Justia International Trade Opinion SummariesArticles Posted in Agriculture Law
Minn-Chem, Inc. v. Agrium, Inc.
Most of the world's reserves of potash, a mineral used primarily in fertilizer, are in Canada, Russia, and Belarus. Defendants are producers with mines in those countries. Plaintiffs are direct and indirect potash purchasers in the U.S. They allege that producers operated a cartel through which they fixed prices in Brazil, China, and India, and that inflated prices in those markets influenced the price of potash in the U.S. Defendants moved to dismiss, arguing that the district court lacked jurisdiction under the Foreign Trade Antitrust Improvements Act, 15 U.S.C. 6a. The district court denied the motion. The Seventh Circuit affirmed. The world market for potash is highly concentrated and U.S. customers account for a high percentage of sales. This is not a “House-that-Jack-Built situation in which action in a foreign country filters through many layers and finally causes a few ripples” in the U.S. Foreign sellers allegedly created a cartel, took steps outside the U.S. to drive the price up of a product that is wanted in the U.S., and, after succeeding, sold that product to U.S. customers. The payment of overcharges by those customers was objectively foreseeable, and the amount of commerce is substantial. View "Minn-Chem, Inc. v. Agrium, Inc." on Justia Law