Antitrust Law Daily Wrap Up, ANTITRUST—WDPenn: Disclosure Request for Settlement Agreement Denied in Flat Glass Antitrust Litigation, (Apr 22, 2013)

By Tobias J. Gillett, J.D., LL.M.

In a price fixing class action action brought on behalf of purchasers of construction flat glass, defending glass manufacturers may not obtain discovery of a settlement agreement between the purchasers and a manufacturer dismissed from the case, the federal district court in Pittsburgh has ruled (In Re: Flat Glass Antitrust Litigation, April 19, 2013, Ambrose, D.).

A class of purchasers of construction flat glass in the United States filed suit against manufacturers of the glass, alleging that they conspired to fix its price in violation of Section 1 of the Sherman Act. The defendant PPG Industries Inc. later entered into a settlement agreement with the purchasers, and was dismissed from the lawsuit.

In the present motion, the manufacturers sought discovery of the settlement agreement, contending that it would be relevant as evidence of an offset to damages against the remaining defendants, and to potential bias or prejudice of potential witnesses from PPG.

The court rejected these arguments. The manufacturers’ contentions regarding the potential bias of "any PPG witnesses" amounted to merely "[b]road assertions," insufficient to support "discovery of a confidential release." Moreover, the purchasers had stated their intention not to call any witnesses from PPG.

Furthermore, any potential offset to damages could be addressed after the verdict had been entered. Although the degree of the manufacturers’ liability would be relevant to potential settlement negotiations, "relevance to settlement negotiations is not relevant to the subject matter of the action, as contemplated by applicable rules and standards," according to the court.

The case is MDL No. 1942.

Attorneys: Christopher G. Emch (Foster Pepper PLLC) for JELD-WEN, Inc. George E. McGrann (Schnader, Harrison, Segal & Lewis) for AGC America, Inc.

Companies: JELD-WEN, Inc.; AGC America, Inc.

Cases: Antitrust PennsylvaniaNews