Philip Morris USA Inc., and R.J. Reynolds Tobacco Company v. Beatrice Skolnick, as personal representative of the Estate of Leo Skolnick

171 So. 3d 747, 2015 Fla. App. LEXIS 10789, 2015 WL 4269245
CourtDistrict Court of Appeal of Florida
DecidedJuly 15, 2015
Docket4D13-4696
StatusPublished

This text of 171 So. 3d 747 (Philip Morris USA Inc., and R.J. Reynolds Tobacco Company v. Beatrice Skolnick, as personal representative of the Estate of Leo Skolnick) 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
Philip Morris USA Inc., and R.J. Reynolds Tobacco Company v. Beatrice Skolnick, as personal representative of the Estate of Leo Skolnick, 171 So. 3d 747, 2015 Fla. App. LEXIS 10789, 2015 WL 4269245 (Fla. Ct. App. 2015).

Opinion

GROSS, J.

In this Engle 1 progeny case, plaintiff Beatrice Skolnick recovered compensatory *751 damages from two tobacco companies— Philip Morris USA Inc. and R.J. Reynolds Tobacco Company. The jury found for the defendants on claims of fraudulent concealment and conspiracy to commit fraudulent concealment.

We confront a novel issue in an Engle case. In 2004, as a plaintiff in a New York class action, Beatrice executed a settlement agreement, containing a release and covenant not to sue concurrent tortfeasors, where the injury at issue was her husband’s lung cancer. We hold that this settlement agreement applies to bar the strict liability and negligence causes of action in this case. However, under New York law, the release and covenant not to sue do not bar the intentional tort claims of fraudulent concealment and conspiracy to commit fraudulent concealment.

Beatrice cross-appealed from the defense verdict on the intentional tort counts. As to those counts, the trial court applied our decision in Philip Morris USA, Inc. v. Hess, 95 So.3d 254 (Fla. 4th DCA 2012). The Florida Supreme Court quashed this decision in April 2015. See Hess v. Philip Morris USA, Inc., — So.3d -, 2015 WL 1472319, 40 Fla. L. Weekly S188 (Fla. Apr. 2, 2015).

We reverse the judgment for the plaintiff on the strict liability and negligence counts and remand to the circuit court for the entry of a judgment for the defendants. On the cross-appeal, we reverse the judgment for the defendants on the fraudulent concealment and conspiracy counts and remand for a new trial.

The Release in the New York Action

In 2002, Beatrice joined hundreds of plaintiffs in a New York class action lawsuit against Verizon Communications Inc. and other defendants responsible for the operation of the Sylvania Plant (“the Hicksville Action”), which was located just 500 meters from Beatrice and Leo Skol-nick’s Westbury home. The complaint alleged the “facility emitted toxins into the surrounding environment located in Hicks-ville, New York,” which “contaminated the air, soil, surface water and ground water in the surrounding communities.” As it concerned Leo Skolnick, the complaint set forth the following:

Beatrice Skolnick, individually, and as Administratrix of the Estate of Leo Skolnick (“decedent”), ... brings an action for both conscious pain and suffering and wrongful death on behalf of the decedent. From the time period beginning in July of 1959 and ending in September of 1984, decedent resided [in] Westbury, New York, within close proximity of the Sylvania facility sites. As a result of Defendants’ repeated releases of toxic, hazardous and/or radioactive substances into the area surrounding their operations on or near the Sylvania facility, decedent developed colon and lung cancer. While prior to the development of his disease, decedent had been a healthy and active person, the onset of the cancers had a debilitating effect on his life, causing him severe physical injury, pain and suffering, and mental and emotional damage, as well as causing him to incur extensive medical and related expenses and lost income. This same disease ultimately lead to his death in 1993.

(Emphasis added).

The class action settled for $10,400,000, with Beatrice receiving a $60,000 share. In a 38-page settlement agreement, which states that it is to be governed by New York law, the Hicksville parties settled “the claims described herein against” the listed defendants and the plaintiffs agreed to a release. The settlement agreement indicated that the “Hicksville Actions concern[ed] the operations of and alleged emissions and discharges from a facility that manufactured nuclear fuel elements *752 from approximately 1952 until 1966.” Consistent with this description, the agreement defined “Released Claims” as including any and all actions “which ar[o]se out of or relate[d] to”:

(1) any claim asserted, or that could have been asserted, in the Hicksville Actions ... or (2)(a) the operation or conduct of the Hicksville Facility and/or the Hicksville Sites, and/or (b) any condition of the premises, the exterior or interior environment at the Hicksville Facility and/or the Hicksville Sites, and/or (c) any condition, result, effect or impact allegedly created, endured or caused by the business, manufacturing, waste removal or activities performed or taking place at the Hicksville Facility and/or the Hicksville Sites.

The persons to be “released” were defined to include a number of corporations and entities filling two-and-a-half pages.

Beginning on page 24, the settlement agreement sets the contours of the plaintiffs’ release, stating initially that upon an identified “effective date” the releasers— i.e., the class plaintiffs — “shall be deemed to have, and by operation of th[e] Agreement shall have[ ] ... fully, finally, and forever released, relinquished and discharged the Released Persons from any and all of the Released Claims.” The agreement further stated that the agreement and release “may be pled as a full and complete defense to any Released Claims that may be instituted, prosecuted or attempted in breach of th[e] agreement.”

Paragraph 26 then expanded from the release into the plaintiffs’ covenant not to sue “any other tortfeasors, whether joint or concurrent and whether now known or unknown,” stating:

26. Releasors covenant not to sue any other tortfeasors, whether joint or concurrent and whether now known or unknown, for losses or injuries alleged in the Hicksville Actions or at issue in the Released Claims. This covenant does not apply to future claims based on the aggravation of the losses or injuries alleged in the Hicksville Actions. Releasors may sue future tortfeasors if such tortfeasors aggravate and/or increase the severity of a loss or injury alleged in the Hicksville Actions.

As required by the settlement agreement, in 2004 Beatrice executed a “Verified Declaration for Allocation of Settlement Proceeds” for her “Wrongful Death Claim.” In the declaration, Beatrice asserted that the “illness[ ] or injur[y] ... that caused the decedent’s death” was “lung cancer.” Beatrice further attested that the lung cancer “diagnosis was ulti-fnately confirmed at [Leo’s] death” as dictated in his death certificate.

Motion for Summary Judgment

Prior to trial, the defendants moved for summary judgment on their affirmative defense that Beatrice’s tobacco claims were barred by Paragraph 26’s covenant not to sue since Beatrice was suing “other tortfeasors” for the same “loss[] or in-jur[y] alleged in the Hicksville Actions”— i.e., that Leo died from lung cancer.

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Bluebook (online)
171 So. 3d 747, 2015 Fla. App. LEXIS 10789, 2015 WL 4269245, Counsel Stack Legal Research, https://law.counselstack.com/opinion/philip-morris-usa-inc-and-rj-reynolds-tobacco-company-v-beatrice-fladistctapp-2015.