Mountain Crest SRL, LLC v. Anheuser-Busch InBev SA/NV, No. 18-2327 (7th Cir. 2019)Annotate this Case
Mountain Crest filed suit alleging that Anheuser-Busch and Molson Coors had conspired to damage Mountain Crest's beer exports in violation of the Sherman Antitrust Act. Mountain Crest also alleged that defendants were enriched unjustly in violation of Wisconsin law. At issue was an agreement in 2000 between two Canadian entities, BRI and LCBO, and another agreement in 2015 between defendants, BRI, LCBO, and the government of Ontario. The district court ruled that the act of state doctrine required dismissal of the federal claims and granted defendants' motion to dismiss the complaint under Federal Rule of Civil Procedure 12(b)(6).
The Seventh Circuit held that the first prong of the act of state doctrine analysis was met because the agreements establishing the six-pack rule were acts of state for the purposes of the doctrine. The court also held that to the extent Mountain Crest attacks the six-pack rule under Section 1 of the Sherman Act, the act of state doctrine was applicable. Furthermore, to the extent Mountain Crest seeks relief under Section 2 of the Sherman Act predicated solely on the six-pack rule, the act of state doctrine clearly precludes the action. However, the Second Amended Complaint also sets out allegations that Anheuser-Busch and Molson Coors, acting through their officers and employees, violated the same provisions of the Sherman Act by conspiring to bring about the Ontario government's approval of the six-pack rule. The court held that these allegations did not implicate the act of state doctrine. The court affirmed in part, vacated in part, and remanded for the district court to further consider issues it has not addressed.