Spartan Concrete Products LLC v. Argos USVI Corp.

Spartan, which operated on St. Croix, sought to displace Heavy Materials as the sole provider of ready-mix concrete on St. Thomas. Upon entering the St. Thomas market, Spartan started a price war that caused financial losses to Spartan while Heavy Materials retained its dominant position. After three years of fierce competition, the companies reached a truce: Spartan agreed to sell on St. Croix while Heavy Materials would keep selling on St. Thomas. Spartan then sued Argos, a bulk cement vendor, alleging violations of the Robinson-Patman Act, 15 U.S.C. 13(a), by giving Heavy Materials a 10 percent volume discount during the price war. The district court entered judgment for Argos and denied Spartan leave to amend its complaint to include two tort claims, finding undue delay and prejudice. The Third Circuit affirmed. Although Argos gave Heavy Materials alone a 10 percent volume discount on concrete, Spartan presented no evidence linking this discount to its inability to compete in the St. Thomas market. Spartan did compete with Heavy Materials for three years and not only lowered its retail prices, but also began a price war and achieved a nearly 30 percent share of the St. Thomas retail ready-mix concrete market. View "Spartan Concrete Products LLC v. Argos USVI Corp." on Justia Law