Business Law 12th Edition by Roger LeRoy Miller ,Frank Cross

Exercise 16

Comity E L Consulting, Ltd., is a U.S. corporation that sells lumber products in New Jersey, New York, and Pennsylvania. Doman Industries, Ltd., is a Canadian corporation that also sells lumber products, including green hem-fir, a durable product used for home building. Doman supplies more than 95 percent of the green hem-fir for sale in the northeastern United States. In 1990, Doman contracted to sell green hem-fi r through E L, which received monthly payments plus commissions. In 1998, Sherwood Lumber Corp., a New York firm and an E L competitor, approached E L about a merger. The negotiations were unsuccessful. According to E L, Sherwood and Doman then conspired to monopolize the green hem-fir market in the United States. When Doman terminated its contract with E L, the latter filed a suit in a federal district court against Doman, alleging violations of U.S. antitrust law. Doman filed for bankruptcy in a Canadian court and asked the U.S. court to dismiss E L's suit, in part, under the principle of comity. What is the principle of comity? On what basis would it apply in this case? What would be the likely result? Discuss. [E L Consulting, Ltd. v. Doman Industries, Ltd., 360 F.Supp.2d 465 (E.D.N.Y. 2005)]