Filed: Jul. 29, 2019
Latest Update: Mar. 03, 2020
Summary: NOT PRECEDENTIAL UNITED STATES COURT OF APPEALS FOR THE THIRD CIRCUIT _ No. 18-2208 _ HELICOPTER HELMET,LLC, a Delaware Limited Liability Company; GOVERNMENT SURPLUS SALES INC., d/b/a Government Sales, Inc., Appellants v. GENTEX CORPORATION, a Delaware Corporation; FLIGHT SUITS, a California Corporation, d/b/a Gibson & Barnes; JAMES T. WEGGE, an individual _ On Appeal from United States District Court for the District of Delaware (District Court No. 1-17-cv-00497) District Judge: Honorable Matth
Summary: NOT PRECEDENTIAL UNITED STATES COURT OF APPEALS FOR THE THIRD CIRCUIT _ No. 18-2208 _ HELICOPTER HELMET,LLC, a Delaware Limited Liability Company; GOVERNMENT SURPLUS SALES INC., d/b/a Government Sales, Inc., Appellants v. GENTEX CORPORATION, a Delaware Corporation; FLIGHT SUITS, a California Corporation, d/b/a Gibson & Barnes; JAMES T. WEGGE, an individual _ On Appeal from United States District Court for the District of Delaware (District Court No. 1-17-cv-00497) District Judge: Honorable Matthe..
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NOT PRECEDENTIAL
UNITED STATES COURT OF APPEALS
FOR THE THIRD CIRCUIT
_____________
No. 18-2208
_____________
HELICOPTER HELMET,LLC, a Delaware Limited
Liability Company; GOVERNMENT SURPLUS SALES INC.,
d/b/a Government Sales, Inc.,
Appellants
v.
GENTEX CORPORATION, a Delaware Corporation;
FLIGHT SUITS, a California Corporation, d/b/a Gibson & Barnes;
JAMES T. WEGGE, an individual
______________
On Appeal from United States District Court
for the District of Delaware
(District Court No. 1-17-cv-00497)
District Judge: Honorable Matthew W. Brann
______________
Submitted Pursuant to Third Circuit L.A.R. 34.1(a)
March 11, 2019
______________
Before: McKEE, PORTER, and ROTH, Circuit Judges.
(Opinion filed: July 29, 2019)
_______________________
OPINION
McKEE, Circuit Judge.
Helicopter Helmet, LLC appeals the district court’s grant of a motion to dismiss
filed by Gentex Corporation, Gibson & Barnes, and James T. Wegge. In a thorough and
well-reasoned opinion, Judge Brann explained that Helicopter Helmet had failed to state
a claim for which relief could be granted for alleged violations of federal antitrust laws,
the Lanham Act, and Delaware’s Deception Trade Practices Act, along with common-law
claims for unjust enrichment and defamation.1 For the reasons set forth in that opinion as
briefly discussed below, we will affirm the order dismissing this complaint.
I.2
Helicopter claims that because the helicopter helmet manufacturing market
consists of only six competitors, Gentex and G&B’s actions violated federal antitrust
laws. However, Helicopter has not established antitrust standing or an antitrust violation.
Helicopter argues that because there are only six manufacturers of the helicopter
helmets in question, any damage inflicted on one manufacturer by Gentex and G&B’s
This disposition is not an opinion of the full court and pursuant to I.O.P. 5.7 does not
constitute binding precedent.
1
Helicopter Helmet, LLC v. Gentex Corp., No. 17-cv-00497,
2018 WL 2023489 (D. Del.
2018).
2
The District Court had jurisdiction pursuant to 28 U.S.C. § 1331, 1337(a), and 1367.
We now have jurisdiction pursuant to 28 U.S.C. §1291. We review a district court’s
granting of a motion to dismiss de novo. See Eurofins Pharma US Holdings v.
BioAlliance Pharms SA,
623 F.3d 147, 158 (3d Cir. 2010).
2
actions effects the entire market. This is not an argument for a particularized harm and is
not sufficient to establish antitrust injury.3 The Supreme Court has rejected the
proposition that a company may establish an antitrust injury by averring that absent the
defendant’s conduct it would have performed better.4 “There must be a causal link
between the alleged injury and an antitrust violation’s anticompetitive effects.”5 But
here, as in Philadelphia Taxi Association, Inc v. Uber, the Appellants “fail to aver an
antitrust injury, such as a negative impact on consumers or to competition in general, let
alone any link between this impact and the harms Appellants have suffered.”6
To establish a violation of the Sherman Act, Helicopter must prove “(1) that the
defendant has engaged in predatory or anticompetitive conduct with (2) a specific intent
to monopolize and (3) a dangerous probability of achieving monopoly power.”7 This test
cannot be met here. Helicopter alleges that Gentex and G&B influenced government
officials to publish false reports aimed at hindering them from competing in the market.
Government officials removed those reports and cancelled the sole-source contract that
had been awarded to G&B. Because Helicopter fails to state a particularized financial
harm that can be traced back to G&B’s actions, their claims fail even when viewed in the
light most favorable to Helicopter.
3
See Eichorn v. AT&T Corp.,
248 F.3d 131, 140 (3d Cir. 2001) (collecting cases).
4
See Brunswick Corp. v. Pueblo Bowl-O-Mat, Inc.,
429 U.S. 477, 488-89 (1977).
5
Phila. Taxi Ass’n, Inc v. Uber Technologies, Inc.,
886 F.3d 332, 343 (3d Cir. 2018).
6
Id. at 344.
7
Mylan Pharm. Inc. v. Warner Chilcott Pub. Ltd. Co.,
838 F.3d 421, 433 (3d Cir. 2016)
(internal citations omitted).
3
Under the Noerr-Pennington doctrine, “antitrust liability cannot be predicated
solely on petitioning to secure government action.”8 The district court correctly
concluded that since Helicopter’s antitrust claims are premised on Gentex’s and G&B’s
alleged attempts to influence certain government agencies’ action, they necessarily fail.9
For the reasons clearly stated in the district court’s opinion, Helicopter has failed
to state claims for defamation,10 unjust enrichment,11 violation of the Lanham Act,12 of
the Delaware Deceptive Trade Practices Act.13
Therefore, we will affirm the judgment of the district court.
8
Armstrong Surgical Center, Inc. v. Armstrong County Memorial Hosp.,
185 F.3d 154,
158 (3d Cir. 1999).
9
Helicopter,
2018 WL 2023489, at *6.
10
Id. at *4.
11
Id.
12
Id. at *5-6.
13
Id. at *5.
4