New York v. Rattenni; 179 A.D.2d 691, 578 N.Y.S.2d 257 (N.Y.A.D. 2 Dept. Jan 13, 1992); app. granted 79 N.Y.2d 1053, 596 N.E.2d 418, 584 N.Y.S.2d 1020 (N.Y. May 21, 1992);aff’d, 81 N.Y.2d 166, 613 N.E.2d 155 (1993)

Nick Rattenni was a principal officer in both A-1 Compaction, Inc. And American Disposal Services, Inc. Frank Giannattasio, Jr. was a principal officer in both G&G Waste Systems and Wasteway Carting Corp. In 1988, the defendants entered into an agreement to divide and allocate among themselves certain customers for garbage collection services in New York and Connecticut. Defendants agreed to withdraw from one another’s primary market areas. Defendants also exchanged customer lists after which they entered into contract at higher prices. All six defendants were indicted in 1989 for violations of sections 340 and 341 of the General Business Law. Frank Giannattasio, Jr. was also indicted for perjury. The Supreme Court (NY state trial court) dismissed part of the indictment on the grounds that the grand jury should not have been instructed that market allocation was a per se violation of the Donnelly Act. The NY Court of Appeals, finding the grand jury instructions and the indictment sufficient, held that allocation of customers is a per se violation of the Donnelly Act and is not subject to the rule of reason. The Giannattasio Defendants agreed to a plea bargain and paid a $30,000 fine. Rattenni, A-1 and American Disposal Services, Inc. were found not guilty in a bench trial.