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ARTICLE · 21 OCTOBER 2014

9th Circuit: State Action Immunity Protects Convention Center From Exclusive Dealing Claim

The 9th U.S. Circuit Court of Appeals held that the San Diego Convention center enjoyed state action immunity from antitrust claims.

United StatesAntitrust/Competition Law

In United National Maintenance, Inc. v. San Diego Convention Center, Inc., No. 12-56809, 2014 WL 2094545 (9th Cir. May 14, 2014), the 9th U.S. Circuit Court of Appeals held that the San Diego Convention center enjoyed state action immunity from antitrust claims brought by a supplier of cleaning services whose business was negatively impacted by the convention center's decision to be the exclusive supplier of cleaning services.

The California Legislature specifically authorized San Diego (and other cities) not only to build a convention center, but also to create a commission that would "manage the use" of the convention center. This type of managerial authorization, the court held, was sufficient to make any anticompetitive effects the result of a clearly articulated and affirmatively expressed state policy—the first prong of the test for state action immunity. The 9th Circuit also held that the center did not need to meet the second state action immunity requirement

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