Berkshire’s Johns Manville Unit Faces US Antitrust Verdict

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A Colorado federal jury has ruled that Berkshire Hathaway’s unit, Johns Manville, must pay at least $6.8 million for unlawfully monopolizing the market for a material used in insulating pipes at various facilities. The jury found that Johns Manville violated U.S. antitrust law by threatening to cease business with distributors who worked with the plaintiff, Chase Manufacturing.

After a nine-day trial, the jury awarded damages of nearly $6.8 million to Chase Manufacturing, which operates as Thermal Pipe Shields. This amount could be tripled to $20.3 million under federal competition law. An expert for the plaintiffs had estimated damages of $30 million. Johns Manville denied any wrongdoing and expressed disagreement with the verdict, stating that it would evaluate its next steps.

Thermal Pipe Shields began selling Chinese-imported hydrous calcium silicate as a cheaper and better alternative for thermal insulation in 2018. At the time, Johns Manville was the sole source of this material in the United States. The jury found that Johns Manville held a monopoly over the relevant U.S. calcium silicate market and that its alleged threats to distributors hindered Thermal Pipe Shields’ growth.

The trial, which followed an August ruling by the 10th U.S. Circuit Court of Appeals reviving the lawsuit, signifies a victory for Thermal Pipe Shields in its quest to compete freely in the marketplace. The case is Chase Manufacturing Inc d/b/a Thermal Pipe Shields v. Johns Manville Corp, filed in the U.S. District Court for the District of Colorado.