All Star Carts & Vehicles, Inc. v. BFI Canada Income Fund

887 F. Supp. 2d 448, 2012 WL 3580150, 2012 U.S. Dist. LEXIS 116611
CourtDistrict Court, E.D. New York
DecidedAugust 13, 2012
DocketNo. CV 08-1816
StatusPublished
Cited by1 cases

This text of 887 F. Supp. 2d 448 (All Star Carts & Vehicles, Inc. v. BFI Canada Income Fund) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
All Star Carts & Vehicles, Inc. v. BFI Canada Income Fund, 887 F. Supp. 2d 448, 2012 WL 3580150, 2012 U.S. Dist. LEXIS 116611 (E.D.N.Y. 2012).

Opinion

[451]*451 MEMORANDUM AND ORDER

WEXLER, District Judge:

This is an antitrust action stemming from Defendants’ use of certain contracts in connection with the business of small containerized waste hauling services on Long Island. In a Memorandum and Order dated January 27, 2012, this court certified a class of both damage-seeking and injunctive-seeking individuals pursuant to Rules 23(b)(3) and 23(b)(2) of the Federal Rules of Civil Procedure. All Star Carts and Vehicles, Inc. v. BFI Canada Income Fund, 280 F.R.D. 78, 86 (E.D.N.Y.2012). The class period was recently defined as extending from May 5, 2004 through September 28, 2011. Plaintiffs, asserting claims on behalf of themselves and the class, are scheduled to proceed to trial with a claim of attempted monopolization in violation of Section 2 of the Sherman Act, 15 U.S.C. § 2 (“Section 2”). See All Star Carts and Vehicles, Inc. v. BFI Canada Income Fund, 596 F.Supp.2d 630, 642 (E.D.N.Y.2009). Presently before the court is Defendants’ motion for summary judgment.

BACKGROUND

I. The Plaintiff Class and the Relevant Market

The plaintiff class includes “all persons and entities that have contracted with, and purchased small containerized waste disposal services in the relevant market directly from defendants from May 5, 2004 through September 28, 2011.” (the “Plaintiff Class”). The relevant market is the market for “small containerized waste hauling and disposal services.” That market encompasses the business of the lifting of small containers of waste for emptying into the storage section of a vehicle which then transports the waste to a disposal site. Such services are provided primarily to commercial customers including restaurants, apartment complexes and stores. These customers generate more waste than residences, but less than larger entities that would typically utilize “roll-off’ containers, i.e., containers that are transported to disposal sites and then returned to the customer. In contrast, the market here provides the service of transporting waste from small containers that remain on the customers’ premises. Plaintiffs assert that there is no practical substitute for small containerized waste hauling. Therefore, customers of this service will not generally switch to a different type of waste disposal service, such as curbside pick-up, or roll-off containers, in the event of a price raise. The relevant geographic market is the Long Island, New York area.

II. Defendants

Defendants are BFI Canada Income Fund, a company that is now known as Progressive Waste Solutions, Ltd. (“Progressive”). Progressive is a Canadian business income trust with its principle offices in Toronto. The other named Defendants are Winters Bros. Recycling and Winters Bros. Waste Systems, Inc., which are New York corporations with their principle executive offices in Westbury, New York (collectively “Winters Brothers” or ‘Winters”).

Winters Brothers is in the business of collecting and hauling residential and commercial waste in the relevant geographic market. In 2006, Winters acquired the Long Island assets of formerly named defendant Allied Waste Industries, Inc. In January of 2007, Winters acquired the Long Island assets of now-dismissed defendant Waste Management of New York, LLC. In or around August of 2007, IESI, a wholly-owned subsidiary of Progressive, acquired Winters.

[452]*452III. The Claim Remaining for Trial and the Motion for Summary Judgment

The claim remaining for trial is an attempt to monopolize the relevant market in violation of Section 2 of the Sherman Act. Plaintiffs allege injury in the form of higher prices, reduced competition, innovation, and consumer choice. Defendants move for summary judgment arguing that despite extensive discovery, Plaintiffs are unable to create a question of fact as to the “touchstone element” of a claim for attempted monopolization, i.e., the dangerous probability that Defendants will achieve monopoly power in the relevant market. After outlining relevant legal principles, the court will turn to the merits of the motion.

DISCUSSION

I. Standards on Motion for Summary Judgment

Courts use summary judgment “to isolate and dispose of factually unsupported claims,” Celotex Corp. v. Catrett, 477 U.S. 317, 323-24,106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). When deciding motions for summary judgment the court is required to draw all reasonable inferences in favor of the non-moving party. Nonetheless, once the moving party demonstrates the absence of an issue of material fact, the party opposing summary judgment must “come forward with ‘specific facts showing that there is a genuine issue for trial.’ ” Morritt v. Stryker Corp., 2011 WL 3876960 *4 (E.D.N.Y.2011), quoting, Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986).

Affidavits used in connection with motions for summary judgment “must be made on personal knowledge, set out facts that would be admissible in evidence, and show that the affiant or declarant is competent to testify on the matters stated.” Fed.R.Civ.P. 56(c)(4); see Institute for Development of Earth Awareness v. People for Ethical Treatment of Animals, 272 F.R.D. 124, 125 (S.D.N.Y.2011); Degelman Industries Ltd. v. Pro-Tech Welding and Fabrication, Inc., 2011 WL 6752565 *3 (W.D.N.Y.2011). While the identity of non-party witnesses may be discoverable prior to trial, affidavits of such witnesses, used in support of motions for summary judgment, constitute attorney work-product prior to filing and therefore need not be disclosed prior to the making of the motion. Institute for Development of Earth Awareness, 272 F.R.D. at 125.

Summary judgment is recognized as an tool of particular importance in the context of antitrust actions, where it can avoid “wasteful trials and [prevent] lengthy litigation that may have a chilling effect on pro-competitive market forces.” Tops Markets, Inc. v. Quality Markets, Inc., 142 F.3d 90, 95 (2d Cir.1998); see Capital Imaging Assocs. v. Mohawk Valley Med. Assocs., Inc., 996 F.2d 537, 541 (2d Cir.1993).

II. Section 2 Claim of Attempted Monopolization

Section 2 of the Sherman Act prohibits monopolization, attempted monopolization and conspiracy to monopolize. 15 U.S.C. § 2. A claim of attempted monopolization requires a showing of three elements.

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Bluebook (online)
887 F. Supp. 2d 448, 2012 WL 3580150, 2012 U.S. Dist. LEXIS 116611, Counsel Stack Legal Research, https://law.counselstack.com/opinion/all-star-carts-vehicles-inc-v-bfi-canada-income-fund-nyed-2012.