Texas Industries held that no right of contribution exists among antitrust conspirators. A defendant that settles or pays a judgment cannot recover any portion from other participants.
Judgment reduction methods vary.
Alternative Names:
No Contribution Rule|Antitrust Contribution Bar
Why it Matters?
The bar makes settlement timing determinative of ultimate exposure, since an early settler pays its negotiated amount while later defendants face the remaining trebled damages with no recourse against those who settled, which produces the race to settle characteristic of cartel litigation. Judgment reduction approaches, whether pro tanto or proportionate share, determine how much a non-settling defendant benefits from prior settlements.
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Related terms
Frequently asked questions
Why does settlement timing determine exposure?
What determines the benefit from prior settlements?
