Home Oil Case Dismissed for Lack of Evidence of Conspiracy

In Willow Creek Fuels Inc. v. Farm & Home Oil Co. et al., Eastern District of Pennsylvania Judge C. Darnell Jones II has dismissed antitrust claims brought by bankrupt Willow Creek Fuels Inc. in a $25 million lawsuit accusing a former supplier Farm & Home Oil Co., of breaking distribution contracts, merging with a Willow Creek rival, Buckeye Energy Holdings LLC, then targeting Willow Creek’s customers.  In his ruling Judge Jones noted that while the plaintiff alleged an antitrust injury under the Sherman Act, the plaintiff failed to state a claim on which relief could be granted because “although Willow Creek refers to the defendants collectively in the amended complaint and alleges that all defendants terminated the [contracts], that clearly was not the case,” contracts were terminated prior to the purchase agreement between the defendants.  Judge Jones also held that Willow Creek did not allege facts to support any relationship or communications between Farm & Home and any other defendant and tossed out a Clayton Act claim and another Sherman Act claim brought by Willow Creek for failure to establish a relevant market. 

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