Partners Mollie Sitkowski and Matthew Morrissey were featured in an International Trade Today article for their insights on the viability of consumer class actions related to tariffs imposed under the International Emergency Economic Powers Act (IEEPA) and the growing focus on business-to-business (B2B) disputes.
The article explores the legal and practical challenges facing consumer plaintiffs seeking refunds tied to tariff-related price increases, as well as the potential for increased litigation among businesses across the supply chain.
Sitkowski noted that while some consumer cases may result in settlements, the overall recovery for plaintiffs may be limited given the complexity and cost of litigation. “These lawsuits may be ‘semi-successful’ in getting settlements, and consumers may get a gift card out of the effort,” Sitkowski said, adding that many companies are still navigating the refund process through U.S. Customs and Border Protection systems.
Morrissey highlighted the increasing prevalence of disputes between commercial entities, particularly as companies further down the supply chain seek to recover costs from upstream partners. “Companies that are a little bit farther down the supply chain are going up the chain and stating that they paid increased pricing due to pass-throughs of IEEPA tariffs, and that they are in fact entitled to a refund of these sums,” Morrissey said.
He added that while relatively few formal complaints have been filed to date, activity is intensifying behind the scenes. “We’ve seen letter-writing campaigns, ‘nasty’ emails and phone calls between businesses,” Morrissey noted, predicting that a significant volume of business-to-business claims could emerge in the coming months.
