Antitrust Law
Barista Sues Starbucks for ‘Cluster-Bomb’ Approach to Competition
Posted Nov 29, 2007, 04:21 pm CDT
By Molly McDonough
A federal judge has ruled that a Seattle-area coffeeshop owner may go to trial next year to air her claims in court: that coffee giant Starbucks "cluster-bombs" neighborhoods, barraging the areas with so many stores that competitors, like her, are driven off.
Penny Stafford maintains the Starbucks strategy unfairly thwarted her expansion plans, and violated antitrust laws in the process, according to Seattle Weekly.
Stafford, who owns Belvi Coffee & Tea Exchange in Bellevue, is seeking damages and a federal injunction to end the Starbucks' exclusive lease deals with landlords.
Earlier this month, U.S. District Court Judge John Coughenour rejected Starbucks' motion to dismiss the suit. An attempt in 2006 to turn the case into a class action, however, failed. So Stafford is proceeding solo.
The article notes that Starbucks remains a formidable opponent in court, represented by Perkins Coie, Seattle's largest firm. But Stafford has retained a heavy hitter too, Steve Berman, a prominent class action lawyer in Seattle.
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