Bates v. Stewart

Three appellate proceedings were consolidated for a single Supreme Court opinion. All three cases appealed the dismissal of their respective cases from the Etowah Circuit Court. The Appellants all sued Donald Stewart individually and as the trustee of the Abernathy Trust and the Abernathy Trust Foundation, in a line of cases arising out of a toxic tort action against Monsanto Company, its parent corporation and a spin-off. The Monsanto Corporations manufactured and disposed of polychlorinated biphenyls (PCBs). A jury found the corporations liable on claims of wantonness, outrage, "suppression of the truth," negligence and public nuisance. After 500 trials on damages, the parties reached a settlement in 2003. $21 million was placed into a trust (the Abernathy Trust) established to pay health and education benefits for those Plaintiffs who qualified for assistance. Each plaintiff signed a retainer agreement and received and cashed his or her settlement check. Plaintiffs in this case challenged the settlement agreement and the award of attorneys fees. Further, they asked for a trust accounting regarding the use of the settlement funds. Upon review, the Supreme Court reversed the dismissal of the cases that asked for an accounting of the use of the trust's funds; one case was dismissed as moot; in the third case, the Court granted a writ of mandamus as to all portions of a circuit court order that sought review of the Abernathy trust document as compared to the terms of the settlement agreement. The circuit court was directed to lift any freeze of distributions from the trust. View "Bates v. Stewart" on Justia Law