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Antitrust Keyed to Gavil, 5th Ed.
E & L Consulting, Ltd. v. Doman Industries Ltd.
Citation:
472 F.3d 23 (2006)Facts
From 1990 until 2004, E & L Consulting was the distributor of green hem-fir lumber in New York, New Jersey, and Pennsylvania for Doman Industries and its subsidiary Eacom Timber Sales. Green hem-fir lumber is an inexpensive, durable wood commonly used for homebuilding in the northeast. Doman and Eacom together supplied approximately 95% of the green hem-fir lumber sold in the northeastern United States. Under their arrangement, E & L took delivery but not ownership of the lumber at its Brooklyn port facility, selling it on Doman’s behalf at prices set by Doman, receiving set monthly payments and commissions. By 1998, Doman had contracted with Sherwood Lumber to replace another distributor, allowing Sherwood to purchase lumber outright and resell it. Doman provided Sherwood with substantial discounts compared to the pricing required of E & L. On January 30, 2004, Doman terminated its distribution agreement with E & L and made Sherwood its exclusive distributor in the northeast. After obtaining exclusive distribution rights, Sherwood allegedly raised prices by over 20% and began requiring customers who wanted to purchase green hem-fir lumber to also purchase Sherwood’s finished wood products.
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