On January 14, 2008, Sprawl-Busters reported that Demoulas Super Markets Inc. of Tewksbury, Massachusetts, the parent company of Market Basket supermarkets, and owner of the Market Basket Plaza on Route 138 in Raynham, Massachusetts, had filed a lawsuit against a proposed Wal-Mart in Raynham. Demoulas filed their lawsuit in May of 2005, naming the Raynham Planning Board and Wal-Mart as defendants. Demoules challenged the legality of a Planning Board vote made on May 2, 2005 to grant Wal-Mart a special permit, paving the way for a 208,622-s.f. superstore at the former Par 3 golf course, located next to the Market Basket Plaza, close to the Taunton line. Demoulas says the Planning Board made its decision without full review of plans and without proper consideration of the impact of increased traffic on area roads. Demoulas seeks to overturn a decision by the Planning Board to accept a subdivision and a site plan under one heading, after waiving a review of the subdivison plan. Demoulas says the board failed to fully consider evidence during the public hearings phase of the project. The Planning Board did not consider the negative impact of increased traffic and the impact of an offer by Wal-Mart to pay for new traffic lights along the Route 138 corridor, as well as a new traffic light at the entrance to their store. The superstore is projected to raise traffic by 40% near the site. Demoulas asserts that the proposed traffic light near the Wal-Mart entrance is too close to a traffic light located in front of their plaza. This will create traffic delays and gridlock along the two-lane Route 138 roadway. This week, the closing arguments in the case were heard in Superior Court in Fall River, Massachusetts. The Demoulas lawsuit has cost Wal-Mart a three year delay. The trial, which is a non-jury trial, lasted about seven weeks. Superior Court judge Robert Cosgrove now has the final decision to make, and it could take months for him to make it. According to the Taunton Gazette, Attorney Julie Pruitt Barry, representing Demoulas, said that the Wal-Mart superstore would add roughly 11,000 added cars on Route 138, which would create “a potential and undisputed increase in traffic created by Wal-Mart.” She said Demoulas was not motivated by “a fear of competition,” because Market Basket customers are very loyal. “They go to Demoulas supermarkets because of the price and quality,” Barry explained. She charged that the Planning Board “exceeded its authority and abused its discretion,” by granting a sewer extension without first seeking approval from residents at a town meeting. Wal-Mart’s lawyer said the real reason for the lawsuit was increased competition to Market Basket. “It’s clearly the 500-pound gorilla that’s been sitting in the corner during every day of the trial,” Wal-Mart’s lawyer said. “Let’s talk about what really is at issue.” Wal-Mart described Demoulas’ case as “flimsy,” and “threadbare,” and urged the Judge not to consider issues over environmental and economic impacts that were ruled out in previous court decisions. The two sides disagreed over the issue of sewer service to the site. Demoulas said that the city of Taunton believes that Wal-Mart has to get the city’s approval to install a 2,000 foot extension of sewer pipe. Wal-Mart said it does not need Taunton’s approval. The Mayor of Taunton said in 2005 that “the construction of Wal-Mart on Route 138 will be devastating to Taunton. Taunton will get all the traffic while Raynham gets all the fees and tax revenues.”
It’s not often that you see one retailer take on another in court. In this case, Demoulas has deeper pockets than the usual opponent Wal-Mart faces. Citizens groups have to struggle to raise the cash to go toe-to-toe with Wal-Mart. That will not be a problem for Demoulas. Market Basket stores are a major discount competitor in Massachusetts, and the company has a reputation for low-cost groceries. If Demoulas is unhappy with the court decision, it is expected that they will continue their legal challenge against the superstore, which is targeted at them anyway. It makes sense for Demoulas to spend its legal money now, to avoid larger losses later. Demoulas operates roughly 60 supermarkets in Massachusetts and New Hampshire. Readers are urged to call Demoulas (this privately held company has no website) at 978-851-8000, with this message: “Good luck with your battle against Wal-Mart in Superior Court. Raynham already has a Wal-Mart supercenter less than 10 minutes away. Thanks for taking them on, and good luck in pursuing your legal rights — no matter how large the opponent.”
