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• W276559403 abstract "Antitrust: Monopoly of Kidney Dialysis Services-Kottle v. Northwest Kidney Centers1-Plaintiff-appellant Sheldon Kottle filed suit against Northwest Kidney Centers (NWK) for violations of sections I and 2 of Sherman Act, 15 U.S.C. (sec)1-2, with a supplemental state law claim for violation of Washington's antitrust law, Washington Revised Code 19.86.030 (1998), in U.S. District Court for Western District of Washington. Kottle alleged that NWK unreasonably restrained trade and attempted monopolize King County market for kidney dialysis services. The district court dismissed action for failure state a claim on which relief can be granted.2 The district court held that NWK's activities were protected under Noerr-Pennington doctrine. Kottle then appealed U.S. Court of Appeals for Ninth Circuit, which affirmed district court's holding.3 Kottle, a physician specializing in nephrology and transplant medicine, is sole officer and shareholder of King County Kidney Center (KCKC). In 1991, he filed a Certificate of Need (CON) application with Department of Health (DOH) in State of Washington, for approval of two new kidney dialysis treatment centers. A CON is required under Health Planning and Resource Development Act, Washington Revised Code RCW 70.38 (1998), for establishment of any new health care facility.4 The CON application process operates much like a judicial proceeding. The DOH conducts a public hearing where any person may appear and present oral and written arguments and evidence. Any party that provides similar services may also appear and conduct reasonable questioning against CON application. Following hearing, DOH issues written findings, which may be appealed.5 NWK is sole provider of kidney dialysis services in King County. During CON proceedings, NWK began a hostile campaign prevent Kottle from establishing KCKC within NWK's monopoly. NWK acted with intent of eliminating competition and preserving its monopoly in area.6 On March 30, 1992, DOH rejected Kottle's CON application. In 1995, NWK filed its own CON application for a similar dialysis facility at same location. In its application, NWK presented data that it knew of need for such kidney dialysis services in King County for past fifteen years. Kottle argued that NWK's false statements and misrepresentations, including need for such kidney dialysis facilities during his CON application process, unlawfully prevented approval of his CON application.7 The Court of Appeals examined Noerr-Pennington doctrine and exception in context of an administrative proceeding. The lobbying effort designed influence a state administrative agency's decision issue a CON is protected under Noerr-Pennington doctrine, even if it is an attempt quash competition.s This doctrine applies both state and federal antitrust claims that allege anticompetitive activity in form of lobbying or advocacy before any branch of either federal or state government.9 However, doctrine does not protect private organizations. 10 The principle underlying Noerr-Pennington doctrine is that First Amendment guarantees right to petition Government for a redress of grievances.11 The U.S. Supreme Court has recognized that for the Petition Clause be a meaningful protection of democratic process, citizens must be immune from some forms of liability for their efforts persuade government officials adopt policy or perform their functions in a certain way.12 Violations of Sherman Act, therefore, do not include aggressive lobbying efforts, even with an anticompetitive intent.13 The Supreme Court has expanded Noerr holding executive and judicial branches of government.l4 The Noerr court recognized that there may be situations in which a publicity campaign, ostensibly directed toward influencing government action, is a mere sham cover what is actually nothing more than an attempt interfere with business relationships of a competitor, and application of Sherman Act would be justified. …" @default.
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• W276559403 date "1998-01-01" @default.
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• W276559403 title "Antitrust: Monopoly of Kidney Dialysis Services-Kottle V. Northwest Kidney Centers" @default.
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