South Carolina Supreme Court Upholds Sanctions in Mesothelioma Wrongful Death Case

For purposes of this article, the deceased mesothelioma victim in this case will be referred to as M.W., and his surviving wife will be referred to as D.W.

In a recent ruling, the South Carolina Supreme Court affirmed sanctions imposed on Canadian asbestos manufacturer, Atlas Turner, for refusing to participate in a mesothelioma wrongful death lawsuit. The case was filed by a woman, D.W., who lost her husband, M.W., in 2023 after he developed malignant mesothelioma. D.W. filed a lawsuit against the asbestos manufacturer and other companies that she blamed for her husband’s illness. Atlas Turner refused to participate in the trial, and the court responded by holding the company in contempt, placing it in default, and appointing a Receiver for it. The defendant appealed this decision, and the South Carolina Supreme Court upheld it.

According to D.W.’s lawsuit, Atlas manufactured and sold asbestos insulation products to customers worldwide, including in South Carolina. This revelation came from the company’s customer lists. Mrs. W asserted that her late husband had suffered asbestos exposure after he encountered those products while working in Greenwood, SC. In response to the claims, Atlas submitted a motion to dismiss, arguing that South Carolina did not have personal jurisdiction against it.

The trial court denied the defendant’s motion and ordered the company to participate in discovery. Despite this order, Atlas refused to respond to notices and communications issued by the court. After warning the defendant that further noncompliance would result in sanctions and possible contempt charges, and Atlas continuing to ignore court orders, the judge found that the company had willfully and intentionally failed to comply with court orders. As a result, Atlas Turner was held in contempt, and the court entered a default judgment against it. Additionally, a Receiver was appointed over the company’s insurance assets.

Atlas Turner filed an appeal with the South Carolina Supreme Court to have the sanctions overturned. The Court upheld the trial court’s decision, citing what it termed as the company’s “cavalier disdain of the elementary rules of civil procedure.” The justices noted that the trial record contained several instances of Atlas’s noncompliance with basic procedural requirements in the case. However, the Court did not address the issue of jurisdiction. The court acknowledged that the widow had provided enough evidence to suggest that the company had conducted business in the state, but noted that the company had reserved the issue, meaning it could be revisited later.

Finally, while the Supreme Court upheld the trial court’s decision to appoint a Receiver, it decided to limit the scope of the Receiver’s authority. While the company’s “contemptuous disregard” of the trial court’s discovery orders justified the appointment, the high court clarified that the Receiver’s power should be reduced to ensure it didn’t go beyond existing legal precedent.

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