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Tec Cogeneration Inc., Rrd Corporation, as They Are Partners in South Florida Cogeneration Associates, Thermo Electron Corporation, Rolls-Royce, Inc. v. Florida Power & Light Company, Fpl Group, Inc., Fpl Energy Services, Inc., Wayne H. Brunetti, Larry T. Atkinson, Joe C. Collier, Jr., Clark Cook

Citations: 76 F.3d 1560; 1996 U.S. App. LEXIS 3998Docket: 94-4323

Court: Court of Appeals for the Eleventh Circuit; March 7, 1996; Federal Appellate Court

Narrative Opinion Summary

The case involves an appeal by Florida Power & Light Company (FPL) against a district court's denial of summary judgment concerning antitrust liability. FPL was involved in a dispute over a cogeneration facility project with Metropolitan Dade County, with key legal questions centering on whether FPL could invoke immunity under the state-action doctrine and the Noerr/Pennington doctrine. The district court denied FPL immunity, but the appellate court reversed this decision. The court concluded that Florida's regulatory policies regarding electric utilities fulfilled the requirements for state-action immunity, as established in Parker v. Brown and the Midcal test, by showing both a clear state policy favoring regulation over competition and active state supervision by the Public Service Commission. Additionally, the court found FPL's lobbying efforts against a proposed transmission line were protected under the Noerr/Pennington doctrine, reaffirming the company's First Amendment rights to petition the government. Consequently, the appellate court granted FPL immunity from antitrust liability, directing the case back to lower courts for further proceedings on unresolved matters.

Legal Issues Addressed

Active Supervision Requirement for State-Action Immunity

Application: The court found that the Florida Public Service Commission's supervision over FPL's actions met the active supervision requirement of state-action immunity, thereby protecting FPL from antitrust liability.

Reasoning: However, it is asserted that the PSC did indeed exercise active supervision over FPL, negating the district court's finding regarding the second prong of state action immunity.

Noerr/Pennington Doctrine

Application: The appellate court ruled that FPL's lobbying activities were protected under the Noerr/Pennington doctrine, as they constituted legitimate efforts to influence governmental decisions.

Reasoning: FPL's conduct in lobbying against a separate transmission line is constitutionally protected under the Noerr/Pennington doctrine, which emphasizes conduct over intent or motivation, rendering FPL immune from antitrust liability regarding wheeling, rates, interconnection, and lobbying activities.

State-Action Immunity under Parker v. Brown

Application: The appellate court applied state-action immunity to FPL, reversing the district court's denial of summary judgment by finding that Florida's regulatory framework for utilities satisfied both prongs of the Midcal test.

Reasoning: The state-action immunity doctrine, first articulated in Parker v. Brown, holds that federal antitrust laws do not apply to state-regulated anticompetitive activities, as there is no intent to restrain state action in the Sherman Act's legislative history.