Case Description
Several school districts in Salt Lake and Utah Counties decided to purchase only Bernina sewing machines, Bids were solicited only from Bernina dealers. According to the state’s complaint, between 1985 and 1990, Dave’s Bernina and Nuttall Bernina operated according to an agreement allocating Utah County to Dave’s and Salt Lake County to Nuttall. On several occasions the companies allegedly worked together to create the impression that they were competitors by submitting accommodation bids. Allegedly,k the agreement began to unravel when Nuttall opened a retail outlet in Utah County in 1990. In the late 1990s, Dave’s began to truly compete for school district contracts. From February to June 1999, Dave’s bid on and won contracts to supply sewing machines to Granite, Salt Lake City and Jordan school districts, all located in Salt Lake County. The state alleged that after Dave’s won the Jordan school district contract, a Nuttall employee called the district to falsely report that Dave’s had failed to perform on prior contracts and that DAve’s had given Nuttall permission to perform the service component of the contract. When this failed to dislodge Dave’s from the Jordan contract, Nuttall allegedly threatened Dave’s owner with retaliation if he did not cease bidding on contracts in Salt Lake County. Without admitting or denying any violations, defendants agreed to be enjoined from any agreements, contracts, or conspiracies to restrain trade or commerce. Defendants were assessed civil penalties in the amount of $26,000.
