‘Evergreen’ Contracts Create Antitrust Issues
Several waste-management companies servicing the commercial market on Long Island, NY, recently were sued in a class-action lawsuit alleging that the companies used-long term service contracts containing evergreen-renewal clauses, unreasonable liquidated damages clauses and right-to-compete clauses in violation of the antitrust laws. On Jan. 27, 2012, Judge Leonard D. Wexler certified the class and ruled that the plaintiffs could proceed to trial on their allegations of an attempt to monopolize in violation of the Sherman Antitrust Act. (All Star Carts and Vehicles, Inc., et. al. v. BFI et. al.)
According to the court, the defendant waste-management companies ...
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