Miami Prods. & Chem. Co. v. Olin Corp.

• Decision Date: 27 March 2020
• Docket Number: 1:19-CV-00393 EAW,1:19-CV-00386 EAW,1:19-CV-00385 EAW,1:19-CV-00403 EAW,1:19-CV-00392 EAW,1:19-CV-00480 EAW
• Citation: 449 F.Supp.3d 136
• Parties: MIAMI PRODUCTS & CHEMICAL CO., On Behalf of Itself and All Others Similarly Situated, et al., Plaintiffs, v. OLIN CORPORATION, et al., Defendants. Amrex Chemical Co., Inc., On Behalf of Itself and All Others Similarly Situated, Plaintiff, v. Olin Corporation, et al., Defendants. Midwest Renewable Energy, LLC, On Behalf of Itself and All Others Similarly Situated, Plaintiff, v. Olin Corporation, et al., Defendants. Main Pool and Chemical Co., Inc., On Behalf of Itself and All Others Similarly Situated, Plaintiff, v. Olin Corporation, et al., Defendants. Perry's Ice Cream Company, Inc., On Behalf of Itself and All Others Similarly Situated, Plaintiff, v. Olin Corporation, et al., Defendants. Finch Paper, LLC, On Behalf of Itself and All Others Similarly Situated, Plaintiff, v. Olin Corporation, et al., Defendants.
• Court: U.S. District Court — Western District of New York

449 F.Supp.3d 136

MIAMI PRODUCTS & CHEMICAL CO., On Behalf of Itself and All Others Similarly Situated, et al., Plaintiffs,

v.OLIN CORPORATION, et al., Defendants.

Amrex Chemical Co., Inc., On Behalf of Itself and All Others Similarly Situated, Plaintiff,

v.Olin Corporation, et al., Defendants.

Midwest Renewable Energy, LLC, On Behalf of Itself and All Others Similarly Situated, Plaintiff,

v.Olin Corporation, et al., Defendants.

Main Pool and Chemical Co., Inc., On Behalf of Itself and All Others Similarly Situated, Plaintiff,

v.Olin Corporation, et al., Defendants.

Perry's Ice Cream Company, Inc., On Behalf of Itself and All Others Similarly Situated, Plaintiff,

v.Olin Corporation, et al., Defendants.

Finch Paper, LLC, On Behalf of Itself and All Others Similarly Situated, Plaintiff,

v.Olin Corporation, et al., Defendants.

1:19-CV-00385 EAW

1:19-CV-00386 EAW

1:19-CV-00392 EAW

1:19-CV-00393 EAW

1:19-CV-00403 EAW

1:19-CV-00480 EAW

United States District Court, W.D. New York.

Signed March 27, 2020

C. Andrew Dirksen, Pro Hac Vice, Cera LLP, Boston, MA, Jason S. Hartley, Pro Hac Vice, Hartley LLP, San Diego, CA, Joseph Michael Vanek, Pro Hac Vice, Sperling & Slater, P.C., Chicago, IL, Marco Cercone, Rupp, Baase, Pfalzgraf & Cunningham, LLC, Buffalo, NY, Pamela A. Markert, Pro Hac Vice, Solomon B. Cera, Pro Hac Vice, Cera LLP, San Francisco, CA, for Plaintiff Miami Products & Chemical Co.

Arthur N. Bailey, Rupp Baase Pfalzgraf Cunningham LLC, Jamestown, NY, Elana Katcher, Jeffrey P. Campisi, Matthew P. McCahill, Robert N. Kaplan, Kaplan Fox & Kilsheimer LLP, New York, NY, Gary L. Specks, Pro Hac Vice, Kaplan Fox & Kilsheimer, Wheeling, IL, Jason S. Hartley, Pro Hac Vice, Hartley LLP, San Diego, CA, Joseph Michael Vanek, Pro Hac Vice, Sperling & Slater, P.C., Chicago, IL, Marco Cercone, R. Anthony Rupp, III, Rupp, Baase, Pfalzgraf & Cunningham, LLC, Buffalo, NY, Pamela A. Markert, Pro Hac Vice, Cera LLP, San Francisco, CA, for Plaintiff Amrex Chemical Co., Inc.

Arthur N. Bailey, Rupp Baase Pfalzgraf Cunningham LLC, Jamestown, NY, Candice J. Enders, Eric L. Cramer, Ruthanne Gordon, Berger Montague PC, Philadelphia, PA, Jason S. Hartley, Pro Hac Vice, Hartley LLP, San Diego, CA, Joseph Michael Vanek, Pro Hac Vice, Sperling & Slater, P.C., Chicago, IL, Marco Cercone, R. Anthony Rupp, III, Rupp, Baase, Pfalzgraf & Cunningham, LLC, Buffalo, NY, Pamela A. Markert, Pro Hac Vice, Cera LLP, San Francisco, CA, for Plaintiff Finch Paper, LLC.

Jason S. Hartley, Pro Hac Vice, Hartley LLP, San Diego, CA, Joseph Michael Vanek, Pro Hac Vice, Sperling & Slater, P.C., Chicago, IL, Marco Cercone, R. Anthony Rupp, III, Rupp, Baase, Pfalzgraf & Cunningham, LLC, Buffalo, NY, Pamela A. Markert, Pro Hac Vice, Cera LLP, San Francisco, CA, Amanda Klevorn, Burns Charest LLP, New Orleans, LA, Joseph E. Mariotti, Shawn P. Quinnan, Caputo & Mariotti, P.C., Moosic, PA, Linda P. Nussbaum, Pro Hac Vice, Nussbaum Law Group, P.C., New York, NY, Mallory Biblo, Warren T. Burns, Burns Charest LLP, Dallas, TX, Marc H. Edelson, Edelson & Associates, LLC, Newtown, PA, for Plaintiff Main Pool and Chemical Co., Inc.

Arthur N. Bailey, Rupp Baase Pfalzgraf Cunningham LLC, Jamestown, NY, Douglas A. Abrahams, Pro Hac Vice, Joseph C. Kohn, Pro Hac Vice, Robert J. LaRocca, William E. Hoese, Kohn Swift & Graf P.C., Joshua H. Grabar, Pro Hac Vice, Grabar Law Office, Philadelphia, PA, Jason S. Hartley, Pro Hac Vice, Hartley LLP, San Diego, CA, Joseph Michael Vanek, Pro Hac Vice, Sperling & Slater, P.C., Chicago, IL, Marco Cercone, R. Anthony Rupp, III, Rupp, Baase, Pfalzgraf & Cunningham, LLC, Buffalo, NY, Pamela A. Markert, Pro Hac Vice, Cera LLP, San Francisco, CA, for Plaintiff Midwest Renewable Energy, LLC.

Arthur N. Bailey, Rupp Baase Pfalzgraf Cunningham LLC, Jamestown, NY, Jason S. Hartley, Pro Hac Vice, Hartley LLP, San Diego, CA, Joseph Michael Vanek, Pro Hac Vice, Sperling & Slater, P.C., Chicago, IL, Marco Cercone, R. Anthony Rupp, III, Rupp, Baase, Pfalzgraf & Cunningham, LLC, Buffalo, NY, Pamela A. Markert, Pro Hac Vice, Cera LLP, San Francisco, CA, Vincent J. Esades, Pro Hac Vice, Heins Mills & Olson, PLC, Minneapolis, MN, for Plaintiff Perry's Ice Cream Company, Inc

Arthur N. Bailey, Rupp Baase Pfalzgraf Cunningham LLC, Jamestown, NY, Jason S. Hartley, Pro Hac Vice, Hartley LLP, San Diego, CA, Joseph Michael Vanek, Pro Hac Vice, Sperling & Slater, P.C., Chicago, IL, Marco Cercone, R. Anthony Rupp, III, Rupp, Baase, Pfalzgraf & Cunningham, LLC, Buffalo, NY, Pamela A. Markert, Pro Hac Vice, Cera LLP, San Francisco, CA, for Plaintiff VanDeMark Chemical, Inc.

Stephen A. Sharkey, Bond, Schoeneck & King, PLLC, Buffalo, NY, Caroline Lytton Jones, Pro Hac Vice, Jeffrey Stephen Oliver, Pro Hac Vice, Joseph Allen Ostoyich, Pro Hac Vice, Paul Christopher Cuomo, Pro Hac Vice, William Connor Lavery, Pro Hac Vice, Baker Botts LLP, Washington, DC, for Defendant Olin Corporation, K.A. Steel Chemicals, Inc.

Brian P. Crosby, Melissa M. Morton, Timothy J. Graber, Gibson, McAskill & Crosby, LLP, Buffalo, NY, Steven E. Bizar, George G. Gordon, Pro Hac Vice, John P. McClam, Pro Hac Vice, Julia E. Chapman, Pro Hac Vice, Dechert LLP, Philadelphia, PA, for Defendants Occidental Petroleum Corporation, Occidental Chemical Corporation.

James T. Southwick, Abigail C. Noebels, Pro Hac Vice, Burton Solomon DeWitt, Pro Hac Vice, William R.H. Merrill, Pro Hac Vice, Susman Godfrey L.L.P., Houston, TX, Terrance P. Flynn, Harris Beach LLP, Buffalo, NY, for Defendant Westlake Chemical Corporation.

Daniel S. Bitton, Axinn, Veltrop & Harkrider LLP, San Fransisco, CA, John D. Briggs, Steven C. Lavender, Axinn, Veltrop & Harkrider LLP, Washington, DC, for Defendant Shin-Etsu Chemical Co. Ltd.

Daniel S. Bitton, Axinn, Veltrop & Harkrider LLP, San Fransisco, CA, John D. Briggs, Pro Hac Vice, Steven C. Lavender, Pro Hac Vice, Axinn, Veltrop & Harkrider LLP, Washington, DC, Randall David White, Connors LLP, Caitlin M. Higgins, U.S. Attorney's Office, Buffalo, NY, for Defendant Shintech Incorporated.

Alan M. Unger, John Joseph Lavelle, Peter J. Mardian, Tom A. Paskowitz, Sidley Austin LLP, New York, NY, for Defendants Formosa Plastics Corporation, Formosa Plastics Corporation, U.S.A.

DECISION AND ORDER

ELIZABETH A. WOLFORD, United States District Judge

INTRODUCTION

Plaintiffs Miami Products & Chemical Co., Amrex Chemical Co., Inc., Finch Paper, LLC, Main Pool and Chemical Co., Inc., Midwest Renewable Energy, LLC, Perry's Ice Cream Company, Inc., and VanDeMark Chemical, Inc. (collectively "Plaintiffs") bring these putative class actions against defendants Olin Corporation ("Olin"), K.A. Steel Chemicals, Inc. ("K.A. Steel"), Occidental Petroleum Corporation ("Oxy"), Occidental Chemical Corporation ("OxyChem"), Westlake Chemical Corporation ("Westlake"), Shin-Etsu Chemical Co. Ltd. ("Shin-Etsu"), Shintech Incorporated ("Shintech"), Formosa Plastics Corporation ("Formosa"), and Formosa Plastics Corporation, U.S.A. ("Formosa USA") (collectively, "Defendants"), alleging violations of Section 1 of the Sherman Act, 15 U.S.C. § 1. (Dkt. 51).

Presently before the Court are: (1) a joint motion to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim by Olin, K.A. Steel, Oxy, OxyChem, Westlake, Shintech, and Formosa USA (Dkt. 79); (2) a motion to dismiss pursuant to Rule 12(b)(6) for failure to state a claim by Westlake (Dkt. 81); (3) a motion to dismiss pursuant to Rule 12(b)(6) for failure to state a claim by Shintech (Dkt. 82); (4) a motion to dismiss pursuant to Rule 12(b)(6) for failure to state a claim by Formosa USA (Dkt. 84); (5) a motion to dismiss pursuant to Rule 12(b)(6) for failure to state a claim by Oxy (Dkt. 80); (6) a motion to dismiss for lack of personal jurisdiction pursuant to Federal Rule of Civil Procedure 12(b)(2), or in the alternative pursuant to Rule 12(b)(6) for failure to state a claim, by Formosa (Dkt. 86); and (7) a motion to dismiss pursuant to Rule 12(b)(2) for lack of personal jurisdiction by Shin-Etsu (Dkt. 103).

While by no means opining as to the likelihood of Plaintiffs' ultimate success in this action, the Court finds that the allegations in the Amended Complaint, at this stage of the proceedings, are sufficient to withstand most of the pending motions to dismiss. For the following reasons, the Court denies the joint motion to dismiss (Dkt. 79), Westlake's motion to dismiss (Dkt. 81), Shintech's motion to dismiss (Dkt. 82), and Formosa USA's motion to dismiss (Dkt. 84); grants in part the motion to dismiss by Oxy (Dkt. 80); denies without prejudice and with leave to renew after the completion of jurisdictional discovery, the motions to dismiss by Formosa (Dkt. 86) and Shin-Etsu (Dkt. 103), although Plaintiffs must provide the necessary certification regarding Formosa as discussed herein on or before April 17, 2020, or their claims against Formosa will be dismissed with prejudice.

BACKGROUND

I. Factual Background

The following facts are taken from the allegations in Plaintiffs' Amended Complaint (Dkt. 51), the operative pleading in this matter. As is required at this stage of the proceedings, the Court treats Plaintiffs' well-pleaded allegations as true.

Caustic soda, also known as sodium hydroxide or lye, is a commodity chemical sold in solid and liquid forms and is a co-product of chlorine produced from the electrolysis

of brine or salt water. (Id. at ¶¶ 2, 42). It is used by customers in a variety of industries, including paper, pulp, and cellulose; chemical production; soaps and detergents; aluminum; food processing; water treatment; textiles; mineral oils; recycling; and pharmaceuticals. (Id. ). Defendants are estimated to collectively control at least 90% of the domestic caustic soda supply (id. ), and Plaintiffs are all direct purchasers or assignees of direct purchasers of caustic soda (id. at ¶¶ 18-24). K.A. Steel is a wholly owned subsidiary of Olin that was acquired by Olin in August 2012. (Id. at ¶ 26). OxyChem is a wholly-owned subsidiary of Oxy (id. ...