Case Details

Year Initiated/Committed

2004

Year Resolved

2005

Settlement Amount

$10,000 civil penalty

Court

Firt District Court, Box Elder County, Utah

Docket Number

040100254MI

Lead State

UT

Participating States

UT

Defendant(s)

Curb-King, Inc.; Patterson, Duane

Case Description

Curb-King sells concrete curbing equipment and supplies to small business operators. As Curb-King sells more equipment, the limited market for concrete curbing becomes saturated and prices for installation of concrete curbing fall to levels that make installation of such curbing unsustainable. The State of Utah alleged that Duane Patterson in his capacity as Sales and Marketing Manager for Curb-King solicited co-conspirators via the Curb-King Internet site in 2002. The complaint alleged that Curb-King and Patterson organized a price fixing conspiracy to encourage installers of landscape curbing to raise the prices they charged customers. Curb-King’s web site encouraged curbing installers to get together and set prices “at a figure you can all make a living with . . ” The website urged installers to agree to the plan so they could “charge more [and] do less [work].” According to the complaint, the defendants also sent a letter to curbing installers in Utah about the proposal and asked them to take part in an online forum, and a number of installers responded and agreed that prices were too low in Utah and needed to be raised. Patterson allegedly also urged Utah curbers to punish those operators who did not go along with their price-fixing scheme and thereby to limit the competition for concrete landscape curbing in Utah. Curb-King and Patterson were charged with per se antitrust violations and denying consumers and business entities in Utah access to a free, open and competitive market for concrete landscape curbing. Without admitting to any specific allegation, defendants consented to an injunction and acknowledged that they attempted to engage in conduct that, if consummated, could have resulted in a reduction of competition in the sale of concrete landscape curbing. A civil penalty of $10,000 was assessed against Curb-King.