In Re: Mushroom Direct Purchaser Antitrust Litigation, No. 09-2257 (3d Cir. 2011)Annotate this Case
In 2000, mushroom farmers and related entities formed a cooperative (EMMC) and established minimum pricing policies and programs to improve their market position. EMMC purchased properties and resold them with deed restrictions that prohibited mushroom farming. The Department of Justice invesigated and concluded that EMMC was an agricultural cooperative organized pursuant to the Capper- Volstead Act, 7 U.S.C. 291-92. In 2005, EMMC and DOJ entered into a consent judgment that required EMMC to nullify deed restrictions and prohibited it from imposing restrictions for 10 years. Soon after the consent judgment, private parties brought suits, alleging conspiracy in violation of the Sherman Act and Clayton Act. (15 U.S.C. 1, 2, 18). Unlike the DOJ action, the consolidated class action involved both the property purchase program and minimum pricing policies. The district court held that EMMC was not a proper agricultural cooperative under the Act because one member was not technically a grower of agricultural produce and that the uncontested facts revealed an impermissible price-fixing conspiracy with a non-member mushroom distribution company. The Third Circuit dismissed an appeal, holding that it lacked jurisdiction to hear the question on interlocutory appeal.