Eastern District Of California Uncertain Of Legality Of Joint Bidding Venture On Motion For Summary Judgment
In early 2003, California's San Joaquin County decided to establish zones within the county which would be provided ambulance services by one exclusive provider. American Medical Response, Inc. ("AMR"), a corporation that provides ambulance services throughout the nation, the City of Stockton (the "City"), and the City of Lodi entered into what they entitled a "Joint Venture Agreement," in which they agreed to submit a joint bid to the county to provide exclusive ambulance services. The agreement contained a provision stating that any party that withdrew from the agreement could not submit an independent bid to the county. Over the course of the next year, the relationship between AMR and the City deteriorated and AMR withdrew from the agreement and announced its intention to submit its own bid to the county. The City brought breach of contract and breach of fiduciary duty claims against AMR. AMR moved for summary judgment on those claims on the ground that the Joint Venture Agreement was null and void because it violated Section 1 of the Sherman Act. In American Medical Response, Inc. v. City of Stockton, No. CIV-S-05-1316 DFL PAN (E.D. Cal. March 29, 2006), the Eastern District of California denied this motion.
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