Modern Holdings, LLC v. Corning, Inc.

CourtCourt of Appeals for the Sixth Circuit
DecidedSeptember 25, 2024
Docket23-5645
StatusUnpublished

This text of Modern Holdings, LLC v. Corning, Inc. (Modern Holdings, LLC v. Corning, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Modern Holdings, LLC v. Corning, Inc., (6th Cir. 2024).

Opinion

NOT RECOMMENDED FOR PUBLICATION File Name: 24a0395n.06

Nos. 23-5612/5645 FILED UNITED STATES COURT OF APPEALS Sep 25, 2024 FOR THE SIXTH CIRCUIT KELLY L. STEPHENS, Clerk

) MODERN HOLDINGS, LLC; WANDA ) BEASLEY; BRENDA CARTER; MELVIN ) HARRIS; JANET MITCHELL; SELLERS ) AND SELLERS COMPANY; DONNA ) SMITH, ) Plaintiffs-Appellants/Cross-Appellees, ) ) ON APPEAL FROM THE UNITED v. ) STATES DISTRICT COURT FOR ) THE EASTERN DISTRICT OF CORNING, INC., ) KENTUCKY Defendant, ) ) PHILIPS ELECTRONICS NORTH ) OPINION AMERICA CORPORATION, a Delaware ) Corporation, ) ) Defendant-Appellee/Cross-Appellant. )

Before: BUSH, NALBANDIAN, and MURPHY, Circuit Judges.

MURPHY, Circuit Judge. For years, Philips Electronics North America Corporation

operated a plant in a small Kentucky city. After the plant closed, local property owners claimed

that it had emitted dust that contaminated their lands with lead. But a jury disagreed. It found that

the property owners had not sued within the statute of limitations and that they had failed to prove

their nuisance and trespass claims. The district court then denied the owners’ motion for a new

trial. According to the district court, a reasonable jury could have found their claims untimely, the

court’s verdict form accurately conveyed the law, the jury adequately deliberated, and Philips had

not improperly used its peremptory strikes. On appeal, we conclude that the court reasonably Nos. 23-5612/5645, Modern Holdings, LLC, et al. v. Corning, Inc., et al.

resolved these four issues. And that holding allows us to avoid the parties’ various claims about

the district court’s rulings on the admissibility of the expert opinions. We affirm.

I

This case concerns a manufacturing plant in Danville, a city in rural Kentucky with fewer

than 20,000 residents. In 1952, Corning, Inc., built the plant to make glass. Corning owned and

operated the plant over the next three decades. In 1983, Corning sold the facility to Philips. For

several more decades, Philips used the plant to make glass for its light-bulb business. Philips

ultimately closed the plant in 2011. Corning bought it back two years later.

Corning and Philips both used lead to make some types of glass at the plant. During the

manufacturing process, lead particles could seep out in the dust that left the plant’s smokestacks.

When Corning first opened the facility, it lacked any pollution-control equipment to contain these

lead emissions. But it installed an “electrostatic precipitator” to help catch the lead in 1973. Once

Philips took over the facility, it relied on the same device. In 2006, it replaced the electrostatic

precipitator with a newer model. Philips reused the captured lead dust to make new glass.

In November 2013, two original plaintiffs filed this diversity suit against Corning and

Philips. The complaint asserted that the two companies had polluted neighboring properties

through the plant’s emissions of lead (among other materials). It added that this pollution would

likely cause the plant’s neighbors to suffer future health problems. As for legal theories, the

complaint alleged that Corning and Philips had created a nuisance by unreasonably interfering

with neighboring properties. It also alleged that Corning and Philips had committed a trespass by

invading their properties with the lead dust. The plaintiffs sought to certify a class of residents

that the emissions had affected.

2 Nos. 23-5612/5645, Modern Holdings, LLC, et al. v. Corning, Inc., et al.

This case has proceeded through protracted litigation. After years of discovery, the district

court denied the plaintiffs’ request to certify a class action. In response, many more plaintiffs

joined the suit. When the court consolidated the case with a similar one, the number of plaintiffs

grew to over 100. The court later approved the parties’ request to follow a “Bellwether case

management approach.” Order, R.414, PageID 11691. It opted to hold an initial trial for the claims

of the seven plaintiffs in this appeal: Modern Holdings, LLC, Sellers and Sellers Company, Wanda

Beasley, Janet Mitchell, Donna Smith, Melvin Harris, and Brenda Carter. Because these plaintiffs

asserted only claims for damages to their properties, we will call them the “Property Owners.”

Two significant events occurred before the bellwether trial began. All plaintiffs settled

their claims against Corning. So the district court dismissed that company from the suit. The

Property Owners proceeded to trial against Philips alone. Next, each side filed several motions

to exclude the other side’s expert testimony under Daubert v. Merrell Dow Pharmaceuticals,

509 U.S. 579 (1993). The court granted these Daubert motions in part and denied them in part.

The parties took twelve days to conduct the bellwether trial. But the jury took less than

two hours to reach a defense verdict. The jury first found that the Property Owners had not filed

their claims within the governing statute of limitations. On the merits, the jury next found that the

Property Owners had failed to prove that Philips had created a nuisance or trespassed on their

properties.

The Property Owners asked the district court to grant a new trial under Federal Rule

of Civil Procedure 59. The court denied this motion. See Mod. Holds., LLC v. Corning, Inc.,

2023 WL 3827666, at *5 (E.D. Ky. June 2, 2023).

3 Nos. 23-5612/5645, Modern Holdings, LLC, et al. v. Corning, Inc., et al.

II

The Property Owners now seek a new trial from us. They primarily challenge the district

court’s rulings on the admissibility of the expert testimony under Daubert. In response, Philips

partially defends the district court’s Daubert order but also cross-appeals other aspects of this

order. That said, both sides concede that these alleged evidentiary errors mattered only to the

jury’s merits finding that Philips did not commit a trespass or create a nuisance—not to the jury’s

statute-of-limitations finding that the Property Owners sued too late. The errors thus could not

have mattered to the jury’s final verdict for Philips unless the Property Owners show that some

other error undermined the jury’s statute-of-limitations conclusion. See Morales v. Am. Honda

Motor Co., 151 F.3d 500, 514 (6th Cir. 1998).

On that front, the Property Owners raise four arguments. They say that this statute-of-

limitations conclusion contradicted the weight of the evidence. And they say that the district court

gave the jury a misleading jury-verdict form, that the jury violated its duty to deliberate, and that

Philips engaged in racial discrimination in its peremptory challenges. We disagree with these

arguments. We thus need not address the parties’ Daubert claims because any Daubert errors

would have been harmless. See id. We will start with the Property Owners’ weight-of-the-

evidence argument and then turn to their remaining three arguments.

A. Weight-of-the-Evidence Claim

The Property Owners argue that the district court should have granted them a new trial

under Federal Rule of Civil Procedure 59 because the jury’s statute-of-limitations verdict conflicts

with the weight of the trial evidence. Rule 59 allows district courts to grant new trials today “for

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