Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Retail concrete supplier charges cement dealer with price discrimination, (Jan 27, 2015)

By Linda O’Brien, J.D., LL.M.

A construction materials dealer engaged in price discrimination by selling cement to a retail concrete supplier at a price substantially lower than the price of cement it sold to a competing supplier over several years, according to a complaint filed in the federal district court of St. Thomas, Virgin Islands. This pricing allegedly caused the competitor losses and eventually drove it out of business (Spartan Concrete Products, LLC v. Argos USVI, Corp., January 23, 2015).

Argos USVI Corp., formerly known as Caricement USVI, Corp., is a construction materials dealer and was the sole wholesale distributor of cement in St. Thomas from 2010 through 2013. Spartan Concrete Products is a retail concrete contractor and supplier, formerly doing business in St. Thomas, and now based in St. Croix.

The complaint alleges that, from 2010 to 2013, Caricement sold cement primarily, if not solely, to Spartan and competing supplier, Heavy Materials LLC. During that time, Caricement provided Heavy Materials a substantial volume discount on its purchases, which averaged approximately 10 percent on all purchases. Despite Spartan’s requests for equal pricing, Caricement refused to provide Spartan with similar discounts.

According to the complaint, the cement sold to Spartan was “general use” and was the same grade and quality as the cement that was sold to Heavy Materials. The price discrimination was unfair and not justified by any actual cost savings, Spartan claimed. As a result of the price discrimination, Spartan, the only competitor to Heavy Materials, allegedly was driven out of the retail market, leaving St. Thomas with a single monopolistic retail cement supplier—Heavy Materials. The allegedly unfair price discrimination left St. Thomas cement consumers with fewer options.

The plaintiff asserts claims for violations of Section 2 of the Robinson-Patman Act. The action seeks compensatory and treble damages, interest, costs of suit, attorneys’ fees, and any other just and proper relief.

The case is No. 3:15-cv-00004-CVG-RM.

Attorneys: Christopher Allen Kroblin (Kellerhals Ferguson Kroblin PLLC) for Spartan Concrete Products, LLC.

Companies: Spartan Concrete Products, LLC; Argos USVI Corp.

News: Antitrust