Paramount Media Grp., Inc. v. Vill. of Bellwood — 929 F.3d 914 (2019) · United States Court of Appeals for the Seventh Circuit · 2019

United States Court of Appeals for the Seventh Circuit · 2019-07-16

15usc1: author: Flash1 · QA: FIX (Fable, neov2/cases/TRIAGE-Flash.md)

Original case on neochart.com

Case and law context

15 U.S.C. § 1

Role: applied; posture: civil; billboard company sued village and competitor under §§ 1 and 2 (and the Constitution) over a municipal ban on new billboard permits and the lease of village-owned property to the competitor; district court entered summary judgment for defendants; CA7 affirmed; result: claimant-lost; claim:

Uncertainty

Element state-action-immunity: holding: the court states the immunity as a holding but expressly declines to decide Paramount's only challenge to it, the possible market-participant exception (the Village acting as lessor of its own land), because the claims fail on the merits anyway. The immunity is therefore not the unconditional ground of decision.

Element state-action-immunity: polarity: the Village's ownership of the leased parcel is tagged cuts-against only because it is the basis of the market-participant argument the court left open.

Element agreement: holding: a single sentence disposes of both the conspiracy element and anticompetitive effects (the same sentence is the `held` of the restraint.rule-of-reason block); the court does not explain why the lease contract itself is not the required agreement.

Misfit

None recorded

B · Case × element grid

Top-level elements follow claim order in panels of up to six elements. Case rows repeat across panels. Every recorded block retains its holding and basis; multiple blocks are not merged into a case-level verdict. ✓ satisfied · ✗ not satisfied · ○ not reached · · not addressed. Muted blocks are not counted. Sub-element evidence remains on case and element pages.

Elements 1–6 of 11

15 U.S.C. § 1
CaseConcerted action ("contract, combination ... or conspiracy") between separate economic decisionmakersUnreasonable restraint of trade (Standard Oil Co. v. United States)Restraint of trade or commerce among the several States or with foreign nationsPrivate antitrust injury and fact of damage (Clayton Act §§ 4, 16; Brunswick Corp. v. Pueblo Bowl-O-Mat)Antitrust standing / efficient enforcer test (Associated General Contractors; Illinois Brick)Parker v. Brown state-action immunity (Midcal two-prong test: clearly articulated state policy + active state supervision)
Paramount Media Grp., Inc. v. Vill. of Bellwood — 929 F.3d 914 (2019) · United States Court of Appeals for the Seventh Circuit · 2019 (15usc1: author: Flash1 · QA: FIX (Fable, neov2/cases/TRIAGE-Flash.md))· not addressed· not addressed· not addressed· not addressed

Elements 7–11 of 11

15 U.S.C. § 1
CaseStatute of limitations (4-year civil under 15 U.S.C. § 15b; 5-year criminal under 18 U.S.C. § 3282)Law-of-the-case doctrine in consolidated/MDL antitrust proceedingsCriminal mens rea: knowing participation in the conspiracy or intent to restrain tradeAncillary restraints doctrine (restraint subordinate and collateral to a legitimate productive integration)Horizontal cartel / hub-and-spoke conspiracy operating through vertical or dual-distribution arrangements
Paramount Media Grp., Inc. v. Vill. of Bellwood — 929 F.3d 914 (2019) · United States Court of Appeals for the Seventh Circuit · 2019 (15usc1: author: Flash1 · QA: FIX (Fable, neov2/cases/TRIAGE-Flash.md))· not addressed· not addressed· not addressed· not addressed· not addressed

Instances and excluded annotation blocks

Annotation blocks, including explicitly excluded context
CaseElementHolding and scopePatternExact source quotations
Paramount Media Grp., Inc. v. Vill. of Bellwood — 929 F.3d 914 (2019) · United States Court of Appeals for the Seventh Circuit · 2019 — not · no-evidence (15usc1: author: Flash1 · QA: FIX (Fable, neov2/cases/TRIAGE-Flash.md))Concerted action ("contract, combination ... or conspiracy") between separate economic decisionmakersnot
Counted merits instance
applied / merits

basis: no-evidence; party: Paramount Media Group (billboard company, plaintiff) v. Village of Bellwood and Image Media Advertising (competitor that won the Village's lease); theory: Count V: the Village's lease of village-owned land to Image Media, under the village-property exception to its billboard-permit ban, as a conspiracy in restraint of trade; subject: party=Paramount Media Group (billboard company, plaintiff) v. Village of Bellwood and Image Media Advertising (competitor that won the Village's lease); theory=Count V: the Village's lease of village-owned land to Image Media, under the village-property exception to its billboard-permit ban, as a conspiracy in restraint of trade

municipal lease to the higher lump-sum bidder; no proof of a conspiracy to restrain trade
The Village accepted an offer from Image Media Advertising, Inc., one of Paramount's competitors.
Source: docroot/ir/caselaw/f3d_929.jsonl#/f3d/929/0914-01; Unicode character offsets [559:656] (end exclusive); SHA-256 14a0297e822ab7d379d9643d32f8b1f8631a6d7e363d457a2b40a76db1da3396.

Evidence kind: fact; polarity: supports; absent flag: 0; quoted-rule flag: 0 (1 = tagged; 0 = not tagged)

Paramount doesn't offer proof of either anticompetitive effects or a conspiracy to restrain trade between Image Media and the Village.
Source: docroot/ir/caselaw/f3d_929.jsonl#/f3d/929/0914-01; Unicode character offsets [14135:14269] (end exclusive); SHA-256 14a0297e822ab7d379d9643d32f8b1f8631a6d7e363d457a2b40a76db1da3396.

Evidence kind: held; polarity: not recorded; absent flag: 0; quoted-rule flag: 0 (1 = tagged; 0 = not tagged)

Paramount Media Grp., Inc. v. Vill. of Bellwood — 929 F.3d 914 (2019) · United States Court of Appeals for the Seventh Circuit · 2019 — not · no-evidence (15usc1: author: Flash1 · QA: FIX (Fable, neov2/cases/TRIAGE-Flash.md))Presumptive Rule of Reason burden-shifting analysis (antitrust market + anticompetitive effect vs procompetitive justification)not
Counted merits instance
applied / merits

basis: no-evidence; party: Paramount Media Group (billboard company, plaintiff) v. Village of Bellwood and Image Media Advertising (competitor that won the Village's lease); theory: Count V: the Village's lease of village-owned land to Image Media, under the village-property exception to its billboard-permit ban, as a conspiracy in restraint of trade; subject: party=Paramount Media Group (billboard company, plaintiff) v. Village of Bellwood and Image Media Advertising (competitor that won the Village's lease); theory=Count V: the Village's lease of village-owned land to Image Media, under the village-property exception to its billboard-permit ban, as a conspiracy in restraint of trade

The court relies on NYNEX Corp. v. Discon: a § 1 plaintiff must prove harm to the competitive process, not just to a single competitor. The relevant-market discussion that follows (municipal boundaries as the market) is addressed to the § 2 claim.
losing bidder for a municipal billboard lease shows harm to itself, not to competition
To prevail under the rule of reason in a § 1 case, Paramount must establish "(1) a contract, combination or conspiracy; (2) a resultant unreasonable restraint of trade in a relevant market; and (3) an accompanying injury."
Source: docroot/ir/caselaw/f3d_929.jsonl#/f3d/929/0914-01; Unicode character offsets [13819:14041] (end exclusive); SHA-256 14a0297e822ab7d379d9643d32f8b1f8631a6d7e363d457a2b40a76db1da3396.

Evidence kind: rule; polarity: not recorded; absent flag: 0; quoted-rule flag: 0 (1 = tagged; 0 = not tagged)

In March 2012 the Village amended the ban to exempt "village owned or controlled property."
Source: docroot/ir/caselaw/f3d_929.jsonl#/f3d/929/0914-01; Unicode character offsets [2405:2496] (end exclusive); SHA-256 14a0297e822ab7d379d9643d32f8b1f8631a6d7e363d457a2b40a76db1da3396.

Evidence kind: fact; polarity: supports; absent flag: 0; quoted-rule flag: 0 (1 = tagged; 0 = not tagged)

It instead complains that the Village and Image Media's conduct harmed it individually.
Source: docroot/ir/caselaw/f3d_929.jsonl#/f3d/929/0914-01; Unicode character offsets [14270:14357] (end exclusive); SHA-256 14a0297e822ab7d379d9643d32f8b1f8631a6d7e363d457a2b40a76db1da3396.

Evidence kind: fact; polarity: cuts-against; absent flag: 0; quoted-rule flag: 0 (1 = tagged; 0 = not tagged)

Paramount doesn't offer proof of either anticompetitive effects or a conspiracy to restrain trade between Image Media and the Village.
Source: docroot/ir/caselaw/f3d_929.jsonl#/f3d/929/0914-01; Unicode character offsets [14135:14269] (end exclusive); SHA-256 14a0297e822ab7d379d9643d32f8b1f8631a6d7e363d457a2b40a76db1da3396.

Evidence kind: held; polarity: not recorded; absent flag: 0; quoted-rule flag: 0 (1 = tagged; 0 = not tagged)

This allegation is insufficient to support a § 1 claim.
Source: docroot/ir/caselaw/f3d_929.jsonl#/f3d/929/0914-01; Unicode character offsets [14358:14413] (end exclusive); SHA-256 14a0297e822ab7d379d9643d32f8b1f8631a6d7e363d457a2b40a76db1da3396.

Evidence kind: held; polarity: not recorded; absent flag: 0; quoted-rule flag: 0 (1 = tagged; 0 = not tagged)

Paramount Media Grp., Inc. v. Vill. of Bellwood — 929 F.3d 914 (2019) · United States Court of Appeals for the Seventh Circuit · 2019 — satisfied · law (15usc1: author: Flash1 · QA: FIX (Fable, neov2/cases/TRIAGE-Flash.md))Parker v. Brown state-action immunity (Midcal two-prong test: clearly articulated state policy + active state supervision)satisfied
Counted merits instance
applied / merits

basis: law; party: Paramount Media Group (billboard company, plaintiff) v. Village of Bellwood and Image Media Advertising (competitor that won the Village's lease); theory: Count V: the Village's lease of village-owned land to Image Media, under the village-property exception to its billboard-permit ban, as a conspiracy in restraint of trade; subject: party=Paramount Media Group (billboard company, plaintiff) v. Village of Bellwood and Image Media Advertising (competitor that won the Village's lease); theory=Count V: the Village's lease of village-owned land to Image Media, under the village-property exception to its billboard-permit ban, as a conspiracy in restraint of trade

Image Media is covered derivatively: a private party cannot be held liable for conspiring with a Parker-protected entity (City of Columbia v. Omni Outdoor Advertising).
home-rule municipality regulating billboards and leasing its own land; private lessee shares the municipality's immunity
Municipalities receive immunity from federal antitrust laws if they "demonstrate that their anticompetitive activities were authorized by the State pursuant to state policy to displace competition with regulation or monopoly public service."
Source: docroot/ir/caselaw/f3d_929.jsonl#/f3d/929/0914-01; Unicode character offsets [11784:12025] (end exclusive); SHA-256 14a0297e822ab7d379d9643d32f8b1f8631a6d7e363d457a2b40a76db1da3396.

Evidence kind: rule; polarity: not recorded; absent flag: 0; quoted-rule flag: 1 (1 = tagged; 0 = not tagged)

In 2009 the Village passed Ordinance 9-4, which mandated that "no new off-site advertising sign permit will be issued by the village."
Source: docroot/ir/caselaw/f3d_929.jsonl#/f3d/929/0914-01; Unicode character offsets [2074:2208] (end exclusive); SHA-256 14a0297e822ab7d379d9643d32f8b1f8631a6d7e363d457a2b40a76db1da3396.

Evidence kind: fact; polarity: supports; absent flag: 0; quoted-rule flag: 0 (1 = tagged; 0 = not tagged)

In October 2012 the Village accepted Image Media's offer without responding to Paramount.
Source: docroot/ir/caselaw/f3d_929.jsonl#/f3d/929/0914-01; Unicode character offsets [2872:2961] (end exclusive); SHA-256 14a0297e822ab7d379d9643d32f8b1f8631a6d7e363d457a2b40a76db1da3396.

Evidence kind: fact; polarity: supports; absent flag: 0; quoted-rule flag: 0 (1 = tagged; 0 = not tagged)

As luck would have it, the Village owned property at 1156 Bellwood Avenue, across the street from the Sodhi property.
Source: docroot/ir/caselaw/f3d_929.jsonl#/f3d/929/0914-01; Unicode character offsets [2522:2639] (end exclusive); SHA-256 14a0297e822ab7d379d9643d32f8b1f8631a6d7e363d457a2b40a76db1da3396.

Evidence kind: fact; polarity: cuts-against; absent flag: 0; quoted-rule flag: 0 (1 = tagged; 0 = not tagged)

Illinois has thus immunized the Village from Paramount's antitrust claims.
Source: docroot/ir/caselaw/f3d_929.jsonl#/f3d/929/0914-01; Unicode character offsets [12747:12821] (end exclusive); SHA-256 14a0297e822ab7d379d9643d32f8b1f8631a6d7e363d457a2b40a76db1da3396.

Evidence kind: held; polarity: not recorded; absent flag: 0; quoted-rule flag: 0 (1 = tagged; 0 = not tagged)

Court interpretations recorded from this case