Justia Antitrust & Trade Regulation Opinion SummariesArticles Posted in California Courts of Appeal
California v. Native Wholesale Supply Co.
Defendant Native Wholesale Supply Company (NWS), an Indian-chartered corporation headquartered on a reservation in New York, sold over a billion contraband cigarettes to an Indian tribe in California, which then sold the cigarettes to the general public in California. The cigarettes were imported from Canada, stored at various places in the United States (not including California), and then shipped to California after they were ordered from the reservation in New York. The California Attorney General succeeded on his motion for summary judgment holding NWS liable for civil penalties in violation of two California cigarette distribution and sale laws and Business and Professions Code section 17200 (the unfair competition law), and obtained a permanent injunction precluding NWS from making future sales. The Attorney General further obtained an award of attorney fees and expert expenses. NWS appealed the judgment and the attorney fee order. Finding no reversible error, the Court of Appeal affirmed. View "California v. Native Wholesale Supply Co." on Justia Law
Richmond Compassionate Care Collective v. 7 Stars Holistic Foundation
Richmond issued its first medical marijuana collective permit to RCCC. Three other permits were later issued. The ordinance was amended to reduce the number of dispensary permits from six to three; if a permitted dispensary did not open within six months after the issuance of a permit, the permit would expire. RCCC lost its permit. RCCC filed an antitrust complaint under the Cartwright Act, alleging that the other dispensaries paid for community opposition to RCCC’s applications and also purchased a favorably zoned property. Defendants filed a joint anti-SLAPP (strategic lawsuit against public participation) motion to strike (Code of Civil Procedure 425.16), which was granted as to allegations related to protected activity--statements made before the city council and defendants’ actions in opposing RCCC’s application. Allegations related to the property purchase were not stricken. Some defendants sought attorney fees. The trial judge determined that “defendants prevailed on their” anti-SLAPP motions and awarded 7 Stars $23,120 plus costs of $688.12. The court of appeal affirmed. There is no conflict between the anti-SLAPP statute, which permits an award of attorneys’ fees to a defendant and the Cartwright Act, which permits only a plaintiff to be “awarded a reasonable attorneys’ fee together with the costs of the suit” (Bus. & Prof. Code 16750(a)). View "Richmond Compassionate Care Collective v. 7 Stars Holistic Foundation" on Justia Law
Brady v. Bayer Corp.
Bayer AG, maker and marketer of One A Day brand vitamins, was sued in California Superior Court for alleged violations of California’s Consumer Legal Remedies Act, Unfair Competition Law and express warranty law. Plaintiff William Brady’s theory was that Bayer’s packaging of its “Vitacraves Adult Multivitamin” line of gummies was misleading. Brady argued that despite the One A Day brand name, these particular vitamins require a daily dosage of two gummies to get the recommended daily values. Thus buyers end up receiving only half the daily vitamin coverage they think they are getting. The initial complaint was filed as a class action in March 2016, followed by an amended complaint in April, followed by a demurrer in May. The trial court, relying on the unpublished Howard v. Bayer Corp., E. D. Ark. July 22, 2011 (2011 U. S. Dist. LEXIS 161583) involving the supposedly misleading packaging of Bayer’s One A Day gummies, sustained Bayer’s demurrer without leave to amend. The Court of Appeal concluded Bayer failed to appreciate the degree to which their trade name One a Day has inspired reliance in consumers, and held an action alleging they violated California’s Consumer Legal Remedies Act, Unfair Competition Law and express warranty law should have survived demurrer. View "Brady v. Bayer Corp." on Justia Law
Police Retirement System of St. Louis v. Page
Google agreed with competitors, such as Apple, not to initiate contact to recruit each others' employees. In 2010, the Department of Justice filed a civil antitrust action, alleging that the agreements illegally diminished competition for tech employees, denying them job opportunities and suppressing wages. On the same day, the companies entered into a stipulated judgment, admitting no liability but agreeing to an injunction prohibiting the "no cold call" arrangements. Google posted a statement online announcing the settlement and denying any wrongdoing, with a link to a Department of Justice press release, describing the settlement terms. There was widespread media coverage. In 2011, class action lawsuits were filed against the companies by employees who alleged that the cold calling restrictions had caused them wage losses. A consolidated action sought over $3 billion in damages on behalf of more than 100,000 employees. A derivative suit, filed by shareholders in 2014, claimed that the company suffered financial losses resulting from the antitrust and class action suits and that the agreements harmed the company’s reputation and stifled innovation. Based on a three-year statute of limitations, the trial court dismissed. The court of appeal affirmed, finding the suit untimely because plaintiffs should have been aware of the facts giving rise to their claims by at least the time of the Department of Justice antitrust action in 2010. View "Police Retirement System of St. Louis v. Page" on Justia Law