In 2013, ClarkDietrich–a manufacturer of non-structural steel studs–filed two suits several defendants in Butler County Common Pleas Court. One alleged trade defamation. The other alleged antitrust violations under Ohio’s Valentine Act. Taft, along with co-counsel Jeff Pollock of Pollock Law, LLC, and Steven Link of Fox Rothschild, was asked to help represent the CEO of Ware Industries, Inc., Chip Gardner, in both cases. The trade defamation case centered around allegations that a trade association organized by Ware–the Certified Steel Stud Association (CSSA)–had published defamatory articles about ClarkDietrich’s steel studs. The CSSA and the other defendants took the position that the articles reflected the truth–ClarkDietrich’s studs did not meet the requirements of the international building code.

Taft was successful in obtaining summary judgment on the antitrust claims. However, the trade defamation action went to trial. During trial, all defendants’ insurers settled them out of the case, except for the CSSA. On the eve of closing arguments in the case, ClarkDietrich offered to dismiss its claims with prejudice at its costs. The directors of the CSSA–who were the presidents of the various companies in that organization, including Ware–believed their allegations regarding ClarkDietrich’s studs were accurate and declined the offer. The resulting jury verdict found the defendants liable for $47 million, with $43 million attributable to the CSSA.

With a small amount of insurance, the CSSA did not have the assets to pay the judgment. ClarkDietrich then got a receiver appointed to bring a complaint against those directors for breach of fiduciary duty for not agreeing to accept the dismissal. That action, which was commenced in 2018, resulted in a successful judgment on the pleadings for the directors based on the argument that litigation privilege protected their discussions. The 12th District Court of Appeals upheld that decision, but it was ultimately unanimously reversed by the Ohio Supreme Court, which sent the case back to the trial court. Back at the trial court, the original judge retired, giving the parties a new judge to look at the case again.

After prolonged litigation, with the receiver and its attorneys spending over $5.5 million of ClarkDietrich’s money pursuing the case (including several appeals on privilege issues), Taft was successful in obtaining summary judgment for Gardner a month before trial was due to begin.

Taft Cincinnati partner Dan Warncke led the Taft team, with support from Cincinnati associates Spencer Cowan, Nathan Coyne, and Dominic Bayer; Cleveland partner Cary Snyder; Cincinnati partner Aaron Herzig, and Cincinnati paralegal Beth Martin.