Mesothelioma Judgment Against Ethyl Corporation of About $1.1 Million, One Third of a Remitted $3.25 Million Award, Affirmed On Appeal
After trial: The jury verdict was reduced twice over. Louisiana virile-share law first cut Ethyl's exposure to one third of the award, producing a judgment of $2,583,553.82 entered on November 20, 2019. The district court then found the general damages excessive and, on March 4, 2020, remitted them from $7,500,000 to $3,000,000, setting the award at $3,250,661.45 and giving the plaintiffs the choice of accepting it or retrying the case; it denied their motion to reconsider on April 13, 2020. Ethyl and the plaintiffs cross-appealed (Fifth Circuit Nos. 20-30209 and 20-30242, consolidated), and on December 14, 2020 the Fifth Circuit affirmed in full, upholding both the jury's allocation of fault to the settling defendants and the remittitur. Ethyl posted a supersedeas bond and execution was stayed during the appeal. No order we located restates Ethyl's own dollar liability after the remittitur; the ranked $1,083,553.82 is one third of the remitted $3,250,661.45, the same virile-share fraction the court applied when it entered the $2,583,553.82 judgment against the full verdict. We found no public record of payment.
Won by Landry & Swarr, L.L.C..
James Leoma Gaddy worked as a chemical engineer at Ethyl Corporation's Baton Rouge plant from 1955 until about 1960, after earlier summer work at an International Paper mill. He was diagnosed with mesothelioma in July 2018 and died before his case reached trial, and his children continued the suit as his statutory survivors. A federal jury in New Orleans found Ethyl negligent and strictly liable in November 2019, awarding $7,500,000 in general damages plus $250,661.45 in medical expenses, and the judgment entered against Ethyl was one third of that total after credit for the shares of the settling defendants. The district court found the general damages excessive and remitted them to $3,000,000, bringing the award to $3,250,661.45, of which Ethyl's one-third share is $1,083,553.82. The Fifth Circuit affirmed the judgment in full in December 2020.
What happened
James Leoma Gaddy worked two jobs decades apart that exposed him to asbestos. As a college student in the early 1950s he spent summers as a laborer and pipefitter's helper at the International Paper mill in Springhill, Louisiana, where his assignments regularly involved stripping insulation off pipe to reach the flanges underneath. He testified that a single day could be spent doing nothing else, and that he could not recall ever being offered protective equipment there. In 1955, after finishing college, he went to work as a chemical engineer at Ethyl Corporation's plant in Baton Rouge, where he stayed until about 1960, working in the pilot plant and the sodium plant.
Gaddy was diagnosed with mesothelioma in July 2018. He filed a petition for damages in the Civil District Court for the Parish of Orleans on September 21, 2018, naming Ethyl, International Paper, Owens-Illinois and other companies. He died before the case reached trial, and his children, Theresa Adams and James C. Gaddy, were substituted as his statutory survivors. Every defendant except Ethyl settled during the summer of 2019, and Ethyl, the last one left, removed the case to federal court on diversity grounds.
A week-long jury trial ran in the Eastern District of Louisiana in November 2019. The plaintiffs' case rested on Gaddy's own deposition testimony, taken before his death, together with an industrial hygienist, a physician qualified as an expert in asbestos disease, his treating cardiologist, and his son. Ethyl answered with three former plant employees and two experts of its own. The evidence described the stripping and rebuilding of the sodium cells at the Baton Rouge plant as a weekly routine rather than occasional maintenance.
On November 8, 2019 the jury found Ethyl both negligent and strictly liable and awarded $7,500,000 in general damages, divided evenly among physical pain and suffering, mental anguish, and loss of enjoyment of life, plus $250,661.45 in medical expenses. The jury also allocated responsibility to International Paper and to Owens-Illinois, which had manufactured the Kaylo asbestos pipe covering shipped to the Springhill mill. Because Louisiana law gave Ethyl credit for the virile shares of the settling parties, the judgment entered against Ethyl on November 20, 2019 was one third of the total, $2,583,553.82 plus legal interest.
Ethyl moved for a new trial, for judgment as a matter of law, and in the alternative for remittitur. On March 4, 2020 Judge Eldon Fallon denied the first two and granted the third in part. Surveying Louisiana mesothelioma awards, he found the general damages excessive in light of Gaddy's advanced age, the short interval between his diagnosis and his death, his own statements that he had not been in much pain, and the heart disease he was already living with. The court remitted general damages to $3,000,000, which brought the award to $3,250,661.45, and gave the family the choice of accepting that figure or retrying the case. Applied to that award, the same one-third virile share leaves Ethyl answerable for $1,083,553.82 plus interest, the figure ranked here. It denied their motion to reconsider on April 13, 2020.
Both sides appealed. Ethyl argued the evidence could not support liability for asbestos disturbed during sodium-cell maintenance and that even the remitted damages were too high. The family argued the jury should never have been allowed to allocate a share to Owens-Illinois. On December 14, 2020 the Fifth Circuit affirmed every part of the judgment. It agreed with the district court that tearing out and rebuilding the sodium cells was "part and parcel of the Baton Rouge facility's operation" rather than temporary repair work, and it held that the trial judge's first-hand view of the evidence put him in a better position to weigh the damages. Ethyl had secured the judgment with a supersedeas bond and execution was stayed through the appeal. We found no public record of what was ultimately paid.
Sources
This account is drawn from contemporaneous public reporting and the court record.
- 1.U.S. Court of Appeals for the Fifth Circuit, Adams v. Ethyl Corporation, Nos. 20-30209 c/w 20-30242 (Dec. 14, 2020), as published by FindLaw with the counsel-of-record block: names Matthew C. Clark of Landry & Swarr, L.L.C., New Orleans, for plaintiffs-appellants, and states the verdict, the remittitur to $3,000,000 and the affirmance.
- 2.U.S. Court of Appeals for the Fifth Circuit, Adams v. Ethyl Corp. (Dec. 14, 2020), the slip opinion from the court's own site: the work history at International Paper and Ethyl, the settlement of all claims but Ethyl's in summer 2019, the two-thirds settlement credit, the 'part and parcel of the Baton Rouge facility's operation' holding, the remittitur factors, and full affirmance. Carries no counsel listing.
- 3.U.S. District Court, E.D. La., Order and Reasons on Ethyl's motion for new trial, JMOL and remittitur, Gaddy v. Taylor-Seidenbach, No. 2:19-cv-12926, Doc. 102 (Mar. 4, 2020), from GovInfo's official court-opinions archive: the procedural history, the trial witnesses, the full verdict breakdown, the comparable-case analysis, and the order remitting the award to $3,250,661.45.
- 4.U.S. District Court, E.D. La., Order and Reasons denying the plaintiffs' renewed motion for judgment as a matter of law on Owens-Illinois, Doc. 103 (Mar. 4, 2020), from GovInfo: states that judgment was entered against Ethyl for $2,583,553.82 plus legal interest, 'which represented Ethyl's share of liability after accounting for the virile shares of International Paper and Owens-Illinois.'
- 5.U.S. District Court, E.D. La., Order and Reasons staying execution of the judgment pending appeal, Doc. 93 (Feb. 19, 2020), from GovInfo: confirms the judgment ordered Ethyl to pay $2,583,553.82, one third of the total award, and that Ethyl secured it with a supersedeas bond.
- 6.Goldberg Segalla, Asbestos Case Tracker, Dec. 15, 2020: legal-trade-press write-up of the Fifth Circuit decision, confirming the verdict breakdown, the one-third allocation of Ethyl's liability, and the appellate holdings.
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