Lewis Franklin Powell, Jr.

Summary

Lewis Franklin Powell, Jr. Usery v. Turner Elkhorn Mining Company… (1976)

Firms burdened with retroactive payments must meet that expense from current production and current sales in a market where prices must be competitive with the prices of firms not so burdened. One ordinarily would expect that if burdened firms are to meet both competitive prices and their retroactive obligations, their profits necessarily will be less than those of their competitors. Thus, the burdened firms in all likelihood will have to bear the costs of the retroactive liability rather than pass those costs on to consumers.
Source: Wikisource

Lewis Franklin Powell, Jr. Usery v. Turner Elkhorn Mining Company… (1976)

A coal-mining concern cannot retroactively increase its prices to the former customers who benefited from the pre-1969 labors of former miners. The only consumers, therefore, who could bear these burdens are those who purchase coal currently. But in a free market such customers cannot be expected to pay a reparation add-on for coal produced by disadvantaged coal companies when the same product is readily obtainable from others at a lower price.↑ .
Source: Wikisource

Lewis Franklin Powell, Jr. Usery v. Turner Elkhorn Mining Company… (1976)

Some companies engaged in coal mining in years past on a much larger scale and with many more employees than currently. This is not an unusual situation in a "depleting asset" industry, where smaller companies often lack the resources with which to continue the acquisition and development of new properties. Stronger competitors, on the other hand, may have operated on a constant or an increasingly large scale. [8] In each case the competitively disadvantaged companies may be unable to spread a substantial portion of their costs to consumers.
Source: Wikisource

Get perspective with Kwize: daily news enlightened by great literature