Industry News
A New York State Supreme Court judge has ruled that Intermountain Management, the owner of Labrador and Song Mountains, violated state antitrust laws when it acquired and shut down nearby Toggenburg Mountain, its primary competitor. The decision, issued by Judge Robert E. Antonacci II, is a major win for New York Attorney General Letitia James, whose office filed the lawsuit in 2022.
According to reporting from FingerLakes1.com, the court found that Intermountain “illegally stifled competition” by purchasing Toggenburg in 2021 and immediately closing it, all while taking steps to ensure it couldn’t be reopened by future owners. That included placing a deed restriction on the property that prevents its use as a ski resort and signing a non-compete agreement with Toggenburg’s sellers. The five-year agreement blocks them from launching a new ski operation within 30 miles and from hiring any current Intermountain employees.
James said the company’s strategy harmed local skiers and families who had long benefited from competition between the area’s three main resorts. “This experience went downhill fast after Intermountain bought Toggenburg,” she said in a statement, accusing the company of paying a premium not to expand, but to eliminate a rival and secure a local monopoly.
The Press & Sun-Bulletin reported that James’ office presented evidence showing that Intermountain’s owners, Peter Harris and Richard Sykes, had pursued the acquisition for years. They allegedly used social relationships to build trust with Toggenburg’s former owner before staging what the lawsuit described as a “faux buy” through a third party to mask their intentions.
In addition to the deed restrictions and non-compete clause, the court ruled that Intermountain’s “no-poach” agreement—designed to prevent employee movement between companies—had no legitimate business purpose and was unlawful. The case is part of a broader effort by the Attorney General’s office to crack down on anti-competitive practices across New York.
Further proceedings will determine the penalties Intermountain may face and what remedies may be imposed.
