Claims Reinstated Against Auctioneers

Customers who bought and sold goods at auctions held overseas by Christie’s International and Sotheby’s Holdings Inc. can pursue commission price-fixing claims in the United States, an appeals court ruled.

Lawyers said the decision by the U.S. 2nd Circuit Court of Appeals was an important development in American antitrust law and how it can be used to recover damages for activities that take place in foreign countries.

In its decision, the three-member panel reversed a trial judge’s decision dismissing class-action litigation brought on behalf of those who claimed they paid inflated commissions when they bought or sold goods in auctions held overseas.

The trial judge had found that U.S. antitrust laws do not apply to activities abroad unless it can be shown that the conduct intended to have or had significant effects within the United States.

However, the appeals panel found that U.S. antitrust laws do apply to the alleged price-fixing scheme because it affected domestic commerce. It vacated the trial judge’s ruling and remanded the case to the district court for further proceedings.