Trucks, Transmission and Antitrust: Court Upholds Jury's Finding that Eaton Unlawfully Monopolized Billion Dollar Truck Transmission Market
Eaton Corporation's ("Eaton") last ditch efforts to wiggle out of a jury verdict, were denied in early March 2011. Delaware District Court Judge Sue. L. Robinson determined that the jury had sufficient evidence to find that Eaton was unlawfully monopolizing the billion dollar Class 8 commercial truck transmission market. Class 8 commercial trucks - or heavy duty trucks - are trucks that weigh more than 33,000 lbs. This decision comes in the wake of separate actions against Eaton filed by market competitors and truck transmission purchasers - all claiming antitrust violations.
The March 10, 2011 decision stems from a 2006 antitrust law suit brought by competitor plaintiffs ZF Meritor LLC and Meritor Transmission Corp. The plaintiffs claimed that Eaton was illegally monopolizing a substantial share of the heavy duty truck transmission market by strong-arming manufactures into entering into long term exclusive contracts to purchase Eaton transmissions. In October 2009, the jury found the defendants liable for their unlawful conduct.
In an attempted end-run around the jury's findings, Eaton requested that the Court, in effect, overturn the jury's verdict against them. Notably, Eaton claimed that the jury could not have found for plaintiffs because the alleged anticompetitive conduct supposedly led to lower market prices. Since no loss was suffered, Eaton argued, there could be no liability, as injury is a requirement to prevail in an antitrust action. However, the Court disagreed, noting that obtaining that foreclosing the market is a form of antitrust injury.
Also pending before Judge Robinson in the District Court of Delaware is a class action law suit brought by plaintiffs who purchased Class 8 truck transmissions from manufacturers Daimler Trucks North American, Freightliner, Navistar International, International Truck and Engine, Paccar, Kenworth Truck, Peterbilt Motors, Volvo Trucks North America, and Mack Trucks between October 2002 and the present. MURRAY FRANK LLP has been appointed by the Delaware Court as co-lead counsel in this action.
If you have purchased a Class 8 truck transmission and wish to discuss this litigation, or have any questions concerning your rights or interests with respect to these matters, please contact us.




