Third Circuit Expedites Robinson-Patman Appeal, But Stays Injunction

In Feesers Inc. v. Michael Foods Inc. et al., 3rd Circuit Court of Appeals, while expediting the appeal filed by Michael Foods Inc., stayed an injunction related to a contempt finding against Michael Foods, issued by the Middle District of Pennsylvania Judge Sylvia Rambo.  The injunction and contempt finding stem from an order issued by Judge Rambo following a five year litigation by Feesers, a food distributer, against Michael Foods, a national manufacturer of egg and refrigerated potato products, that Michael Foods violated the Robinson-Patman Act by selling its wares to Sodexo, which competes for the same customers as Feesers, at lower prices than to Feesers.  As part of that order Judge Rambo permanently enjoined Michael Foods from “discriminating unlawfully in price in favor of Sodexho.”  Michael Foods violated the order by 1) refusing to continue the supplier arrangement unless Feesers agrees to pay a national list price – which was previously found to be illegal by the court; and 2) thereafter terminating its relationship with Feesers after Feesers filed its contempt motion.

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