Dutch Firm Comes Found Not Guilty in Much Publicized Court Case

The much-publicized case of a number of U.S. paper stock dealers suing the former KNP Paper, a Dutch paper company, ended Feb. 3, with a jury finding that the Dutch company did not breach a contract or commit fraud.

The case, which began Jan. 4, in the Federal District Court, District Court of New Jersey, pitted KNP Paper against the following paper stock dealers: Automated Material Handling, Connecticut; Zozzaro Brothers, New Jersey; Prins Recycling, now a part of Casella Waste; Kruger Recycling; The Newark Group, Multi-Material, Calif.; and United Paper Stock, Rhode Island. The paper stock dealers claimed that the Dutch company looked to line up contracts and then worked to flood the market with the recovered fiber to lower the price of the fiber.

As reported in the press in the recent past, several of the plaintiffs ended up with significant losses. According to an attorney representing KNP, the contract value was between $6-7 million.

The case was initially filed in January, 1996.

David Keyko, an attorney representing KNP, said that with the decision after several hours, the case "is effectively done." Keyko pointed out that the jury found the defendant was not liable, there was no breach of contract and no fraud was committed.