Court Certifies Price Fixing Class Action against DuPont Canada on Behalf of Canadian Plastics Moulders

TORONTO, December 6 / - The Ontario Superior Court of Justice has certified a class action against E.I. DuPont Canada Company on behalf of a group of Canadian manufacturers of plastic parts supplying the automotive industry. The case is the first of its kind in Canada to be certified as a class action.

The claim alleges that DuPont Canada, through its pricing system and its arrangements with its authorized distributors, set and maintained the price of specialized resins, known as ‘engineering resins’, at artificially high prices. 

The action is brought by Axiom Plastics Inc. of Aurora, Ontario.  Axiom moulds plastic parts, which go into automotive assemblies made by major industry players such as Magna International Inc.

“Engineering resins are the single largest component in our sector’s cost of goods” says Axiom’s president, Perry Rizzo. 

“We believe that DuPont Canada’s actions have harmed the competitiveness of Axiom and all Canadian plastics manufacturers competing in the international automotive market.”

In the ruling, Justice Alexandra Hoy of the Ontario Superior Court of Justice found that the main focus of the alleged conspiracy involved a system of price concessions and rebates granted by DuPont Canada to its authorized distributors which allowed DuPont Canada to effectively control the resale price of resins sold by its independent distributors.  The judge noted the evidence that many of the automotive parts manufacturers are in dire financial straits and are required to compete in a fiercely competitive market.

David Sterns, one of the lawyers for Axiom, pointed out that the court’s decision represents the first class action to be certified involving the beleaguered Canadian auto parts industry. 

The lawsuit is brought by the law firms of Sotos LLP and McCarthy Tétrault LLP.

For further information: 

David Sterns, Sotos LLP, 416-977-0007,
dsterns@sotosllp.com

Or

Jonathan C. Lisus, McCarthy Tétrault LLP, 416-601-7848,
jlisus@mccarthy.ca

Justice Hoy’s written decision can be viewed here

For further documents regarding the case, go to: