Companies & Asbestos

Chemical Company BASF Agrees to Multi-Million Dollar Asbestos Cancer Settlement

August 24, 2020 | Throneberry Law Group

The world’s largest chemical company recently agreed to a settlement in a class action lawsuit brought by plaintiffs who allege that the company lied about the presence of asbestos in its talc, which caused various types of cancer including mesothelioma. Per the terms of the settlement, German chemical company BASF will set aside $72.5 million for plaintiffs who filed asbestos cancer lawsuits against the company between March 1984 and March 2011, including those whose claims were dismissed or voluntarily withdrawn.

The settlement still awaits the approval of a New Jersey federal judge, and if approved, it would allow BASF to resolve claims covered by the agreed upon time period while not admitting any wrongdoing to the allegations made in the lawsuits. Specifically, the claims concerned Englehard Corp., which BASF acquired in 2006, which produced talc based products used in both industrial settings and consumer products.

According to the asbestos cancer lawsuit, one plaintiff claimed that she developed cancer as a result of secondhand exposure to carcinogenic materials brought home on the clothes of her father, who was a research assistant who claimed that the defendants knew about contaminated talc for years. The case went through years of litigation, during which time the case was dismissed but later resurrected by a federal court that found that the defendants engaged in systemic fraud in order to derail the judicial process.

New Jersey Federal Judge Selects Talcum Powder Asbestos Cancer Lawsuits for Bellwether Trials

August 20, 2020 | Throneberry Law Group

A New Jersey federal judge recently handed down an order indicating that the court will randomly select 1,000 talcum powder asbestos cancer lawsuits to proceed as bellwether trials for the estimated 16,000 total of such cases currently pending before federal courts. The order comes just a few months after the same judge handed down an important ruling which allowed the plaintiffs’ expert witnesses to present evidence at trial showing that defendant Johnson & Johnson’s talc-based products caused the victims’ cancers.

Per the judge’s order, the plaintiffs in the selected cases will have three months to order and produce medical records related to their cancer diagnoses. Further, the records produced must be served to the defendants within that same 90-day period.

The lawsuits accuse pharmaceutical and cosmetics giant Johnson & Johnson of knowingly manufacturing and selling asbestos-contaminated talcum powder products to consumers without any warnings about the health effects of using the products. Such talcum powder products include Johnson & Johnson’s iconic Baby Powder and Shower to Shower. Until recently, Johnson & Johnson’s longtime talc supplier Imerys Talc USA was named to many of the lawsuits but the company has since filed for Chapter 11 bankruptcy protection.

New York Court Denies Cooling Tower Company’s Bid to Dismiss Mesothelioma Case

August 15, 2020 | Throneberry Law Group

A New York court recently denied a bid by a defendant in an asbestos cancer lawsuit to have the case thrown out and instead sided with the plaintiff, ruling that the issue of credibility to the plaintiff’s testimony is a question that should be left to a jury. In denying defendant Baltimore Aircoil Company Inc.’s motion for summary judgement, the court ruled that the company had not met the legal standards to show that its products could not have caused the plaintiff’s injury.

According to the mesothelioma cancer lawsuit, filed in New York County Supreme Court, the plaintiff worked as an air conditioning mechanic as an upperclassman in high school and subsequently continued working full time after graduating. In his deposition testimony, the plaintiff stated that he frequently worked on cooling towers manufactured by Baltimore Aircoil Company, specifically at the Squibb Building, the World Trade Center, and at Rockefeller University.

In his testimony, the plaintiff described the characteristics of the cooling towers he asserts were produced by Baltimore Aircoil Company. Those features include the shape of the cooling towers, ventilation louvers, and brackets. The plaintiff further described the asbestos containing gaskets that he would replace as a regular and frequent part of his maintenance duties while working on the cooling towers manufactured by Baltimore Aircoil Company. The plaintiff testified that while cleaning and scraping off the old gaskets, the process created visible dust that he inhaled.

Industrial Manufacturer Trane Sets Aside Business Units to Create Asbestos Trust

August 9, 2020 | Throneberry Law Group

A national industrial manufacturer recently set aside two newly created units of its business in order to fund an asbestos bankruptcy trust and relieve itself from the hundreds of mesothelioma cancer lawsuits it faces each and every year. As part of the liability restructuring, Trane Technologies Plc formed two subsidiaries, Aldrich Pump LLC and Murray Boiler LLC, back in May 2020 in order to transfer assets and liability to the new business entities and enjoin all asbestos cancer-related lawsuits against Trane Technologies.

After creating Aldrich Pump LLC and Murray Boiler LLC, Trane Technologies subsequently transferred tens of millions of dollars in cash and assets and recently had these entities file for Chapter 11 bankruptcy in U.S. Bankruptcy Court for the Western District of North Carolina. The end game for the transfer of assets and liability is to ultimately establish an asbestos bankruptcy trust which plaintiffs with claims against Trane Technologies to file claims against.

According to Trane Technologies, the company resolves through trial or settlement an estimated 900 asbestos cancer lawsuits each year and spends nearly $100 million on litigation costs, which includes payouts for victims and the company’s out attorney’s fees. The strategy is a similar one enacted by other asbestos companies like Bestwall LLC and Kaiser Gypsum Company Inc. in order to shield the parent companies from asbestos cancer lawsuits brought by victims who claim they developed mesothelioma from exposure to asbestos in the defendant’s products.

Vanderbilt Minerals Reaches Settlement in Mesothelioma Cancer Lawsuit

July 25, 2020 | Throneberry Law Group

A New York-based minerals and chemical company recently agreed to a settlement during jury deliberations in a Florida state court to resolve an industrial talc mesothelioma cancer lawsuit. While the settlement terms between Vanderbilt Minerals, Inc. and the plaintiffs was not disclosed, the plaintiffs’ mesothelioma cancer lawsuit had asked for $11.5 million in total compensation, making the settlement likely in the millions of dollars.

According to the mesothelioma cancer lawsuit, filed in Polk County court, the plaintiff worked for the Florida Tile Company during the 1970s, during which time he claims he used asbestos-laden products produced by Vanderbilt Minerals, Inc. The lawsuit claimed that Vanderbilt Minerals, Inc. knew about the risks of asbestos exposure from the talc it used in its products but provided no warning to workers about these risks.

The plaintiff alleged that Vanderbilt Mineral, Inc.’s talc came sourced from a mine that had been proven to contain asbestos and that the company manufactured and sold these products to Florida Tile Company during his tenure. Both talc and asbestos are naturally occurring minerals that can be found in deposits side by side one another. If talc sourcing companies or those processing the mineral do not take precautions to test for asbestos contamination, innocent consumers may suffer from serious health conditions from exposure to the carcinogen.

Missouri Appeals Court Upholds Billions in Talcum Powder Asbestos Cancer Verdict

July 18, 2020 | Throneberry Law Group

A Missouri appeals court recently upheld an important talcum powder asbestos cancer lawsuit brought by almost two dozen plaintiffs who claim their or their loved one’s disease was directly caused by years of using carcinogenic cosmetics products. In its decisions, the Missouri Court of Appeals disagreed with defendant Johnson & Johnson’s defense that its products were safe for use by consumers, and that its iconic Baby Powder has been asbestos-free for decades.

“This trial showed clear and convincing evidence that defendants engaged in conduct that was outrageous because of evil motive or reckless indifference,” the Missouri Court of Appeals wrote. “Motivated by profits, defendants disregarded the safety of consumers, despite the knowledge that talc in their products caused ovarian cancer.”

Johnson & Johnson had brought the appeal to contest a 2018 trial court verdict in which the jury handed down a then-record breaking $4.64 billion verdict on behalf of the 22 plaintiffs who claimed the company knowingly marketed a dangerous product. Johnson & Johnson, in its appeal, had asserted that the plaintiffs failed to present substantial enough evidence to show that the company acted with the level of negligence necessary to justify such a monumental verdict.

Federal Court Denies Asbestos Company’s Bid to Dismiss Maritime Law Claims

July 14, 2020 | Throneberry Law Group

A Virginia federal court recently denied a defendant asbestos company’s bid to dismiss maritime law claims brought by the estate of a deceased plaintiff who claimed the victim developed mesothelioma through years of using carcinogenic asbestos products produced by the defendant. In its decision, the U.S. District Court for the Eastern District of Virginia determined that U.S. admiralty law does in fact apply to the case and the matter may proceed based on the allegations of fact there in.

The plaintiff’s mesothelioma cancer lawsuit alleged that during his service in the United States Navy, the victim worked for years doing shipbuilding and repair using asbestos-laden parts manufactured and sold by John Crane, Inc. The plaintiff’s estate elected to file the asbestos cancer claim under U.S. maritime law because his injuries occurred on navigable waters of the country, and therefore entitled to additional benefits and compensation under such statutes.

Court filings indicate that John Crane, Inc. did not necessarily contest that its products in question contained asbestos, or that they may have necessarily caused the plaintiff’s injuries. Instead, the defendant asserted that the plaintiff’s case should be tried under Virginia state law, as they claimed any injuries the plaintiff suffered occurred while the ships he was working on were docked in ports in the state. John Crane, Inc. further argued that the plaintiff’s mesothelioma diagnosis was due to “asbestos work,” which would make it an inappropriate claim to bring under U.S. maritime law.

NY Court Dismisses Asbestos Companies’ Argument Based on Cigarette Labels

July 3, 2020 | Throneberry Law Group

A New York asbestos court recently struck down a motion by defendants in an asbestos cancer lawsuit which has sought to dismiss the case on the grounds that the plaintiff was a smoker who otherwise ignored health warnings on the packages of cigarettes he smoked. In its decision, the New York Supreme Court for the County of New York soundly rejected the desperate attempt by defendants Viacom Inc. and General Electric Company to avoid liability for the alleged negligence that the plaintiff’s estate claims was directly responsible for the victim’s mesothelioma diagnosis.

The crux of Viacom and General Electric’s motion for summary judgment was that since now deceased plaintiff was a longtime smoker who did not heed the warnings placed on cigarette packages he smoked, the victim therefore would have ignored any warnings the companies would have, but did not, place on their own allegedly carcinogenic asbestos products. In response, the plaintiff’s estate argued that he had not been aware of the dangers of smoking cigarettes when he started his habit, but tried repeatedly to quit once he learned of the health risks.

In its decision, the New York Supreme Court called the defendants’ argument “speculative” and that the question of the victim’s credibility to his claims must be left to a jury to decide. The court further found another motion brought by defendants to dismiss claims for punitive damages as unpersuasive, leaving open the possibility that a jury could ultimately award additional damages should they find the companies’ conduct rose to the standards which would warrant such additional compensation.

New Jersey Federal Judge Allows Talcum Powder Asbestos Cancer Lawsuits to Proceed

June 22, 2020 | Throneberry Law Group

A New Jersey federal judge recently handed down an important ruling which will allow thousands of talcum powder asbestos cancer lawsuits to proceed against pharmaceutical and cosmetics giant Johnson & Johnson. The plaintiffs lawsuits allege that they developed serious forms of cancer, including mesothelioma, as a result of exposure to deadly asbestos fibers in Johnson & Johnson products such as the company’s iconic Baby Powder and Shower to Shower.

An estimated 16,000 asbestos cancer lawsuits had been consolidated in a multidistrict litigation before the federal judge in a process in which she would make rulings on common discovery which would apply to each individual case. At issue was the expert testimony of eight witnesses put forth by the plaintiffs’ lawyers set to testify about how exposure to talc and asbestos can cause cancer based on epidemiological studies. Johnson & Johnson had sought to block the testimony of the experts by calling for a “Daubert” motion.

Fortunately for the plaintiffs, the judge conducting the evidentiary hearings determined that the experts may testify to certain areas of expertise. Had the judge ruled in Johnson & Johnson’s favor, it is likely that the plaintiffs would not have been able to carry on with their lawsuits to trial where victims could present evidence of the causal relationship between their exposure to talc and asbestos in Johnson & Johnson products and their development of cancer.

Johnson & Johnson Ends North American Sales of Talc-Based Baby Powder

May 29, 2020 | Throneberry Law Group

Pharmaceutical and cosmetics giant Johnson & Johnson has announced that the company will cease sales of talc-based Baby Powder in the United States and Canada, calling it a “commercial decision” to wind down sales in those markets. Johnson & Johnson’s cornstarch based Baby Powder will continue to be sold in North America, which the company claims accounts for three-quarters of all the sales of its iconic cosmetic product, but that the talc-based version will continue to be distributed to overseas markets. While cornstarch-based sales dominate North American sales, overseas consumers overwhelmingly purchase the talc-based formula.

According to the company’s chairman of its North America consumer branch, Johnson & Johnson will continue to sell its existing inventory through retailers until the product runs out. Although Johnson & Johnson’s Baby Powder accounts for less than 1% of the company’s overall sales, which have seen sharp declines over the past few years, the product is one of the company’s flagship items and has been used by millions of individuals for many decades.

While Johnson & Johnson may publicly state that its move to discontinue sales of talc-based Baby Powder in North America may be a market driven decision, the truth may actually be that the company is finally feeling the pressure of the 20,000 talcum powder asbestos cancer lawsuits it is facing. Those claims allege that Johnson & Johnson acted negligently when it failed to provide warnings to consumers about the risks of using its talc-based cosmetics products, and that the company knew for decades about the risk of asbestos contamination in products like Baby Powder and Shower to Shower.