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Third Circuit Reverses Price Discrimination Judgment in Feesers v. Michael Foods and Sodexo |
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08-January-2010 Authors In
a decisive reversal of a district court judgment issued last year, the
Third Circuit yesterday firmly held that Michael Foods and Sodexo are
entitled to judgment as a matter of law on Feesers Inc.’s Robinson–Patman
Act price discrimination claims. The
appellate court did not contest that Feesers had shown that—on average and
over time—Michael Foods sold egg products to Sodexo at lower prices. The
court instead focused on the statute’s requirement of competitive injury
from price discrimination, and in particular on the requirement that two
purchasers of products from a single manufacturer be in competition with
each other for “the same dollar.” In
a bid market, such as that faced by Sodexo and Feesers when seeking the
food business of institutional customers, the Third Circuit found that by
the time either party purchased from Michael Foods, the competition between
them had long ceased, depending on the institution’s decision to use a food
service management approach, ala Sodexo, or traditional distribution from
Feesers. Read more . . . |
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