United States v. Foley

John Foley (defendant), a Montgomery County, Maryland real estate broker, hosted a dinner with other leading local realtors (defendants) and announced he was raising his commission rate from 6 to 7 percent; conflicting testimony suggested the group discussed a willingness to adopt the higher rate together, as well as a prior failed unilateral attempt to raise rates that collapsed because competitors held firm at 6 percent. Within months, all the defendants raised their rates to 7 percent, and evidence showed Foley later told other realtors that the plan would fail unless everyone stuck to the 'agreement.' The realtors were convicted of a commission-fixing conspiracy under Section 1 of the Sherman Act and appealed, arguing they had no real chance to avoid the inferences the jury drew simply by attending Foley's dinner and staying once its purpose became clear.