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The landmark antitrust case brought by a group of independent recyclers against CHEP USA recently ran into a major roadblock. Federal Judge Robert Dawson denied a request to certify the class in its antitrust lawsuit against CHEP. This is a major win for CHEP, which would have been under significant pressure to settle if the case had been granted class action status.

At the very least, the court’s recent decision means there will be a delay for any financial remuneration to recyclers over and above what CHEP already pays through its Asset Recovery Plan (ARP).

This lawsuit was brought by Jim Taylor of Best Pallets Inc. in Fort Smith, AR, along with a group of recyclers. They hope to challenge CHEP and its alleged cost shifting and anti-competitive business practices toward U.S. pallet recyclers by winning one major lawsuit to represent the industry. Although the case was filed in the Western District of Arkansas, it could have national ramifications if the class is ever certified. Class certification is a crucial stage to prove that the lawsuit has merit and can adequately represent the class beyond just the named plaintiffs.

Read the entire article at PalletEnterprise.com.

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