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

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

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

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?

Damages

Compensatory damages-pay for what was actually lost

Punitive damages- To punish and deter Show conduct is willful, wanton and reckless

How to ascribe value to damages?

Damage to real and personal property-11 million

Mental suffering-20 million Punitive damages-21 million

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

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

Should…..

The case have gone to trial? Been handled differently?

What…

Did the case accomplish ?