Darcy v. Allein
Encyclopedia
Edward Darcy Esquire v Thomas Allin of London Haberdasher (1599) 74 ER 1131 (also spelled as "Allain" or "Allen" and "Allein" but most widely known as the Case of Monopolies), was an early landmark case in English law
, establishing that the grant of exclusive rights to produce any article was improper (monopoly
). The reasoning behind the outcome of the case, which was decided at a time before court
s regularly issued written opinions, was reported by Sir Edward Coke
.
, Edward Darcy, was a member of Queen Elizabeth
's court who received from the queen a licence to import and sell all playing cards to be marketed in England
. This arrangement was apparently secured in part by the Queen's concern that card-playing was becoming a problem among her subjects, and that having one person control the trade would regulate the activity. When the defendant
, T. Allin, sought to make and sell his own playing cards, Darcy sued to prevent this competition.
and competition law. It drew considerably on historical evidence of rulers antipathy to monopolies, as follows.
English law
English law is the legal system of England and Wales, and is the basis of common law legal systems used in most Commonwealth countries and the United States except Louisiana...
, establishing that the grant of exclusive rights to produce any article was improper (monopoly
Monopoly
A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity...
). The reasoning behind the outcome of the case, which was decided at a time before court
Court
A court is a form of tribunal, often a governmental institution, with the authority to adjudicate legal disputes between parties and carry out the administration of justice in civil, criminal, and administrative matters in accordance with the rule of law...
s regularly issued written opinions, was reported by Sir Edward Coke
Edward Coke
Sir Edward Coke SL PC was an English barrister, judge and politician considered to be the greatest jurist of the Elizabethan and Jacobean eras. Born into a middle class family, Coke was educated at Trinity College, Cambridge before leaving to study at the Inner Temple, where he was called to the...
.
Facts
The plaintiffPlaintiff
A plaintiff , also known as a claimant or complainant, is the term used in some jurisdictions for the party who initiates a lawsuit before a court...
, Edward Darcy, was a member of Queen Elizabeth
Elizabeth I of England
Elizabeth I was queen regnant of England and Ireland from 17 November 1558 until her death. Sometimes called The Virgin Queen, Gloriana, or Good Queen Bess, Elizabeth was the fifth and last monarch of the Tudor dynasty...
's court who received from the queen a licence to import and sell all playing cards to be marketed in England
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
. This arrangement was apparently secured in part by the Queen's concern that card-playing was becoming a problem among her subjects, and that having one person control the trade would regulate the activity. When the defendant
Defendant
A defendant or defender is any party who is required to answer the complaint of a plaintiff or pursuer in a civil lawsuit before a court, or any party who has been formally charged or accused of violating a criminal statute...
, T. Allin, sought to make and sell his own playing cards, Darcy sued to prevent this competition.
Judgment
The Queen's Bench court determined that the Queen's grant of a monopoly was invalid, for several reasons:- Such a monopoly prevents persons who may be skilled in a trade from practising their trade, and therefore promotes idleness.
- Grant of a monopoly damages not only tradesman in that field, but everyone who wants to use the product, because the monopolist will raise the price, but will have no incentive to maintain the quality of the goods sold.
- The Queen intended to permit this monopoly for the public good, but she must have been deceived because such a monopoly can be used only for the private gain of the monopolist.
- It would set a dangerous precedent to allow a trade to be monopolized - particularly because the person being granted the monopoly in this case knew nothing about making cards himself, and where there was no law that permitted the creation of such a monopoly.
Significance
Darcy v Allin was the first definitive statement by a court that state-established monopolies are inherently harmful and therefore contrary to law. The case has since come to be known as The Case of Monopolies, and the arguments set forth therein have served as the basis for modern antitrustAntitrust
The United States antitrust law is a body of laws that prohibits anti-competitive behavior and unfair business practices. Antitrust laws are intended to encourage competition in the marketplace. These competition laws make illegal certain practices deemed to hurt businesses or consumers or both,...
and competition law. It drew considerably on historical evidence of rulers antipathy to monopolies, as follows.
For we read in Justinian that monopolies are not to be meddled with, because they do not conduce to the benefit of the common weal but to its ruin and damage. The civil Laws forbid monopolies: in the chapter of monopolies, one and the same Law. The Emperor Zeno ordained that those practicing monopolies should be deprived of all their goods. Zeno added that even imperial Prescripts were not to be accepted if they granted monopolies to anyone.