Hartford Fire Insurance Co. v. California, 509 U.S. 764 (1993), was a controversial United States Supreme Court case which held that foreign companies acting in foreign countries could nevertheless be held liable for violations of the Sherman Antitrust Act if they conspired to restrain trade within the United States, and succeeded in doing so. Facts Various reinsurance companies in the United Kingdom had conspired through Lloyd's of London to coerce U.S. insurers into abandoning certain policy practices that were beneficial to consumers, but costly to the reinsurers. When U.S. states (including the named plaintiff, California) filed a lawsuit alleging antitrust violations, the defendant companies raised a number of defenses, asserting that the United States lacked jurisdiction over their acts, that various statutes exempted them from liability, and that principles of comity dictated that they should not be brought before a U.S. court. The United States district court in which the case was brought accepted these arguments and dismissed the case. The Court of Appeals reversed the dismissal. Result The Supreme Court, in an opinion by Justice Souter, stated that "it is well established by now that the Sherman Act applies to foreign conduct that was meant to produce and did in fact produce some substantial effect in the United States." The defendants raise, and the Court rejects the applicability of § 402 of the Foreign Trade Antitrust Improvements Act of 1982 (FTAIA), which states that the Sherman Act does not apply to conduct involving foreign trade or commerce (other than import trade or import commerce), unless "such conduct has a direct and reasonably foreseeable effect" on domestic or import commerce. The Court found that the conduct at issue here clearly had such an effect. The Court also found that, in enacting the FTAIA, the U.S. Congress did not intend to write principles of comity into the Sherman Act - but even if they had, this would not affect the outcome. Both the defendant and Hartford argued that the conduct in which the reinsurers had engaged was lawful in the United Kingdom. Nevertheless, the Court looked to the Restatement (Third) Foreign Relations Law, § 415, Comment j for the principle that: The fact that conduct is lawful in the state in which it took place will not, of itself, bar application of the United States antitrust laws, even where the foreign state has a strong policy to permit or encourage such