Five more alder lumber companies in Oregon, Washington and British Columbia have launched a legal attack on Weyerhaeuser in a bid to capitalise on a recent jury verdict that found the company had created an illegal monopoly in the market for alder logs.

Meanwhile, Weyerhaueser says it will contest a fine imposed by a federal court after it was judged to have breached US anti-trust laws.

The company was ordered to pay Ross-Simmons Hardwood Lumber US$26.25m in damages after the latter alleged that the way Weyerhaueser had operated had forced it to close its alder mill.

This automatically tripled to US$78.75m because the jury found that Weyerhaeuser ‘s actions breached the US 1890 Antitrust Act.

Five other alder companies have since launched legal attacks against Weyerhaeuser, saying the company had created an illegal monopoly in the market for alder logs.

&#8220We continue to believe that we competed fairly in the market place. Based on this belief, we are vigorously pursuing every opportunity to have this decision reversed ”

Weyerhaeuser vice-president Robert A. Dowdy

The court found that Weyerhaeuser had effectively subsidised its Longview mill with alder logs below market price, leading to the shutdown of Ross-Simmons in May 2001.

Weyerhaeuser has taken a non-cash, after tax charge of US$52m, or 23 cents per share, against first quarter earnings to cover the damages. But vice-president Robert A. Dowdy said the company would appeal the verdict.

“We continue to believe that we competed fairly in the market place,” he said. “Based on this belief, we are vigorously pursuing every opportunity to have this decision reversed.” Alder is used in furniture, paintbrush handles and the famous Fender Stratocaster electric guitars.

Only 15 alder sawmills of the 40 mills operating in Oregon and Washington in 1980 are now in existence. Six are owned by Weyerhaeuser.