Cox v. Shell Oil Co.

196 S.W.3d 747, 2005 Tenn. App. LEXIS 683, 2005 WL 2860249
CourtCourt of Appeals of Tennessee
DecidedOctober 31, 2005
DocketW2004-01777-COA-R3-CV
StatusPublished
Cited by25 cases

This text of 196 S.W.3d 747 (Cox v. Shell Oil Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cox v. Shell Oil Co., 196 S.W.3d 747, 2005 Tenn. App. LEXIS 683, 2005 WL 2860249 (Tenn. Ct. App. 2005).

Opinion

OPINION

W. FRANK CRAWFORD, P.J., W.S.,

delivered the opinion of the court,

in which DAVID R. FARMER, J. and HOLLY M. KIRBY, J. joined.

In a class-action case, in which a settlement had been agreed to, certain members of the class were allowed to opt out of the class action based on the representations of their purported attorneys that their clients had been notified of the settlement and the proposed opt out and that they approved of same. Subsequently, litigation was commenced by the former members of the class in another jurisdiction, and the original defendants were compelled to defend the case incurring expenses, including attorney fees. The original defendants, and one of the attorneys for the class, filed motions against the purported attorneys for the opted out class members for them to show cause why they should not be held in contempt of court for making false representations to the court that resulted in the court allowing the opt out. The respondent attorneys moved to dismiss the motions filed on the basis that, if there was contempt, it was criminal only and on the basis of judicial estoppel. The trial court ruled in favor of respondent attorneys holding that any contempt was criminal and not civil and on the basis of judicial estoppel. The motions of the original defendants and a plaintiffs’ attorney were dismissed. The defendants and plaintiffs’ attorney have appealed. We affirm.

During the late 1970s and 1980s, Hoechst Celanese Corporation (“HCC”) and Shell Oil Company (“Shell”) participated in the manufacture and marketing of a polybutylene plumbing system that allegedly caused property damage to certain homeowners. This alleged damage gave rise to numerous lawsuits including Cox v. Shell Oil Company (the “Cox Case”), a *750 nationwide class action suit filed in the Chancery Court for the Twenty-Seventh Judicial District on June 13, 1995. Both HCC and Shell were Defendants in this suit. The Plaintiff class (the “Cox Class”) in the Cox Case was defined as:

All persons and entities that presently own structures and/or improvements to real property in the United States of America in which there is a polybutylene plumbing system and all persons or entities that own or previously owned such structures and/or improvements to real property and incurred any cost or expense by reason of leakage from a failure, repair, or removal of, all or any portion of a “plastic water delivery system”, [excluding] defendants, any parent, subsidiary, affiliate or controlled person of any defendant, the officers, directors, agents, servants, or employees of any of the same, and the members of the immediate families of any such person.

The Cox Class was represented by a number of attorneys (the “Cox Attorneys”) and law firms who associated with each other and filed the Complaint in the Cox Case. One of the Cox Attorneys is Gordon Ball (“Mr. Ball,” and together with HCC and Shell, “Appellants”).

The Cox Case eventually settled and, under the Cox Settlement Agreement, HCC and Shell agreed — without admitting liability — to provide the qualifying Cox Class members relief. 1 Consistent with the requirements of Tenn. R. Civ. P. 28, the Cox Settlement Agreement provides that all class members are entitled to exclude themselves from the settlement. On August 24, 1995, the Chancery Court issued an order that, inter alia, directed all Cox Class members who intended to opt-out of the Cox Settlement to file exclusion request forms no later than October 20, 1995.

Richard M. Leslie is a Florida trial lawyer who appeared pro hac vice in the Cox Case. Richard M. Leslie, P.A. is the professional association through which Mr. Leslie practices law. Shutts & Bowen, L.L.P. is the Florida firm of which Mr. Leslie’s P.A. is a member (together with Richard M. Leslie and Richard M. Leslie, P.A., the “Respondents,” or “Appellees”). Mr. Leslie, along with Florida co-counsel, represented polybutylene plumbing plaintiffs in two cases that were filed at about the same time as the Cox Case. These cases were Fry v. Hoechst Celanese Corporation, Case No. 95-225-CA-B, Fla. Cir. Ct., 5th Judicial Cir. For Marion County, Florida, and Fry v. Hoechst Celanese Corporation, Case No. 95-6414-CA-ll, Fla. Cir. Ct., 11th Judicial Cir. for Dade County, Florida (together with Fry v. Hoechst Celanese Corporation, Case No. 95-225-CA-B, the “Fry Cases”).

In the course of their representation, on October 20, 1995, the Appellees petitioned the Chancery Court for, inter alia, an order permitting them to exclude, from the Cox Settlement: (1) seven putative class representatives from a Florida state court litigation (the “Fry Seven”); (2) nearly 9,000 Florida mobile home owners, all of whom were listed in a sealed exhibit filed with the Chancery Court; and (3) a class of all Florida mobile home owners. By Order dated May 10, 1996, the Chancery Court rejected the Appellees’ attempt to opt-out not only a class of all Florida mobile home owners, but also the 9,000 Florida mobile home owners listed in the sealed exhibit. In its “Order on Motion to Clarify *751 Opt-Out by Florida Class of Mobile Home Owners,” filed May 10, 1996, the lower court explained that “... electing to opt-out of a class is a personal right of each class member. The Court finds that the request to exclude what was then an un-certified class of Florida residents was, therefore, ineffective as an opt-out.” The trial court did, however, allow the Appel-lees fifteen days to file a brief demonstrating that they had the authority and consent from each of the nearly 9,000 Florida mobile home owners listed in the sealed exhibit (the “Florida Opt-Outs”) to exclude them from the Cox Settlement. 2 On or about May 14, 1996, Appellees filed “Florida Plaintiffs’ Response to Court Re Representation,” which Response reads, in relevant part, as follows:

During the April 29, 1996 hearing, the Court requested that counsel for Florida Plaintiffs submit a response regarding their representation of the owners of approximately 9,000 Florida mobile home units. In support, the Florida Plaintiffs state:
1. Undersigned counsel represents the Florida Plaintiffs in a certified class action lawsuit.... Florida counsel for the Florida Plaintiffs appeared specially in this action in October 1995, to challenge this Court’s jurisdiction over the Florida Plaintiffs and to file notice to opt the Florida mobile home owners out of this action.
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3. Undersigned counsel is co-counsel in the Florida Lawsuit with Christopher J. MacQuarrie. A true and correct copy of Mr. MacQuarrie’s affidavit (“Mac-

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Cite This Page — Counsel Stack

Bluebook (online)
196 S.W.3d 747, 2005 Tenn. App. LEXIS 683, 2005 WL 2860249, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cox-v-shell-oil-co-tennctapp-2005.