MAXXAM Awarded Attorneys' Fees in Frivolous Litigation
HOUSTON--(BUSINESS WIRE)--March 29, 2000--The U.S. Court of Appeals for the Fifth Circuit has rejected an appeal by Robert E. Martel, a Humboldt County, Calif., activist, and ordered him to repay MAXXAM Inc. (AMEX:MXM) $110,122.65 in attorneys'fees.
In January 1995, Mr. Martel filed a lawsuit against MAXXAM; MAXXAM's Chairman, Charles Hurwitz; and other parties alleging that the 1988 failure of a Texas thrift, United Savings Association of Texas, resulted from the alleged misconduct of the defendants. In fact, the defendants were minority investors in the thrift's holding company, and the institution failed due to the free fall decline of the Texas economy.
The trial court dismissed Martel's case in its entirety and awarded MAXXAM attorneys' fees. The trial court deemed the suit to be frivolous in nature, comprised of "regurgitating political half-truths," and described Martel as a man who "knows nothing, saw nothing," and "did nothing." Mr. Martel appealed the trial court decision to the Fifth Circuit Court of Appeals and has now lost that appeal.
"Mr. Martel and EarthFirst! have tried for almost a decade to abuse the law in an effort to inflict damage on MAXXAM's subsidiary, The Pacific Lumber Company, and destroy the jobs of Pacific Lumber's 1,300 employees," said Joshua Reiss, spokesperson for MAXXAM. "The Court of Appeals' decision sends an important message that such behavior will not be tolerate |
