Facts

The parties are retail propane companies that compete in the High Desert region. Plaintiff Silver Valley Propane Inc. is a retailer serving the Barstow-Newberry Springs-Yermo-Daggett area, which has a customer base of about 2,500. Plaintiff serves approximately 64-68 percent of the relative market share, or about 1,700 to 1,800 customers. Plaintiff also serves the Lucerne Valley-Apple Valley (LVAV) area.

Defendant Lamanco/KELLY is a retailer of propane servicing the LVAV area. Lamanco/KELLY provided the startup capital for K&L and SKYFIRE. SKYFIRE is also a propane retailer servicing the same area as Lamanco/KELLY. Plaintiff alleged that SKYFIRE and K&L's pricing structure is 25-33 percent lower than KELLY.

SVP claimed it had been damaged by defendants' violations of the UPA. Defendants filed a cross-complaint against SVP and its president.

PLAINTIFF'S CONTENTIONS:
The plaintiff contended that the defendant engaged in below-costs sales of propane and price discrimination.

DEFENDANT'S CONTENTIONS:
The defendant denied the allegations.

Settlement Discussions

The plaintiff demanded in excess of $1 million. The defendants offered to pay $300,000.

Damages

The plaintiff alleged loss of business and future business. Plaintiff's expert testified that actual damages were $459,000 (before trebling).

Result

A jury originally found defendants liable and awarded damages in the amount of $329,760, which the court trebled to $989,280 pursuant to a mandatory provision of the Business and Professions Code. The court of appeal ordered a new trial on the issue of damages. The parties waived a jury for the second damages trial. The court awarded $19,865 in actual damages and $27,623 in treble damages.

Other Information

The plaintiff filed a motion for $244,000 in attorney's fees. That motion is off-calendared pending plaintiff's appeal. The plaintiff has appealed the second trial decision. After the first trial, the court granted a motion for new trial on the issue of damages and plaintiff appealed. The court of appeal ordered a new trial on the issue of damages. FILING DATE: Nov. 25, 2002.

Length

11 days