High Court Clears Suits Against Energy Firms Over Pricing

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Publish Date:
April 21, 2015
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San Francisco Chronicle
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Summary

The San Francisco Chronicle quotes Professor Jeffrey Fisher on the differences between lawsuits brought under state and federal law. 

The U.S. Supreme Court opened the door Tuesday for states, businesses and consumers to sue energy suppliers under state antitrust laws for rigging their prices, a case that arose from the wave of energy shortages and price-spiking that hit California and other Western states more than a decade ago.

California and its residents did not take part in the case — the state Public Utilities Commission decided not to sue on behalf of consumers, Attorney General Kamala Harris’ office filed no arguments with the court, and the businesses accusing natural gas companies of price manipulation all came from other states. But the ruling could lead to future suits under California’s antitrust laws, which are broader than federal laws.

“It’s easier in various ways to sue under state law,” said Jeffrey Fisher, a Stanford law professor and one of the attorneys for manufacturers, hospitals, schools and other institutions that won Tuesday’s ruling against the gas companies. “State law is where people should start. You should only use federal law where you have to.”

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