Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Direct purchasers allege mesquite charcoal price fixing conspiracy, (Nov 18, 2013)

By Tobias J. Gillett, J.D., LL.M.

Producers and distributors of mesquite charcoal conspired to fix prices, according to a complaint filed in the federal district court in San Francisco by Darbar Cuisine, Inc. Darbar seeks to represent a class of direct purchasers of the charcoal. The complaint names Chef’s Choice Mesquite Charcoal, Lazzari Fuel Company LLC, and California Charcoal and Firewood, Inc., leading manufacturers and distributors of mesquite charcoal typically used to grill meat, fish and poultry (Darbar Cuisine, Inc. v. Chef’s Choice Mesquite Charcoal, filed November 15, 2013).

Darbar alleges that, from January 1, 2000, until about September 30, 2010, the defending manufacturers had an agreement “to fix, raise, maintain and stabilize the prices of, and/or allocate the market for, mesquite charcoal they sold in the United States.” The charcoal is produced primarily in Mexico and sold to companies such as the defendants for distribution in the United States. The agreement allegedly involved (1) “agreeing, during conversations and communications, not to compete for sales of mesquite charcoal to co-conspirators’ customers”; (2) “refraining from submitting bids to co-conspirators’ customers”; and (3) “communicating regarding bid prices and then submitting agreed-upon and intentionally non-competitive bids to con-conspirators’ customers.” The agreement purportedly caused direct purchasers of the charcoal to pay artificially high prices for it.

The complaint refers to a Department of Justice antitrust investigation of the mesquite charcoal industry. Chef’s Choice pleaded guilty to participating in a mesquite charcoal price fixing conspiracy. William W. Lord, also a defendant on the present complaint, agreed to plead to a one-count information charging him with conspiring to allocate customers for the charcoal. The defendants allegedly fraudulently concealed their conspiracy in a manner that would toll any applicable statutes of limitations.

The case is No. 3:13-cv-05331.

Attorneys: Guido Saveri (Saveri & Saveri, Inc.) and Robert Bonsignore (Bonsignore & Brewer) for Darbar Cuisine, Inc.

Companies: Darbar Cuisine, Inc.; Chef’s Choice Mesquite Charcoal; Lazzari Fuel Company LLC; California Charcoal and Firewood, Inc.

News: Antitrust CaliforniaNews