COUNCIL BLUFFS, Iowa — Martin Bros. Distributing Co. has agreed to pay $1.9 million to settle a lawsuit claim that it had a monopoly in the bidding process for distributing food at hundreds of Iowa schools for 14 years.
Defendants in the lawsuit were the distributor as well as Iowa Educators Corp. and its 2011 successor, the Iowa Association for Educational Purchasing, which purchases food and other items in volume for lower prices.
The suit, which was brought in Dallas County District Court, alleges the defendants created a monopoly by designating Martin Bros. as the only distributor that could get access to lower prices negotiated for food served in many Iowa schools.
The complaint says Martin Bros. obtained a no-bid contract as the prime distributor in 2000 and 2001. Its bid in 2002 was not the lowest bid, the lawsuit alleges, and no further bids were sought until 2007.