Blog Banner Image

The Franchise Memorandum

New York Federal Court Rejects Claims Based on Single-Brand Market
Posted in Antitrust

A federal district court in New York dismissed a value-added reseller's antitrust claims against its competitor based on its failure to properly define a relevant market. Techreserves Inc. v. Delta Controls, Inc., 2014 U.S. Dist. LEXIS 47080 (S.D.N.Y. Mar. 31, 2014). Techreserves operates as a reseller in the building management systems sales, installation, and maintenance markets, in which Delta is a manufacturer. Techreserves claimed that its competitors, including defendant IBC, and Delta excluded other value-added resellers from selling, installing, and servicing Delta building automation and control software specified products.

Delta and IBC made a joint motion to dismiss Techreserves' complaint for failure to state a claim, arguing that Techreserves failed to plead the requisite geographic and product markets. The court granted the motion and dismissed Techreserves' antitrust claim based on its failure to plead a plausible relevant product market. The court noted that Techreserves attempted to describe the alleged market in various ways, but, in essence, it claimed that it was excluded only from selling a single brand of product, Delta. "It is well-established that a non-unique single-brand product, like Delta's, does not a market make," the court stated.

Email LinkedIn Twitter Facebook

The information contained in this post is provided to alert you to legal developments and should not be considered legal advice. It is not intended to and does not create an attorney-client relationship. Specific questions about how this information affects your particular situation should be addressed to one of the individuals listed. No representations or warranties are made with respect to this information, including, without limitation, as to its completeness, timeliness, or accuracy, and Lathrop GPM shall not be liable for any decision made in connection with the information. The choice of a lawyer is an important decision and should not be based solely on advertisements.

About this Publication

The Franchise Memorandum is a collection of postings on summaries of recent legal developments of interest to franchisors brought to you by Lathrop GPM LLP. 

To subscribe to monthly emails for The Franchise Memorandum, please click here


















Blog Authors