DOJ Seeks to Block No Contest Plea in Airline Price-Fixing Case

In U.S. v. Florida West International Airways Inc. et al., The U.S. Department of Justice urged the judge weighing a no-contest plea by Florida West International Airways Inc., in a criminal price-fixing case, to explain his decision.  In this case, the DOJ has accused Florida West and its former vice president of conspiring to rig shipment prices on northbound cargo shipments from Colombia to Miami.  Florida West, however, claims that its former vice president was secretly employed by and acted at the behest of another carrier and that the company should not be held responsible for his actions.

In its motion challenging Florida West’s nolo contendere plea, the DOJ asked Southern District of Florida Judge Robert N. Scola Jr. to “ensure the completeness” of the record if he agrees to let the airline enter such an unusual plea by outlining which factors he used to decide the plea was appropriate and explaining how each factor applied to the specifics of the case.  The DOJ claims that a nolo contendere plea, which can’t be used to establish civil liability, would allow Florida West to accept a penalty without actually admitting to any antitrust violations.  Florida West has argued that the plea is appropriate given the unusual circumstances of the case.  In early June, the judge indicated that he was inclined to accept the plea and set the case for a July 23 hearing to take it.

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