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Constitutional Law Keyed to Choper
Browning-Ferris Industries of Vermont v. Kelco Disposal, Inc.
Citation:
492 U.S. 257 (1989)Facts
Browning-Ferris Industries (BFI) was the sole provider of roll-off waste collection services in Burlington, Vermont until 1980, when Joseph Kelley, BFI’s former district manager, started Kelco Disposal. By 1982, Kelco had obtained 43% of the market. BFI reacted by attempting to drive Kelco out of business through predatory pricing, cutting prices by 40% or more for approximately six months. BFI’s regional vice president instructed the Burlington office to “Put [Kelley] out of business. Do whatever it takes. Squish him like a bug.” During the first four months of BFI’s campaign, Kelco’s revenues dropped 30%. Despite BFI’s efforts, by 1985 Kelco had captured 56% of the market, and BFI sold its Burlington operations. In 1984, Kelco sued BFI for antitrust violations and tortious interference with contractual relations. After a six-day trial, the jury found BFI liable on both counts and awarded $51,146 in compensatory damages and $6 million in punitive damages.
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