Bush Ranch, Inc. v. E.I. Du Pont De Nemours & Co.

918 F. Supp. 1524, 44 Fed. R. Serv. 541, 1995 U.S. Dist. LEXIS 12175, 1995 WL 814579
CourtDistrict Court, M.D. Georgia
DecidedAugust 21, 1995
Docket1:95-cv-00036
StatusPublished
Cited by23 cases

This text of 918 F. Supp. 1524 (Bush Ranch, Inc. v. E.I. Du Pont De Nemours & Co.) is published on Counsel Stack Legal Research, covering District Court, M.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bush Ranch, Inc. v. E.I. Du Pont De Nemours & Co., 918 F. Supp. 1524, 44 Fed. R. Serv. 541, 1995 U.S. Dist. LEXIS 12175, 1995 WL 814579 (M.D. Ga. 1995).

Opinion

OPINION AND ORDER

ELLIOTT, District Judge.

A hearing which began on Tuesday, May 2, 1995,' and ended on Friday, May-12, 1995, was conducted by the'Gourt.in connection with the matter above identified. Following the suggestion made by the Court; counsel for the respective parties have filed proposed findings of fact and conclusions of law. The Court now files this opinion in' which the Court’s findings of fact and conclusions of law, although not separately categorized, will be readily apparent. The Court will enter a separate order with respect to and deciding all motions of the Petitioners and of DuPont which are still pending.

The Petitioners in this matter are nurserymen who previously were among the named Plaintiffs in separate actions against E.I. du Pont de Nemours and Company (hereafter DuPont) tried as consolidated cases in this court. A total, of 14 such actions were filed, and all of the cases were consolidated for the purposes of discovery prior to trial of the consolidated cases. At all times, however, the first four of those actions (the “Bush Ranch cases”) clearly were the “lead” cases. The Plaintiffs in those cases contended that DuPont’s product, Benlate 50DF, a fungicide, was defective and was contaminated with, among other things, highly toxic herbicides generically called sulfonylureas (“SUs”), manufactured, formulated and/or warehoused by DuPont at the same Belle, West Virginia, plant where benomyl, the active ingredient in Benlate 50DF, is manufactured. It was claimed that such SU-contaminated Benlate caused damages to the ornamental plants and the soils and waters of their nurseries, Therefore, the testing for the presence of SU contamination was the most critical evidence for both the Plaintiffs and the Defendant in the Bush Ranch, cases.

This Petition to Show Cause was filed with the Court on March 22, 1995. The Petitioners, three of the four Plaintiffs in the original lead consolidated cases (hereafter “Büsh Ranch” cases), are alleging that DuPont, through its conduct, engaged in acts of misrepresentation and concealment as to critical evidence which constituted a fraud on the Court and a contempt of the. Court’s orders. On reviewing the petition, as well as the memorandum appendix in support and attached Exhibits 1-75, this Court on March 23, 1995, entered an order directing DuPont to show cause on April 24, 1995, why it should not be sanctioned for the conduct described in the petition.

Among the motions filed by DuPont was a motion to recuse this District Court Judge before whom the wrongful conduct stated in the petition was alleged to have occurred. DuPont also filed motions to dismiss and to vacate the show cause order. Thereafter, considering these motions, the Court continued the hearing to May 1, 1995, and, at the request of DuPont’s counsel, the Court continued the hearing to May 2,1995.

On April 26, 1995, the Court denied DuPont’s motion to recuse. On April 28, 1995, the Court denied DuPont’s motion to stay all proceedings pending review in the appellate court, that motion having been filed on April 27, 1995. DuPont then filed an emergency motion for stay in the United States Court of Appeals for the Eleventh Circuit on April 28, 1995, along with a petition for a writ of mandamus and a writ of prohibition. These motions were denied by the Court of Appeals on Monday, May 1, 1995. As already noted, the hearing on the show cause order began on Tuesday, May 2, 1995, and ended on Friday, May 12, 1995. The sole purpose of the hearing was to determine whether sanctions should be imposed on the Respondent DuPont.

*1529 The show cause order was issued following consideration of a petition and voluminous exhibits, which alleged that DuPont had committed a fraud on this Court in connection with discovery matters, trial conduct, and a post-settlement application to the Court to vacate previous, sanctions orders. As set out in detail in this opinion, the Court finds and concludes that DuPont did commit the fraud, the discovery abuses, and the violations of this Court’s orders averred in the petition. DuPont has failed to show any. sufficient cause why it should not be sanctioned for the conduct detailed herein.

The Court has heard the testimony and has reviewed the documentary evidence. The Court takes judicial notice of all of the pleadings, submissions, hearing transcripts, orders, and trial transcripts in the Bush Ranch cases. The Court has observed the demeanor of the witnesses and considered any inconsistencies in the evidence. The Court has determined that evidence from other cases involving allegations that DuPont’s Benlate 50DF caused damages, which evidence in most instances consists of trial or deposition transcripts, court orders, or in judicio statements by DuPont, properly should be considered where it concerns what happened in this court, or where it concerns actions or positions taken by or on' behalf of DuPont with respect to the Alta data and documents, or where it bears on the credibility of DuPont. The essentially identical conduct of DuPont in concealing and misrepresenting Alta tests and documents in other courts immediately after the Bush Ranch trial is, however, strong evidence of DuPont’s intent and motive, and establishes a pattern of concealment and false representations on this crucial issue. That pattern of concealment has continued through the show cause hearing here.

It is without dispute that the core, almost the ultimate, issue in the Bush Ranch trials was whether or not the soils and or waters of the Bush Ranch Plaintiffs’ lands where their nursery businesses were conducted were contaminated by the use of DuPont’s Benlate product which itself was defective due to contamination by sulfonylureas (“SUs”) which were also manufactured by DuPont. DuPont was confronted with hundreds of claims and lawsuits throughout the United States alleging damage by Benlate, thus establishing a significant economic risk for DuPont if Benlate was found to be defective through contamination. While there was much circumstantial and indirect evidence of SU-contamination, throughout the bulk of the pretrial discovery- Plaintiffs had not been able to produce direct test results of their soils and waters. This was due principally to the fact that such testing could not generally be performed on scientific equipment available to Plaintiffs’ experts. The Plaintiffs agreed to allow agents of DuPont onto their properties where their nurseries were locate ed. for the purpose of taking soil samples. The Defendant agreed, however, that in return for being allowed access to the soils, waters, and plants of the Plaintiffs for purposes of taking samples, DuPont would furnish Plaintiffs with all materials generated in connection with any tests conducted on those soil, water, and plant samples.

In an effort to bolster the defense contention that there were no SUs in Plaintiffs’ soils or waters, DuPont engaged Alta Laboratories, Inc. (hereinafter “Alta”) to perform sophisticated analytical chemistry tests, which few other laboratories, if any, in the country could perform.

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Bluebook (online)
918 F. Supp. 1524, 44 Fed. R. Serv. 541, 1995 U.S. Dist. LEXIS 12175, 1995 WL 814579, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bush-ranch-inc-v-ei-du-pont-de-nemours-co-gamd-1995.