Bates v. Stewart

99 So. 3d 837, 2012 WL 1450060
CourtSupreme Court of Alabama
DecidedApril 27, 2012
Docket1100063, 1101452, and 1101456
StatusPublished
Cited by10 cases

This text of 99 So. 3d 837 (Bates v. Stewart) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bates v. Stewart, 99 So. 3d 837, 2012 WL 1450060 (Ala. 2012).

Opinion

MAIN, Justice.

These three appellate proceedings have been consolidated for purposes of writing one opinion. The action underlying the first appeal (case no. CV-10-900165) was filed in the Etowah Circuit Court on April 15, 2010, by George Bates and David Joyner against Donald W. Stewart, individually and as trustee of the Abernathy Trust, and the Abernathy Trust Foundation (hereinafter referred to as “the Foundation”). In appeal no. 1100063, Bates and Joyner appeal from a judgment of the Etowah Circuit Court dismissing their complaint against Stewart and the Foundation. The underlying case will hereinafter be referred to as “the first action.” [839]*839The action underlying appeal no. 1101456 was filed in the Etowah Circuit Court on January 20, 2011, by Lindy Adams, Ed F. Davidson, and Roosevelt Boyd (hereinafter referred to as “the Adams plaintiffs”), who filed what they entitled a “motion to intervene as plaintiffs and for an accounting and other relief’ from Donald W. Stewart, Donald W. Stewart, P.C., and Kasowitz, Benson, Torres & Friedman LLP (hereinafter referred to collectively as “Stewart and Kasow-itz”)(ease no. CV-01-832). The Adams plaintiffs filed their motion in a long-standing action against Monsanto Company, its parent corporation, and a spin-off corporation. In appeal no. 1101456, Stewart and Kasowitz appeal from orders entered by the trial court on August 22 and September 9, 2011, purporting to reopen a final judgment in that action entered in 2003. The action underlying appeal no. 1101456 will hereinafter be referred to as “the second action.”

Stewart and Kasowitz have also filed a petition for a writ of mandamus asking this Court to require the trial court in the second action to vacate its orders of August 22 and September 9 (no. 1101452). This proceeding will hereinafter be referred to as “the mandamus petition.” As to the appeal in the first action, we affirm in part, reverse in part, and remand. As to the appeal in the second action, we dismiss the appeal as moot. As to the mandamus petition, we grant the petition in part, deny it in part, and issue the writ.

I. Factual Background and Procedural History

These appellate proceedings are the most recent in a line of cases arising out of a toxic-tort action against Monsanto Company; its parent corporation, Pharmacia Corporation; and a spin-off corporation, Solutia, Inc. (hereinafter referred to collectively as “the Monsanto corporations”). The Monsanto corporations manufactured and disposed of polychlorinated biphenyls (“PCBs”) in Anniston from 1935 to 1971. The manufacture and distribution of toxic substances such as PCBs were banned in the United States in 1976. See 15 U.S.C. § 2605(e). In 1996, Thomas Long, Sr., sued the Monsanto corporations, alleging that the Monsanto corporations had released PCBs and other harmful chemicals into the air, soil, surface water, and groundwater near his property in Calhoun County and that he suffered physical harm and other damage as a result of the release of those chemicals. Two other actions were filed against the Monsanto corporations alleging negligence, wantonness, breach of a duty to warn, fraud, misrepresentation, deceit, private and public nuisance, trespass, the tort of outrage, common-law strict liability, assault, battery, and negligent and intentional infliction of emotional distress arising from the release of those chemicals. The three actions, with over 3,500 plaintiffs (hereinafter referred to as “the Monsanto plaintiffs”), were consolidated; however, the action resulting from the consolidation (hereinafter referred to as “the Monsanto litigation”) was not a class action. The Monsanto litigation, styled “Sabrina Abernathy et al. v. Monsanto Company et al.,” was transferred from Calhoun County to Etowah County, and Judge Joel Laird, a judge in the Calhoun Circuit Court, was appointed by the Chief Justice of this Court as a special judge in Etowah County to preside over the ease.1 On January 7, 2002, a jury trial began on claims common to all the Monsanto plaintiffs and on the property-[840]*840damage claims of 17 of those plaintiffs. The jury found the Monsanto corporations liable on the Monsanto plaintiffs’ claims of wantonness, the tort of outrage, “suppression of the truth,” negligence, trespass, nuisance, and public nuisance.

After seven years of litigation, a trial as to liability, and approximately 500 individual trials on damages, the parties reached a settlement for $300 million in 2003. The settlement agreement required the Monsanto corporations to make an immediate payment of $275 million and 10 annual payments of $2.5 million thereafter, for a total of $300 million. The $275 million payment, less $35 million, was disbursed to the Monsanto plaintiffs and their attorneys and was used to pay the claims of each settling Monsanto plaintiff, to fund a relocation/property-adjustment fund for the benefit of approximately 920 Monsanto plaintiffs who were property owners and residents in the affected area, to pay attorney fees, and to reimburse the Monsanto plaintiffs’ attorneys for the costs and expenses incurred in the Monsanto litigation. The Monsanto plaintiffs’ attorneys were to be paid a 40% attorney fee from the $275 million payment, less $15 million in costs and expenses, in addition to a 40% attorney fee from each annual $2.5 million payment.

The settlement agreement provided that of the $35 million not disbursed to the Monsanto plaintiffs $21 million was to be placed into a trust (hereinafter referred to as “the Abernathy trust”) established to pay health-care and educational benefits to those Monsanto plaintiffs who qualified for assistance with medical treatment and other health-care services and/or who qualified for assistance with educational grants, scholarships, or loans, and $14 million was to be paid as attorney fees. Of each annual payment of $2.5 million, $1.5 million was to be placed into the Abernathy trust, and $1 million — 40%—was to be paid as attorney fees. Paragraphs 3.g. and 3.h. of the settlement agreement, the provisions that address the requirements for establishing and funding the Abernathy trust, state:

“g. Thirty-Five Million Dollars ($35,000,000.00), plus any interest accrued on such amount during the time such money was on deposit in the Settlement Account and the Escrow Account, shall be paid directly from the Escrow Account to plaintiffs’ counsel and to a corporation, foundation, trust or other appropriate entity designated by [the Monsanto] plaintiffs’ counsel as follows:
“i. Fourteen Million Dollars ($14,-000,000.00), plus any interest accrued on such amount during the time such money was on deposit in the Settlement Account and the Escrow Account, shall be paid to [the Monsanto] plaintiffs’ counsel for attorneys’ fees;
“ii. Twenty-One Million Dollars ($21,000,000.00), plus any interest accrued on such amount during the time such money was on deposit in the Settlement Account and the Escrow Account, shall be used by the corporation, foundation, trust or other appropriate entity for the following general purposes, and the corporation, foundation, trust or other entity will have the authority to expend funds for such purposes, but will not be required to perform every such purpose:

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Bluebook (online)
99 So. 3d 837, 2012 WL 1450060, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bates-v-stewart-ala-2012.