For years, competing trash haulers Pat Cartalemi and Andrew McGuire have been buddies, often speaking to one another several times a week.
But now Cartalemi’s AAA Carting & Rubbish Removal is suing his friend and Capital Industries for $1 million for allegedly interfering with business.
“Capital and Andy have been engaged in a course of conduct designed to induce AAA Carting’s customers to breach their contracts with AAA,” according to a complaint filed on April 3 in Westchester Supreme Court, “and switch to Capital for their required waste hauling needs.”
Both companies haul trash for residential and commercial customers. Cartalemi is the office manager for AAA, in Cortlandt Manor. Andrew McGuire is an officer, and his father, George, is the president, of Capital Industries in Yonkers.
Capital Industries recently began targeting AAA customers, according to the complaint, after Cartalemi and Andrew McGuire had a falling out. The nature of the dispute was not described.
Capital allegedly offered AAA customers artificially low rates to switch service and told the customers they need not worry about breaking their contracts because their deals were too small for AAA to litigate.
In one instance, the complaint states, the operators of a “mom and pop” diner that Capital employees frequented were told that the employees would no longer eat there unless its business was switched to Capital.
Some AAA customers agreed to remain with the company only if the rates matched Capital’s low rate, according to the complaint.
AAA customers that were not under contract also allegedly switched to Capital for lower rates or made deals to stay at the lower rate.
Manhattan attorney Nicholas R. Caputo charged Capital Industries and George and Andrew McGuire with interference with contracts and unfair business practices.
Capital did not reply to a message asking for a response to the allegations.
AAA also demanded unspecified damages from 14 former customers for allegedly breaching their contracts. The businesses include an auto body shop, bakery, beverage company, car wash, deli, furniture store, gas station, grocery, household goods store, liquidator, restaurants, and a tattoo studio.
