In re Application of Vestolit GmbH and Celanese Europe B.V.

CourtDistrict Court, D. Delaware
DecidedNovember 24, 2025
Docket1:24-cv-01401
StatusUnknown

This text of In re Application of Vestolit GmbH and Celanese Europe B.V. (In re Application of Vestolit GmbH and Celanese Europe B.V.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Application of Vestolit GmbH and Celanese Europe B.V., (D. Del. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE

In re Application of VESTOLIT GMBH and : Misc. No. 24-cv-1401- CELANESE EUROPE B.V., CFC

Applicants, To Obtain Discovery for Use in a Foreign Proceeding Pursuant to 28 U.S.C. 1782 Samuel Taylor Hirzel, HI, Elizabeth A. DeFelice, HEYMAN ENERIO GATTUSO & HIRZEL LLP, Wilmington, Delaware; J. Mark Gidley, J. Frank Hogue, Jaclyn Phillips, Alec Albright, WHITE & CASE LLP, Washington, D.C.; Graham W. Meli, WACHTELL, LIPTON, ROSEN & KATZ, New York, New York Counsel for Petitioners David A. Dorey, Gregory P. Ranzini, BLANK ROME LLP, Wilmington, Delaware; Kelsey M. Machado, BAKER & McKENZIE LLP, Houston, Texas; Carson J. Henderson, BAKER & McKENZIE LLP, Dallas, Texas Counsel for Respondent

MEMORANDUM OPINION

November 24, 2025 Wilmington, Delaware

Gt Ll COLM F.C OLLY CHIEF JUDGE Shell Chemical LP (Shell Chemical) has filed a Motion to Vacate Order Regarding Application to Obtain Discovery for Use in a Foreign Proceeding and to Dismiss this Action, to Quash the Subpoenas, or, Alternatively, for a Stay of the Proceedings. D.J. 27. I will grant the motion. I. BACKGROUND In July 2020, the European Commission ruled that four ethylene purchasers, including Vestolit GmbH (Vestolit) and Celanese Europe B.V. (Celanese), formed

a cartel in violation of antitrust law between 2011 and 2017. D.I. 7-1. The Commission found that the purchasers coordinated their price negotiation strategy to influence the ethylene Monthly Contract Price (MCP), an intermediate benchmark for ethylene prices, with the goal of lowering the ethylene sales price below the competitive level in Belgium, France, Germany, and the Netherlands. D.I. 7 995, 16; D.I. 29 9-11. The Commission imposed fines but did not make any findings about the collusion having actual effects on the market or lowering the price of ethylene. D.I. 7-1 971; DI. 7 J 16; D.I. 29 § 10. In March 2023, Shell Chemicals Europe, B.V. (SCE), an ethylene seller, sued the cartelists in a follow-on private damages litigation in the Amsterdam District Court (the Dutch Court). D.I. 7 995, 17-19; D.I. 29 § 22. SCE alleges in

its writ of summons filed with the Dutch Court that the cartelists are jointly and severally liable for acting in concert to keep the MCP artificially low, causing SCE

to sell ethylene and ethylene derivatives at a deflated price. D.I. 7-2 JJ 1-4; see 7 9§ 6, 17-19. In October 2023, SCE submitted to the court a report by the economic consultancy firm AlixPartners and a Damages Calculation Memorandum to substantiate its damages claim of over 1.2 billion in United States dollars. D.I. 29-1; D.I. 29-2; see D.I. 7 J] 20-21; D.I. 29 JF 22, 24. After disagreement between the parties about access to documents and confidentiality, the Dutch Court in February 2024 ordered the parties to maintain a “Confidentiality Ring” accessible only to the Defendants’ lawyers and external counsel and required SCE to disclose data underlying its damages calculation and AlixPartners’ report. D.I. 29-3; D.I. 29-4; D.I. 7 J 22; D.I. 29 4 23, 24; D.I. 37-1 91 8, 9. The Court also ruled that if Defendants required additional documents to validate SCE’s damages reports, they could enter further discussions with SCE and, if those discussions were unproductive, file briefs requesting discovery with the court by July 2024. D.I. 37-1 4 10; D.I. 29 4§ 25, 28. After SCE provided them various documents, the cartelists filed briefs in July and November confirming that they had all the data they needed related to the damages calculation. D.I. 29-6; D.I. 29-8; see D.I. 29 32-34; D.I. 37 Ff 12-13.

Separately, on March 27, 2024, Vestolit filed a discovery motion under Section 843a of the Dutch Civil Code of Procedure seeking documents from SCE

on margin data, pricing information, and other records to support its defense and a potential counterclaim of seller-side collusion. D.I. 29-10 J] 9.1, 9.4.21, 9.4.22;

see D.I. 7 FF 26, 27; D.I. 29 J§ 27, 36, 37. Vestolit alleged in the motion that preliminary investigations suggested that SCE was engaged in collusion with unnamed third-party suppliers to sell ethylene at higher prices than expected under prevailing market conditions, and it attached to the motion an expert report explaining that higher margins by suppliers during the infringement period indicated supply-side collusion. D.I. 29-10 9 9.1; D.I. 29-11; see D.I. 36-1 4 6.7. SCE filed a response in opposition to the motion in May 2024. D.I. 29-12; D.I. 29- 13; D.I. 29 38, 44. On October 16, 2024, while the discovery motion was pending, Defendants served SCE with two letters requesting more information from SCE: (1) a list of Shell Entities represented by SCE and copies of mandates authorizing SCE to act on the Shell entities behalf, and (2) ethylene sales margin data of SCE and SCE’s represented entities from 2010-2020 in Europe, North America, and Asia. D.I. 7- 5; D.I. 7-6; D.I. 7 9 30-32; D.I. 29 § 39. SCE’s original writ of summons stated that “[al]l Shell entities (potentially) affected by the Ethylene cartel have assigned

the collection of their respective claims by (indirect) mandate to SCE.” D.I. 7-2

q 14. Defendants requested the names of the impacted Shell entities and proof of a mandate to consider a potential pass-on defense (i.e., that SCE was able to “pass- on” its damages or the alleged ethylene undercharges to ethylene purchasing groups). D.I. 7 §§[ 6-8, 21. In November, SCE provided the cartelists Mandate Agreements from four of the Shell entities represented by SCE, including Shell Chemical. D.I. 7 934; D.I. 29 9 40. SCE declined to disclose ethylene margin data, explaining that it viewed the request as a fishing expedition and referring to the pending hearing on the 843a motion. D.I. 7-8; D.I. 7 9 35; D.I. 29 ¥ 41. On December 20, 2024, Vestolit and Celanese (collectively, Applicants) filed in this Court an ex parte Application pursuant to 28 U.S.C. § 1782 for an order to obtain discovery from Shell Chemical for use in an ongoing proceeding in a Dutch Court. D.I. 1. I granted the Application in part and denied it in part. 22 at 4. As relevant here, I granted the Application insofar as it requested leave to serve on Shell Chemical two subpoenas—te first for ten categories of documents and the second for a deposition of a corporate representative about topics similar to those categories. D.I. 22 at 4; see D.I. 6-2; D.I. 5 at 12. The information covered by the ten categories includes, among other things, “Mandates/Authorizations of SCE to Pursue the Dutch Damages Action,” “Shell’s

Cracker Margins,” “Ethylene Pricing and Ethylene-specific Margins,” and “Competitor Contacts, Industry Reports, and Document Hold.” D.I. 6-1 at 8-13; D.I. 5 at 11-12. Because the Application was ex parte, I expressly stated in the relevant order that “[n]othing in th[e] order shall be construed to preclude Shell Chemical LP from timely moving to quash a subpoena or from challenging alleged deficiencies in the Application.” □□□ 22 at 5. On March 12, 2025, Applicants served the two subpoenas on Shell Chemical. D.I. 23; DI. 24. On April 23, Shell Chemical filed the pending motion. D.I. 27. On May 7, before Applicants filed their answering brief in opposition to the motion, the Dutch Court denied Vestolit’s 843a Disclosure Motion. D.I. 36-1. The court found that for the time being, Vestolit has not shown a legitimate interest in ethylene margins for its defense or support for its supply-side collusion counterclaim and dismissed the request for remaining documents as a “fishing expedition.” D.I. 36-1 at 6-8.

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