Micah Uetricht, et al. v. Chicago Parking Meters, LLC

In 2008, for $1.15 billion, the City of Chicago leased its 36,000 parking meters to a private equity firm, Chicago Parking Meters, LLC (“CPM”). The City agreed to double the meter rates, keep the meters in place, and give CPM the exclusive right to retain all the meter revenue for 75 years. The City agreed not to use its reserved powers to interfere with CPM’s monopoly profit without paying CPM in full for any lost profit in the 75-year period. CPM has already recovered the entire original investment, plus a sum between $500 million and one billion dollars, with 60 years still to run. Challenging the monopoly under Sections 1 and 2 of the Sherman Act, Plaintiffs, who are licensed drivers paying the higher rates, filed this action for injunctive relief only to bar CPM from continuing the Agreement for the remaining 60 years. The questions presented involve the state action exemption as set out in Parker v. Brown, 317 U.S. 341 (1943), and are as follows:

1. Does the City of Chicago “actively supervise” a private monopoly like CPM’s when CPM can only restrict the City’s interference with its monopoly by requiring payment in damages for any loss in the monopoly profit expected to CPM under the 75-year Agreement?

2. When the City of Chicago has given CPM a 75-year private monopoly for all the revenue from its on-street parking system, does the