International Construction Products Wins $100 Million Jury Verdict in Dispute Against Caterpillar

Paul, Weiss won a major victory on behalf of International Construction Products, a now-defunct heavy construction equipment importer, in its long-running lawsuit against industry giant Caterpillar in the District of Delaware. Following an eight-day trial, the jury awarded ICP $100 million on its tortious interference with contract claim against Caterpillar.

ICP started up its business in 2014 aiming to introduce ecommerce to the heavy construction equipment market by selling new, high-quality construction equipment at lower prices directly to consumers through IronPlanet, an increasingly popular online marketplace for heavy construction equipment sales. To that end, ICP and IronPlanet signed a services agreement on March 3, 2014. ICP launched on March 5, generating enormous industry and customer interest.

However, just one month later, IronPlanet terminated the contract, succumbing to pressure by Caterpillar, which perceived ICP and its business model to be a competitive threat, and leaving ICP high and dry with no way to implement its business model.

In 2015, ICP sued Caterpillar, claiming that the heavy construction equipment giant tortiously interfered with ICP’s contract with IronPlanet, destroying its business. ICP also brought antitrust claims against Caterpillar.

Paul, Weiss took over as ICP’s counsel in January 2021, defeating two summary judgment motions by Caterpillar and two Daubert motions that Caterpillar filed trying to exclude ICPs economic and industry experts. The case went to a jury trial on April 5, 2024. Over eight trial days, our team successfully demonstrated both that Caterpillar had tortiously interfered with ICP’s contract, and that ICP deserved substantial damages. The jury did not grant ICP’s antitrust claim.

Among other things, Caterpillar argued that IronPlanet didn’t terminate its contract with ICP because of any undue pressure by Caterpillar. Instead, the defense presented testimony by IronPlanet executives who claimed they canceled the ICP relationship because ICP’s business wasn’t succeeding. Our cross-examination of a Caterpillar executive was critical in rebutting Caterpillar’s arguments, enabling us to enter documents and communications into the trial record that undermined the IronPlanet witnesses’ claims.

Instrumental in the heated and lengthy dispute over damages was the credibility of ICP’s industry expert. ICP’s damages claim rested largely on healthy projections of up to $1 billion in revenue for ICP within five years—projections Caterpillar challenged as unrealistic. ICP’s industry expert gave very clear and credible testimony confirming that, based on hundreds of projections he had put together and reviewed in his lengthy career, ICP’s business model was more likely than not to succeed, and more likely than not to meet its economic projections.

The Paul, Weiss trial team was led by litigation partners Bill Isaacson and Jessica Phillips, and included partner Jeannie Rhee and counsel Amy Mauser, David Cole, Robert Kravitz, Matthew Stachel and Amy Barton.