Haines v. Liggett Group, Inc.

814 F. Supp. 414, 1993 U.S. Dist. LEXIS 1937, 1993 WL 41076
CourtDistrict Court, D. New Jersey
DecidedJanuary 26, 1993
DocketCiv. A. 84-678 (AJL)
StatusPublished
Cited by28 cases

This text of 814 F. Supp. 414 (Haines v. Liggett Group, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Haines v. Liggett Group, Inc., 814 F. Supp. 414, 1993 U.S. Dist. LEXIS 1937, 1993 WL 41076 (D.N.J. 1993).

Opinion

OPINION

LECHNER, District Judge.

Currently before the court is the motion of Budd Larner Gross Rosenbaum Greenberg & Sade, P.C. (“Budd Lamer”) to withdraw as counsel for M. Susan Haines (“Haines”), plaintiff in the above-captioned matter. 1 For the following reasons, the motion is denied.

FACTS

A Background

In the Spring of 1983, three New Jersey law firms — Budd Larner; Porzio, Bromberg & Newman (“Porzio”); and Wilentz Goldman and Spitzer (“Wilentz”) — entered into an agreement (the “Litigation Agreement”) whereby they agreed jointly to litigate cigarette-related health claims on behalf of smokers who developed lung cancer, allegedly from smoking. Edell Aff., ¶ 3; Moving Brief at 2. Ultimately, as a result of the Litigation Agreement, eight cases (the “Cigarette Cases”) were filed against various cigarette companies, including: Cipollone v. Liggett Group, Inc., et al, No. 83-2864 (D.N.J.); Dewey v. R.J. Reynolds Tobacco Co., et al., 216 N.J.Super. 347, 623 A.2d 712 (Law Div.); Berko v. R.J. Reynolds Tobacco Co., et al., (N.J.Super.Ct.Law Div.), see 246 N.J.Super 348, 587 A.2d 667 (App.Div.1991); Barnes v. R.J. Reynolds Tobacco Co., et al. (N.J.Super.Ct.Law Div.), see 246 N.J.Super 348, 587 A.2d 667 (App.Div.1991); Smith v. R.J. Reynolds Tobacco Co., et al., No. L-059921-84 (N.J.Super.Ct.Law Div.); and the instant case, Haines v. Liggett Group, Inc., et al., No. 84-678 (AJL) (D.N.J.). 2 Edell Aff., ¶ 2; Moving Brief at 2.

The Litigation Agreement continued until March 1986, when Marc Z. Edell (“Edell”) left Porzio to join Budd Larner. Edell Aff., ¶ 3; Moving Brief at 2. Thereafter, only Budd Larner and Wilentz litigated the Cigarette Cases, with the exception of Haims, the instant ease. Edell Aff., ¶3. On 29 September 1988, Wilentz was disqualified in Haines by Magistrate Judge Ronald Hedges, as a result of a decision by the New Jersey Supreme Court in Dewey v. R.J. Reynolds Tobacco Co., 109 N.J. 201, 536 A.2d 243 (1988). Edell Aff., ¶ 3. Since 29 September 1988, Budd Larner has assumed sole legal and financial responsibility for this case. Moving Brief at 2.

In each of the Cigarette Cases, including the present case, Budd Larner, Porzio and Wilentz entered into contingency fee agreements with the various plaintiffs. Moving Brief at 15. Pursuant to these contingency fee agreements, the expenses of litigation have been borne exclusively by Budd Larner and the other law firms. 3 Id. According to Budd Larner, “[n]o client has expended even *417 a single dollar toward satisfaction of those costs; the expenses are recoverable only if plaintiffs prevail at trial — in which case those sums will be deducted from plaintiffs’ share of the judgments.” Id.

At the present time, of the original eight cases filed under the Litigation Agreement, Budd Lamer remains as counsel only in the present case and possibly one other. 4

B. The Parties and Claims

On 22 February 1984, this case was filed by Haines as administrator of the estate of Peter F. Rossi (“Rossi”). Edell Aft, Ex. F (letter to Magistrate Judge Joel A. Pisano, dated 2 October 1992) (the “2 Oct. 1992 Letter”) at 1. The defendants (the “Defendants”) in this case are Liggett Group, Inc. (the “Liggett Group”), Loew’s Theatres, Inc. (“Lorillard”), Phillip Morris, Inc. (“Phillip Morris”), R.J. Reynolds Tobacco Co. (“RJR”) and the Tobacco Institute. 5 Id. at 1-2. Haines alleges, inter alia, that Rossi developed lung cancer and died on 28 May 1982 as a result of smoking cigarettes manufactured by Defendants. 6 Id. at 2.

Haines alleges numerous grounds for recovery. First, Haines asserts a claim for “risk-utility” as to all Defendants. The essence of this claim is that the cigarettes manufactured by Defendants “were not reasonably fit, suitable or safe for their intended or reasonably foreseeable use because the dangers of smoking so outweigh their usefulness that a reasonably prudent manufacturer would not have sold them.” Id. at 5.

Second, Haines asserts a claim for failure to warn against all Defendants. Id. Specifically, Haines alleges that, through their advertising and promotion of cigarettes prior to 1969, Liggett Group and Lorillard failed to adequately warn of the health consequences of smoking. Id. Haines also alleges under this claim that all Defendants “failed to adequately test, research and warn of the health consequences of smoking through means other than advertising.” Id. at 6. Haines seeks both compensatory and punitive damages on the failure to warn claim. Id.

Third, Haines brings a claim for breach of express warranty as to all Defendants. Id. Haines alleges that Defendants made express promises or affirmations of fact that the cigarettes they sold to Rossi would not cause injury or harm, that these alleged statements were part of the bargain between Defendants and consumers like Rossi, and that Defendants’ cigarettes used by Rossi failed to conform to the alleged affirmations of fact or promises made to Rossi and proximately caused his death. Id.

Fourth, Haines asserts claims in intentional tort — for fraud and conspiracy — alleging that Defendants “individually and in concert, concealed and intentionally failed to disclose significant and material information and data regarding the health consequences of smoking.” Id. at 7. Moreover, Haines alleges that Defendants, “through their advertising, promotion, and other practices, distorted and otherwise misrepresented the health effects of smoking to the public.” Id. Haines contends that Rossi, individually and/or as a member of the general public, relied on these alleged misrepresentations and omissions. Id. Haines seeks compensatory and punitive damages on these intentional tort claims. Id.

*418 On 14 September 1992, by order of the Third Circuit, 975 F.2d 81, this case was reassigned from United States District Judge H. Lee Sarokin to this court. Id at 4. On 16 November 1992, Budd Larner filed this motion to withdraw.

DISCUSSION

A. Arguments by Budd Lamer For Withdrawal

Budd Larner argues it should be granted permission to withdraw from this case because litigation against the cigarette industry “has become an unreasonable financial burden.” Moving Brief at 1. Budd Larner indicates that, although it has entered into “thousands of contingency arrangements over the years, ...

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Bluebook (online)
814 F. Supp. 414, 1993 U.S. Dist. LEXIS 1937, 1993 WL 41076, Counsel Stack Legal Research, https://law.counselstack.com/opinion/haines-v-liggett-group-inc-njd-1993.