In re Foundry Resins Antitrust Litigation

242 F.R.D. 393, 2007 WL 1346569
CourtDistrict Court, S.D. Ohio
DecidedMay 2, 2007
DocketNo. 2:04-md-1638; Master Docket No. 2:04-cv-415
StatusPublished
Cited by16 cases

This text of 242 F.R.D. 393 (In re Foundry Resins Antitrust Litigation) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Foundry Resins Antitrust Litigation, 242 F.R.D. 393, 2007 WL 1346569 (S.D. Ohio 2007).

Opinion

OPINION AND ORDER

FROST, District Judge.

This matter is before the Court for consideration of Plaintiffs’ June 30, 2006 Motion for Class Certification and Appointment of Class Counsel (Doc. # 165), Defendants’ February 23, 2007 Motion to Strike Report and Exclude Testimony of Plaintiffs’ Class Expert (Doc. #202), and Plaintiffs’ February 28, 2007 Motion to Strike Defendants’ Motion to Strike Report and Exclude Testimony of Plaintiffs’ Class Expert (Doe. #207). For the reasons that follow, this Court DENIES AS MOOT Plaintiffs’ motion to strike (Doc. # 207), DENIES Defendants’ motion to strike (Doc. #202), GRANTS Plaintiffs’ certification motion (Doc. # 165), and ORDERS the certification of the proposed class as modified in the reply memorandum, as well as the requested certification of class representatives and appointment of class counsel.

I. Background

This multi-district litigation involves a purported antitrust conspiracy in which Defendant Hüttenes-Albertus Chemische Werke GmbH (“HA”) allegedly conspired with various domestic companies to fix prices and competition in the foundry industry. The named plaintiffs, a group of resin purchasers, contend that within a few years after its 1998 entry into the United States foundry resins market by forming Delta-HA, HA met with its chief domestic competitors, Defendants Borden Chemical, Incorporated (“Borden”) and Ashland Incorporated (“Ashland”), in various countries.

Plaintiffs contend that one such meeting occurred in the Dominican Republic in late 2000 or early 2001. This meeting allegedly culminated in a 2001 merger or joint venture between HA and Borden creating HA International LLC (“HAI”). Another meeting between HA, Borden, and Ashland representatives 1 took place in Germany, and various company representatives also met later in Paris. In these and subsequent meetings summarized in Plaintiffs’ detailed filings, including meetings in Columbus, Ohio in 2002, Defendants allegedly worked to eliminate competing against one another, to allocate the American and European markets among the specific companies, and to fix the prices of foundry resins.

The purported end results of Defendants’ agreements were that the defendant companies did not compete against one another, even going so far as to issue non-competitive bids containing inflated quotes to avoid obtaining the other’s customers,2 and that they joined in issuing coordinated price announcements. The realized overall goal, according to Plaintiffs, was that the conspiracy participants obtained profit increases by controlling pricing (by setting conspiratorial minimum baselines or starting points for pricing) and not by soliciting new business from the other alleged conspiracy participants’ customers.

Plaintiffs have submitted documentary evidence arguably supporting these allegations. A May 24, 2002 e-mail from HAI employee [397]*397John Hart expressly indicated an intent to avoid poaching, or obtaining the business of, Ashland customers and advocated using “competitive intelligence” to quote inflated prices to ensure this result.

Two other documents, a September 13, 2001 internal Ashland memorandum produced in discovery and an affidavit from former Ashland employee Gary Strehl, indicate an intent to falsely attribute price increases to increased raw material costs. The memorandum states that although Ashland employee Rick Smith thought that the company would avoid a raw material price increase, he would like the industry to believe that Ash-land did incur the increase because it would provide an opportunity to raise prices in the marketplace. The Strehl affidavit echoes HAI’s similar reliance on false attribution of price increase causation and notes that even when their product formulations were not the same, Ashland made identical price increases when HAI raised its prices based on purported raw material cost increases.

According to other affidavit evidence submitted by Plaintiffs, former HAI salesman Todd Williams was ordered not to bid for an Ashland customer’s business at a price quote less than Ashland’s prices. He also indicates that the margins he was told to use were inflated so as to avoid securing business. When Williams violated that prohibition, handwritten notes on the price quote and a monthly report indicate that HAI voided the contract to prevent securing the business of the Ashland customer.3

Plaintiffs also point to circumstantial evidence such as Ashland announcing or memorializing periodic foundry resins price increases during the period of 2001 through 2003, followed by consequent HAI pricing modifications. Similar allegations pertain to furan resins price increases. Plaintiffs contend that these price lists involved inflating prices through mutual increases and/or controlled decreases, with the result being artificially controlled baseline pricing pervading even negotiated pricing for individual customers. The theory is that just as elevating the water level raises all ships, manipulating the baseline mínimums through increases or controlled decreases artificially elevates all pricing purchasing agreements with all customers, even though select customers might end up paying different amounts. The loss of actual competition influences the marketplace, which ceases to afford purchasers the benefit of genuine competitive pricing.

Based on this rationale, the various plaintiffs filed numerous antitrust actions throughout the country asserting horizontal price-fixing and market-allocation conspiracies. The Judicial Panel on Multidistrict Litigation transferred these cases to this Court (Doc. # 1), and the Court then consolidated the cases under the captioned cause (Doe. #2) and appointed interim lead co-counsel and liaison counsel (Doc. # 25). A period of various procedural and pleading activity followed. HA eventually moved for dismissal on the grounds that there was a lack of personal jurisdiction. (Doe. # 43.) After a period of related discovery and completion of the parties’ briefing on the jurisdictional issue, the Court denied the motion to dismiss. (Doc. # 138.)

Another period of discovery followed, with the parties focusing on the issue of class certification. Plaintiffs subsequently moved to certify a class and to appoint class counsel. (Doc. # 165.) Defendants opposed this motion and filed a motion to strike the report of and to exclude testimony by Plaintiffs’ expert, Dr. John C. Beyer. (Doe. # 202.) Plaintiffs responded by filing a motion to strike Defendants’ motion to strike. (Doc. #207.) The parties completed their briefing, and the Court entertained oral argument on all three motions on March 20, 2007. The motions are therefore ripe for disposition.

II. Motions to Strike

In support of their class certification motion, Plaintiffs have offered a report from their class expert, John Beyer. Through bloated briefing, Defendants move to strike the affidavit and to exclude Beyer from testifying on the grounds that because the evi[398]*398dence before the Court contradicts his opinions on impact and damages, his opinions fail to qualify as admissible expert testimony. (Doc. # 202.) The crux of Defendants’ argument is that Beyer has relied on gross over-generalizations while ignoring the realities of what customers actually paid and how the foundry resins market actually works.

Through equally obese briefing, Plaintiffs dispute these contentions and seek in turn to strike Defendants’ motion to strike.

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242 F.R.D. 393, 2007 WL 1346569, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-foundry-resins-antitrust-litigation-ohsd-2007.