PVC pipe maker JM Eagle sues US asbestos law firm in racketeering case
Adds comment from Simmons Hanly managing partner in paragraph 4
By David Thomas
May 13 (Reuters) -Plastic pipe maker JM Eagle has sued a U.S. law firm that filed hundreds of asbestos personal injury cases against it, marking the latest counterstrike by a defendant against the asbestos plaintiffs bar.
JM Eagle's lawsuit, filed Friday in Chicago federal court under the Racketeer Influenced and Corrupt Organizations Act, alleged that law firm Simmons Hanly Conroy suppressed evidence, used perjured or falsified testimony and statements, and committed fraud in the course of recovering billions of dollars from asbestos defendants in thousands of cases.
"These untrue statements have caused J-M Manufacturing to incur vast sums of litigation fees and expenses defending against claims brought by the firm," the lawsuit said. JM Eagle, which calls itself the world's largest plastic and PVC pipe manufacturer, was previously known as J-M Manufacturing.
Simmons Hanly is based in Alton, Illinois, and specializes in asbestos-related mesothelioma claims. The firm's managing partner, Laurence Nassif, said in a statement that JM Eagle's claims are "baseless" and that the company is trying to avoid "accountability for its dangerous practices and the harm it has caused innocent people."
Ashwin Ram, a partner at Steptoe who is representing JM Eagle, said in a statement his client has "taken the first step to hold Simmons Hanly accountable for the misconduct that it has uncovered."
Simmons Hanly has filed more than 430 cases against JM Eagle since 2001, according to the lawsuit. JM Eagle said it has settled more than 75 of the cases, but would have reduced the settlement amounts or not paid if it knew some of those lawsuits contained "falsehoods peddled by Simmons Hanly."
In what JM Eagle described as a "a quintessential RICO enterprise," Simmons Hanly allegedly orchestrated sham claims based on "often fabricated" evidence of asbestos injury from discontinued products, including cement pipe made by JM Eagle before a switch to plastic piping.
JM Eagle noted that it is not the first company to level fraud or racketeering claims against asbestos personal injury law firms, citing prior cases involving defendants CSX Transportation, Garlock Sealing Technologies and John Crane Inc.
Gasket maker Garlock, for example, sued four law firms in 2014, alleging that plaintiffs' lawyers concealed evidence and induced clients to commit perjury to drive up asbestos-related settlements and garner bigger fees. Garlock ultimately settled with those law firms.
JM Eagle is seeking an unspecified amount of damages. In addition to its federal racketeering claim, its lawsuit alleges unjust enrichment, fraud and civil conspiracy.
The case is J-M Manufacturing Co Inc v. Simmons Hanly Conroy LLP, U.S. District Court for the Northern District of Illinois, No. 24-cv-03853.
For J-M Manufacturing: Ashwin Ram, John Byron, Andrew Adams of Steptoe; and Frank Fletcher of J-M Manufacturing
For Simmons Hanly Conroy: Not yet available
Reporting by David Thomas
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