Valspar Corp. v. E.I. DuPont De Nemours & Co.
15 F. Supp. 3d 928
D. Minnesota2014Background
- Valspar is a large paint and coating producer that purchases titanium dioxide from DuPont and Huntsman among others.
- Valspar alleges a conspiratorial price-inflation scheme for titanium dioxide dating back to 2002.
- Some purchases were governed by contracts containing forum-selection clauses designating Delaware or the Southern District of Texas as the proper forums.
- DuPont and Huntsman moved to transfer Valspar’s claims to their designated fora; motions were fully briefed and ripe for decision.
- The court must sever the claims against DuPont and Huntsman under Rule 21 before transferring the severed actions under § 1404(a).
- The court concluded that severance and transfer would be appropriate and granted transfer to Delaware and the Southern District of Texas for the respective severed actions.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Are the forum-selection clauses applicable to the antitrust claims? | Valspar argues clauses do not reach antitrust claims. | DuPont/Huntsman contend clauses cover the transactions and purchases at issue. | Yes, the clauses apply and reach the antitrust claims. |
| Should the court enforce the forum-selection clauses via transfer rather than dismissal/severance only? | Valspar contends dismissal or non-transfer to avoid splitting claims. | Defendants urge transfer to the designated fora under Atlantic Marine framework. | Yes, transfer is appropriate and dismissal is not required. |
| Is severance under Rule 21 a proper step to implement the transfers? | Valspar argues severance is unnecessary or improper. | DuPont and Huntsman rely on two-step transfer via severed actions. | Yes, severance is proper and necessary to effectuate § 1404(a) transfers. |
Key Cases Cited
- Atlantic Marine Constr. Co. v. U.S. Dist. Court for W. Dist. of Tex., 134 S. Ct. 568 (U.S. 2013) (forum-selection clauses control transfer absent extraordinary circumstances)
- In re Titanium Dioxide Antitrust Litig., 962 F. Supp. 2d 840 (D. Md. 2013) (forum-selection clauses applicable to titanium dioxide antitrust claims)
- City of Pittsburgh v. W. Penn Power Co., 147 F.3d 256 (3d Cir. 1998) (damages calculation in price-fixing case via minuend/subtrahend concept)
- Terra International, Inc. v. Mississippi Chemical Corp., 119 F.3d 688 (8th Cir. 1997) (enforcement of contractual forum-selection clauses even with tort claims)
- Wholesale Grocery Prod. Antitrust Litig., 707 F.3d 917 (8th Cir. 2013) (comparison of forum-selection clause impact on related claims)