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NORTHERN CALIFORNIA RECORD

Friday, April 19, 2024

Federal judge will not revisit tomato processors' legal battle

Lawsuits
Tomatos 1280

Two tomato processors escaped a lawsuit alleging RICO and anti-trust violations.

SACRAMENTO –– A federal judge will not reconsider her ruling in favor of two tomato processors accused of conspiracy and anti-trust violations.

Judge Kimberly J. Mueller of the U.S. District Court for the Eastern District of California found there was not enough evidence for Morning Star Packing Company to pursue Racketeer Influenced and Corrupt Organizations Act (RICO) claims against competing tomato processor Los Gatos. Mueller ruled on Aug. 8.

The case stems from a dispute between the companies over undercutting each other in the tight tomato market. Morningstar accused Los Gatos of conspiring with another producer, SK Foods, to bribe purchasing agents for big corporations. 


Judge Kimberly J. Mueller of the U.S. District Court for the Eastern District of California presided.

In 2008, the Federal Bureau of Investigation discovered an employee of SK Foods did make the bribes.

Later, SK Foods teamed up with Los Gatos and another company to create the California Tomato Export Group. The intent was to “control the market in the United States” for tomato products and control prices, according to court documents.  

However Mueller did not find evidence Los Gatos participated in this venture. Mueller also found there was not enough evidence to bring anti-trust claims under the Sherman Act. 

"The plaintiff’s position ignores the purpose of summary judgement itself, which is to determine whether the evidentiary record discloses any genuine dispute of material fact that should go to a jury," Mueller wrote.

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