Food Lion, LLC v. Dean Foods Co.

Until 2001 Dean and Suiza competed to process and sell bottled milk to retailers. Suiza was the largest U.S. processor of milk and Dean was the second largest. Both purchased raw milk from other entities. DFA, a dairy farmer cooperative, was Suiza’s primary supplier and business partner. Dean obtained its raw milk predominantly from independent farmers. Dean and Suiza merged in 2001, becoming Dean Foods, hoping to obtain “distribution efficiencies and economies of scale,” for millions of dollars in cost savings. Certain agreements were negotiated, with input from the Department of Justice, which approved the proposed merger, subject to divestment of particular milk processing plants. Retailers of processed milk sued, charging violation of 15 U.S.C. 1, the Sherman Antitrust Act, by conspiring with a raw milk supplier-milk processor and the purchaser of the divested processing facilities to divide markets and restrict output. The district court granted summary judgment in favor of Dean Foods, finding insufficient proof of injury and failure to establish the relevant antitrust geographic market, primarily because plaintiff’s expert’s testimony was excluded. The Sixth Circuit reversed and remanded, holding that the expert should not have been excluded and that the conclusions regarding injury were based on flawed propositions. View "Food Lion, LLC v. Dean Foods Co." on Justia Law