Pray v. Lockheed Aircraft Corp.

644 F. Supp. 1289
CourtDistrict Court, District of Columbia
DecidedSeptember 10, 1986
DocketCiv. A. Nos. 75-0874, 86-0190 and 86-0191, Suffix Nos. 75-0874-1, 75-0874-2
StatusPublished
Cited by13 cases

This text of 644 F. Supp. 1289 (Pray v. Lockheed Aircraft Corp.) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pray v. Lockheed Aircraft Corp., 644 F. Supp. 1289 (D.D.C. 1986).

Opinion

MEMORANDUM

OBERDORFER, District Judge.

The Settlement Agreement

On April 9,1986, the parties to this litigation entered into a Settlement Agreement whereby defendant Lockheed Aircraft Corporation (“Lockheed”) paid into the Court Registry the sum of $10,000,000 in purported settlement of all claims arising out of the crash of the Lockheed C-5A aircraft in Saigon in 1975. Settlement Agreement at II2 (filed under seal April 11, 1986, unsealed April 22, 1986). The terms and conditions of the Settlement Agreement are subject to approval by the Court after notice and hearing. Id. at ¶ 3. The Settlement Agreement further contemplates that the Court will adopt a distribution plan after considering the applications of all potential participants in the Settlement Fund. Id. at ÍI 7. The Settlement Agreement leaves the distribution of the Settlement Fund to the discretion of the Court with the understanding that any portion of the Settlement Fund not distributed will revert to Lockheed.

The contemplated hearing was held on August 4, 1986. No objection was raised to the amount or terms of the Settlement Agreement. Moreover, the Court has independently reviewed the Settlement Agreement and finds it reasonable.

This is not a class action. Nevertheless, it is analogous in that it settles numerous similar claims of similarly-situated plaintiffs. Accordingly, the factors relating to approval .of class action settlements provide appropriate criteria for appraisal of this settlement. These factors include the complexity and nature of the litigation, the stage of proceedings when settlement was offered and the degree of completed discovery, the likelihood of plaintiffs’ establishing the requisite elements of liability and damages, the plaintiffs’ reaction to the settlement, the risks attendant to trial, and the ability of defendant to absorb a larger recovery. Officers for Justice v. Civil Service Commission of the City and County of San Francisco, 688 F.2d 615, 625 (9th Cir.1982), cert. denied, 459 U.S. 1217, 103 S.Ct. 1219, 75 L.Ed.2d 456 (1983); In re National Student Marketing Litigation, 68 F.R.D. 151, 155 (D.D.C.1974). In the ordinary class action setting, the court’s primary purpose in reviewing a proposed settlement agreement is to protect the rights of absent class members who were not involved in the negotiations leading to settlement. In re Corrugated Container Antitrust Litigation, 643 F.2d 195, 225 (5th Cir.1981). There is no need for “the court to act in a fiduciary role” to protect the defendant who negotiates a settlement. Id. Nevertheless, in light of the public context of this litigation, the recent concern about the “lawsuit crisis” and the effect of the litigation on defendants and their insurers, this review will address the fairness of the settlement as a whole, as it affects both parties and the public.

This litigation has been extraordinarily complex and prolonged. Civil Action No. 75-0874 was filed in 1975 in this Court by Friends For All Children, Inc. (“FFAC”) as Special Administrator and assigned to then Chief Judge William B. Jones. The complaint sought compensatory and punitive damages from Lockheed for the estates and next-of-kin of 76 children who were in FFAC’s custody and were killed in the April 4, 1975 crash of a C-5A aircraft, manufactured and designed by Lockheed. Thereafter, Lockheed filed a third-party complaint against the United States. On November 5, 1975, in In re Air Crash Disaster Near Saigon, South Vietnam, on April J, 1975, 404 F.Supp. 478, the Judicial Panel on Multi-District Litigation transferred a number of other civil actions on behalf of a number of United States citizens who were killed and injured in the April 4, 1975 C-5A crash to Judge Jones for consol *1291 idated discovery and pretrial proceedings pursuant to 28 U.S.C. § 1407. The United States citizen plaintiffs were represented by a number of attorneys led by the firm of Cole and Groner appointed by Judge Jones. The firm of Lewis, Wilson, Lewis & Jones, Ltd. was counsel for FFAC as the legal representative of the surviving infants and the estates of the deceased.

In all of these cases there has been exhaustive discovery. Between 1975 and 1979 discovery focused on the liability and punitive damages issues. By 1979, most of the United States citizen cases were settled. In 1979, there was a stipulation in the survivors’ cases brought by FFAC by which the survivors abandoned their punitive damages claim and defendant agreed not to contest its liability to anyone injured. From 1979 through 1984 almost all of the discovery and litigation related to the survivors’ cases, specifically whether the crash injured the survivors and, if so, to what extent.

Before 1979, the decedents’ cases were the subject of a number of appeals and mandamus proceedings before the United States Court of Appeals for the District of Columbia. By Order entered May 1, 1978, this Court ruled provisionally that District of Columbia law would govern the litigation, and that FFAC was qualified under District of Columbia law to bring this litigation as a “legal representative” of the 76 deceased children. By Order entered February 23, 1979, for reasons stated in a Memorandum filed April 12, 1979, this Court denied Lockheed’s renewed motion for summary judgment, and appointed Charles R. Work, Esq., and his law firm as guardians ad litem for the interests of infant beneficiaries of the decedents’ estates. On March 29,1979, Lockheed filed a petition for writ of mandamus and sought, and on April 9, 1979, obtained, a stay of further proceedings. By ' Order entered August 7, 1979, however, the Court of Appeals denied Lockheed’s petition for mandamus and vacated the April 9, 1979 stay order, but has never finally ruled on the merits of defendant’s challenge to FFAC’s standing as a plaintiff. Thereafter, attention focused on the survivors’ cases and the decedents’ claims lay dormant until the survivors’ claims were resolved.

In 1982, after several trials of the cases brought on behalf of surviving plaintiffs adopted by United States parents, defendant paid in settlement $13,500,000 which yielded approximately $125,000 to each of 45 plaintiffs and, upon exhaustion of these and other family resources, an opportunity to draw funds from a trust originally funded with $2,250,000 for a serious medical emergency. In addition, seven individual cases were settled for amounts ranging from $125,000 to $1,000,000 for a total of $4,078,000. After two more trials the cases brought by 76 surviving plaintiffs who had been adopted by parents in foreign countries were settled in 1984 for $17,-800,000. This settlement yielded between $200,000 and $312,000 to each foreign plaintiff whose case had been tried or prepared for trial and $84,673 for each of the other plaintiffs plus access to the proceeds of a trust originally funded with $2,925,000 for supplementary medical and educational services.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cavalier v. Mobil Oil Corp.
898 So. 2d 584 (Louisiana Court of Appeal, 2005)
Livengood Feeds, Inc. v. Merck KGaA.
305 F. Supp. 2d 100 (District of Columbia, 2004)
In Re Vitamins Antitrust Litigation
305 F. Supp. 2d 100 (District of Columbia, 2004)
Northrup v. Southwestern Bell Telephone Co.
72 S.W.3d 16 (Court of Appeals of Texas, 2002)
Federal Trade Commission v. Mylan Laboratories, Inc.
205 F.R.D. 369 (District of Columbia, 2002)
Long v. Sears Roebuck & Co.
877 F. Supp. 8 (District of Columbia, 1995)
In re Matzo Food Products Litigation
156 F.R.D. 600 (D. New Jersey, 1994)
Swedish Hospital Corp. v. Shalala
1 F.3d 1261 (D.C. Circuit, 1993)
Superior Beverage Co. v. Owens-Illinois, Inc.
827 F. Supp. 477 (N.D. Illinois, 1993)
National Railroad Passenger Corp. v. Consolidated Rail Corp.
698 F. Supp. 951 (District of Columbia, 1988)
Edmonds v. United States
658 F. Supp. 1126 (D. South Carolina, 1987)

Cite This Page — Counsel Stack

Bluebook (online)
644 F. Supp. 1289, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pray-v-lockheed-aircraft-corp-dcd-1986.