In re Mushroom Direct Purchaser Antitrust Litig.
| Decision Date | 26 March 2009 |
| Docket Number | No. 06-0657.,No. 06-0861.,No. 06-0638.,No. 06-1854.,No. 06-0677.,No. 06-1464.,No. 06-0932.,Master File No. 06-0620.,06-0638.,06-0657.,06-0677.,06-0861.,06-0932.,06-1464.,06-1854. |
| Citation | 621 F.Supp.2d 274 |
| Parties | In Re MUSHROOM DIRECT PURCHASER ANTITRUST LITIGATION. This Document Relates to: All Actions. |
| Court | U.S. District Court — Eastern District of Pennsylvania |
Miami, FL, Andrew William Kelly, John Alden Meade, John Gregory Odom, Stuart E. Desroches, Odom & Des Roches LLP, New Orleans, LA, Barry L. Refsin, Hangley Aronchick Segal & Pudlin, Phila, PA, Bruce E. Gerstein, Kevin Landau, Noah Silverman, Garwin Gerstein and Fisher L.L.P., New York, NY, David P. Smith, W. Ross Foote, Percy Smith & Foote LLP, Alexandria, LA, David M. Buckner, Kozyak Tropin & Throckmorton, P.A., Coral Gables, FL, for Wm. Rosenstein & Sons Co., Robert Altaian.
Barry L. Refsin, Hangley Aronchick Segal & Pudlin, H. Laddie Montague, Jr., Berger & Montague PC, Phila, PA, Joshua H. Grabar, Bolognese & Associates, LLC, Philadelphia, PA, Linda P. Nussbaum, Kaplan Fox & Kilsheimer LLP New York, NY, David M. Buckner, Kozyak Tropin & Throckmorton, P.A., Coral Gables, FL, for Meyer, Inc., Meyer Distribution, Inc.
Barry L. Refsin, Hangley Aronchick Segal & Pudlin, Phila, PA, David M. Buckner, Kozyak Tropin & Throckmorton, P.A., Coral Gables, FL, for All American Mushroom, Inc., Associated Grocers, Inc., M. Robert Enterprises, Inc., Market Fair, Inc.
Barry L. Refsin, Hangley Aronchick Segal & Pudlin, Phila, PA, David M. Buckner, Kozyak Tropin & Throckmorton, P.A., Coral Gables, FL, William A. Destefano, Buchanan Ingersoll Rooney PC, Philadelphia, PA, for Diversified Foods & Seasonings, Inc.
Barry L. Refsin, Hangley Aronchick Segal & Pudlin, Phila, PA, David M. Buckner, Kozyak Tropin & Throckmorton, P.A., Coral Gables, FL, Brent B. Barriere, David L. Patron, Susie Morgan, Phelps Dunbar LLP, New Orleans, LA, for M.L. Robert, II, L.L.C.
Barry L. Refsin, Hangley Aronchick Segal & Pudlin, Phila, PA, David M. Buckner, Kozyak Tropin & Throckmorton, P.A., Coral Gables, FL, David P. Germaine, Joseph M. Vanek, Vanek Vickers & Masini PC, Chicago, IL, for Publix Super Markets, Inc.
Barry L. Refsin, Hangley Aronchick Segal & Pudlin, Phila, PA, Manuel Juan Dominguez, Berman Devalerio, West Palm Beach, FL, for Theodore J. Katsiroubas d/b/a Katsiroubas Brothers Wholesale Fruit and Produce, Native Maine Produce and Specialty Foods, LLC.
Donald M. Barnes, Salvatore A. Romano, Porter Wright Morris & Arthur LLP, Washington, DC, Martin I. Twersky, Berger & Montague, P.C., Terri A. Pawelski, Rudolph Garcia, William A. Destefano, Buchanan Ingersoll Rooney PC, Abraham C. Reich, Fox Rothschild O'Brien & Frankel LLP, Philadelphia, PA, Joseph R. Loverdi, Law Office of Peter G. Angelos, Baltimore, MD, H. Laddie Montague, Jr., Berger & Montague PC, Phila, PA, for Eastern Mushroom Marketing Cooperative, Inc., Kaolin Mushroom Farms, Inc., To-Jo Fresh Mushrooms, Inc., Cardile Mushrooms, Inc., Cardile Bros. Mushrooms Packaging, Monterey Mushrooms, Inc., Phillips Mushrooms Farms, LP., Modern Mushroom Farms, Inc., Sher-Rockee Mushroom Farm, C & C Carriage Mushroom Co., John Pia, Brownstone Mushroom Farms, Inc., Country Fresh Mushroom Co., Robert A. Feranto, Jr. t/a Bella Mushroom Farms, Forest Mushroom Inc., Gaspari Bros. Inc., Gino Gaspari & Sons, Inc., Harvest Fresh Farms, Inc., Leone Pizzini And Son, Inc., Louis M. Marson, Jr., Inc., LRP Mushrooms Inc., LRP-M Mushrooms LLC, Oakshire Mushroom Farm, Inc., Michael Pia, South Mill Mushroom Sales, Inc., United Mushroom Farms Cooperative, Inc.
Terri A. Pawelski, Rudolph Garcia, Buchanan Ingersoll Rooney PC, Christopher H. Casey, Mark Andrew Wachlin, Dilworth
Paxson LLP, Philadelphia, PA, Joseph R. Loverdi, Law Office of Peter G. Angelos, Baltimore, MD, for Franklin Farms, Inc.
Martin I. Twersky, Berger & Montague, P.C., Philadelphia, PA, for John Does 1-100.
William A. Destefano, Buchanan Ingersoll Rooney PC, Barbara T. Sicalides, Pepper Hamilton LLP, Philadelphia, PA, for Creekside Mushrooms Ltd.
Joshua Sarner, Sarner & Associates, Martin I. Twersky, Berger & Montague, P.C., William A. Destefano, Rudolph Garcia, Terri A. Pawelski, Buchanan Ingersoll Rooney PC, Philadelphia, PA, H. Laddie Montague, Jr., Berger & Montague PC, Phila, PA, Avra C. Vanderzee, Jacqueline P. Rubin, Moses Silverman, Paul Weiss Rifkind Wharton Garrison LLP, New York, NY, for Giorgi Mushroom Company, Giorgio Foods, Inc.
D. Richard Funk, Jason S. Taylor, Conner & Winters LLP, Tulsa, OK, William A. Destefano, Buchanan Ingersoll Rooney PC, Philadelphia, PA, for JM Farms, Inc.
Francis P. Newell, David W. Engstrom, Neill C. Kling Harkins Cunningham, LLP, Martin I. Twersky, Berger & Montague, P.C., William A. Destefano, Buchanan Ingersoll Rooney PC, Philadelphia, PA, for Kitchen Pride Mushrooms.
Donna M. Albani, Law Offices of Donna M. Albani, Glen Mills, PA, Martin I. Twersky, Berger & Montague, P.C., William A. Destefano, Buchanan Ingersoll Rooney PC, Philadelphia, PA, Thomas K. Schindler, Reger Rizzo Kavulich & Darnall, LLP, West Chester, PA, for M.D. Basciani & Sons, Inc.
Martin I. Twersky, Berger & Montague, P.C., William A. Destefano, Buchanan Ingersoll Rooney PC, Jeffrey A. Krawitz, Joel I. Fishbein, Spector Gadon & Rosen, P.C., Philadelphia, PA, for Mario Cutone Mushroom Co., Inc.
William A. Destefano, Buchanan Ingersoll Rooney PC, Philadelphia, PA, for Masha & Toto, Inc. t/a M & T Mushrooms, W & P Mushroom Inc.
Amy R. Richter, Portland, OR, Matthew J. Borger, Klehr Harrison Harvey Branzburg & Ellers L.L.P., Martin I. Twersky, Berger & Montague, P.C., William A. Destefano, Buchanan Ingersoll Rooney PC, Philadelphia, PA, for Mushroom Alliance, Inc.
James A. Backstrom, James A. Backstrom, Counsellor at Law, Philadelphia, PA, for National Council of Farmer Cooperatives.
This is an antitrust case involving the applicability of the Capper-Volstead exemption for agricultural cooperatives. Discovery was phased with Phase One concerning the Capper-Volstead issue. Presently before me are the motions for summary judgment filed by defendant Mushroom Alliance, Inc., defendant Kitchen Pride Mushrooms, defendant M.D. Basciani & Sons, Inc., defendant Eastern Mushroom Marketing Cooperative, Inc. ("EMMC")1 and certain defendants,2 defendant JM Farms and defendant Franklin Farms, plaintiffs' omnibus response, and some defendants' replies thereto;3 the motion for summary judgment filed by consolidated plaintiffs, responses by some defendants and plaintiffs' omnibus reply; and the motion to strike filed by plaintiffs All American Mushroom, Inc., Robert Altman and Associate Grocers, Inc.,4 responses by some defendants and plaintiffs' reply thereto. The parties have submitted voluminous exhibits including witness depositions from the various entities involved in this litigation.
The history between the parties to this antitrust lawsuit is lengthy, convoluted and contentious; thus, I will begin by identifying some of the relevant entities at issue in the current motions and the undisputed facts regarding their structure and provide a limited recitation of the relevant procedural history.
Incorporated in the Commonwealth of Pennsylvania and headquartered in Kennett Square, Pennsylvania, the EMMC is a large mushroom cooperative comprised of entities that grow, buy, sell, package and ship mushrooms to retail and food service outlets across the United States. The list of defendants includes mushroom growers, packagers, sellers, distributors and other related entities that were either members or affiliates of members of the EMMC.
It is undisputed that from 2001 to 2005, the EMMC adapted and amended various minimum pricing policies for mushrooms sold to the fresh market. Defendants assert that these policies had exceptions, were not enforced by the EMMC and were routinely not followed by members. It is undisputed that member dues were based on the number of pounds of mushrooms that were sold to the fresh market by the distributor operations and not the amount grown by the growing operations.
According to the undisputed facts, M. Cutone Mushroom Co., Inc., joined the EMMC on January 20, 2001. M. Cutone is one of several mushroom related companies owned by the Cutone family that defendants allege are commonly owned, controlled and operated by Mario Cutone, his wife and their three adult sons. M & V Enterprises is also owned by the Cutone family and grows mushrooms and sells or transfers 100% of the mushrooms it grows to M. Cutone Avondale which transfers them to M. Cutone Chelsea along with other mushrooms it purchases. The address on Cutone's EMMC membership agreement bears the M. Cutone Chelsea address and the letterhead describes M. Cutone as "Receivers and Commission Merchants Fruits, Vegetables and Flowers." M. Cutone does not grow mushrooms. The EMMC minimum pricing applied to M. Cutone's sales to its wholesale and retail customers.
Kaolin Mushroom Farms, Inc. joined the EMMC on January 9, 2001. South Mill Mushroom Sales Inc. is a mushroom marketer, packer and shipper. Both Kaolin and South Mill are jointly owned and operated by John and Michael Pia, each of whom have a 50% interest in each company. John and Michael Pia, through 100% ownership in two companies, Pennsylvania Mushroom Distribution, Inc. and Mushroom Substrate Technologies, Inc., held a 50% ownership interest in four companies that operated mushroom distribution centers in Dallas, Houston, New Orleans and Atlanta. The remaining 50% ownership interest in the distribution centers was held by Stuart Thomas through his ownership of Thomas Mushroom Distribution Inc. and Dallas South Mill Inc. The Kaolin/South Mill distribution centers were not EMMC members, did not grow mushrooms but sold mushrooms grown by defendant Kaolin. The Kaolin/South Mill distribution centers adhered to EMMC minimums in their mushroom sales. Defendants assert that the...
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