Mortellite v. Novartis Crop Protection, Inc.

278 F. Supp. 2d 390, 2003 U.S. Dist. LEXIS 20241, 2003 WL 22005934
CourtDistrict Court, D. New Jersey
DecidedAugust 21, 2003
DocketCIV.A.99-CV-2118 JHR
StatusPublished
Cited by6 cases

This text of 278 F. Supp. 2d 390 (Mortellite v. Novartis Crop Protection, 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
Mortellite v. Novartis Crop Protection, Inc., 278 F. Supp. 2d 390, 2003 U.S. Dist. LEXIS 20241, 2003 WL 22005934 (D.N.J. 2003).

Opinion

ORDER

RODRIGUEZ, District Judge.

This matter has come before the Court on Defendant’s motion for summary judgment based on preemption of Plaintiffs’ claims by the Federal Insecticide, Fungicide, and Rodenticide Act. Oral argument *392 was heard on the motion on July 24, 2003. The record of that proceeding is incorporated herein. For the reasons expressed on the record of that date, and those that follow, the motion will be granted.

Background 1

The Plaintiffs in this matter are South Jersey blueberry farms and farmers. Defendant is a non-New Jersey corporation that, beginning in 1997, formulated, manufactured, and marketed an insecticide known as Diazinon AG600 WBC. During the Spring of 1997, Plaintiffs sprayed their blueberry fields with Diazinon AG600 WBC, either alone or mixed with a fungicide, Captan 80 WP or Captec, neither of which are manufactured by the Defendant. By the end of May, 1997, Plaintiffs began to notice damage to the blueberry plants that had been sprayed with the Diazinon AG600 WBC. Other bushes on Plaintiffs’ farms that had been sprayed with other pesticides, either by themselves or mixed with Captan 80 WP and/or Captec, allegedly exhibited no damage. Plaintiffs reported the damage to the Defendant.

As the season progressed and the plants began to produce berries, Plaintiffs discovered damage to the fruit as well. From June 1997 to August 1997, representatives of Novartis, Aaron Locker, Wayne Lee, and Dr. Neil Lapp,- visited the plaintiffs’ farms to investigate their claims and assess the problem. Dr. Lapp testified at deposition that although Novartis’ investigation failed to substantiate the farmers’ contentions that Diazinon AG600 WBC caused the crop injury, the company determined that it would explore goodwill settlements with the farmers. Plaintiffs allege that in or about mid-July of 1997, Dr. Lapp, who had just become Defendant’s Technical Services Manager on July 2, 1997, told Plaintiffs not to hire an attorney, because Novartis would treat them fairly and compensate them for all of their damage, present and future. Allegedly at the direction of Dr. Lapp, during the Fall of 1997, all of “the settling plaintiffs” submitted documentation to Novartis outlining only the damages they had suffered during the crop year. These Plaintiffs allege that Dr. Lapp represented that Novartis would talk to them about further damages to their crops, plants, and land sustained during the crop years 1998 and following, after those particular years were over.

From November of 1997 through January of 1998, Defendant entered into settlement agreements with the majority of the Plaintiffs. Each of these “settling plaintiffs” signed a Release indicating that he or she received settlement proceeds

in full satisfaction and extinguishment of all claims and causes of action against [defendant] ... arising out of any damage or loss, present or future, to crops, plants, animals, fish or land, direct or indirect, known or unknown allegedly sustained by the [settling plaintiff] as a result of the use of [Diazinon AG600].

The Release further provided, “It is agreed that this is a business decision in compromise of a disputed claim and that the making of this payment is not an admission of liability on the part of [Defendant].”

The settling Plaintiffs also signed a Confidentiality Agreement, which stated:

The goodwill settlement which has been negotiated between [defendant] and the owner/manager of the crop in question is a business transaction. Each party is required to keep the details of the *393 agreement confidential. If either party violates this Confidentiality Agreement, both agree that this goodwill settlement may be null and void.

In the Spring of 1998, it became apparent that there was continuing damage to all of the plants that had been sprayed with the Diazinon AG600 WBC the previous year. Some of the plaintiffs again contacted Novartis about these damages, but Dr. Lapp told them that the company had closed its files on the matter and had no intention of considering further damage caused by Diazinon AG600 WBC.

Thus, the essence of the dispute in this case centers around damage allegedly caused to Plaintiffs’ blueberry plants and crops by a chemical manufactured by Defendant. Defendant asserted that the majority of Plaintiffs signed a Release concurrent with taking certain sums in settlement of this claim after evaluating initial damage to the 1997 crops, with the Releases giving up all rights to future damages. However, the “settling Plaintiffs” sought to avoid the Releases by asserting that Defendant fraudulently induced them into signing.

The Second Amended Complaint, filed in August of 1999, contains seven counts, Count I has alleged Strict Products Liability in that Diazinon AG600 had a latent defect which made it unreasonably dangerous to Plaintiffs’ plants and land, and which resulted in injury to Plaintiffs’ plants and land.

Count II states a claim for Negligence in that the defendant negligently placed Diazinon AG600 into the stream of commerce, and was negligent in formulating, testing, manufacturing, and distributing Diazinon AG600.

Count III alleges Fraud in that the defendant told plaintiffs that any settlement reached for damages was for the crop year 1997 only, but defendant knew that this was a misrepresentation and that it was fraudulently inducing the plaintiffs to sign the Releases. Plaintiffs allege that they relied on defendant’s representations and signed releases, and that such reliance was detrimental as there was future damage.

Count IV alleges Negligent Misrepresentation/Fraud by stating that the defendant marketed its product as effectively controlling certain insects without inflicting adverse effects on plants or soil and the defendant knew or should have known that this was a false statement regarding a material fact. Plaintiffs allege they relied to their detriment and suffered damages.

Count V alleges Breach of Covenant of Good Faith and Fair Dealing in that plaintiffs believed, from representations of the defendant, that the Release agreements pertained to damages for the 1997 crop year only. Plaintiffs allege that they were told that subsequent damages to their plants and land would be discussed during subsequent crop years; however, it allegedly is now apparent that the defendant had no intention of compensating plaintiffs for further damages.

Count VI alleges Breach of Express Warranty in that the defendant warranted that its product would conform to the chemical description on its label and was reasonably fit for the purposes stated on its label when used in accordance with it and defendant further warranted that its product would act as an insecticide and would not injure plants and land.

Count VII alleges Breach of the New Jersey Consumer Fraud Act by defendant’s deceptive representation that its product was safe to use on blueberry plants as an insecticide.

On December 20, 2000, the Court granted in part and denied in part Defendant’s motion for summary judgment on the Re *394 lease issue.

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Bluebook (online)
278 F. Supp. 2d 390, 2003 U.S. Dist. LEXIS 20241, 2003 WL 22005934, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mortellite-v-novartis-crop-protection-inc-njd-2003.