Creation of duopolistic interdependence by misapplication of a state statute mandating preferential treatment for local producers is an implausible "slippery slope." Erie County v. Morton Salt, Inc., N.D. Ohio, No. 3:11-cv-00364-JGC, 9/19/11.
Fifty-four northern Ohio counties filed a state court class action for violations of the Ohio Valentine Act, Ohio's counterpart to the Sherman Act. The counties alleged that the only indigenous miners of rock salt in the state of Ohio, Morton Salt, Inc. and Cargill, engaged in a conspiracy to artificially inflate the prices of road salt between 2001 and 2008. Claims also included alleged violations of the Ohio Deceptive Practices Act and fraud. Defendants removed the action to the United States District Court, Northern District of Ohio, on diversity of citizenship grounds.
Defendants filed a motion to dismiss under Federal Rule of Civil Procedure 12(b)(6) on the ground that the allegations of the complaint did not sufficiently allege a claim of "conspiracy" under the Valentine Act. In granting the motion, the District Court held that the plaintiffs had failed to plead a sufficient factual basis for any of the claims in the second amended class action complaint. Accordingly, the action has been dismissed.
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