Weyerhaeuser Hit With $78 Million Judgment

Portland, OR, April 21--A lumber company won a $78 million antitrust judgment in a lawsuit alleging timber giant Weyerheuser used high pressure tactics to elbow competing mills out of a lucrative hardwood market. The federal lawsuit, filed by Ross-Simmons Hardwood Lumber of Longview, Washington, also accused Weyerhaeuser of buying large quantities of red alder, popular in furniture making, to deprive competitors of raw materials. It sought $109.8 million from Weyerhaeuser, which is based in Federal Way, Washington. A jury on Friday awarded Ross-Simmons $26 million, which was tripled under federal antitrust laws. “We think it sends a positive message to the small alder mills that continue to compete against Weyerhaeuser,'” said Ross-Simmons attorney Mike Kelley. Weyerhaeuser officials had said the company did nothing wrong and blamed competitors' troubles on the economy and their own management. “We're disappointed with the jury's decision and need to review the verdict and our options before we can comment on any action we might take,” Weyerhaeuser spokesman Bruce Amundson said. Although sales of hardwood, including alder, make up only 4 percent of Weyerhaeuser's $7.6 billion wood-products business, alder production has increased and prices have risen. In 1980, 40 alder sawmills operated in Oregon and Washington, according to the lawsuit. Weyerhaeuser entered the market by buying Northwest Hardwoods, which owned two sawmills, and spread its control to about 65 percent of the market by 1995, according to the lawsuit. As of 2001, its market share exceeded 75 percent, the suit says.