Harper v. E.I. Du Pont de Nemours & Co.

802 So. 2d 505, 2001 Fla. App. LEXIS 18278, 2001 WL 1644332
CourtDistrict Court of Appeal of Florida
DecidedDecember 26, 2001
DocketNo. 4D01-1556
StatusPublished
Cited by1 cases

This text of 802 So. 2d 505 (Harper v. E.I. Du Pont de Nemours & Co.) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harper v. E.I. Du Pont de Nemours & Co., 802 So. 2d 505, 2001 Fla. App. LEXIS 18278, 2001 WL 1644332 (Fla. Ct. App. 2001).

Opinion

HAZOURI, J.

George R. Harper, III, et al. petition this court for a writ of certiorari to review an order of the Broward County circuit court denying their motion to lift the stay in consolidated state court fraud actions, pending disposition of Respondents’ subsequently filed actions in federal court. We agree with Petitioners that the circuit court departed from the essential requirements of law and, therefore, quash the stay.

FACTS

Petitioners are growers of ornamental plants, flowers and landscape materials. They previously sued E.I. DuPont de Nemours and Company (DuPont) in state court for damages arising from their use of DuPont’s fungicide, Benlate®. In 1994, Petitioners settled their product liability actions with DuPont, executing settlement agreements containing general releases, covenants not to sue and provisions requiring them to dismiss their underlying claims with prejudice.

In 1999, Petitioners filed the instant consolidated state court fraud actions against DuPont, Alston & Bird, LLP (a Georgia Law firm), Cabaniss & Burke, P.A. (a Florida law firm) and Nicholas Albergo (a Florida resident who testified as an expert witness in the Benlate® litigation) (collectively, Respondents) in Florida circuit court, alleging Petitioners were fraudulently induced into settling their product liability actions. They allege that DuPont conspired with their former attorneys and the expert witness to defraud Petitioners by concealing and destroying evidence in the product liability actions.1 Petitioners claim that had they known of this material evidence being concealed and destroyed, they would not have settled their product liability actions.

After Petitioners filed the instant state court fraud actions, DuPont filed several diversity lawsuits in the United States District Court, Southern District of Florida against most, but not all Petitioners. DuPont alleged Petitioners breached the settlement agreements executed in connection with the product liability actions by filing the state court fraud actions against DuPont. Those lawsuits have been consolidated along with other federal fraud cases (over thirty) previously filed against DuPont by other litigants, not including Petitioners, who also settled product liability actions against DuPont. These federal fraud cases include some of the same allegations made by Petitioners in the instant state court fraud actions. The consolidated federal cases are now before Judge Gold in federal district court.

On August 20, 1999, (after Petitioners filed their state court fraud actions and before Respondents answered these complaints) DuPont moved to stay the state court fraud actions pending the outcome of Mazzoni Farms, Inc. v. E.I. DuPont De Nemours and Co., 166 F.3d 1162 (11th Cir.1999), and E.I. DuPont de Nemours and Co. v. Florida Evergreen Foliage, 744 A.2d 467 (Del.1999), similar fraudulent inducement actions filed against DuPont in federal district court by unrelated plaintiffs. The damage claims are predicated on violations of RICO statutes, common law fraud, conspiracy and spoliation of evidence.

As grounds for the stay, DuPont advised the court that it intended to seek dismissals of Petitioners’ state court fraud actions on the basis of releases in their settlement [508]*508agreements, that federal district court judges had already dismissed Mazzoni and Evergreen Foliage and their decisions had been certified to the Florida and Delaware supreme courts, and that DuPont would be entitled to an immediate dismissal of Petitioner’s state court fraud actions if DuPont prevailed in the Florida and Delaware Supreme Courts. Petitioners agreed the allegations in their state court fraud actions were similar to the allegations made in Mazzoni and Florida Evergreen. Subsequently, the parties stipulated to an “Agreed Order” which stayed the proceedings in the state court fraud actions pending decisions of the Florida Supreme Court in Mazzoni and the Delaware Supreme Court in Florida Evergreen.

Florida Evergreen was decided December 6, 1999, and the motion for rehearing denied on January 26, 2001. The Delaware Supreme Court held that, under Delaware law, “a party alleging fraud in the settlement of a tort claim may elect rescission and restoration to the status quo ante or, alternatively, may bring an action for the recovery of special, or expectancy, damages with retention of the settlement proceeds.” 744 A.2d at 465.

The certified questions in Mazzoni were: (1) Does a choice of law provision in a settlement agreement2 control the disposition of a claim that the agreement was fraudulently procured even if there is no allegation that the choice of law provision itself was fraudulently procured? and (2) If Florida law applies, does the release in these settlement agreements bar plaintiffs fraudulent inducement claims? Mazzoni Farms, Inc. v. E.I. DuPont De Nemours and Co., 761 So.2d 306, 307-08 (Fla.2000). On June 8, 2000, the Florida Supreme Court answered the first question in the affirmative, finding plaintiffs were bound by the choice-of-law provision because they elected to affirm the contract instead of seeking rescission. Id. at 313. The supreme court answered the second question in the negative, finding that Florida law does not bar the fraudulent inducement claims. Id. at 316.

In light of the Supreme Court of Florida’s opinion in Mazzoni, as well as the Supreme Court of Delaware’s opinion in Florida Evergreen, on August 22, 2000, the United States Court of Appeals, Eleventh Circuit, reversed the federal district court’s order dismissing the plaintiffs’ claims and remanded the case for further proceedings consistent with the Supreme Court of Florida’s opinion.

On September 21, 2000, Petitioners moved to lift the stay in the instant state court fraud actions. Following a hearing on October 23, 2000, the circuit court denied the motion to lift the stáy without prejudice. Apparently, the parties were awaiting a decision by Judge Gold on Du-pont’s motions for judgment on the pleadings in Florida Evergreen. On March 8, 2001, Judge Gold entered the order, granting judgment on the pleadings in favor of DuPont. Fla. Evergreen Foliage v. E.I. Du Pont de Nemours, Co., 135 F.Supp.2d 1271 (S.D.Fla.2001). Judge Gold stated therein:

The motions decided by this Order were filed in only one of 34 consolidated Ben-late settlement fraud cases that are currently pending before this court, but the implications are significant for all of the cases. Reasonable jurists could disagree with this Court’s interpretation of the Florida and Eleventh Circuit precedent regarding litigation conduct and [509]*509reasonable reliance, and there is also a substantial question regarding the applicability of this decision to the remaining Benlate settlement fraud cases. Moreover, this Court has considered conducting a common issues trial in these consolidated cases, and resolution by the Court of Appeals of the appeal of this order through an interlocutory appeal will substantially assist in settling the issues involved in such a trial.

Id. at 1297-98 (emphasis added). The Eleventh Circuit accepted the ruling for interlocutory review by order dated June 21, 2001.

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Bluebook (online)
802 So. 2d 505, 2001 Fla. App. LEXIS 18278, 2001 WL 1644332, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harper-v-ei-du-pont-de-nemours-co-fladistctapp-2001.