Asbestos-Style Lawsuits Growing in N.C. Agribusiness Trials

By Sara Corcoran, Courts Monitor Publisher and CityWatch LA DC Dispatch Contributor

 

Terry Sanford Federal Building and U.S. Courthouse in Raleigh, N.C. where multiple hog farm trials are being held.

Terry Sanford Federal Building and U.S. Courthouse in Raleigh, N.C. where multiple hog farm trials are being held.

Recently, North Carolina has been making national headlines for its tawdry and tainted congressional election, but for some observers, an equally interesting civil courts drama is playing out in the Tar Heel state: Iconic big-money asbestos lawyers are now driving hog farm lawsuits.

This week, as in four previous trials, plaintiffs suing hog farms for being an unreasonable nuisance are represented by Michael Kaeske, a Dallas attorney known for asbestos cases. His team is joined by Lisa Blue, the widow of Fred Baron, who made the Dallas-based Baron & Budd an asbestos litigation giant. Baron & Budd is also known in North Carolina because of Fred Baron’s close relationship with former VP candidate John Edwards, allegedly helping conceal Edwards’ former mistress, Rielle Hunter, during Edwards’ VP run.

Baron & Budd is also notorious for its involvement in witness coaching described in the “Mystery of the Missing Memo.” (I wrote about this strange practice in the Huffington Post back in December of 2017.) The memo is an asbestos-lawsuit legend, and significant because N.C. critics of the hog farm lawsuits claim that similar tactics are being utilized in their cases.

There are multiple cases filed so far and in three of the four trials last fall, juries awarded a combined half-billion dollars in damages, although N.C. personal injury law caps should reduce that amount to approximately $100 million dollars. All the cases are being appealed.

It’s worth noting that the hog farm lawsuits do not make claims of environmental damage, health concerns or other damages. They basically claim the smell of hog waste is so bad that it becomes an unreasonable nuisance and diminishes their quality of life. The resulting evidence, including decades-old government documents and detailed expert testimony rolling out over weeks, would seem familiar to anyone who has seen an asbestos trial.

In a possible legal strategy to fight asbestos lawyers with other asbestos lawyers, the defendants, after the first three cases, have been represented by Robert Thackston. Mr. Thackston, a North Carolina native with offices in Dallas and Los Angeles, has been associated with high-profile asbestos defense for decades.

The tables seemed to turn in the defendants’ favor for the fourth case. Senior District Court Judge David Faber (a different judge than in the first three trials) refused to allow some of the evidence of the first cases. The jury awarded about $100,000 to eight hog farm neighbors and half of the plaintiffs received only $100. Then Judge Faber nixed the punishment phase of the trial.

This pattern of small client payouts relative to the award offers another parallel to asbestos litigation. Also, the three cases that went pro-plaintiff had a different federal judge than the fourth case which was pro-defendant. Off the record, many key asbestos lawyers claim that judicial attitudes carry too much weight in asbestos trials; similar claims from both sides are being made in the hog farm decisions.

The left-leaning “Progressive Pulse” blog, affiliated with the North Carolina Policy Watch, noted that Judge Faber nixed testimony about ownership by a Chinese firm and also declined to allow evidence on industry executives’ salaries.

“Those are emotional arguments,” the judge ruled.

As this area of litigation produces more awards, just like asbestos litigation did, national politicians are also taking notice. They point out that these are federal trials with possible national implications for agricultural operations.

“We need to come up with model legislation, we need to figure out what the federal government should do,” said U.S. Sen. Thom Tillis, a N.C. Republican who was part of an agriculture roundtable in Raleigh last fall. “We need to send a very clear message to the trial lawyers: We’re bigger than you when we coordinate.”

Even media coverage is split along urban-rural lines, with The News & Observer, a California-owned Raleigh daily which won a Pulitzer in the 90s for a hog farm series, embracing an environmentalist tone. Outlets closer in proximity to hog farm communities have been more sympathetic to the farmers, including an in-depth investigative report from a Wilmington TV station offering a relatively sordid tale of out-of-state lawyers, angry state judges, and ethical quandaries.

In her report at WECT, journalist Casey Roman, also noted that “… how the plaintiffs were enlisted is a question with no clear answer. Spend time in any of the areas under scrutiny, and you will hear wildly different stories. On one side are accusations the legal teams went door to door recruiting plaintiffs for an issue the lawyers manufactured under the promise of a big payout.” Roman counters that “…….on the other side the plaintiffs had been  pleading for relief for years with no recourse until finally a legal entity would hear their case and offer their services.”

She also reports that the farming community found significant fault with both the trials’ location in the urban “Research Triangle” and the fact that jurors have not visited the hog farms. She says “.. they said they feel it is unfair that city-dwelling jurors would be tasked with making a verdict on how agricultural areas operate.”

The WECT report also explains the details of who is named in the lawsuits. Hint: It’s not the actual farmers in question, but the company contracting with the farms. Of course, pitting sympathetic plaintiffs against deep-pocketed corporations is a staple of asbestos lawsuits.

Could this be another parallel? With two dozen hog farm cases pending in North Carolina, with about 500 plaintiffs, hog farm cases are gaining velocity. Considering the livestock industry in California, we will likely see this type of “asbestos-style” ag litigation gain momentum on the West Coast. Will the Bear Flag State be tarred and feathered during the year of the pig?

What remains to be seen is if, like the asbestos cases, awards push hog farmers into bankruptcy and create court-ordered bankruptcy trusts to handle settlements.

California shields public sector unions from Supreme Court ruling

California has found itself in a legal standoff against the federal government and Trump administration over a variety of issues, but one could affect union workers who want to decline union membership.

“California Gov. Jerry Brown has signed a law that aims to give public employee unions legal cover from potentially expensive lawsuits demanding that they repay certain fees to workers that the Supreme Court in June determined were unconstitutional,” reports The Fresno Bee.

“The law, which takes effect immediately, says unions and public agencies cannot be held liable for fees that unions collected before the Supreme Court ruling in Janus vs. AFSCME on June 27 of this year.”

The Supreme Court’s 5-4 decision ended a 41-year precedent that allowed public sector unions to collect “fair share” fees from workers who declined to join a labor organization but were still represented, according to the newspaper.

California shields public sector unions from Supreme Court ruling

Photo credit: Jacquelyn Martin Associated Press file photo, 2016, as reported by the Fresno Bee.

Photo credit: Jacquelyn Martin Associated Press file photo, 2016, as reported by the Fresno Bee.

California has found itself in a legal standoff against the federal government and Trump administration over a variety of issues, but one could affect union workers who want to decline union membership.

“California Gov. Jerry Brown has signed a law that aims to give public employee unions legal cover from potentially expensive lawsuits demanding that they repay certain fees to workers that the Supreme Court in June determined were unconstitutional,” reports The Fresno Bee.

“The law, which takes effect immediately, says unions and public agencies cannot be held liable for fees that unions collected before the Supreme Court ruling in Janus vs. AFSCME on June 27 of this year.”

The Supreme Court’s 5-4 decision ended a 41-year precedent that allowed public sector unions to collect “fair share” fees from workers who declined to join a labor organization but were still represented, according to the newspaper.

Supreme Court strikes down bond hearings for detainees

Supreme_Court2In a major immigration case, the U.S. Supreme Court issued its decision in Jennings v. Rodriguez, a class action lawsuit challenging the federal government’s practice of jailing immigrants while they litigate their deportation cases. It ruled that detainees held by the government for possible deportation are not entitled to a bond hearing even after months or years of detention. Civil rights advocates, such as the ACLU, question whether it is constitutional to “lock up immigrants indefinitely.”

The Washington Post reported on the Feb. 27 ruling, noting, “In a splintered 5 to 3 decision, the court’s conservatives said that the relevant statute does not even ‘hint,’ as Justice Samuel A. Alito Jr. wrote, at the broad reading of the right to bail hearings adopted by the U.S. Court of Appeals for the 9th Circuit.”

The American Civil Liberties Union argued, “In the appeals court, we fought for and won on the principle that immigrants should be given the opportunity to present their case to a judge, allowing that judge to decide whether the detainee could be released without risk of flight or threat to public safety.”

Fracking Brings Lawsuit Over National Forest Access

elk-nps2Five environmental groups are suing the federal government in hopes of stopping leasing some 20,000 acres of the Santa Fe National Forest for fracking, the process of extracting natural gas by applying pressure via water injection. The injections shatter rock formations and free the gas. In the new lawsuit, the Courthouse News website backgrounds that “… the U.S. Bureau of Land Management created 13 new mineral leases in the national forest in October 2014, without required environmental impact studies and without considering the harmful effects of fracking… in doing so, the BLM, the Forest Service, and the Secretaries of the Interior and Agriculture violated the National Environmental Policy Act and the Administrative Procedure Act, the groups say.”

The groups bringing the lawsuit are the WildEarth Guardians, Amigos Bravos, Diné Citizens Against Ruining Our Environment, and the Sierra Club. Read more here:

CNS – Greens Fight Fracking in National Forest