UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS, EASTERN DIVISION THORTON ELLIOTT, EUGENE McQUEEN, ) VERNON JOHNSON, MICHAEL CHOICE, ) FAMIOUS FRENCH, MARCUS LYONS, ) DARRYL LANE, RONNIE NELLON, ) CHARLES J. BEYER, JACKIE SMITH, ) SAUL LOCKETT, ZEKE RAND, LEO ) JOHNSON, LAWRENCE RAND, ROBERT ) JOHNSON, LOUIS DAVIS, ANTOINETTE ) JOHNSON, AND HUBERT WEBB, ) ) Plaintiffs, ) ) V. ) NO. ) THE UNITED CENTER, A JOINT ) VENTURE f/k/a METRO-CHICAGO ) SPORTS STADIUM JOINT VENTURE ) INJUNCTIVE RELIEF ) REQUESTED Defendant. ) JURY DEMANDED COMPLAINT FOR DAMAGES AND PRELIMINARY AND PERMANENT INJUNCTIVE RELIEF Now come Plaintiffs, THORTON ELLIOTT, EUGENE McQUEEN, VERNON JOHNSON, MICHAEL CHOICE, FAMIOUS FRENCH, MARCUS LYONS, DARRYL LANE, RONNIE NELLON, CHARLES J. BEYER, JACKIE SMITH, SAUL LOCKETT, ZEKE RAND, LEO JOHNSON, LAWRENCE RAND, ROBERT JOHNSON, LOUIS DAVIS, ANTOINETTE JOHNSON, AND HUBERT WEBB, by their attorneys, Donald G. Weiland and Mark Weinberg, and complaining of the Defendant, the United Center, a joint venture, f/k/a Metro-Chicago Sports Stadium Joint Venture, state as follows: Nature of the Case 1. This action is brought by various vendors who have sold and continue to sell peanuts outside the United Center. Plaintiffs seek preliminary and permanent injunctive relief and damages under Section 2 of the Sherman Act (15 U.S.C. sec. 2), against the United Center, a joint venture, f/k/a Metro-Chicago Sports Stadium Joint Venture. 2. Plaintiffs allege that the policy that prohibits United Center patrons from bringing peanuts into the United Center is an unlawful practice that eliminates competition in concession sales at the United Center and constitutes a willful attempt to maintain a monopoly in violation of Section 2 of the Sherman Act (15 U.S.C. sec. 2). Jurisdiction and Venue 3. Jurisdiction of this court is invoked under Section 2 of the Sherman Act (15 U.S.C. sec. 15 and 26) and 28 U.S.C. sec. 1331 and 1337. 4. Venue is proper in this district because defendant's offices are located in the Northern District of Illinois and the unlawful acts complained of occurred in this district. Venue is proper in this district pursuant to Section 12 of the Clayton Act (15 U.S.C. sec. 22) and 28 U.S.C. sec. 1391(b) and (c). PlaintiffS 5. Plaintiffs, THORTON ELLIOTT, EUGENE McQUEEN, VERNON JOHNSON, MICHAEL CHOICE, FAMIOUS FRENCH, MARCUS LYONS, DARRYL LANE, RONNIE NELLON, CHARLES J. BEYER, JACKIE SMITH, SAUL LOCKETT, ZEKE RAND, LEO JOHNSON, LAWRENCE RAND, ROBERT JOHNSON, LOUIS DAVIS, ANTOINETTE JOHNSON, AND HUBERT WEBB, are residents of Cook County, Illinois. Plaintiffs, at times relevant to this Complaint, sold and continue to sell peanuts outside the United Center, in compliance with existing ordinances. 6. Plaintiffs purchase their peanuts from various peanut wholesalers in the Chicago area. The wholesalers import peanuts from other states, including Georgia, for sale to the Plaintiffs and to others. 7. Each year, Plaintiffs sell hundreds of thousands of dollars worth of peanuts brought to Illinois through interstate commerce. 8. Since the ban on patrons bringing peanuts into the United Center, sales from wholesalers to the peanut vendors, and from the peanut vendors to consumers, have dropped significantly. Defendant 9. The United Center is a joint venture doing business in Chicago, Illinois, with its principle place of business at 1901 West Madison Avenue, Chicago, Illinois. 10. The United Center joint venture owns and operates the United Center, a general purpose stadium located at 1901 W. Madison Street, Chicago, Illinois, and is the home of the Chicago Blackhawks and Chicago Bulls. The United Center also holds special exhibits such as a circus, music concerts, college basketball games, and others. Business Activities of the Parties 11. Plaintiffs are among independent peanut vendors who sell food on public sidewalks outside virtually every sports stadium in the United States. A market for food concessions exists wherever professional sporting events are held. 12. Like all other professional sports stadiums, the United Center offers food concessions to its patrons. 13. The United Center offers a wide selection of food items inside the stadium, including hotdogs, pizza, candy, popcorn, pretzels, and cold drinks. 14. Though the United Center has a natural (also known as innate) monopoly on concession sales inside the United Center, competition for the sale of food concessions at the United Center exists outside the stadium on the public sidewalks surrounding the United Center. 15. Plaintiffs sell peanuts on the public sidewalks around the United Center. 16. Plaintiffs and Defendant sell their goods to the same patrons at the same time. 17. Defendant and Plaintiffs sell slightly different goods, but the goods are substitute goods and fall under the general category of snack foods. 18. Historically, the market for concessions of food at the United Center has been dominated by concessions sold inside the stadium. 19. At the old Chicago Stadium (formerly across the street from the United Center), inside food concessions held a market share of well over 90%. 20. For many years, significant amounts of food concessions have been sold by independent vendors on the sidewalks outside the Stadium, with estimated sales last year of over $500,000. 21. The sale of snack food concessions at the United Center constitutes a relevant market under federal antitrust laws. 22. For food vendors outside of stadiums to compete in the market for food concessions at stadiums, the food sold by outside vendors must be allowed inside the stadiums. 23. If food sold by Plaintiffs is not allowed inside, stadium patrons will not buy the food from outside vendors, knowing it will prevent their admittance into the stadium. 24. Since peanuts are the only food sold directly outside of the United Center to United Center patrons, Plaintiffs are the only competitors in the relevant market for food concessions at the United Center. 25. For legitimate business purposes, certain types of foods are universally prohibited from being brought into most stadiums. For example, alcohol, beer, bottles, and cans of any sort are not allowed in almost all stadiums. There exists valid business reasons for such prohibitions, e.g., the risk of not being able to control the alcohol intake of fans, and the danger of irresponsible fans throwing a cans or bottles onto the field of play. 26. The interstate commerce involved here is Plaintiffs' purchase of hundreds of thousands of dollars worth of peanuts which are bought to this market from other states. In addition, sales of these same peanuts are made to consumers from several states, including Illinois, Indiana, Wisconsin, and Iowa. Conduct of Defendants: Prohibition on Food 27. In September 1994, the United Center instituted a policy that prohibits all food from being brought into the stadium. 28. Patrons of the United Center are inspected for food prior to entering the stadium and, if food is found, it is confiscated by stadium security. 29. The prohibition on bringing food inside the United Center substantially injures competition in the market for food concessions at the United Center: because they now know that peanuts purchased outside the United Center will be confiscated before entrance into the stadium, significant numbers of United Center patrons no longer buy food from outside vendors. 30. The prohibition threatens over time to eliminate all competition in the market for food concessions. 31. Plaintiffs have been damaged as a direct result of Defendant's action. The average sales of peanuts have dropped to approximately one-fifth of sales in previous years. 32. Many of the individual PlaintiffS have gone completely out of business, and others struggle to survive by selling peanuts to (a) patrons who are willing to "smuggle" in the peanuts in violation of United Center policy, or (b) patrons unaware of the stadium prohibition. 33. Such damage to competition is precisely the type sought to be prevented by the antitrust laws. 34. Consumer welfare has been seriously harmed by the prohibition. Consumer choice has been reduced by forcing patrons inclined to eat a snack at the stadium to buy only what the United Center sells. 35. The prohibition also eliminates any price competition in the relevant market. 36. Market history shows that many consumers preferred to buy peanuts outside of the old Chicago Stadium. 37. Consumers had come to rely on and enjoy the benefits of competition in the market for concessions of food outside of the old stadium. 38. Consumers would benefit from the same competition at the new United Center. Conduct of Defendants: Exclusionary Practice 39. Defendants possess monopoly control over the United Center and monopoly control over the presentation of live NBA basketball and live NHL hockey in the Chicago market. 40. The monopoly at issue includes certain unique events available only at the United Center and profit from sales outside the stadium at such events. 41. Defendant has a financial interest in food concessions sold inside of the United Center and profits from such sales. 42. For Plaintiffs to compete with Defendant in the sale of food concessions at the United Center, it is essential that peanuts be allowed inside the United Center. 43. In this respect, the United Center is an essential facility for Plaintiffs to compete with Defendant in the sale of food concessions at the United Center. 44. Defendant has repeatedly refused to allow peanuts into the United Center. 45. Stadium officials confiscate the peanuts of anyone trying to bring peanuts into the stadium. 46. On information and belief, the policy prohibiting food in the United Center is outlined in the United Center's operations manual. 47. Defendant's denial of access to the United Center of Plaintiffs' peanuts amounts to a refusal-to-deal with Plaintiffs. 48. Defendant could easily allow peanuts inside the stadium. Peanuts have been allowed inside the old Chicago Stadium since it was first built in 1927. 49. Peanuts are allowed in every other sports Stadium in Chicago (i.e., Wrigley Field, Soldiers Field, and Comiskey Park). 50. Peanuts are allowed in virtually every sports stadium in the United States. Peanuts at sporting events are an American tradition. 51. There is no legitimate business reason for prohibiting peanuts inside of the United Center. Count I Violation of Section 2 of the Sherman Act 52. The United Center possesses monopoly power over food concession sales at the United Center. 53. Precise numbers are not known to Plaintiffs, but upon information and belief Defendant controls over 90% of all food concession sales inside and outside the stadium. 54. Defendant has used its monopoly power over access to the United Center for anticompetitive, exclusionary, and predatory purposes to maintain and foster their monopoly on food concessions at the United Center in violation of Section 2 of the Sherman Act (15 U.S.C. sec 2.). 55. Defendant's refusal to allow peanuts in the United Center, coupled with the absence of a legitimate business purpose for doing so, amounts to a refusal to deal with Plaintiffs as competitors in violation of Section 2 of the Sherman Act (15 U.S.C. sec. 2.) 56. Defendant's actions which constitute a violation of the Antitrust provisions have proximately caused damage and economic loss to Plaintiffs. Count II Interference with Business and Prospective Advantage 57. This Count II is a common law tort claim brought pursuant to the Court's pendant jurisdiction for state claims. 58. Plaintiffs had a reasonable expectancy of entering a valid business relationship with United Center patrons, that is the sale of peanuts to such patrons. 59. Defendant had knowledge of Plaintiffs' reasonable expectancy of entering a valid business relationship with United Center patrons. 60. Defendant's actions in interfering with the reasonable expectancy were intentional and malicious. 61. The failure of United Center patrons to enter into the valid business relationship with Plaintiffs, and to purchase their peanuts, was due to the actions of Defendant. 62. As a direct proximate result Defendant's actions in interfering with the reasonable expectancy Plaintiffs suffered damage including loss of sales and lost profits. 63. Punitive damages are appropriate to punish Defendant for its wilful and malicious actions, and to deter others from such actions. Injunctive Relief Sought 64. Plaintiffs seek immediate and permanent relief on their claims in Count I and Count II of the Complaint because Plaintiffs will be irreparably damaged if the ban on peanuts in the United Center continues as presently dictated by the Defendant. 65. Plaintiffs are suffering and will continue to suffer injury as a result of Defendant's alleged misconduct. 66. Plaintiffs do not have an adequate remedy at law to prevent Defendant from violating their interests in the sale of peanuts to United Center patrons, and money damages alone cannot compensate Plaintiffs for the violation of their rights. 67. Plaintiffs have a clear and ascertainable right to protection of their legitimate and reasonable rights, including the value of the sales of their peanuts to patrons of the United Center. 68. Plaintiffs are likely to prevail on the merits of their claims in Count I and Count II. 69. Defendant should be prohibited and enjoined from resuming the ban on peanuts and other food items in the United Center in any manner other than that which previously existed. 70. Plaintiffs request that this Court enter an order that the Defendant resume the previous policy of allowing patrons to bring peanuts into Chicago Blackhawks games, Chicago Bulls games, and other events at the United Center. 71. By Defendant's actions Plaintiffs have been denied the opportunity to sell their peanuts to patrons of the United Center, and Plaintiffs request that this Court enjoin Defendant from enforcing the ban on peanuts brought in the United Center. 72. Defendant should be prohibited and enjoined from enforcing its ban on peanuts brought in the United Center. WHEREFORE, Plaintiffs demands judgment in their favor and against Defendant, and pray for the following relief: A. That the monopolization, and the predatory, anticompetitive and exclusionary acts committed in furtherance thereof, be adjudged a violation of Section 2 of the Sherman Act (15 U.S.C. sec. 2.); B. That Plaintiffs be awarded damages for their lost profits from the sale of peanuts outside the United Center, including compensatory damages in excess of $1,000,000, or such other compensatory damages which shall be proven at trial; C. That Plaintiffs be awarded treble damages determined to have been sustained by each of them due to the monopolistic conduct of the Defendant, and that judgment be entered against Defendant; D. That Defendant be enjoined from any further predatory, anticompetitive and exclusionary conduct by which their unlawful monopoly on food concessions has been maintained; E. That Defendant be enjoined from banning peanuts in the United Center; F. That Plaintiffs recover from Defendant the costs of this suit and reasonable attorneys fees in accordance with Section 4 of the Clayton Act (15 U.S.C. sec. 15); G. Punitive damages in excess of $2,000,000; H. Plaintiffs demand trial by jury of all matters so triable pursuant to Rule 38(b) of the Federal Rules of Civil Procedure; and I. That Plaintiffs have such other and further relief as the Court may deem just and proper. Respectfully submitted, ___________________________ Attorney for Plaintiffs Donald G. Weiland Attorney for Plaintiffs 135 S. LaSalle, Ste. 2140 Chicago, IL 60603 (312)782-1403 Mark Weinberg Attorney for Plaintiffs 3612 N. Tripp Chicago, IL 60614 (Back to OPENAIR-MARKET NET)