Federal Court Jury Awards Verdict Worth $20 Million in Antitrust Case Against Johns Manville
May 03 2024 - 8:26PM
Business Wire
Olson Grimsley: Company made systematic,
illegal attempt to maintain monopoly
A federal court jury in Denver has found in favor of
manufacturer Thermal Pipe Shields, Inc. (TPS) in its antitrust case
against Johns Manville Corporation, a Berkshire Hathaway Company,
and awarded TPS $6.78 million. Because the law calls for treble
damages, the award is worth $20.35 million, plus attorneys
fees.
The verdict, in the U.S. District Court for the District of
Colorado, follows a nearly five-year battle over calcium silicate
pipe insulation, known as “calsil,” which is used on industrial
systems operating at extreme temperatures. Before TPS entered the
market in 2018, Johns Manville manufactured and sold over 95% of
the calsil in the United States.
Testimony in the case showed that when TPS began selling a
higher quality and less expensive calsil product, Johns Manville
maintained its monopoly power by threatening distributor customers
who considered using the TPS product, and by making disparaging
statements about it. In 2019, TPS sued Johns Manville under the
Sherman Antitrust Act.
“We are grateful that the jury recognized Johns Manville’s
wrongful conduct,” said attorney Eric Olson, founding partner of
Olson Grimsley Kawanabe Hinchcliff & Murray, who, along with
attorneys Sean Grimsley and Isabel Broer, and paralegal Katie
Wright, represented TPS at trial. “This country was built on fair
competition, and consumers should not have to pay higher prices
because large companies violate the antitrust laws. No matter how
powerful, no company is above the law. We are thrilled that TPS is
now able to freely compete in the marketplace.”
In 2022, a lower court dismissed TPS’ claims, but the U.S. Court
of Appeals for the 10th Circuit reversed the ruling in 2023. In its
reversal, the 10th Circuit focused on internal Johns Manville
documents that outlined a strategy of threats, rather than fair
competition, using phrases such as “bring the sword” and telling
its salesforce to warn customers that buying TPS’ competing product
“will significantly alter your company’s relationship with Johns
Manville.”
“I want to thank Sean, Isabel, Eric and the team at Olson
Grimsley who did a tremendous job,” said TPS President David Shong.
“And my thanks to the jurors as well, who were willing to put our
small company on a level playing field with the giant that is Johns
Manville. I appreciate the jury for hearing our story and finding
as it did.”
The case is Chase Manufacturing, Inc. d/b/a Thermal Pipe Shields
v. Johns Manville Corporation, No. 1:19-cv-00872 in the U.S.
District Court for the District of Colorado.
About Olson Grimsley
Olson Grimsley Kawanabe Hinchcliff & Murray LLC is a
national law firm headquartered in Denver, with the mission of
holding the powerful to account. Prior to founding the firm, the
team of talented litigators handled some of the country’s most
significant civil rights, antitrust, mass tort, consumer, and
environmental cases in courthouses from California to New York, and
from rural Arkansas to the U. S. Supreme Court. They are now
focusing their expertise to advocate for plaintiffs in the most
consequential trials and appeals nationwide. This trial win comes
on the heels of a March 2024 verdict of $60 million for an Olson
Grimsley client against a premature infant formula manufacturer.
More information at: olsongrimsley.com.
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