Daniel Jowell QC, Brick Court Chambers Daniel Beard QC, Monckton Chambers Dr Cristina Caffarra,...
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![Page 1: Daniel Jowell QC, Brick Court Chambers Daniel Beard QC, Monckton Chambers Dr Cristina Caffarra, Charles River Associates THE DOW AND NATIONAL GRID LITIGATION.](https://reader036.fdocuments.us/reader036/viewer/2022062320/56649d6f5503460f94a50bfb/html5/thumbnails/1.jpg)
Daniel Jowell QC, Brick Court ChambersDaniel Beard QC, Monckton ChambersDr Cristina Caffarra, Charles River Associates
THE DOW AND NATIONAL GRID LITIGATION
LESSONS FROM RECENT FOLLOW-ON DAMAGES CASES:
23 September 2014, Herbert Smith Freehills LLP
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DANIEL BEARD Q.C.
NATIONAL GRID V ABB & ORS
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DANIEL JOWELL Q.C.
COOPER TIRE V DOW
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The drunken woman and her dog, the blindfolded man walking across a bar,
and the man looking for his keys under the lamppost…
A tale of cartel overcharges
Cristina Caffarra, 23 September 2014
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Issues
• Complexity
• Link between quantitative analysis and factual evidence
• Prior beliefs
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Synthetic rubber
Jan 92 Jan 94 Jan 96 Jan 98 Jan 00 Jan 02 Jan 04 Jan 06 Jan 08 Jan 10
price cost excess demand
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Deflated using correct cost index: no overcharge
Deflated using incorrect cost index:positive overcharge
45
67
8P
rice
1990 1995 2000 2005 2010 2015Year
Observed (Nominal) pricesCorrectly-deflated pricesDeflated prices with overly-steep index
GIS: Choice of index makes overcharge find more likely
Deflating by wrong index can lead to finding overcharge when none exists
Indices with steep s-shape make finding overcharge more likely
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RELEVANT FACTUAL EVIDENCE ON OVERCHARGE
• Nature of the cartel: were the terms clear and specific?
• Transparency: could adherence to the cartel be monitored?
• Buyer power/buyer resistance • Substitute products outside cartel (e.g. natural rubber)• Existence of producers within the region outside the
cartel (Kaucuk/TS)• Import of the products from outside the region• Non compliance/cheating; absence of enforcement
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THE DEUTSCHE BAHN ISSUE
• Original Commission decision: Kaucuk and Trade Stomil cartelists• Original pleading: Kaucuk and Trade Stomil defendants • Case T-44-45/07, T-53/07 General Court: Kaucuk and Trade Stomil not
cartelists• Amended pleading: claim against Kaucuk and Trade Stomil withdrawn,
but umbrella claim in respect of their sales against other Ds • Case C-557/12 Kone • Deutsche Bahn [2014] UKSC 24 esp. paras. 27-28• Re-Amended pleading: Dow jointly and severally liable for K and TS sales• Cooper Tire v Dow Deutschland [2014] EWHC 1578 (Comm) –
amendment allowed, no reference yet as “no doubts” as to Supreme Court’s approach
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DANIEL BEARD Q.C.
PASS ON ISSUES IN NATIONAL GRID
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Indirect purchasers/passing on
Bad plc
Passin’ Thru LTD Low Margin Co.
Kind Ltd Sweet Ltd Innocent Ltd
x + £1 x + £1
y + £1 y y
BIG plc Ugly plc
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Indirect purchasers/passing on
Bountiful plc
Buyer power inc Mega dist co.Y
Optimist Chancer
x + £1x + £1
Beautiful plc Unjustified criticism plc
Fleecer
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Indirect purchasers/passing on
Bountiful plc
Buyer power inc
Pretty much everyone
x + £1
Beautiful plc Unjustified criticism plc
Regulatory controls
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a ladder
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SETTLEMENT TACTICS
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QUESTIONS?