Opinion · Supreme Court of the United States

Timken Roller Bearing Co. v. United States

341 U.S. 593

Type
Opinion
Court
Supreme Court of the United States
Jurisdiction
Federal
Date
1951-06-04
Topic
general

How later courts describe this case

  • failing to “find any support in reason or authority for the proposition that agreements between legally separate persons and companies to suppress competition among themselves and others can be justified by labeling the project a ‘joint venture’”
  • agreements among American, British, and French corporations to eliminate competition in the manufacture and sale of antifriction bearings in world, including United States, markets
  • regardless of the justifications presented by problems in international trade, allocation of territories between in ternational cartel members is per se unlawful
  • "Nor do we find any support in reason or authority for the proposition that agreements between legally separate persons and companies to suppress competition among themselves and others can be justified by labeling the project a `joint venture.'"
  • division of foreign markets by American corporation and its foreign affiliates
  • claims under section 1 and 3 of Sherman Act
  • "a direct and influencing effect on trade"
  • division of markets among competitors

Citator

UpLaw has not yet analyzed Timken Roller Bearing Co. v. United States. The absence of a flag is not a finding that it is good law.

Authority status
pending
Cited by
343 opinions

Headnotes

  1. Civil Procedure — Findings of Fact — Clearly Erroneous Standard A trial court's findings of fact in a Sherman Act case will be accepted on appeal unless clearly erroneous, and an appellant's challenge that amounts to a dispute over the proper inferences to be drawn from the evidence will be rejected as an improper invitation to try the case de novo. 341 U.S. at 596-597 (Fed. Rules Civ. Proc., 52(a))
  2. Civil Procedure — Findings of Fact and Conclusions of Law — Rule 52(a) A district court's opinion that contains a careful analysis of the evidence and sets forth the material findings of fact and conclusions of law sufficiently complies with the requirements of Rule 52(a) of the Federal Rules of Civil Procedure. 341 U.S. at 597 n.7
  3. Antitrust & Competition Law — Trade Restraints — Justification by "Joint Venture" Agreements between legally separate persons and companies to suppress competition among themselves and others cannot be justified by labeling the project a "joint venture"; the fact that the contracting corporations are under common ownership or control does not liberate them from the impact of the antitrust laws. 341 U.S. at 597-598
  4. Antitrust & Competition Law — Trade Restraints — Aggregation of Restraints Agreements providing for an aggregation of trade restraints—including allocation of trade territories, price fixing, protection of each other's markets, elimination of outside competition, and participation in cartels to restrict imports and exports—are prohibited by the Sherman Act whether or not they are incidental to an otherwise legitimate "joint venture." 341 U.S. at 598
  5. Antitrust & Competition Law — Trademark Licensing — Justification for Restraints Trade restraints cannot be justified as reasonable steps taken to implement a valid trademark licensing system where the trademark provisions of the agreements are secondary to the central purpose of allocating trade territories, and where the agreements provide for control of the manufacture and sale of the product whether or not it carries the trademark. 341 U.S. at 598-599
  6. Antitrust & Competition Law — Trademarks — Unlawful Use A trademark cannot lawfully be used as a device for violating the Sherman Act, and its use for that purpose is penalized by the Trade Mark Act of 1946. 341 U.S. at 599
  7. Antitrust & Competition Law — Foreign Commerce — Reasonableness of Restraints The Sherman Act is not rendered unenforceable by current foreign trade conditions such as tariffs and quota restrictions; its provisions against restraints of foreign trade rest on the policy that export and import trade in commodities is both possible and desirable, and disagreeing with that policy is a matter for Congress, not the courts. 341 U.S. at 599
  8. Antitrust & Competition Law — Remedies — Scope of Injunctive Relief A district court's decree in a Sherman Act case may enjoin continuation or repetition of the conduct found illegal, and relief may go beyond the narrow limits of the proven violation where necessary to be effective. 341 U.S. at 600
  9. Antitrust & Competition Law — Remedies — Divestiture A court in a civil Sherman Act proceeding may order divestiture of the defendant's stockholdings and other financial interests in co-conspirator corporations where the intercorporate relationship was the core of the conspiracy and, absent divestiture, the remaining prohibitions would add little to what the Act already forbids; such an order lies within the district court's discretion and will not be overturned absent an abuse of that discretion. 341 U.S. at 600-601
  10. Antitrust & Competition Law — Remedies — Divestiture Divestiture of foreign subsidiary stockholdings is not a proper remedy where the record shows no tendency toward restraint other than formal agreements partitioning territory, the defendant's business had a normal growth and development, and its relationship with the foreign companies was of value in developing its foreign business; divestiture is a remedy to restore competition, not to punish, and should not be used indiscriminately when less harsh methods are available. 341 U.S. at 602-605 (Reed, J., concurring)
  11. Antitrust & Competition Law — Foreign Commerce — Geographic Division of Territory A geographic division of territory is not so self-operating a category of Sherman Act violation as to dispense with analysis of the practical consequences of the arrangement, and the circumstances of foreign trade may alter the incidence of what in a domestic setting would be a clear case of unreasonable restraint of trade. 341 U.S. at 605-606 (Frankfurter, J., dissenting)
  12. Antitrust & Competition Law — Conspiracy — Separate Corporate Entities Under the established conspiracy doctrine, what would not be illegal for a corporation to do alone may become an unlawful conspiracy when done by two legally separate persons; arrangements between an American parent corporation and its foreign subsidiaries to allot territory and refrain from competing with each other are treated as a conspiracy in restraint of trade because parent and subsidiary corporations must accept the consequences of maintaining separate corporate entities. 341 U.S. at 606-607 (Jackson, J., dissenting)