECIDED MARCH 4, 2005 · 8–1

195 U.S. 194 · No. 3, 4, 5 · Argued November 7, 1903

Share

Aikens v. Wisconsin

AffirmedFinal ruling
freedom of contractboycottsantitrustFourteenth Amendmentunfair competition

Opinion of the Court by Justice Holmes

The Court upheld the convictions of newspaper managers in Milwaukee who had agreed to penalize any advertiser who paid a rival paper's higher rate, ruling that Wisconsin's law against malicious combinations to harm someone's business or reputation did not violate the Fourteenth Amendment.

The decision drew a line between ordinary competitive conduct and combinations formed purely to hurt a rival out of spite, holding that the Constitution's protection of individual liberty does not shield a group plot whose real purpose is inflicting harm for its own sake rather than pursuing legitimate business gain.

It would be impossible to hold that the liberty to combine to inflict such mischief, even upon such intangibles as business or reputation, was among the rights which the Fourteenth Amendment was intended to preserve.
Justice Holmes

The majority's core holding that the Constitution does not protect malicious group boycotts.

How it got here: Wisconsin trial courts convicted the defendants on informations under the state's anti-combination statute; the Wisconsin Supreme Court affirmed, and the defendants sought review in the U.S. Supreme Court.

The Case in Depth

What happened

A Milwaukee newspaper, The Journal Company, raised its advertising rates by about 25%. Managers of three competing newspapers agreed that any advertiser who paid the higher rate to The Journal Company would be charged a matching higher rate to advertise with them, while advertisers who refused to pay the increase could advertise with the three papers at the old rate. The Journal Company suffered financial harm as a result, and the managers were criminally charged under a Wisconsin statute.

The question before the Court

Could Wisconsin criminally punish newspaper managers who banded together to punish advertisers loyal to a rival paper, without violating their constitutional freedom to run their businesses as they chose?

Why it matters

The ruling meant business owners could face criminal liability for organizing group boycotts or pricing schemes aimed at punishing a competitor out of malice, even though any one of them could lawfully refuse to deal with someone acting alone. It gave states room to punish coordinated economic retaliation without running afoul of constitutional liberty-of-contract protections, an important early boundary in disputes over group economic pressure.

What changes now

The convictions and sentences stood as final; this was a merits decision, not a temporary order. The case did not resolve what would happen if a combination's motives were mixed between malice and legitimate gain, since the Court read the Wisconsin courts as confining the statute to combinations with a genuinely wrongful intent, leaving that broader question for future cases.

What this does not decide

The Court expressly declined to decide whether the statute's separate branch punishing merely 'willful' injury (without malice) would be constitutional, and did not decide how the statute would apply to combinations with mixed motives — partly malicious, partly aimed at legitimate gain.

Concurrences and dissents

Dissent — Justice White

the construction of the statute adopted by the Supreme Court of Wisconsin operates to deprive the citizen of a lawful right to contract protected by the Fourteenth AmendmentWhite's central objection that the ruling improperly restricts a constitutionally protected right to contract.

Justice White disagreed that the Wisconsin Supreme Court had narrowed the statute to reach only purely malevolent combinations. He read both the statute's text and the state court's construction as sweeping broadly enough to strip citizens of their lawful right to contract, a right he believed the Fourteenth Amendment protects, and on that basis he would have struck down the convictions.

How the Court got there

The legal reasoning, step by step

  1. The Court read the Wisconsin statute, which punished combinations formed to 'willfully or maliciously' injure another's business, as really having two branches joined by 'or,' and decided this case turned only on the 'maliciously' branch, since the charges alleged malicious intent.
  2. The Court defined 'maliciously injuring' as doing harm purely for the sake of the harm itself, not as a mere means to some other legitimate business goal — distinguishing spite-driven conduct from ordinary hard-nosed competition.
  3. Because the defendants' pleas admitted the combination, the intent to injure The Journal Company, and the resulting damage, and did not adequately deny that the purpose was malevolent, the Court treated the malicious purpose as established for purposes of the constitutional challenge.
  4. The Court reasoned that at common law, intentionally inflicting harm on someone's business is presumptively wrongful unless justified, and that the strength of any justification can depend on the actor's purpose — so a combination motivated by pure spite is treated differently than one motivated by legitimate competitive advantage.
  5. The Court concluded that a state may constitutionally punish a group plot to inflict purely malevolent harm on someone's trade or reputation, because the statute targets the act of combining with a wrongful purpose, not the innocent act of simply declining to do business with someone.
  6. The Court reasoned that even conduct that would be lawful and constitutionally protected if done alone — like refusing to advertise with a particular customer — can lawfully be punished when it becomes one step in a broader scheme aimed at inflicting malicious harm.

Doctrinal impact

Laws and provisions at issue

Fourteenth Amendment

Constitutional provision protecting individual liberty, including the right to make business contracts, from state interference.

Wisconsin Statutes of 1898 § 4466a

State law punishing groups who combine to willfully or maliciously injure another's reputation, trade, or business.

Supreme Court Opinion

Ask GovernmentReporter about this case

Ask anything about the majority, concurrences, or dissents.

Aikens v. Wisconsin | SCOTUS Reporter