As a result of a recent ruling by the US District Court for the Western District of Washington, 3M Corporation is not a proper defendant in the growing number of 3m earplug lawsuits. The ruling was based on the fact that it has been a government contractor, and therefore cannot be held liable for the lawsuits.
Judge Rodgers rules on 3M’s emergency motion for a stay
3M Corporation has sought to stay the injunction on its earplug lawsuits pending the outcome of an appeal. The company said that “bogus” lawsuits like the 3M earplug lawsuit were robbing its multidistrict litigation process of its integrity. It is also seeking to transfer the cases out of the District Court.
Judge Rodgers granted the motion, but said that the appeal should not be moot. He will hold a hearing to determine whether 3M’s motion was made in bad faith.
As of today, Judge Rodgers has ordered the parties to a new round of settlement mediation. There will be 29 hours of court time. Lawyers for the plaintiffs say that bankruptcy filing limits the company’s legal costs.
Aearo Technologies, a subsidiary of 3M, recently filed for bankruptcy. In response to the bankruptcy, 3M filed an emergency motion for a stay pending appeal.
The bankruptcy filing is a significant obstacle to 3M’s attempts to shield itself from liability. If it is found to be invalid, the company could face tens of billions of dollars in liabilities.
Judge Rodgers said that 3M’s recent bankruptcy strategy was a scheme to avoid the MDL. The company would have gleefully trotted out helpful information if it had existed. However, the decision focuses on the details of its agreement with Aearo to assume its liabilities.
Judge Rodgers rules that 3M is not a proper defendant in the 3M earplug lawsuits
If Judge Rodgers’ ruling in the 3M earplug lawsuits is accepted, it will likely have far-reaching consequences for thousands of earplug lawsuits. The ruling will also revert the cases back to the multi-district litigation court in Florida, where the lawsuits were originally filed.
The ruling is based on several legal grounds, including judicial estoppel, waiver, bad faith conduct and federal rules of civil procedure. It could even moot the appeal if the ruling holds.
In the earplug lawsuits, plaintiffs claim that 3M sold defective earplugs to the US military. They allege that the earplugs caused hearing loss, which was exacerbated by harmful sounds during service. This led to deafness in many US veterans.
Aearo, a subsidiary of 3M, was a bankrupt company in 2008. When earplug lawsuits were filed against Aearo, they automatically stayed in the bankruptcy court. However, 3M did not believe it had to be a part of the bankruptcy case. Instead, it tried to force Aearo to file bankruptcy to help settle the cases more quickly.
After the bankruptcy court denied 3M’s request to stay the earplug lawsuits, 3M claimed the government contractor defense. It argued that the US Army “dictated” the design of the earplugs, which prevented 3M from being fully liable for their actions.
Judge Rodgers rules on 3M’s government contractor defense
The largest consolidated mass tort in history, the 3M earplugs MDL, is still in its early stages. More than 220,000 plaintiffs are vying for millions in damages from the company. Most of the cases have been transferred from state to federal courts in Florida.
Plaintiffs want to know if 3M is liable for their injuries. They filed a motion in multidistrict litigation (MDL) seeking summary judgment. If the court rules in their favor, they won’t have to pay any filing fees.
In the meantime, the court has ordered the companies to participate in settlement talks. During this process, both sides have the opportunity to explain their positions. Judge Rodgers is encouraging progress. He has already ruled on a few pretrial motions and has begun hearing arguments. But it will be up to him to decide whether the company is acting in bad faith.
In his ruling, Judge Rodgers pointed to the “naked duplicity” that the company has shown. It argued that it was motivated to settle its lawsuits because of Wall Street pressure.
But Judge Rodgers said that the company’s strategy is simply a way to avoid MDL. He called the recent actions of 3M “an apparent scheme to avoid MDL.”
Judge Rodgers has ordered the company to participate in a new round of settlement discussions. This time, the parties must meet for at least three days.
