LEGAL NEWSLINE

Quinn Emanuel is proud to announce a precedent-setting victory in one of the most significant cartel damages cases in German history. On 15 August 2024, the Court of Appeals Stuttgart (“Court”) delivered a landmark ruling, holding the state of Baden-Württemberg liable on the merits (Grundurteil - a judgment establishing liability without quantifying the damages) for the joint sales of round timber stemming from competing forests (Rundholzkartell). This case, with an amount in dispute of approximately €500 million, marks the first time in German legal history that a court has established civil liability for an antitrust infringement of this magnitude, without being bound by a prior decision from an antitrust authority. The Court remands the quantum proceedings to determine the precise amount of damages to the Stuttgart District Court. 

The case was brought by the Ausgleichsgesellschaft für die Sägeindustrie GmbH, a legal services provider representing 36 sawmills through assigned claims.  The Court's ruling is significant on multiple fronts:  

• It upheld the legitimacy of bundling claims by way of assignments to a funded vehicle.
• It confirmed that the state’s joint distribution violated EU antitrust laws and caused damages.
• It established the state's culpability.
• Notably, the Court rejected the statute of limitations defense, accepting claims dating back to 1978.

This pivotal decision not only establishes liability but also overturns previous case law from several lower courts regarding the bundling of claims. Most importantly, it reaffirms the fundamental principle that nobody stands above the law, clarifying that antitrust rules apply equally to state bodies when they engage in business ventures. This landmark ruling sets a significant precedent in German and EU competition law, potentially reshaping the landscape for future stand-alone antitrust cases involving state entities and claim bundling practices. The ruling is open to appeal (Revision) before the German Federal Court of Justice, which is strictly limited to reviewing questions of law. 

Congratulations to the sawmills and the ASG on this landmark achievement! Hamburg Partner Rüdiger Lahme and Counsel Andreas Ruster, together with a dedicated Quinn Emanuel team, navigated this complex case to this success.   

Original source can be found here.