Starbucks lawsuit: "ambition, insatiable and unchecked"


Starbucks in an office buildingA small retailer based in the affluent city of Bellevue, across Lake Washington from Seattle, has sued Starbucks Corporation (NASDAQ: SBUX), alleging that the Seattle coffee giant's ambition which the suit characterizes as "insatiable and unchecked" results in an effective monopoly of the industry.

Often, when I spy a headline somewhere about another lawsuit against Starbucks, it's generally along the lines of a customer with a scorched lip -- or defective cup lid, as in one which a judge just threw out. But competitors sues Starbucks, as do labor, consumer, and other groups.

The lawsuit du jour is initiated by Penny Stafford, owner of Belvi Coffee and Tea Exchange. Stafford claims says she "was locked out of the best office space in Bellevue and Seattle by Starbucks' exclusive leasing agreements with landlords" according to a Seattle Times story. Such agreements for coveted food and beverage service space in high-rise office buildings are not uncommon. But Stafford's claims that 78% of Bellevue "Class A" office sites are effectively locked up for Starbucks.

Stafford did manage to rent space inside one deli to sell espresso, and found herself competing with free samples given out to customers by employees of the nearest Starbucks, who visited the deli as many a four times a day with samples, she claims. Stafford's deli business went under. She maintains her original location near that same site.

Stafford and her legal team aren't looking to go it alone. The lawsuit is seeking status as a class-action.

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Last updated: February 10, 2012: 03:35 PM

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