Cupples v. Mountaire Corporation

CourtSuperior Court of Delaware
DecidedApril 12, 2021
DocketS18C-06-009 CAK
StatusPublished

This text of Cupples v. Mountaire Corporation (Cupples v. Mountaire Corporation) 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
Cupples v. Mountaire Corporation, (Del. Ct. App. 2021).

Opinion

IN THE SUPERIOR COURT OF THE STATE OF DELAWARE

GARY and ANNA-MARIE CUPPELS, individually and on behalf of all others similarly situated, > C. A. No.: S18C-06-009 CAK

Plaintiffs,

Vv.

MOUNTAIRE CORPORATION, an Arkansas corporation, MOUNTAIRE FARMS, INC., a Delaware corporation, and : MOUNTAIRE FARMS OF DELAWARE, INC., a Delaware corporation,

Defendants. Submitted: March 23, 2021 Decided: April 12, 2021 MEMORANDUM OPINION AND ORDER Stipulated Motion to Approve Class Action Settlement GRANTED

Chase T. Brockstedt, Esquire and Stephen A. Spence, Esquire, Baird Mandalas Brockstedt, 1413 Savannah Road, Ste. 1, Lewes, Delaware 19958, Attorneys for Plaintiffs.

Philip C. Federico, Esquire and Brent Ceryes, Esquire, Schochor, Federico and

Staton, P.A., 1211 Paul Street, Baltimore, Maryland 21202, Attorneys for Plaintiffs. F. Michael Parkowski, Esquire and Michael W. Teichman, Esquire, Parkowski, Guerke & Swayze, P.A., 1105 North Market Street, 19" Floor, Wilmington, Delaware 19801, Attorneys for Defendants.

Lisa C. McLaughlin, Esquire, Todd L. Goodman, Esquire and John C. Phillips, Jr., Esquire, Phillips, Goldman, McLaughlin & Hall, P.A., 1200 North Broom Street, Wilmington, DE 19806, Attorneys for Defendants.

James R. Wedeking, Esquire, Timothy K. Webster, Esquire, Gordon D. Todd,

Esquire, Erika L. Maley, Esquire and Daniel J. Hay, Esquire, Sidley Austin, LLP, 1501 K Street, N.W. Washington, DC 20005, Attorney for Defendants.

KARSNITZ, J. The Town of Millsboro sits on the Indian River in the shadow of the chicken processing facility a few miles east of it. For many years the plant was the only facility between Rehoboth and Millsboro. The plant has been operated by Defendants Mountaire Farms, Inc., a Delaware corporation, Mountaire Farms of Delaware, Inc., a Delaware corporation, and under the auspices of Mountaire Corporation, an Arkansas corporation (collectively “Defendants” or “MFODI’).

In June of 2018, Plaintiffs Gary and Anna-Marie Cuppels sued the Defendants in their own right and on behalf of the class of all similarly-situated persons. Plaintiffs allege that Defendants disposed of contaminated wastewater and liquefied sludge on lands near Plaintiffs’ residences. Plaintiffs allege that this wastewater and sludge have seeped into the groundwater throughout the area, causing nitrates and other contaminants to enter Plaintiffs’ drinking water wells, resulting in health effects and property diminution for a class of individuals living, working, leasing, or owning property and/or businesses in the area identified as the “Groundwater Area” set forth on Exhibit A to the Motion for Approval.

Plaintiffs further allege that Defendants’ wastewater treatment plant and their spray irrigation and sludge operations emit air pollutants, including malodorous hydrogen sulfide that reach Plaintiffs’ residences at levels causing a

class of individuals living, working, leasing, or owning property and/or businesses in the area identified as the “Air Area” set forth on Exhibit A to the motion to suffer health effects and to endure nuisance conditions preventing and devaluing the use of their properties.

Defendants deny Plaintiffs’ allegations. Specifically, Defendants assert that they are not the cause of nitrate contamination in residential supply wells and that they did not emit and are not emitting air pollutants in the nature and quantity alleged by Plaintiffs. Defendants further assert, among other defenses, that Plaintiffs cannot establish that Defendants’ actions are the proximate cause of Plaintiffs’ injuries. Defendants have chosen to settle the case in order to achieve final resolution of this matter and avoid the uncertainty associated with litigation.

After the filing of the Complaint, the parties litigated numerous dispositive motions and engaged in preliminary discovery on issues of class certification and jurisdiction. In August 2019, the Court granted the parties’ request to stay the case while they pursued mediation. The parties engaged the services of two well-respected mediators: David White, an attorney and mediator with extensive experience litigating and mediating cases, and Eric Green, a mediator with extensive experience mediating class actions of national

prominence, including environmental matters. The parties mediated over four days in Wilmington, Delaware. This mediation included presentations from both parties and their experts. The mediation was not successful.

Following the parties’ initial attempt at mediation, this Court authorized discovery on the merits of the case, and the parties resumed briefing on class certification and certain dispositive motions. The parties and the Special Discovery Master implemented an electronic discovery protocol, and over the following months, the parties produced and reviewed hundreds of thousands of pages of documents. Discovery also involved multiple site inspections both at the Facility as well as the residences of class members, the scope and procedures of which were litigated before the Special Discovery Master. The parties engaged in over 20 discovery depositions, including the depositions of corporate designees, class representatives, unnamed class members, an expert witness, and Defendants’ current and former employees (and many more depositions remain pending). The parties litigated numerous discovery disputes through the Court-appointed Special Discovery Master and before this Court. The parties continued to discuss settlement in 2020, as an extension of the mediation that began in 2019. Ultimately, in late 2020, the parties reached agreement and entered into the

proposed Settlement Agreement. On December 23, 2020, the parties filed a Joint Motion for Preliminary Approval of Class Action Settlement Agreement and Other Relief (the “Preliminary Approval Motion”).' In addition to seeking preliminary approval of the Settlement Agreement, the Preliminary Approval Motion requested that the Court (1) preliminarily certify the settlement class; (2) appoint class representatives; (3) appoint Plaintiffs’ counsel as Class Counsel; (4) designate RG/2 as Claims Administrator; (5) approve and order the implementation of a proposed Notice Plan; (6) establish a procedure for objections to the Settlement Agreement; (7) establish a procedure for opt-outs from the Settlement Agreement; (8) set a bar date for the submission of claims; and (9) schedule a briefing schedule and date for a fairness hearing to consider final approval of Settlement Agreement.

On January 11, 2021, the Court granted the Preliminary Approval Motion. ”

Following preliminary approval, Class Counsel directed class notice through RG/2 Claims Group pursuant to the Court-approved notice plan. The

notice campaign was robust. RG/2 Claims mailed the Notice to 6,720 Class

'D.I. 605.

*D.I. 610. Members identified via property records.’ Further, the Class Counsel engaged in a publication notice campaign, which included advertisements in multiple newspapers, as well as a press release that generated news coverage in multiple media outlets. Class Members were also provided with a toll-free number and an informative website to obtain case-related documents and further information regarding the proposed Settlement (www.mountairesettlement.com). Both the direct and publication notices provided the Settlement Class Members with information on how they could review a copy of the Settlement Agreement, the deadline by which they were required to file any objections to the Settlement Agreement, their right to exclude themselves from any settlement and the deadline for doing so, the potential preclusive effect of the Settlement Agreement, instructions on how to register for participation in the Settlement Agreement, and a bar date for the submission of claims.

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Cupples v. Mountaire Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cupples-v-mountaire-corporation-delsuperct-2021.