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Unpublished Paper
Eminent Need: Proposing a Market Participation Exception for Municipal Parker Immunity
ExpressO (2010)
  • Scott B Weese, New York University School of Law

A township is using its eminent domain powers to become a monopsony in the real estate market for the designated area. That township’s monopsony power is then being exploited to create a price-fixing scheme that would violate antitrust laws, either as a per se violation under § 1 of the Sherman Antitrust Act, or as a monopolizing or attempted monopolizing offense under § 2. Under the Sherman Act, effected residents could force the township to appraise each property individually and pay the full market value; if the township refused, they would be subject to the treble damage penalty, erasing any possible advantage of abusing its monopsony power. As the law currently stands, however, a township is immune from suit under the Parker v. Brown decision, and its progeny. This paper will use the real-life example of Mount Holly, New Jersey, and the story of one effected resident to illustrate the need for a market participant exception to Parker immunity, such that when a municipality is participating in the market for a good itself, as opposed to merely regulating that market, the Sherman Act should apply.

  • Parker Immunity
Publication Date
December 23, 2010
Citation Information
Scott B Weese. "Eminent Need: Proposing a Market Participation Exception for Municipal Parker Immunity" ExpressO (2010)
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