Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Waste management company charged with allocating customers and territories with competitor, (Oct 16, 2014)

By Linda O’Brien, J.D., LL.M.

A waste management company has entered into an unlawful agreement to allocate customers and territories with a competitor and used its monopoly power to prevent a former employee from obtaining gainful employment, according to a complaint filed in the federal district court of San Francisco (Dutra v. BFI Waste Systems of North America, Inc., October 15, 2014).

BFI Waste Systems of North America (BFI) provides waste management services throughout the San Francisco Bay Area. Harold Dutra, Jr. was employed by BFI as a driver who collected waste in San Mateo County.

The complaint alleges that Dutra was employed by BFI when he suffered injuries on the job and was temporarily disabled. Dutra proceeded to arbitration under a collective bargaining agreement after BFI terminated him without cause. An arbitrator ordered Dutra to be reinstated and awarded $75,000 in back pay.

BFI did not comply with the terms of the award. In fact, Dutra attempted to return to work but was sent home on the first day of his return for pre-textual reasons, according to the lawsuit. In November 2009, Dutra’s labor union negotiated a settlement of his case under which Dutra agreed to accept $35,000 and relinquish all employment rights with BFI in return. After BFI delayed making payment of the settlement, the plaintiff filed an action against BFI and the labor union. The action was subsequently dismissed.

According to the complaint, Dutra attempted to obtain employment at a competing waste management company, Recology, Inc. He was unsuccessful, allegedly because BFI essentially controlled the labor market in the Bay Area in concert with Recology. BFI allegedly engaged in anticompetitive practices by agreeing to allocate customers and territories with Recology. These anticompetitive practices have damaged members of the public and harmed Dutra as BFI used its monopoly power to prevent him from obtaining gainful employment, the plaintiff charged.

The plaintiff asserts claims for violations of Sections 1 and 2 of the Sherman Act and California’s Cartwright Act. The action seeks declaratory relief, compensatory and treble damages, rescission and reformation, pre-judgment interest, costs of suit, attorneys’ fees, and any other just and proper relief.

The case is No. 3:14-cv-04623.

Attorneys: Russell A. Robinson (Law Office of Russell A. Robinson) for Harold Dutra, Jr.

Companies: BFI Waste Systems of North America, Inc.

News: Antitrust CaliforniaNews