A Denver jury has awarded a small Washington firm $20.3 million plus authorized charges in its antitrust lawsuit in opposition to Johns Manville Corp., the Denver-based constructing merchandise maker owned by Berkshire Hathaway Co.
Thermal Pipe Shields Inc., or TPS, based mostly in Stanwood, Wash., is a maker of pipe assist techniques that beforehand had bought calcium silicate or “calsil” insulation from Johns Manville, which managed almost the whole marketplace for that product.
TPS in early 2018 introduced it might make the insulation itself with the assistance of a Chinese language producer that Johns Manville had beforehand contracted with. The insulation is vital in shielding pipes carrying sizzling liquids or gases, like in a petroleum refinery.
However gross sales didn’t go anyplace, regardless of what TPS claimed was its a lot lower-cost and higher-quality product. The corporate filed a federal criticism in March 2019 in Denver, alleging that Johns Manville had actively disparaged its industrial insulation and threatened constructing product distributors with retaliation in the event that they carried it.
A federal trial court docket decide initially dominated in Johns Manville’s favor, however the tenth District Court docket of Appeals despatched the case again to be tried on a narrower antitrust argument. When it lastly went to trial, witnesses from 5 completely different constructing product distributors testified concerning the threats they’d obtained.
On Friday, 5 years after the preliminary criticism, a federal court docket jury discovered that Johns Manville had a monopoly within the product, had made “anticompetitive” threats to withhold its merchandise from distributors that carried TPS’s competing product and that its actions violated federal antitrust guidelines.
“This was a hard-fought victory for our consumer who had the fortitude and endurance to face up for what’s proper. We’re grateful that the jury acknowledged Johns Mansville’s wrongful conduct. Regardless of how giant or highly effective, no firm is above the regulation,” stated Sean Grimsley, a associate with the Denver regulation agency Olson Grimsley Kawanabe Hinchcliff & Murray, which argued the case for TPS, in an emailed assertion.
The jury awarded TPS $6.78 million, the estimated revenue loss. As a result of it was an antitrust case, damages have been tripled, leading to an award of $20.3 million, plus authorized charges.
“As a authorized matter, we disagree with the decision,” stated Johns Manville Normal Counsel Katherine Albery in an emailed assertion. “We’ll rigorously consider our subsequent steps.”