Great Atlantic & Pacific Tea seeks damages from union for interference

By Lisa Kerner

Charlotte, N.C., Feb. 25 - The Great Atlantic & Pacific Tea Co. Inc. filed an adversary complaint against Local Union No. 863 alleging tortuous interference with its business and seeking damages of at least $4 million plus attorneys fees, according to a Friday filing with the U.S. Bankruptcy Court of the Southern District of New York.

A&P accuses the union of "illegal secondary boycott activity" for threatening, coercing and restraining its customers and suppliers daily at more than 20 stores throughout New York, New Jersey and Maryland since Feb. 2.

The defendant and its representatives, among other things, have held large-scale demonstrations, blocked blocking entrances to stores and falsely told customers that certain stores were closing, the filing said.

The boycott stems from A&P's rejection of a transportation contract with Grocery Hauler's Inc. in favor of an arrangement with C&S Wholesale Grocers, Inc.

Local Union No. 863, affiliated with the International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, is the labor union representing current and former employees of Grocery Hauler's, which prior to Feb. 6 had transported merchandise to certain A&P stores from warehouse facilities in Woodbridge, N.J. owned and operated by C&S.

C&S closed the Woodbridge facility on Feb. 6 but continued operating other warehouse facilities located farther away from the stores.

A&P ran a competitive bid process and determined that C&S could perform the required transportation services at a greatly reduced cost and for substantially less than GHI had offered, the filing said.

Great Atlantic & Pacific Tea, a Montvale, N.J.-based supermarket chain, filed for bankruptcy on Dec. 12. Its Chapter 11 case number is 10-24549.

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