Court throws out lawsuit over gas prices

The Associated Press

The Supreme Court ruled Feb. 28 that two oil companies could not be sued over allegations they teamed up to inflate gas prices.

Justices unanimously said gas distributors did not prove that ChevronTexaco Corp. and Shell Oil Co. violated antitrust laws in the joint venture, which ran from 1998 until 2002. Justice Clarence Thomas, writing for the court, said that the two companies had a legitimate partnership and the authority to set prices without violating federal law.

At the time of the deal, ChevronTexaco was still Texaco. The company joined with Shell to form enterprises to handle refining and marketing of their gasoline.

Gas distributors filed a class-action lawsuit in California, alleging that Texaco and Shell had used the partnership to fix gas prices in violation of antitrust provisions of the Sherman Act. The Feb. 28 ruling could have broader implications, affecting how future joint ventures and mergers are structured, not just with oil companies.

Justice Samuel Alito did not participate in the case.

The cases are Texaco v. Dagher, 04-805 and Shell Oil v. Dagher, 04-814.