Judge denies Michelin request for preliminary injunction

DAVENPORT, Iowa (May 14, 2001) — A U.S. District Court in Davenport, Iowa, has denied a motion by Michelin North America for a preliminary injunction against rivals Bridgestone/Firestone and Bandag.

The case involves allegations by Michelin that Bridgestone/ Firestone and Bandag used unfair business practices to block Michelin from competing in the truck tire retreading market.

However, U.S. District Judge Charles R. Wolle said Michelin had not adequately demonstrated a threat of irreparable harm necessary to support a preliminary injunction.

Michelin initially filed suit against Bandag in November 1999, contending that Bandag violated federal antitrust laws with its exclusive franchise agreements that limit dealer and end user choice in retread products. The suit was in response to one filed by Bandag two months earlier, claiming that the tire maker tried to drive the retreader out of business by misappropriating trade secrets, spreading false rumors about Bandag, and engaging in predatory pricing.

Michelin added Bridgestone/Firestone as a defendant earlier this year, claiming an unlawful agreement between BFS and Bandag to join forces and take action to delay or block Michelin from competing in the retreading market.