District Court Judge Weighs In On Boycott Lawsuit and Dismisses Some Claims

U.S. District Judge Nicholas G. Garufis dismissed some and allowed some of the claims against urethane manufacturer, Sika Corporation, in an ongoing boycott lawsuit, though the judge said some of the claims were time-barred in the lawsuit’s complaint.

O.E.M. Glass Network Inc. and Brooklyn Wholesale Glass Inc. (known together as OEMGN) have alleged a group of suppliers including: Mygrant Glass Company Inc. (Mygrant), Interstate Glass of Amityville NY LLC (Interstate Glass), Metro Glass Distributing Inc. (Metro Glass), Xinyi Auto Glass North America Corp. (Xinyi), Vitro S.A.B. de C.V., Vitro Automotive Glass LLC, Vitro Automotoriz, Fuyao Glass America Inc. (Fuyao), Auto Temp Inc. and Sika Corp were behind a boycott.

“Defendants Xinyi and Sika argue that plaintiff’s antitrust claims against them are barred by the Sherman Act’s four-year statute of limitations. The court agrees as to Sika, but not as to Xinyi,” a portion of Judge Garufis’ order reads. “Under the Sherman Act, a plaintiff must file suit within four years after a cause of action accrues.”

According to court documents, Sika explicitly refused to deal with OEMGN, and explained why, prior to February 9, 2015. The amended complaint’s only other allegations against the urethane manufacturer are that it “refused to sell products to OEMGN after OEMGN contacted it on February 9, 2015 and again on June 28, 2018.”

“Such bare allegations, without more, do not support any conclusion other than that these refusals were reaffirmations of Sika’s clear refusal to sell to OEMGN-due to pressure from Mygrant-beginning in 2014,” Garufis said.

The tortious interference claim against Sika was not dismissed, the Judge said all of the defendants were “adequately alleged to have intentionally diminished the ongoing business between third party suppliers and OEM – and between each of the other defendants and OEM –through coercion.”

Case Background

In February 2019 OEMGN filed suit against two auto glass distributors and several manufacturers alleging they conspired against the N.Y. companies and boycotted them in an attempt to eliminate it from the market. In April 2019 the courts extended time for the defense to file a response to claims made against them by OEMGN. Then in May 2019 there was a combined motion to dismiss filed by the defendants, to which OEMGN expressed an opposing view. An amended complaint was filed in October 2019 by OEMGN, however several of the original allegations remained in the amended version. Most recently, in January 2020, Vitro Automotriz filed a document to dismiss OEMGN’s amended complaint.

Going Forward

Currently Judge Garufis has approved some and denied some of the allegations made by OEMGN against Sika. Look to a future edition of glassBYTEs for continued coverage of the suit.

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