Burhenn v. Celotex Asbestos Settlement Trust

CourtSuperior Court of Delaware
DecidedSeptember 6, 2024
DocketN23C-12-040 ASB
StatusPublished

This text of Burhenn v. Celotex Asbestos Settlement Trust (Burhenn v. Celotex Asbestos Settlement Trust) is published on Counsel Stack Legal Research, covering Superior Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Burhenn v. Celotex Asbestos Settlement Trust, (Del. Ct. App. 2024).

Opinion

IN THE SUPERIOR COURT OF THE STATE OF DELAWARE

Joyce Burhenn, Individually and ) as Personal Representative of the ) Estate of Leonard D. Burhenn, ) ) Plaintiff, ) v. ) C.A. No.: N23C-12-040 ASB ) Celotex Asbestos Settlement Trust, ) ) Defendants. )

Submitted: August 28, 2024 Decided: September 6, 2024

OPINION AND ORDER ON DEFENDANT’S MOTION TO DISMISS

GRANTED

Thomas Crumplar, Esquire and Courtney R. Prinski, Esquire, Jacobs & Crumplar, P.A., New Castle, Delaware, Attorneys for Plaintiff.

Katherine L. Hemming, Esquire, Campbell & Levine, LLC, Wilmington, Delaware, Attorneys for Defendant and Benjamin G. Stewart, Esquire, Keating, Muething & Klekamp, PLL, Cincinnati, Ohio, Pro Hac Vice Attorneys for Defendant

Jones, J. Joyce Burhenn (“Burhenn” or “Plaintiff”) has filed the instant action as a

result of her husband’s, Leonard D Burhenn (“Leonard”), exposure to asbestos.

Burhenn alleges that as a result of Leonard’s exposure to asbestos he was diagnosed

with mesothelioma in April 2012 and died on December 16, 2013. 1 Plaintiff has

sued Celotex Asbestos Settlement Trust (“Celotex”). Celotex has filed a Motion to

Dismiss Plaintiff’s claim on the grounds that the complaint was untimely filed. This

is the Court’s decision on that motion.

Celotex manufactured and supplied building materials, some of which

contained asbestos. In 1990, Celotex filed for bankruptcy protection in the Middle

District of Florida Bankruptcy Court.2 After the bankruptcy case concluded in 1996,

the Plan authorized the creation of a victims’ settlement trust to pay claims of

persons who had pending asbestos claims and also future victims who were exposed

to Celotex asbestos containing products.3 Under the terms of the Plan, Celotex

transferred assets to the trust, which in turn “assumed sole responsibility and

liability” for asbestos-related claims against Celotex.4 All claims against Celotex

were discharged.5 Under the Plan all persons were permanently enjoined from

pursuing any asbestos related claims against Celotex. Claims against Celotex could

only be asserted against the Trust. 6

1 Complaint ¶ 23. 2 See Exhibit A to Defendant’s Motion to Dismiss. 3 Id. at ¶ 13-14. 4 Id. at ¶ 14. 5 Id. at ¶ 25. 6 Id. at ¶ 26(e). 2 Under the Plan the Trust is authorized to adopt procedures for processing and,

where appropriate, paying asbestos-related claims. Claims Resolution Procedures

(“CRP”) have been established. With respect to the timing of claims the CRP

provides:

For all direct claims filed against the Trust on or after July 1, 2005, in order to be considered timely filed, a claimant must file an Asbestos Personal Injury Claim with the Trust within three (3) years after the first date of diagnosis of the asbestos-related injury of the Disease Category for which the claim qualifies for payment.7

The CRP also authorizes the Trust to adopt alternative dispute resolution

procedures so that claimants who are dissatisfied with the review of their claim by

the trust may seek relief.8 Dissatisfied claimants may submit their claims to either

binding or nonbinding arbitration.9 A claimant who elects non-binding arbitration

and then rejects the award may elect to pursue a claim against the Trust in the tort

system in other to determine the value of the claim. 10

The Plan has a tolling provision related to the non-binding arbitration

proceedings.11 The CRP provides that any “applicable statutes of limitations or

similar limitations periods will be tolled as of the date the claimant filed a claim with

the trust”.12 However “to the extent the statute of limitations or similar limitations

7 See Exhibit B to Defendant’s Motion to Dismiss at §7.12(d). 8 Id. at 7.8. 9 Id. at 7.10. 10 Id. 11 Id. 12 Id. 3 period has been tolled, it shall commence running 30 days after entry of the non-

binding arbitration award”.13

Leonard worked in the heating and air conditioning trade at various locations

in South Dakota from 1960 until 1979.14 During that time he alleges exposure to

asbestos including asbestos-containing products manufactured or supplied by

Celotex.15 A South Dakota state court case against several asbestos manufacturers

was filed on January 17, 2013.16 Plaintiff did not name Celotex or the Trust in the

lawsuit, but his representative alleges that he would have but for Celotex’s

bankruptcy, the Plan and the Order Confirming the Plan. 17

A claim against the trust was filed on May 16, 2017. Plaintiff went through

the process set forth under the Trust and its regulations.18 The Trust initially denied

the claim as untimely. 19 Plaintiff elected to proceed with a non-binding arbitration

proceeding against the Trust. 20 The non-binding arbitration proceeding occurred and

a decision was issued on November 30. 2022. On January 20, 2023, 21 Plaintiff

received authorization to file a claim in the tort system. 22

13 Id. 14 Complaint ¶ 23. 15 Id. 16 Id. at ¶ 4. 17 Id. 18 Id. at ¶ 8. 19 Id. at ¶ 10. 20 Id. at ¶ 11. 21 Id. at ¶ 12. 22 Id. at ¶ 14. 4 Celotex maintains that the claim was untimely filed under the trust documents

and any statute of limitations that may be applicable to the instant action. Celotex

claims that the triggering event for filing the claim is at the latest Leonard’s autopsy,

dated January 14, 2014, which confirmed mesothelioma as the cause of death.

Plaintiff counters that the triggering event for purposes of the statute of limitations

is not the date of diagnosis of injury but the date when the plaintiff received the

authorization to sue letter following the nonbinding arbitration decision which was

January 20, 2023.

The Plan controls the plaintiff’s ability to sue Celotex. As such the timeliness

of the claim must be analyzed under the terms of the plan and its claims procedures.

The plan could not be more clear. The plan requires that any claim be filed with the

trust within 3 years of the date of the first diagnosis of the asbestos related injury of

the disease category for which the claim qualifies for payment. Giving the plaintiff

every benefit of the doubt the latest that the time period for filing the claim began to

run was the date of the autopsy confirming that mesothelioma was the cause of death.

The date of the autopsy is January 14, 2014. Therefore, any claim filed with the trust

had to be filed by January 14, 2017 to be timely. The claim was not filed until May

16, 2017 which makes it untimely.

Plaintiff’s argument that the claim was tolled from the time Leonard was

diagnosed until he or his representative submitted a claim to the Trust and that

process was complete resulting in an Authorization letter is contrary to the plain

5 terms of the Plan. To accept plaintiff’s interpretation would mean that there

effectively no time limit to file a claim with the Trust. Such an interpretation is not

logical and it ignores the plain language of the Plan.

The Trust does allow for tolling of any applicable statute of limitations.

However the tolling mechanism outlined in the plan is dependent on the timely filing

of a claim with the Trust in the first instance. In this case plaintiff did not meet the

condition precedent of the timely filed claim with the Trust.

Even if this Court were to ignore the Plan documents and analyze this matter

as a traditional tort case the claims against the Trust under such an approach would

also be untimely. Leonard was exposed to Celotex products in South Dakota.

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Bluebook (online)
Burhenn v. Celotex Asbestos Settlement Trust, Counsel Stack Legal Research, https://law.counselstack.com/opinion/burhenn-v-celotex-asbestos-settlement-trust-delsuperct-2024.