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Senate approves antitrust 'Illinois Brick' repealer after AG testimony and fee oversight amendment

Utah State Senate · January 27, 2006
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Summary

Senate Bill 16 would allow indirect purchasers to pursue antitrust recoveries in state court; Attorney General Mark Shurtleff testified in support, recommending oversight provisions. The Senate adopted an amendment to supervise attorney fees and passed the bill by recorded vote, sending it to the House.

Senate Bill 16, described by sponsor Senator Hilliard as an "antitrust repealer," would enable indirect purchasers—retailers and end consumers—to seek recovery under state antitrust law where federal precedent (Illinois Brick) bars them. Attorney General Mark Shurtleff told the Senate his office had been unable to pursue some recoveries without a state repealer: "we were not able to bring $800,000 back to Utah consumers ... because of a concern over the Illinois Brick repealer," he said, arguing that a private right of action could supplement the Attorney General's ability to pursue complex cases.

Shurtleff and senators stressed safeguards to avoid duplicative recoveries. The attorney general noted the bill includes aggregation limits and oversight: private recoveries must be aggregated and the state would be notified of filings with the right to intervene; the bill also includes a rebuttable presumption on how damages would be split among direct and indirect purchasers (a one-third / one-third / one-third presumption subject to rebuttal by preponderance of evidence).

Committee and floor members worried about class-action dynamics and attorney-fee awards. Senator Bell moved an amendment (Amendment 3) to ensure judicial supervision of attorney fees; Senator Hilliard accepted it as friendly and the Senate adopted the amendment. Senator Bill and others stressed the need for the Attorney General's office to monitor filings so the mechanism does not create a cottage industry of marginal suits.

On final passage, the Senate recorded a roll-call showing the bill passed with 26 yes votes, 0 nays and 3 absent, and the measure was referred to the House for further action.