Antitrust Law Daily Wrap Up, ANTITRUST—J.P.M.L.: Price fixing suits against manufacturers of cast iron soil pipes centralized in Chattanooga, (Feb 19, 2014)

By Jeffrey May, J.D.

The Judicial Panel on Multidistrict Litigation (JPML) has centralized in the federal district court in Chattanooga, Tennessee, a number of price fixing suits filed against manufacturers of cast iron soil pipes (CISPs). Centralization for pretrial proceedings was appropriate because the actions shared factual questions relating to the alleged eight-year-old CISP price fixing conspiracy. The federal district court in Chattanooga was selected because the “center of gravity” of the litigation was in the Southeast (In re Cast Iron Soil Pipe and Fittings Antitrust Litigation, February 18, 2014, Heyburn, J.).

The various actions were brought on behalf of virtually identical nationwide classes of direct and indirect purchasers of CISP, which is primarily used for sanitary and storm drain, waste, and vent piping applications. The defendants are McWane, Inc., AB&I Foundry, Tyler Pipe Company, Charlotte Pipe and Foundry Company, and Randolph Holding Company.

The federal district court in Chattanooga was an appropriate forum because the defendants and their trade association had their principal places of business in the Southeast. The primary witnesses and documentary evidence likely will be located in this region.

According to the JPML, the plaintiff in one potential tag-along action and defendants McWane, Tyler Pipe, and AB&I Foundry supported transfer to the federal district court in Chattanooga in the first instance or in the alternative, and all defendants supported selection of a district in the Southeast.

Judge Harry S. Mattice, Jr., was assigned the task of “steer[ing] the litigation on a prudent course.”

At the time of the motion for centralization pursuant to 28 U.S.C. § 1407, three of the four actions were pending in federal district courts in California and the other was filed in Puerto Rico. One of the first actions filed was A&S Liquidating Inc. v. AB&I Foundry, C.A. No. 3:13-04568. In that suit, it was alleged that the defendants announced identical price increases very close in time to one another and soon after Cast Iron Soil Pipe Institute trade association meetings. The plaintiff also alleged a violation of Sec. 7 of the Clayton Act, based on Charlotte Pipe’s 2010 acquisition and liquidation of new entrant Star Pipe Products, Ltd.’s CISP business.

Related FTC actions. In 2013, Charlotte Pipe resolved FTC concerns over its 2010 purchase of Star Pipe, under the terms of a consent order. Separately, the Commission recently found that McWane engaged in unlawful monopolization of the domestic pipe fittings market; however—in the absence of a majority decision—it dismissed agency allegations that the company engaged in a price fixing conspiracy and anticompetitive information exchange. Star Pipe settled FTC allegations in 2012.

This is MDL No. 2508.

Attorneys: Solomon B. Cera (Gold, Bennett, Cera & Sidener, LLP) for A&S Liquidating, Inc. Jon Vensel Swenson (Baker Botts LLP) for AB&I Foundry. Nathan Clifton Chase, Jr. (Robinson Bradshaw & Hinson, PA) for Charlotte Pipe and Foundry Co.

Companies: A&S Liquidating, Inc.; AB&I Foundry; Charlotte Pipe and Foundry Co.; McWane, Inc.; Randolph Holding Co.; Star Pipe Products, Ltd.; Tyler Pipe Co.

Cases: Antitrust