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Doron Precision Sys. v. FAAC, Inc.

United States District Court for the Southern District of New York

March 23, 2006, Decided ; March 23, 2006, Filed

05 Civ. 7663 (PAC)



HONORABLE PAUL A. CROTTY, United States District Judge:

Plaintiff Doron Precision Systems, Inc. filed this lawsuit against FAAC, Inc., a private company, and the New York City Transit Authority, a public transit authority, alleging violations of the Sherman Antitrust Act, 15 U.S.C. §§ 1 and 2, and the Donnelly Act (New York's antitrust law), N.Y. Gen. Bus L. § 340(1), as [**2]  well as violations of a variety of New York state  [*176]  laws governing competitive bidding by public entities and the proper use of public funds. Defendants FAAC and NYCTA now move to dismiss Doron's amended complaint for failure to state a claim pursuant to Federal Rule of Civil Procedure 12(b)(6) ("Federal Rule 12(b)(6)"). For the reasons set forth below, the Court grants the motions to dismiss.


Plaintiff Doron Precision Systems, Inc. ("Doron" or "Plaintiff") is a small company located in Binghamton, New York. (Am. Compl. P1.) It specializes in the manufacture and sale of electronic educational systems, such as educational television systems and driving simulators. 1 [**3]  (Id. P14.) Doron has sold computer-aided driving simulators to public transit authorities for almost eighteen years, selling the first system to Broward County Transit in June 1988. 2 (Id. PP23-24.)

Until 1999, Doron was the only manufacturer of computer-aided bus-driving simulators for public transit agencies in the United States. (Id. P28.) Other companies, including such formidable companies as General Electric and Lockheed Martin, attempted to manufacture and sell similar products, but none of them was able to compete successfully in the marketplace, thereby leaving Doron as the only major player in the market. (Id. P27.)

In 1999, Doron lost its long-held monopoly when Defendant FAAC, Inc. ("FAAC") entered the market. Prior to 1999, FAAC, a Michigan company, specialized in manufacturing simulators primarily for truck and military applications, and had never manufactured or sold driving simulators to the bus industry. (Id. PP29, 31.) In February 1999, however, FAAC contracted with Defendant New York City Transit Authority [**4]  ("NYCTA") to convert FAAC's existing truck-driving simulator into a bus-driving simulator that rivaled Doron's product. (Id. PP29, 30, 32.)

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423 F. Supp. 2d 173 *; 2006 U.S. Dist. LEXIS 12795 **; 2006-2 Trade Cas. (CCH) P75,344



simulator, immunity, authorities, public transit, Defendants', antitrust, bid, alleges, anti trust law, specifications, Sherman Act, motion to dismiss, anticompetitive, consumer, amended complaint, bus-driving, driving, competitive bidding, competitor, marketing, training, anticompetitive conduct, oral argument, lobbying, tailored, restraint of trade, computer-aided, procurement, geographic, conspiracy

Civil Procedure, Defenses, Demurrers & Objections, Motions to Dismiss, Failure to State Claim, Evidence, Judicial Notice, Adjudicative Facts, Verifiable Facts, Antitrust & Trade Law, Regulated Practices, Private Actions, General Overview, Market Definition, Sherman Act, Claims, Sherman Act, State Regulation