Another Legal nuisance bites the dust...
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Falise Case Voluntarily Dismissed By Plaintiffs; No New Trial Sought Against Tobacco Companies
NEW YORK, Jun 29, 2001 (BUSINESS WIRE) -- The Manville Trust has abandoned its lawsuit against the major domestic cigarette companies. The lawsuit, known as the Falise case, sought to recover more than $1 billion in payments allegedly made by or on behalf of Johns Manville Corporation to asbestos workers for injuries from asbestos and smoking.
"We are pleased that this case, like similar reimbursement cases filed in courts across the country, has been dismissed. The Trust obviously came to recognize that neither the facts nor the law supported their claims," said William S. Ohlemeyer, Philip Morris vice president and associate general counsel.
Ohlemeyer noted that every federal appellate court to consider the core legal issues presented in the Falise case - now eight in total - has unanimously rejected such reimbursement claims and ordered or upheld dismissal of the cases.
The Falise case was scheduled for retrial in September 2001. In January, United States District Judge Jack Weinstein declared a mistrial in the first trial when a juror reported that another juror had threatened her during jury deliberations. Jurors later said publicly the panel was deadlocked 10-2 in favor of the tobacco companies.
"The fact remains that nothing Philip Morris U.S.A. or other tobacco companies ever said or did influenced decisions made by the Manville Trust. Even though this case was allowed to proceed to trial, it was encouraging to hear that most jurors were able to set aside the rhetoric, apply their collective common sense and understand why the plaintiff could not prove its allegations. It is equally gratifying that the Trust apparently agrees, and decided that the case should be dismissed," Ohlemeyer said.
Only two cases involving third-party claims have been tried to verdict. An Akron, Ohio jury in 1999 returned a unanimous defense verdict in a case brought by numerous Ohio-based union health funds.
The second case, also tried in Weinstein's court, resulted in the jury's rejection of Empire Health Choice's common law fraud and RICO claims and its request for punitive damages against the tobacco company defendants. The jury awarded a total of $17.8 million in compensatory damages to Empire earlier this month - a miniscule fraction of the approximately $800 million the insurer had sought.
Ohlemeyer said the company currently is preparing its appeal in the Empire case to the Second Circuit Court of Appeals.
"Not a single federal appellate court in this country, including the Second Circuit Court of Appeals, has validated any of these cases. We will ask the Second Circuit Court of Appeals to reverse the Empire verdict because we believe Judge Weinstein ignored well-established legal precedent by allowing the Empire case to go to trial. We believe we have an extremely strong argument that should convince the Court to instruct Judge Weinstein to enter judgment in our favor and dismiss this case," Ohlemeyer said. |
