NY AG – Judge Rules Against Ski Resort Owner on Closing of Toggenburg Mountain

New York State Attorney General (AG) Letitia James says she had won her lawsuit against Intermountain Management regarding the businesses purchase and then closing of Toggenburg Mountain in 2021. AG James says Toggenburg was Intermountain’s main competitor in the area and sued the company back in 2022, alleging the purchase created a monopoly in the area for Syracuse skiers and snowboarders.

AG James cited in her suit the monopoly caused higher prices and more crowded mountains; Intermountain Management owns Song Mountain and Labrador Mountain. James continued on to allege in the suit that Intermountain had a “no poach” provision that stopped Toggenburg’s owners from hiring Intermountain employees, which is illegal in New York State.

“Syracuse skiing families and workers long benefited from fierce competition among their local ski mountains, but this experience went downhill fast after Intermountain bought Toggenburg,” said Attorney General James. “Intermountain paid a premium price to destroy competition because its owners knew they could raise prices and profit more with a monopoly. Now Intermountain’s anticompetitive scheme is put on ice. I will always take action to protect consumers and workers from corporate monopolies who try to profit by shutting down the competition.”

After the shutting down of Toggenburg, AG James says, Intermountain publicly announced a deed restriction for Toggenburg that restricted future buyers from using the property as a ski resort ever again. During the same time as the deed restriction, Intermountain also paid the sellers of Toggenburg to sign a non-competition agreement that prohibited them from operating another resort within a 30-mile radius for 5 years; this agreement also prevented the sellers from hiring any Intermountain employees.

New York State Supreme Court Judge of the 5th Judicial District Robert E. Antonacci, ruled in favor of AG James’ suit, granting her office a motion for summary judgment. Judge Antonacci ruled Intermountain’s purchase of Toggenburg was an agreement to allocate markets which violated the state’s antitrust laws by reducing the options for season pass skiers and stifling competition.

“The court found that Intermountain purchased and shut down Toggenburg to drive up its profits by eliminating choice for consumers. The court also found that the “no-poach” agreement lacked any valid justification, and instead was meant to suppress competition. The court announced that further proceedings would be scheduled to decide the appropriate remedy for Intermountain’s anticompetitive conduct.”

AG James Office said in a release.