2013 -- S 0840 SUBSTITUTE A

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LC01801/SUB A

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO COMMERCIAL LAW--GENERAL REGULATORY PROVISIONS --

ANTITRUST LAW

     Introduced By: Senators Goodwin, Ruggerio, Miller, Goldin, and Jabour

     Date Introduced: April 04, 2013

     Referred To: Senate Judiciary

It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 6-36-7, 6-36-10, 6-36-11 and 6-36-12 of the General Laws in

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Chapter 6-36 entitled "Antitrust Law" are hereby amended to read as follows:

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     6-36-7. Scope of chapter. -- (a) This chapter applies to: (1) any contract, combination, or

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conspiracy, wherever created, formed, or entered into; (2) any establishment, maintenance, or use

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of monopoly power; and (3) any attempt or conspiracy to establish, maintain, or use monopoly

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power; wherever any of the foregoing has an impact on trade or commerce of this state sufficient

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to invoke the jurisdiction of the superior court.

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      (b) In deciding whether conduct restrains or monopolizes trade or commerce or may

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substantially lessen competition within this state, determination of the relevant market or

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effective area of competition shall not be limited by the boundaries of this state. However, some

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portion of the relevant market or effective area of competition must be at least in part within this

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state.

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      (c) No action or proceeding instituted pursuant to the provisions of this chapter shall be

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barred on the ground that the activity or conduct complained of in any way affects or involves

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interstate or foreign commerce.

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     (d) In any action under this chapter, the fact that a person or public body has not dealt

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directly with the defendant shall not bar or otherwise limit recovery. Provided, however, that

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courts shall exclude from the amount of monetary relief awarded in the action any amount of

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monetary relief which duplicates amounts which have been awarded for the same injury.

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     6-36-10. Injunction against and civil penalties for violations of this chapter. -- (a)

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Jurisdiction of courts. - The superior court of this state shall have jurisdiction to prevent and

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restrain violations of this chapter, provided that the statutory minimum amount in controversy is

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properly present. In addition to granting prohibitory injunctions and other restraints for a period

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and upon terms and conditions necessary to deter the defendant from, and insure against, the

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committing of future violations of this chapter, the courts may grant mandatory injunctions

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reasonably necessary to dissipate the ill effects of the violation. The courts may issue appropriate

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decrees upon consent and stipulation by the parties. The courts may also issue restraining orders.

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Under no circumstances shall the state or a public body be required to post bond in any action

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under this chapter.

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      (b) Attorney general -- Right to injunctive relief. - (1) The attorney general may institute

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proceedings to prevent and restrain violations of this chapter as provided in subsection (a) of this

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section.

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      (c)(2) Any person or public body including the United States, whether a direct or indirect

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purchaser, may institute proceedings for injunctive relief, temporary or permanent, as provided in

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subsection (a) of this section, against threatened loss or damage to his or her property or business

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by a violation of this chapter. A preliminary injunction may be issued upon a showing that the

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danger of irreparable loss or damage is immediate and, within the court's discretion, the execution

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of proper bond against damages for an injunction improvidently granted. If the court issues a

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permanent injunction, the plaintiff shall be awarded reasonable attorney's fees, filing fees, and

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reasonable costs of the suit. Reasonable costs for the suit may include, but shall not be limited to,

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the expenses of discovery and document reproduction.

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      (d)(c) Civil penalty. - In addition to injunctive relief authorized pursuant to subsection

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subsections (a) and (b) of this section, any person who violates this chapter may be liable for a

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civil penalty in a suit by the attorney general of this state of not more than fifty thousand dollars

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($50,000) for each violation.

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     6-36-11. Enforcement. -- (a) Action for treble damages. - Any person or public body,

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including the United States, who shall be injured in his or her business or property by reason of a

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violation of the provisions of this chapter may sue in superior court and shall recover threefold

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the damages sustained by him or her, together with reasonable costs of suit and any reasonable

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attorneys' fees that may be granted at the discretion of the court. The reasonable costs of suit may

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include, but shall not be limited to, the expenses of discovery and document reproduction. In any

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action under this section the fact that a person or public body has not dealt directly with the

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defendant shall not bar or otherwise limit recovery. Provided, however, that the court shall

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exclude from the amount of the damages awarded in the action, any amount of monetary relief

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which duplicates amounts which have been awarded for the same injury, but shall not exclude

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reasonable costs and attorneys' fees.

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      (b) Action by attorney general. - The attorney general shall investigate suspected

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violations of the provisions of this chapter and if he or she shall conclude that a violation is

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imminent, is occurring, or has occurred, he or she may institute on behalf of the state of Rhode

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Island or any of its departments, subdivisions, agencies, or its cities and towns, an action in

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superior court seeking appropriate relief. The attorney general may bring an action in federal

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court on behalf of the state of Rhode Island or any of its political subdivisions or agencies, or its

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cities and towns, to recover the damages provided for by the federal antitrust laws, and pursuant

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to the federal laws may undertake any measures that he or she deems necessary for the successful

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conduct of the action.

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     6-36-12. Attorney general -- Suits parens patriae. -- (a) The attorney general may

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bring a civil action in superior court in the name of the state, as parens patriae on behalf of

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persons residing in this state, to secure monetary relief as provided in this section for injuries

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sustained by the persons to their property by reason of any violation of this chapter. This parens

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patriae action shall take precedence, have priority status and automatically stay any other action

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by a city or town in superior court seeking monetary relief for the same injuries sustained by the

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persons to their property by reason of any violation of this chapter. The court shall exclude from

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the amount of monetary relief awarded in this action any amount of monetary relief:

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      (1) Which duplicates amounts which have been awarded for the same injury; or

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      (2) Which is properly allocable to persons who have excluded their claims pursuant to

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subsection (c)(1) of this section.

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      (b) The court shall award the state as monetary relief threefold the total damage

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sustained as described in subsection (a) of this section and the costs of suit, including a

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reasonable attorney's fee.

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      (c) (1) In any action brought under subsection (a) of this section the attorney general

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shall, at the times, in the manner, and with the content that the court may direct cause notice of

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the action to be given by publication.

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      (2) Any person on whose behalf an action is brought under subsection (a) may elect to

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exclude from adjudication the portion of the state claim for monetary relief attributable to him or

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her by filing notice of the election with the court within the time specified in the notice given

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pursuant to subsection (c)(1) of this section.

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      (3) The final judgment in an action under subsection (a) shall be res judicata as to any

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claim under section 6-36-11 by any person on behalf of whom the action was brought and who

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fails to give the notice within the period specified in the notice given pursuant to subsection (c)(1)

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of this section.

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      (d) An action under subsection (a) shall not be dismissed or compromised without the

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approval of the court, and notice of any proposed dismissal or compromise shall be given by

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publication at the times, in the manner, and with the content that the court may direct.

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      (e) In any action under subsection (a):

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      (1) The amount of the plaintiff's attorney's fees, if any, shall be determined by the court,

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and any attorney's fees awarded to the attorney general shall be deposited with the state as general

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revenues; and

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      (2) The court may, in its discretion, award a reasonable attorney's fee to a prevailing

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defendant upon a finding that the attorney general has acted in bad faith, vexatiously, wantonly,

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or for oppressive reasons.

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      (f) Monetary relief recovered in an action under this section shall: (1) be distributed in

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any manner that the court in its discretion may authorize; or (2) be deemed a civil penalty by the

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court and deposited with the state as general revenues; subject in either case to the requirement

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that any distribution procedure adopted afford each person a reasonable opportunity to secure his

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or her appropriate portion of the net monetary relief.

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      (g) In any action under this section the fact that a person or public body has not dealt

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directly with the defendant shall not bar or otherwise limit recovery. Provided, however, that the

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court shall exclude from the amount of monetary relief awarded in the action any amount of

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monetary relief which duplicates amounts which have been awarded for the same injury. No

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provision of this chapter shall be construed to limit the standing of any person or public body,

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whether the person or public body is a direct or indirect purchaser, from bringing suit on his or

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her own behalf.

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     SECTION 2. This act shall take effect upon passage.

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LC01801/SUB A

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO COMMERCIAL LAW--GENERAL REGULATORY PROVISIONS --

ANTITRUST LAW

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     This act would make a number of definition changes and clarifications to the provisions

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of the Rhode Island antitrust laws.

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     This act would take effect upon passage.

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LC01801/SUB A

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