A federal judge recently overturned a substantial $100 million jury award that was previously granted to International Construction Products (ICP), a company that is no longer operational. The legal battle, which has been ongoing for nearly a decade, stemmed from a terminated agreement involving direct online sales of Chinese construction equipment in the U.S. The lawsuit was initially filed against construction industry giant, Caterpillar, following a contentious business arrangement fallout.
The conflict began when ICP entered into a partnership in 2014 with IronPlanet, an online platform for selling used construction gear, to establish a digital storefront for new Lonking heavy equipment from China. At the time, IronPlanet was in the process of merging with Cat Auction Services, another entity affiliated with Caterpillar. However, the partnership was short-lived. Only a month after ICP’s announcement of the deal, IronPlanet abruptly ended the agreement. Subsequently, the merger between IronPlanet and Cat Auction Services was finalized, and in 2017, IronPlanet itself was acquired by Ritchie Bros. auction services.
In response to the dissolved deal, ICP accused Caterpillar in a 2015 lawsuit of unlawfully conspiring to pressure and effectively boycotting IronPlanet to withdraw from their agreement. Caterpillar, on the other hand, denied these accusations. It maintained that its actions were within lawful bounds, justifiable, and did not stifle competition.
During a trial held in April 2024, a jury found that Caterpillar did not violate antitrust laws but did commit tortious interference. This legal term refers to the intentional sabotage causing a third party to break a contract. As compensation for future financial losses anticipated by ICP and its founder, Tim Frank, the jury awarded them $100 million.
However, this substantial sum was nullified on March 31 by U.S. District Judge Richard G. Andrews, nearly a year after the initial verdict. Presiding over the 2024 trial, Judge Andrews declared that ICP’s projected earnings, which stretched “hundreds of millions of dollars” five years into the future, were excessively speculative, especially given that no Lonking products had yet been sold under the aborted plan.
Judge Andrews pointed out ICP’s failure to demonstrate its projected damages with sufficient certainty. While he overturned the damages award on these grounds, he did not upend the jury’s finding of tortious interference. Andrews affirmed that the conclusion of the contract breach by IronPlanet, influenced by Caterpillar’s actions, was a reasonable one by the jury. He also rejected a subsequent request by Caterpillar for a new trial concerning the interference verdict, arguing that such a proceeding on the damages was now irrelevant due to the vacated award.
Caterpillar is currently appealing the decision in the U.S. Court of Appeals for the 3rd Circuit. In addition, the judge denied ICP’s pleas for a new trial on its antitrust claims and its request for Caterpillar to cover interest on the $100 million from before and after the 2024 judgment and to pay legal costs, citing the mootness of these issues following the vacation of the monetary award.
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