Custer v. Cerro Flow Products, Inc.

2018 IL App (5th) 160161, 112 N.E.3d 151
CourtAppellate Court of Illinois
DecidedApril 18, 2018
DocketNO. 5–16–0161
StatusUnpublished
Cited by2 cases

This text of 2018 IL App (5th) 160161 (Custer v. Cerro Flow Products, Inc.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Custer v. Cerro Flow Products, Inc., 2018 IL App (5th) 160161, 112 N.E.3d 151 (Ill. Ct. App. 2018).

Opinion

JUSTICE CATES delivered the judgment of the court, with opinion.

¶ 1 Defendant, Cerro Flow Products, Inc. (Cerro), appeals from orders of the circuit court finding that an aggregate settlement agreement between 11,546 plaintiffs and defendants-Pharmacia Corporation, now known as Pharmacia LLC; Pharmacia & Upjohn Company LLC; Solutia, Inc.; Monsanto Company; Monsanto AG Products LLC, now known as Monsanto Company; and Eastman Chemical Company (collectively referred to as "Monsanto defendants")-was made in "good faith," within the meaning of the Joint Tortfeasor Contribution Act (Contribution Act) ( 740 ILCS 100/0.01 et seq. (West 2014) ). For the following reasons, we vacate the good-faith orders and remand this cause for further proceedings consistent with this opinion.

¶ 2 I. BACKGROUND

¶ 3 This appeal concerns 131 mass tort cases, filed on behalf of 11,546 plaintiffs, who alleged that they suffered personal injuries and property damage resulting from exposure to hazardous substances and contaminants emitted from three "release sites" in or near the village of Sauget, Illinois. The release sites were identified as (1) a 90-acre landfill site (Sauget landfill), (2) a 314-acre plant operated by one or more of the Monsanto defendants (Monsanto facility), and (3) a parcel of property abutting the Monsanto facility that was owned and operated by Cerro (Cerro facility).

*155 ¶ 4 The 2009 Cases

¶ 5 The litigation began in June 2009, with the filing of 20 cases (collectively referred to as "the 2009 cases") against the Monsanto defendants and Cerro. In most of the cases, there were between 70 and 99 individual plaintiffs joined in a single complaint. A total of 1022 individuals were named as plaintiffs in the 2009 cases.

¶ 6 The plaintiffs brought personal injury and property damage claims against the Monsanto defendants and Cerro for allegedly releasing polychlorinated biphenyls (PCBs), dioxins, furans, and other hazardous substances into the environment. More specifically, the plaintiffs alleged that the Monsanto defendants produced, stored, and disposed of PCBs at the Sauget landfill and the Monsanto facility, resulting in the release of the hazardous substances into the environment. The plaintiffs further alleged that Cerro, as part of its recycling operations, scrapped PCB transformers and drained manufacturing waste and PCB oil into a creek, which ran through the Cerro facility, resulting in the release of large quantities of hazardous substances into the environment. The plaintiffs asserted that the hazardous substances were released through emissions, spillage, incomplete incineration of PCBs, improper burning of contaminated waste, improper discharge into surface waters and wastewater systems, and improper disposal. They claimed that the release of these substances created health risks, and contaminated real property, including nearby streams and groundwater, within a two-mile radius of one or more of the release sites ("the affected areas"). The plaintiffs claimed that hazardous substances had been released into the affected areas for more than 70 years and that the defendants actively concealed the health risks and property contamination caused by the release of these substances.

¶ 7 The personal injury claims were based on theories of negligence, strict liability/ultrahazardous activity, nuisance, and battery. The plaintiffs alleged they suffered one or more of the following diseases or conditions: diabetes, hypertension, depression, sinusitis, anemia, endometriosis, fibroid tumors, anxiety, gout, heart disorder, arthritis, hysterectomy, diverticulitis, ovarian cysts, thyroid problems, noncancerous tumors, hypercholesterolemia, upper respiratory infection, heart disease, urinary tract infection, asthma, leukemia, chronic bronchitis, congestive heart failure, emphysema, osteoporosis, stomach disease/disorder, pancytopenia, thrombocytopenia, bone diseases, leucopenia, myelodysplasia, migraines, and various forms of cancer.

¶ 8 The property damage claims were based on theories of negligence, nuisance, and trespass. The plaintiffs alleged that they suffered injury and damage in the form of "cost to remediate" their real property and "diminution in value" of the real property.

¶ 9 On August 3, 2010, the parties informed the trial court that they had entered into a tolling agreement, effective June 18, 2010, which provided for a stay of all nondiscovery issues while they attempted to mediate the contested issues. Pursuant to that agreement, the court ordered a stay of the proceedings. Over the next three years, the parties engaged in mediation. The mediation between the plaintiffs and Monsanto defendants was apparently successful, concluding in November 2014, with a tentative agreement (hereinafter the Settlement Agreement) to settle not only the 2009 cases but also the claims of thousands of other individuals who had not yet filed lawsuits, based upon injuries arising from the same environmental exposure. Cerro was not a party to the proposed settlement, and its mediation efforts *156 with the plaintiffs ended without an agreement.

¶ 10 The 2014 Cases

¶ 11 On or about June 3, 2014, an additional 111 cases (the 2014 cases), naming more than 10,000 new plaintiffs, were filed against Cerro. Because of the pending Settlement Agreement, the Monsanto defendants were not sued. The allegations in the 2014 cases were similar to those brought against Cerro in the 2009 cases. The plaintiffs alleged that Cerro released hazardous substances into the environment at the Cerro release site and that, as a direct and proximate result of environmental exposure to those hazardous substances, the plaintiffs suffered injuries "in the form and manner described in Exhibit A." Exhibit A, attached to the complaint, is a table that contains columns with the following headings: "ID," "Name," Minimum Number of Years," "Cancer," and "Other Conditions." Rows beneath each column contain a unique identification number for each plaintiff, the plaintiff's name, a number indicating the minimum years of alleged exposure, and an "X" marked in the column for either "Cancer" or "Other Conditions."

¶ 12 On June 23, 2014, Cerro filed a motion to lift the stay order in the 2009 cases because its mediation efforts with the plaintiffs had been unsuccessful. On July 8, 2014, the trial court issued an initial case management order covering the 2009 cases and the 2014 cases. As part of that order, the court lifted the stay as to the claims made against Cerro in the 2009 cases. The court also permitted the plaintiffs and Cerro to resume discovery and trial preparations for the 2009 cases and the 2014 cases.

¶ 13 The Qualified Settlement Fund

¶ 14 On August 6, 2015, the plaintiffs in the 2009 cases filed a motion to establish a "Qualified Settlement Fund" and to appoint Lexco Consulting LLC as the administrator of the fund. In the motion, the plaintiffs indicated they had reached a confidential settlement with the Monsanto defendants and thereby resolved the claims of over 11,000 individuals. They unequivocally stated that this was not a motion for a finding of good faith or a request for an order approving the settlement.

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Related

Custer v. Cerro Flow Products, Inc.
2018 IL App (5th) 160161 (Appellate Court of Illinois, 2018)

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Bluebook (online)
2018 IL App (5th) 160161, 112 N.E.3d 151, Counsel Stack Legal Research, https://law.counselstack.com/opinion/custer-v-cerro-flow-products-inc-illappct-2018.