FOOD & AGRICULTURE QUARTERLY | JUNE 2020
nation clauses and pricing.
The parties have completed most pre-trial activities, and on
May 14, 2020, Judge Reiss denied the defendants’ request
to postpone the jury trial due to COVID-19 concerns, ruling
that a jury of six jurors and one alternate would comport
with the court’s social distancing guidelines. The parties will
commence jury selection on July 1, 2020.
The case is Sitts et al. v. Dairy Farmers of America, Inc. et
al., Case No. 2:16-cv-00287 (U.S. Dist. Vt.).
Turkey: Class Lawsuits Filed Against Producers.
Plaintiffs filed a putative class action suit on behalf of direct
purchasers of turkey from 11 turkey producers in December
2019. The plaintiffs allege that, since at least 2010, turkey
producers conspired to reduce the supply of turkey in the
United States in order to increase prices. The plaintiffs
alleged that the turkey producers fixed the supply of turkey
by exchanging production information through the wellknown
(and much-maligned) statistical service, Agri Stats.
The defendants have not yet answered the suit or filed
motions to dismiss because those deadlines have been
extended by a General Order in the court extending such
deadlines in light of the COVID-19 crisis.
On April 13, 2020, a putative class of commercial indirect
purchasers also filed suit. An agreed motion to consolidate
the direct and indirect purchaser suits remains pending.
This case is pending in the same Illinois federal district
court as a similar antitrust case pending against chicken
producers that has been on-going for three years, and
a contested motion to transfer the cases to the judge
handling the chicken case remains pending.
The direct purchaser case is Olean Wholesale Grocery
Cooperative et al. v. Agri Stats Inc. et al., Case No. 1:19-cv-
08318 (U.S. Dist. N. Ill.).
The indirect purchaser case is Sandee’s Catering v. Agri
Stats, Inc., et al., Case No. 20-cv-02295 (U.S. Dist. N. Ill.).
Eggs: Another Jury Trial Victory for Producers and
Appeals.
The egg industry chalked up another victory in the 12-year
antitrust litigation that was pending in the Eastern District
of Pennsylvania, alleging industry-wide supply manipulation
through development and implementation of the industrystandard
animal welfare guidelines, among other things.
We previously reported on the jury trial victory achieved
by three producer-defendants in the class action case in
Spring 2018. In Fall 2019, one producer-defendant from the
class trial and two egg cooperatives successfully defended
another jury trial covering the same allegations. This time,
the plaintiffs were most of the nation’s largest grocers, who
opted-out of the class. After nearly a six-week trial, the jury
returned a verdict in less than two days of deliberation,
finding that there was no conspiracy afoot.
Meanwhile, the class had appealed their trial loss to
the Third Circuit Court of Appeals. One of producerdefendants
also filed a cross-appeal. Briefs have been filed
and oral argument was conducted via teleconference due
to the COVID-19 crisis. The parties are awaiting the Third
Circuit’s opinion. Likewise, the opt-outs are appealing
their loss to the Third Circuit, and the parties are presently
briefing their appeal and the producer-defendant’s crossappeal.
In both appeals, the producer-defendant asserts
that even though the court ruled the cooperatives involved
did not meet the rigors of the Capper-Volstead Act, the
producer-defendant’s involvement in the cooperative and
the cooperative’s activities are nevertheless exempt from
the antitrust laws because the producer-defendant had a
good-faith belief the cooperatives qualified for the Act’s
exemption.
In the interest of full disclosure, Porter Wright Morris &
Arthur, LLP represented the producer-defendant that was
a defendant at both trials and in both appeals before the
Third Circuit.
At the trial level, this case was In re Processed Egg Products
Litigation, Case No. 2:08-md-02002 (E.D. Pa.).
In the interest of full disclosure, Porter Wright Morris &
Arthur LLP represented the producer-defendant that was
a defendant at both trials and in both appeals before the
Third Circuit.
Allen Carter is a senior associate and
focuses his practice complex litigation. He
can be reached at 614.227.4441 or
[email protected].
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