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ANATOMY OF THE LAWSUIT

ANATOMY OF THE LAWSUIT. Settlement: June 1974-$13.5 million Pittston had offered 3 million Settlement was ½ of Pittston’s reported $27 million in profits for 1972 625 plaintiffs split $8.5 million after subtracting legal fees and 25% contingency fee for Arnold and Porter

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ANATOMY OF THE LAWSUIT

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  1. ANATOMY OF THE LAWSUIT • Settlement: • June 1974-$13.5 million • Pittston had offered 3 million • Settlement was ½ of Pittston’s reported $27 million in profits for 1972 • 625 plaintiffs split $8.5 million after subtracting legal fees and 25% contingency fee for Arnold and Porter • Amount depended on experience • Ranged from $125, 543 to $8400 on average • Those who accepted $ from Pittston got less

  2. Other Legal Actions • State filed $100 million lawsuit against Pittston-$50 million for money spent on disaster relief, $50 million for punitive damages. • In 1977, Governor Moore settled for $1million 3 days before leaving office • 2nd lawsuit brought on behalf of 348 juveniles who were not part of Stern’s lawsuit • Settled for $48 million-$2800 each • 5 Unborn (in utero) also got monetary awards

  3. Legal Questions and Obstacles • Who to sue-who has $$? • What court-Federal or State Court • Polluting navigable stream • Piercing the corporate veil • Judge shopping • What kind of damages to seek • Recovery for mental suffering? • Most survivors suffered no physical injuries

  4. Piercing Corporate Veil • Must show Buffalo Creek operated as subsidiary • Did it have separate stockholders meetings? • Did principals of Buffalo see themselves as agents of Pittston? • What else?

  5. Damages • Compensatory damages-pay for what was actually lost • Punitive damages- • To punish and deter • Show conduct is willful, wanton and reckless

  6. How to ascribe value to damages? • Damage to real and personal property-11 million • Mental suffering-20 million • Punitive damages-21 million

  7. What did Plaintiff need to know to make a case? • Legal research to determine: • Legal test for reckless conduct as opposed to merely negligent • Past cases-precedents –on “act of God” defense • Past reports related to industry, i.e. Aberfan • Experts who could establish legitimacy of survivor’s syndrome

  8. To get this information… • Interrogatories-written questions • Depositions-oral testimony –yields critical information, like previous dam failures and results of previous lawsuits that had settled • Medical examination

  9. Should….. • The case have gone to trial? • Been handled differently?

  10. What… • Did the case accomplish ?

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