Kelly v. Kosuga

Summary

Justice Brennan's opinion for the Court affirmed enforcement of the unpaid purchase price for onions despite allegations that the sale accompanied an agreement violating the Sherman Act. The illegality defense applies only where the judgment itself would enforce the precise conduct prohibited by the Act. Enforcing a completed sale at a fair price did not enforce the accompanying restriction on futures-market deliveries because the sale constituted an intelligible economic transaction in itself. Federal law governs the effect of illegality under a federal statute, including in diversity cases. Justices Black and Douglas dissented; the supplied text contains no explanation of their views.