Has The Third Circuit Just Scrambled ‘Umbrella Damages'?

A recent decision by the Third Circuit permits plaintiffs to pursue antitrust damages for egg products supplied by non-conspiring parties. This decision could represent a crack in the "umbrella damages" rule that precludes plaintiffs from seeking damages for transactions with parties that are not part of an alleged antitrust conspiracy.

Umbrella damages often come up in cases where an alleged conspiracy could increase the price level across a market. In such situations, it is said that non-conspirators are able to increase their prices without fear of losing market shares because they are protected by the conspiracy's price "umbrella." Courts usually cite two main rationales for concluding that plaintiffs lack antitrust standing to recover damages for alleged anticompetitive prices paid to non-conspirators selling under a conspiracy's umbrella. First is the high degree of uncertainty with attributing the non-conspirators' prices to the conduct of the alleged