RichardNewman
Lurker
- Joined
- Oct 15, 2018
- Messages
- 14
Earlier this year, a federal judge in Delaware dealt a blow to Federal Trade Commission jurisdiction when it partially dismissed a lawsuit it filed alleging violation of antitrust laws. The dismissal drew attention, in large part, because the court ruled that the FTC’s ability to seek a permanent injunction is dependent upon establishing the existence of a reason to believe that a defendant is violating, or is about to violate, a law enforced by the FTC.
A federal judge in Georgia has now similarly ruled on the ability of the FTC to challenge past conduct (FTC v. Hornbeam Special Services).
Defendants filed a motion to dismiss for lack of subject-matter jurisdiction, arguing that the FTC had not pleaded adequate facts to invoke § 53(b), such that the court lacked jurisdiction under § 53(b). In doing so, defendants argued that § 53(b) is designed to remedy only future, rather than past, misconduct, and to the extent the FTC is basing its claims for relief on past misconduct, it must show that defendants are violating, or about to violate, the law.
The court ordered supplemental briefing on whether it should reconsider its previous holding that § 53(b)’s “reason to believe”
A federal judge in Georgia has now similarly ruled on the ability of the FTC to challenge past conduct (FTC v. Hornbeam Special Services).
Defendants filed a motion to dismiss for lack of subject-matter jurisdiction, arguing that the FTC had not pleaded adequate facts to invoke § 53(b), such that the court lacked jurisdiction under § 53(b). In doing so, defendants argued that § 53(b) is designed to remedy only future, rather than past, misconduct, and to the extent the FTC is basing its claims for relief on past misconduct, it must show that defendants are violating, or about to violate, the law.
The court ordered supplemental briefing on whether it should reconsider its previous holding that § 53(b)’s “reason to believe”
