Judge rules in favor of sulfuric acid buyers

Chicago-Judge David Coar of the U.S. District Court for the Northern District of Illinois recently ruled in favor of sulfuric acid buyers, allowing them to have class action status in a price fixing suit brought against producers. He defined the class as “all persons (excluding federal, state and local government entities and political subdivisions, the defendants, and their respective parents, subsidiaries and affiliates) who purchased sulfuric acid in the U.S. directly from one or more of the defendants or their parents, subsidiaries, affiliates, or joint ventures during the period Jan. 1, 1988 to Jan. 18, 2003.” The defendants include Falconbridge Ltd., Noranda Inc., Norfalco LLC, Pressure Vessel Services Inc., GAC Chemical Corp., Marsulex Inc., ChemTrade Logistics Inc., Intertrade Holdings Inc., and Koch Industries Inc. Another defendant, E. I. du Pont de Nemours & Co., settled with the plaintiffs in 2006 for $5 million. The plaintiffs are eyeing damages of $500 million, including treble damages and fees. The defendants have asked Judge Coar to reconsider. They have argued that sulfuric acid is marketed in multiple forms, strengths, and grades, and is distributed within specific geographic divisions. They argued it has localized business and distribution patterns and inconsistent pricing schemes. Likewise, they noted that some acid is produced as a byproduct and is produced independent of demand. Assuming the case does proceed to trial, Judge Coar said the plaintiffs must show a “conscious commitment to a common scheme designed to achieve an unlawful objective.”