LINDA HUFF VS. CYPRUS AMAX MINERALS COMPANY (L-2818-17, MIDDLESEX COUNTY AND STATEWIDE)

New Jersey Superior Court Appellate Division·Decided September 11, 2019·No. A-3655-17T3·Unpublished

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court." Although it is posted on the internet, this opinion is binding only on the parties in the case and its use in other cases is limited. R. 1:36-3.

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION

DOCKET NO. A-3655-17T3

LINDA HUFF and JAMES HUFF, Plaintiffs-Respondents, v.

CYPRUS AMAX MINERALS COMPANY and IMERYS TALC AMERICA, INC.,

Defendants-Appellants, and

BRENNTAG SPECIALTIES, INC., BRENNTAG NORTH AMERICA, INC., COLGATE-PALMOLIVE, INC., JOHNSON & JOHNSON, WHITTAKER CLARK & DANIELS, INC., UNILEVER UNITED STATES, INC., and ARKEMA, INC.,

Defendants.

Argued October 17, 2018 – Decided September 11, 2019 Before Judges Fuentes, Accurso and Vernoia.

On appeal from the Superior Court of New Jersey, Law Division, Middlesex County, Docket No. L-2818-17.

John C. McMeekin, II, argued the cause for appellants (Rawle & Henderson, LLP, attorneys; John C.

McMeekin, II, on the briefs).

Robert E. Lytle argued the cause for respondents (Szaferman, Lakind, Blumstein & Blader, PC, and Simon Greenstone Panatier, PC, attorneys; Robert E.

Lytle, of counsel and on the brief; Leah Kagan, on the brief).

PER CURIAM The question we thought was presented on this appeal, here on leave granted, is the constitutionality of a New Jersey court's assertion of personal jurisdiction over a foreign defendant without minimum contacts to our State based on the jurisdictional contacts of its predecessors under a products line theory. Specifically, we granted leave to determine whether maintenance of this suit in New Jersey by the estate of an Ohio resident, Linda Huff, against two Delaware corporations, Imerys Talc America, Inc. and Cyprus Amax Minerals Company, both with principal places of business in other states, based on injuries the decedent allegedly suffered as a result of talc imported into New Jersey, processed in a plant in South Plainfield and sold by companies alleged to be defendants' predecessors to Colgate-Palmolive, Inc., which incorporated it into its Cashmere Bouquet body powder, offends due process.

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After briefing and argument, however, Imerys filed for bankruptcy protection. Because the factual record as to Cyprus Amax is too poorly developed to justify our reaching this important constitutional question in this case, we vacate our interlocutory order as improvidently granted and dismiss the appeal.

Linda Huff and her husband James filed a complaint in the Law Division against Cyprus Amax, Imerys, Colgate-Palmolive and Johnson & Johnson, among others, alleging her exposure to asbestos through her use of Cashmere Bouquet talcum powder and Johnson's Baby Powder caused the pleural mesothelioma to which she succumbed after suit was filed. Specifically, plaintiffs alleged Huff was exposed to asbestos through her and her mother's regular use of Cashmere Bouquet from approximately 1956 to 1970, and her daily use of Johnson's Baby Powder from around 1970 to sometime after 2000.

Imerys and Cyprus Amax, represented by the same law firm, filed motions to dismiss the complaint alleging neither corporation is amenable to suit in New Jersey under either general or specific jurisdiction. As already noted, both are Delaware corporations with a principal place of business in California for Imerys and Arizona for Cyprus Amax. They asserted that neither corporation has offices, employees, real or personal property or bank accounts in New Jersey

A-3655-17T3

nor has ever filed a lawsuit here. Defendants argued their lack of any contacts with New Jersey precluded suit against them here.

Plaintiffs opposed the motions, arguing that Imerys and Cyprus Amax were sued as successors and the jurisdictional contacts, both general and specific, of their predecessors could be imputed to them to establish jurisdiction. Relying on depositions of designated representatives of defendants in other cases, as well as their declarations and representations on summary judgment motions in other jurisdictions, plaintiffs sought to establish Imerys' and Cyprus Amax's historic connection to the talc business in New Jersey.

Before relaying the evidence plaintiffs adduced on the motion, we note the court did not make specific findings about the corporate lineage of either Imerys or Cyprus Amax, perhaps owing to their decision to premise their motions on the constitutionality of successor jurisdiction and not on the facts. There was also no jurisdictional discovery undertaken, again based on defendants' failure to argue the facts of successorship or seek jurisdictional discovery until their joint motion for reconsideration. Thus the record on appeal leaves a great deal to be desired. While some points seem clear, there are numerous corporate entities with similar names, particularly as to Cyprus,

A-3655-17T3

making it very difficult to follow or present a cogent account of corporate succession.

Having said that, plaintiffs presented evidence on the motion that Charles Mathieu, Inc., a New Jersey corporation in existence from 1933 to 1981, imported talc to the United States from Italy for use in the cosmetic pharmaceutic market. From approximately 1957 to 1979, Colgate purchased Italian talc from Mathieu, which Colgate incorporated into its product, Cashmere Bouquet, produced at its Jersey City plant. Although the record is less developed with regard to Johnson & Johnson, it also bought Italian talc from Mathieu during the same period.

In the mid-1970s, Mathieu opened a talc processing plant in South Plainfield under the name Metropolitan Talc Company, a company incorporated in New Jersey in 1964. Mathieu also had other alleged subsidiaries that mined minerals in the United States including Resource Processors, Inc. and American Resource Talc, Inc.

According to answers to interrogatories supplied by Imerys in another case and presented by plaintiffs on the motion, Cyprus Georesearch, an alleged wholly owned subsidiary of Cyprus Mines, acquired the assets of Mathieu, Metropolitan Talc, American Resource Talc and Resource Processors in 1979.

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Mathieu, Metropolitan Talc, American Resource Talc and Resource Processors were thereafter wound up, with the New Jersey corporations, Mathieu and Metropolitan Talc, formally dissolving in 1981. There is some indication that another Charles Mathieu company continued in some form thereafter as Cyprus Industrial Minerals apparently continued to pay it a commission on its purchases of Italian talc. There is also some indication in the record that Cyprus Industrial Minerals was aware of a lawsuit in 1979 against Metropolitan in which the plaintiffs alleged exposure to Metropolitan talc caused one of them to develop mesothelioma, and that the Cyprus purchase was structured to avoid assumption of Mathieu's liabilities after that suit came to light.

Cyprus Mines, allegedly doing business as Cyprus Industrial Minerals, took over operations at the Metropolitan Talc plant in South Plainfield upon sale, retaining the plant's employees, including two of Mathieu's owners and officers, Donald Ferry and Peter Bixby. According to deposition transcripts plaintiffs submitted on the motion of Ferry and Henry Mulryan, Chief Executive Officer of Cyprus Industrial Minerals, that entity continued to sell Italian talc to Colgate between 1979 and 1992.

In 1992, Cyprus Mines Corporation doing business as Cyprus Industrial Minerals Company supposedly transferred its talc business to a newly created

A-3655-17T3

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