101 F.4th 493
7th Cir.2024Background
- Twelve Green Bay, Wisconsin gas stations ("Green Bay Stations") sued Costco, alleging Costco sold gasoline below the minimum markup price in violation of Wisconsin’s Unfair Sales Act (Wis. Stat. § 100.30), seeking damages and an injunction.
- Costco operates a members-only warehouse with a gas station in Bellevue, WI, and routinely matches its competitors' gasoline prices, including prices from the Kaukauna BP (24 miles away) and two local Marathon Stations with rewards discounts.
- The dispute centers on whether Costco’s price-matching practices qualified under the statute’s “meeting competition” exception, and whether the Green Bay Stations suffered or were threatened with injury due to those practices.
- The district court granted summary judgment for Costco, finding Costco mostly immune under the statutory exception and, on remaining dates, Green Bay Stations failed to prove actual/threatened injury caused by Costco.
- On appeal, the Green Bay Stations challenged both the grant of summary judgment and a district court evidentiary ruling excluding a late expert report.
- The Seventh Circuit affirmed the district court’s decision on all issues.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Costco is a direct competitor of Kaukauna BP and Marathon for meeting-competition exception | Kaukauna BP too distant; Marathon’s lower price not generally advertised | Members from Kaukauna regularly buy at Costco; Marathon’s discounted price was available to all | Costco is a direct competitor to both; may match actual prices offered to buyers, not only advertised prices |
| Whether Costco satisfied the statutory notification and good faith requirements for exception | Challenged compliance due to alleged errors in notifications | Maintained business records and substantially complied; errors were inadvertent | Even inadvertent errors rebutted via business records; good faith established by daily monitoring, recordkeeping |
| Whether plaintiffs established actual or threatened injury caused by Costco’s pricing | Loss of profits and sales volume, supported by expert and lay testimony | Non-specific, speculative evidence does not show causation; no direct link to Costco’s pricing | Plaintiffs did not provide sufficient, non-speculative evidence of causation; summary judgment for Costco |
| Whether denial of motion to supplement expert report was an abuse of discretion | Needed to address district court’s exclusion of prior expert analysis | Would prejudice defense due to late timing; discovery was closed | No abuse of discretion; timely management of litigation upheld |
Key Cases Cited
- A.L.A. Schechter Poultry Corp. v. United States, 295 U.S. 495 (Supreme Court invalidated the NIRA, referenced for historical context)
- Go America L.L.C. v. Kwik Trip, Inc., 715 N.W.2d 746 (Wis. Ct. App. 2006) (defined "direct competitor" under Wisconsin's Unfair Sales Act and the meeting competition exception)
- Lexmark Int’l, Inc. v. Static Control Components, Inc., 572 U.S. 118 (Supreme Court clarifying standards for standing and causation)
- Warth v. Seldin, 422 U.S. 490 (Supreme Court on standing and injury-in-fact)
- West v. American Tel. & Tel. Co., 311 U.S. 223 (Federal courts in diversity cases must apply state appellate, not trial, court interpretations)
