Parker ITR signs global settlement in Marine Hose case

ERJ staff report (DS)

London -- Parker ITR and law company Hausfeld & Co. LLP have scored a global first with a settlement deal in the Marine Hose case.

The settlement allows any purchaser of marine hose from Parker ITR anywhere in the world, other than direct purchasers of marine hose in US commerce, to claim compensation in respect of losses arising from the cartel, irrespective of where they reside or where the marine hose was purchased.

This represents the first time a commercial, non court-based agreement of this type has been reached in respect of a global cartel, and it provides an entirely new model for global cartel settlements going forward.

Parker ITR has set up a fund managed by independent officials. Those who have suffered damages as a result of Parker's particiapation in the cartel can, in exchange for a commitment not to sue Parker, claim against that fund.

The presumption is that direct purchasers from Parker ITR during the Settlement Period, other than direct purchasers in US commerce, will be entitled to 16% of purchases in the period unless they have passed on their loss. In each case, however, an independent expert will determine how much of that fund goes to each Parker ITR purchaser.

This is a private opt-in settlement and there is no court approval process. Claimants must sign on to the settlement and release their claims against Parker ITR in order to receive its benefits. Settlement will be by way of private contractual agreement between Parker ITR and claimants, on standard terms offered by Parker ITR. All claimants who participate in the settlement may remain anonymous.

Anthony Maton, Partner in Hausfeld & Co. LLP said, “The Parker ITR settlement represents a huge leap forward for the settlement of private cartel claims in Europe, and will be the model for the settlement of many global disputes going forward. For the first time all victims of a cartel will be able to come forward and claim financial compensation and achieve co-operation without the need for intervention of a court process. This is a commercial business resolution for a commercial business dispute.”

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Press release from Hausfeld Layers