Funke, J.
Salem Grain Company, Inc. (Salem), appeals an order from the district court for Richardson County dismissing its complaint with prejudice for failure to state a claim upon which relief could be granted. The court found that all appellees were entitled to immunity from Salem's claims under Nebraska's Consumer Protection Act
Salem operates commercial grain warehouses and elevators and owns trading businesses throughout southeast Nebraska, including a location in Richardson County, Nebraska. Consolidated Grain and Barge Co. (CGB) also operates commercial grain warehouses. In 2012, CGB expressed an interest in expanding its operations to the Falls City, Nebraska, area, and it now owns and operates a commercial grain
At the time of the alleged actions, the other appellees were involved with various organizations in Falls City: Becky Cromer was the executive director of the Falls City Economic Development and Growth Enterprise (EDGE), a private organization; Gary Jorn, Ray Joy, and Bart Keller were members of EDGE; Kevin Malone was a member of EDGE, the Falls City Community Redevelopment Authority (CRA), the Citizen Advisory Review Committee (CARB), and the Falls City Planning and Zoning Board; Charles Radatz was a member of EDGE and the CRA; and Beth Sickel was a member of EDGE, the CRA, and the CARB. Each of these appellees were sued in their individual capacities.
The remaining defendants, "John Doe I-IV and Jane Doe I-IV," were members of EDGE, the CRA, or the CARB that may have participated in the alleged wrongful acts against Salem.
Salem filed a complaint alleging that each of the individual appellees engaged in a pattern of behavior — through a series of contracts, combinations, and conspiracies — with the intent to deprive it of information, an opportunity to be heard, and due process of law, which caused Salem financial damages. More specifically, it alleged that its damages were a result of the unfair increased competition that CGB brought to the region through the special privileges it received from Falls City and that the individual appellees aided and abetted in concealing from Salem and the community those benefits.
Salem asserts that the individual appellees' pattern of behavior included preventing legal notice of the following actions from being provided to Salem: the annexation of land into Falls City; the rezoning of said land for commercial use; the declaration of said land as blighted, which made it eligible for tax increment financing; the approval of tax increment financing and the issuance of at least one bond to assist CGB; and the procurement of state and federal grants to assist CGB. In doing so, Salem contended that the appellees violated Nebraska's Open Meetings Act
As a result of CGB's entry into the market at the end of 2012, Salem alleged an annual loss net profit of 10 to 20 cents per bushel for 2 million bushels per year of grain that it would have or did handle in 2013 through 2015. During that same period, Salem alleged an annual minimum loss of $150,000 in storage revenue.
CGB; Cromer, Joy, Keller, and Radatz; and Jorn, Malone, and Sickel separately moved to dismiss Salem's complaint, arguing that it had failed to state a claim upon which relief could be granted, under Neb. Ct. R. Pldg. § 6-1112(b)(6). CGB, Jorn, Malone, and Sickel also asserted that the appellees were entitled to immunity under the Noerr-Pennington doctrine.
The court ruled that Salem could not state any claim against the appellees pursuant to the NCPA, because the appellees were entitled to immunity, under the Noerr-Pennington doctrine, and rejected Salem's claim that an exception to the doctrine applied, because the appellees acted unlawfully by violating the NOMA. The court also ruled that the conspiracy and aiding and abetting claims required an underlying tort to be viable. Therefore, the court dismissed the complaint with prejudice, essentially finding any amendment would be futile. Salem appealed.
Salem assigns, restated and reordered, that the court erred (1) in finding the appellees immune from suit, under the Noerr-Pennington doctrine or otherwise; (2) in finding that conspiracy and aiding and abetting claims are not independent claims upon which relief can be granted but, instead, require the allegation of an independent tort; (3) by sustaining appellees' § 6-1112(b)(6) motions to dismiss; (4) by denying leave to amend; and (5) by not sustaining Salem's jury demand.
A district court's grant of a motion to dismiss on the pleadings is reviewed de novo, accepting the allegations in the complaint as true and drawing all reasonable inferences in favor of the nonmoving party.
Statutory interpretation presents a question of law, for which an appellate court has an obligation to reach an independent conclusion irrespective of the decision made by the court below.
Salem argues, summarized, that it and other grain warehouses in and around southeast Nebraska were injured by CGB's entry into the market in Richardson County, because CGB received special economic privileges. It claims that the special privileges provided to CGB were the result of the appellees' conspiracy to prevent the public, and Salem specifically, from having knowledge of the economic development activities that the city council of Falls City was providing. It further claims that the appellees participated in violations of the NOMA in order to obtain those special privileges.
As a result, it asserts that the conspiracy to provide CGB an unfair advantage in the marketplace by violating the NOMA was a violation of the NCPA under §§ 59-1602 and 59-1603, which damaged Salem and created a cause of action under § 59-1609. Further, it contends that the appellees' conspiracy to engage in wrongful conduct — by violating the NOMA, violating the NCPA, and withholding information — is sufficient to sustain claims of conspiracy and aiding and abetting. CGB argues that Salem's single factual allegation — that it expressed an interest in opening a grain warehouse in the Falls City area — cannot support any claims against it. Further, the appellees contend that, acting in their individual capacities, their actions were nothing more than petitioning the government to offer CGB incentives to open a location in Falls City to advance economic development in the community.
Salem argues that the Noerr-Pennington doctrine is a narrow defense that applies only to antitrust claims and not to its claims under the NCPA. It argues that §§ 59-1602 and 59-1603 of the NCPA were modeled after the Federal Trade Commission Act
Appellees argue that the Noerr-Pennington doctrine entitles them to immunity from Salem's claims under two theories. First, to the extent that the Noerr-Pennington doctrine is limited to the Sherman Act, and extended to the FTCA, private citizens petitioning their government for favorable business conditions are entitled to immunity, because federal antitrust laws were tailored to regulate business, not political arenas. Further, they assert that the NCPA is statutorily required to be construed in accordance with similar federal antitrust laws. Second, the First Amendment right to petition the government, which the Noerr-Pennington doctrine is also based on, is not limited to the antitrust context.
Appellees also contend that there are no applicable exceptions to the Noerr-Pennington doctrine regarding Salem's claims. First, Jorn, Malone, and Sickel contend that the U.S. Supreme Court has rejected any "conspiracy" exception to antitrust claims. Second, all appellees argue that the "sham" exception does not apply.
Alternatively, some of the appellees argue that they are entitled to immunity under Nebraska's Political Subdivisions Tort Claims Act and the Parker doctrine.
We recently considered the Noerr-Pennington doctrine in ACI Worldwide Corp. v. Baldwin Hackett & Meeks.
However, the Noerr-Pennington doctrine's application to judicial proceedings came significantly later than its creation in the context of petitioning the legislative and executive branches.
As we recognized in ACI Worldwide Corp., the Noerr-Pennington doctrine developed as a result of two decisions by the U.S. Supreme Court: Eastern R. Conf. v. Noerr Motors,
In Pennington, a coal company claimed antitrust violations against the trustees of a coal miners' union, alleging that it, along with large coal companies, had lobbied the Secretary of Labor to establish a minimum wage in a contract market that would drive small coal companies out of business. In both Noerr Motors and Pennington, the Supreme Court found the defendants immune from liability under the Sherman Act.
The Supreme Court explained in Pennington that "Noerr shields from the Sherman Act a concerted effort to influence public officials regardless of intent or purpose" and expanded the application of Noerr Motors to lobbying efforts directed at executive agencies.
Since Noerr Motors and Pennington, the Supreme Court has extended the doctrine to petitions before administrative agencies and courts.
In Columbia v. Omni Outdoor Advertising, Inc.,
The U.S. Supreme Court predicated its holding in Noerr Motors on the First Amendment's petition clause and its statutory interpretation of the Sherman Act.
The Supreme Court later reconciled these two principles by explaining that its interpretation of the Sherman Act was "in the light of the First Amendment's Petition Clause."
While the U.S. Supreme Court has only explicitly applied immunity under the Noerr-Pennington doctrine in the antitrust context, many states have adopted and applied the Noerr-Pennington doctrine to state antitrust claims,
Further, the Noerr-Pennington doctrine applies in state court and to state-law claims because it is grounded on First Amendment rights to petition the government.
Nevertheless, in the context of antitrust laws, Omni Outdoor Advertising, Inc. reiterated that the U.S. Supreme Court's ultimate conclusion in Noerr Motors was based on the fact that "antitrust laws, `tailored as they are for the business world, are not at all appropriate for application in the political arena.'"
In Rodgers v. F.T.C.,
In Green Mountain Realty v. Fifth Estate,
Just as the Rodgers court and the Federal Trade Commission held that the Noerr-Pennington doctrine applied to claims brought under the FTCA, the court in Green Mountain Realty held that the Noerr-Pennington doctrine applied to claims brought under New Hampshire's Consumer Protection Act. The court ruled that even conduct which is deemed to be an unfair or deceptive practice within the act would be immune if it occurred in a political setting. "`Fraudulent or deceptive conduct can be actionable under the [Consumer Protection Act] only if it occurs in a business setting involving the advertising or sale of a commodity or service as part of the day-to-day business of the defendant.'"
However, the Noerr-Pennington doctrine is not without its limitations. In Omni Outdoor Advertising, Inc., the U.S. Supreme Court held that there was a "`sham' exception" to private individuals' petitioning for anticompetitive action from their government.
In Omni Outdoor Advertising, Inc., the defendant had argued for both a broad construction of the conspiracy exception, which applies whenever a public official and private citizen conspired to restrain trade, and a narrow construction, which applies only when the conspiracy is to accomplish action not in the public interest or by corrupt means.
Since Omni Outdoor Advertising, Inc., courts have continued to reject a
Salem alleges violations of §§ 59-1602 and 59-1603. Before examining these statutes, however, we note Neb. Rev. Stat. § 59-829 (Reissue 2010) provides that when "any provision of Chapter 59 is the same as or similar to the language of a federal antitrust law, the courts of this state in construing such sections or chapter shall follow the construction given to the federal law by the federal courts."
Section 59-1602 states that "[u]nfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce shall be unlawful." We have stated that § 59-1602 mirrors the language of 15 U.S.C. § 45(a)(1).
Section 59-1603 provides that "[a]ny contract, combination, in the form of trust or otherwise, or conspiracy in restraint of trade or commerce shall be unlawful." In State ex rel. Douglas v. Associated Grocers,
The NCPA is Nebraska's version of the Sherman Act, but it also encompasses portions of other federal antitrust laws, including the FTCA from which § 59-1602 is modeled. Further, the act was intended to be an antitrust measure to protect Nebraska consumers from monopolies and price-fixing conspiracies.
While Salem's allegations are of unlawful conduct in the political arena, its claimed harm is antitrust in nature under the NCPA. Accordingly, its theory of recovery is predicated not on the First Amendment but on the interpretation of antitrust laws. Therefore, based on Omni Outdoor Advertising, Inc., there is not a viable exception for a conspiracy between the appellees and public officials, irrespective of any alleged corrupt or unlawful means which may have resulted in harm to Salem. As a result, the conspiracy exception
As we stated above, we recently recognized that "the Noerr-Pennington defense is an affirmative defense."
The Nebraska Rules of Pleading in Civil Actions, like the federal rules, have a liberal pleading requirement for both causes of action and affirmative defenses, but the touchstone is whether fair notice was provided.
Because we find that the appellees are immune from Salem's NCPA claims under the Noerr-Pennington doctrine, we need not address their remaining assertions of immunity from the NCPA claims. An appellate court is not obligated to engage in an analysis that is not necessary to adjudicate the case and controversy before it.
Salem argues that the court erred in ruling that its claims of civil conspiracy and aiding and abetting required an underlying tort to be actionable. It argues that under our prior case law, only an underlying wrongful conduct was required, and that that statement of the law was inadvertently changed. Accordingly, Salem asserts that a party is liable for the damages resulting from any wrongful or tortious act that they encourage or assist in the performance of, even if that party itself did not commit any underlying wrongful acts. Essentially, it contends that the appellees are each liable for the city council's and their own alleged violations of the NCPA and the NOMA, and for otherwise withholding information from the public.
A civil conspiracy is a combination of two or more persons to accomplish by concerted action an unlawful or oppressive object, or a lawful object by unlawful or oppressive means.
Similarly, a claim of aiding and abetting is that "`in addition to persons who actually participate in [concerted wrongful action], persons who aid, abet, or procure the commission thereof, are subject to a civil action therefor.'"
Salem argues that our decision in Bergman v. Anderson,
Further, our precedent is clear regarding claims of civil conspiracy: a "conspiracy" is not a separate and independent tort in itself, but, rather, is dependent upon the existence of an underlying tort.
Salem cites Eicher v. Mid America Fin. Invest. Corp.,
The only underlying conduct Salem asserts are violations of the NCPA and the NOMA. As stated above, such statutory violations alone are not sufficient to support claims of civil conspiracy or aiding and abetting. Therefore, we find that Salem failed to properly plead its claims of civil conspiracy or aiding and abetting.
Salem's complaint alleges claims under the NCPA, aiding and abetting and civil conspiracy. As we have found, the appellees are entitled to immunity from Salem's NCPA claims. Further, Salem's claims of aiding and abetting and civil conspiracy require an underlying tort to be actionable and no such tort has been pled. Therefore, Salem has not stated claims upon which relief can be granted as a matter of law.
In its reply brief, Salem conceded that "[i]f dismissal is appropriate and Arguments 1-3 are not successful, there is no amending to be done in this case."
Additionally, because we find that Salem failed to state a claim upon which relief could be granted and Salem conceded that leave to amend would be futile, we need not address Salem's assignment of error that the court failed to sustain its jury demand.
The Noerr-Pennington doctrine provides immunity to appellees for petitioning the government to take action, even if such resulting action violated the NCPA. Further, claims of civil conspiracy and aiding and abetting require an underlying tort, not merely an underlying statutory violation, to be actionable. Salem failed to state a claim upon which relief could be granted because appellees were entitled to immunity under the Noerr-Pennington doctrine, and it alleged only underlying statutory violations. Further, Salem conceded that any amendment to its petition would be futile. Therefore, we affirm the court's order dismissing Salem's complaint with prejudice.
AFFIRMED.