# Opposition Brief — Turbomeca, S. A. v. Barnett

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Opposition Brief
- **Published:** January 1, 1998
- **Citation:** 525 U.S. 827

## Text

No. 97-2072 UL 16

In The
Supreme Court of the United States
—~¢

October Term, 1997
TURBOMECA, S.A., and TURBOMECA ENGINE COMPANY,

Petitioners,
VS.

KYONG JU BARNETT, Individually and as Guardian Ad Litem
and Next Friend of JESSIE MORGAN BARNETT and MIA
KYONG BARNETT, minor children; JAMES S. BARNETT, SR.;
WANDA BARNETT; and STATE OF MISSOURI,

Respondents.

On Petition for Writ of Certiorari to the
Missouri Court of Appeals, Western District

BRIEF IN OPPOSITION FOR RESPONDENTS
JAMES S. BARNETT, SR. AND WANDA L. BARNETT

JOHN J. WILLIAMS, III DUKE W. PONICK, JR.

GEORGE M. BOCK 2800 City Center Square
Counsel of Record 1100 Main Street

SLAGLE, BERNARD Kansas City, Missouri 64105

& GORMAN, P.C. (816) 842-1130

600 Plaza West Building
4600 Madison Avenue
Kansas City, Missouri 64112
(816) 410-4600

Attorneys for Respondents
James S. Barnett, Sr. and Wanda L. Barnett

ervices, inc.

147351 (800) 274-3321 * (800) 359-6859 Uap llate
A DIVISION OF COUNSEL PRESS S.

TABLE OF CONTENTS

Page
pe PT eee rere error oeL rere ill
fe PT eer ene l
RU CE ID GOD ks von chee ns eb ek Ca l
A. The Petitioners and Their Relationship ....... I
B. Relevant Background Facts ................ 2
C.. SURSCQMORt FIOCOOUINES 6. os kc cece eens 6
Summary of Reasons for Denying the Writ ......... 7
measons for Dewyines Gis Wi occ ccceccsacecs, 8
I. The Writ Should Be Denied Because There Is No
Longer A Case Or Controversy For The Supreme
Court To Resolve Based On The Following
CGI ads wedean dco RKekaS ye keekkees 8
A. The Execution Of The Sworn Release
Discharging Petitioners From All Other
Obligations To Respondents For The
Wrongful Death Of Their Son And Their
Acceptance Of Payment Of The Judgment
Make This Action Moot. .............. 8

B. The Case Is Moot Because The Petitioners
Have Accepted The Benefit Arising From
The Release And Payment Of The Judgment

Contents
Page

In This Case By Asserting To The Supreme
Court Of Missouri In Letz v. Turbomeca
Engine Corporation, et al., No. 80558 That
They Are Entitled To A $26,500,000 Credit
Against The Punitive Damages In That Case
Under Section 510.263.4, R.S. Mo. ..... 1]

II. The Petitioners Have Not Been Denied Due
Process As A Result Of The Punitive Damage
Judgment Of $26,500,000. ................ 12

A. Petitioners Knew That Their Tortious Conduct
Involving A Conscious Disregard For Human
Safety Could Subject Them To Punitive Or
Aggravating Circumstances Damages For
Causing A Wrongful Death In Missouri. ..... 12

B. The Petitioners’ Long-Term Wilful Conduct Was
Not Lawful In Any State In The United States Or
Elsewhere And Is Not Shielded By The Due
FORRES AION. | s < 6ks2 ides dn nheweekaeens 14

C. Neither Petitioners’ Business Operations Nor Their
Finances Have Been Affected By The Punitive
Damages Assessed Against Them. ........... 16

D. There Is No Live Issue In This Case That
Petitioners Have Been Subjected To Any
Impermissible Cumulative Punishment Based On
FRO GONE CA: ois ni hdceeeeses Ree 17

EE

ili

Contents

Page

Ill. The Excess Fines Clause Of The Eighth

Amendment Does Not Apply To Civil Actions

For Damages Brought And Maintained By Private
DINING. 5 hss 6 he WS ap aos Has ss es 18
SI ise aig cay ae ib we bay bw k ea baa’ 19

TABLE OF CITATIONS
Cases Cited:

Bennett v. Owens-Corning Fiberglass Corp., 896 S.W.
ee Gs NS ROUSE idk cw ekce oe wagusacs 5

Blum v. Airport Term. Serv., Inc., 762 S.W. 2d 67 (Mo.
IE o hdga os Oa cu Wiws wh oe ee cae ae a eas 13

BMW of North America vy. Gore, 517 U.S. 559 (1996)
(ee pe Ma keane Kee eke ¥, tay 83, 94, 95, 16, 17, 18

County of Dakota v. Glidden, 113 U.S. 222 (1885) .. 9, 10
Farmer v. Arnold, 371 S.W. 2d 265 (Mo. 1963) ..... 8, 9
Haehl v. Wabash R. Co., 24 S.W. 737 (Mo. 1893) ... 13

Letz v. Turbomeca Engine Corporation, et al., No.
No 545 eb vied aa ao bk Nek KaO kee wee St 42.47

Lugena v. Hanna, 420 S.W. 2d 335 (Mo. 1967) ..... 9

iv
Contents
Page
Pacific Mut. Life Ins. Co. v. Haslip, 499 U.S. 1 (1991)
ey PO rey Sere Or TES ery Te eee rere 5
Tech Hills II Associates v. Phoenix Home Life Mut. Ins.
Co., 5 Fae SOS CO TFG G) svc hie nknebn deenss 1]
United States v. Bajakajian, __ U.S. __, 118 S. Ct. 2028
CRD cs Wee is pr ee ee 18
Weast v. Festus Flying Serv., 680 S.W. 2d 262 (Mo. App.
SWS oicck cases essa ccd eeekeee tie eee 13
Statutes Cited:
Be A PRE iio 8s eevee se beth ed ease Pe
oe eo & OF Sep ee rer ce 6, 11, 12, 17
eS ate oa eh eee canes rave e es irene 13
United States Constitution Cited:
Eiigttts ARORGROME oon n ec iek ce cccntnawer cesses 7, 18
APPENDIX
Appendix A — Acknowledgment Of Satisfaction Of
Judgment And Waiver Of Attorney’s Liens Filed April
BG BO hp PEN aS RL Os Aa ee WEE RE eee la
Appendix B — Excerpts Of Transcript Of Proceedings,
oe ee eer ere ere errr rere 6a

iia

Contents
Page
Appendix C — Substitute Brief For Appellants, Filed
Biay G, 1906 ces ciccncetbcsanscewseinvatesne 12a
Appendix D — Excerpts Of Declarations Page For
Liability Insurance Policy No. 93/14313 With Liability
a 5: MPP ieer rr er ee ee ee 16a

Appendix E — Excerpts Of Transcript Of Proceedings,
Pete May 3, 1908 onc skein ce be dereees vanes 18a

l

JURISDICTIONAL STATEMENT

Petitioners have invoked the jurisdiction of the Supreme Court
under 28 U.S.C. § 1257(a) without advising the Court of the facts
and circumstances which demonstrate that there is no actual case
or controversy for this Court to resolve. This case is moot for the
particular reasons that will be set forth in Point I of this brief.

STATEMENT OF THE CASE
~ A. The Petitioners and Their Relationship

Petitioner Turbomeca, S.A. (“TSA”) and Turbomeca Engine
Corp. (“TEC”) are closely affiliated corporations. TSA designs,
manufacturers, sells and services turboshaft (gas turbine) engines
through a worldwide network which includes North America. TEC
was the corporate affiliate of TSA that sold, serviced and overhauled
Turbomeca engines in the United States. (Ex. 281). Both TSA
and TEC are owned by Societe Labinal, a holding company. (Tr.
Cocheteux 9-11).

At all material times, TSA exercised de facto control over the
business operations of TEE as evidenced by the following testimony
of Jean Cocheteux, its chief executive officer:

A. ... But, in fact, if you look at the operations of
TEC, the-the flow of directives comes from
Turbomeca France.

Q. All right so Turbomeca France exercises control
and direction over the business of Turbomeca
Engine Corporation of Texas?

| a

(Tr. Cocheteux 10).

2

Both TSA and TEC were covered by the same policy of
liability insurance that had liability limits of approximately
$1,000,000,000. (App. D - pp. 17a-18a). In a proceeding before
the trial court, TSA’s and TEC’s attorney regarded that sum as
a surrogate for the net worth of the two companies for purposes
of the Barnett case. (App. E - pp. 19a-21a). The payment of the
$40,000,000 judgment in this case and the posting of the
supersedeas bond in the sum of $134,000,000,000 to secure
payment of the judgment were done under that insurance policy.

B. Relevant Background Facts

James Barnett, Jr., the only son of Respondents James
Barnett, Sr. and Wanda Barnett, died on May 27, 1993 as a
direct result of the explosive in-flight failure of the Turbomeca
engine that powered the air ambulance he was piloting. That
helicopter known as Life Flight 2 (N728LF) was operated under
a joint venture between two hospitals in Kansas City, Missouri.
The patient being transported to the hospital in the helicopter
was killed and the other two members of the flight crew were
permanently and totally disabled.

The engine failure in Life Flight 2 was caused by a
defectively designed part known as TU76. TSA and TEC had
known that this part was defective since June, 1986, based on
an intensive failure mode and effects analysis conducted by
TSA in France known as the “Saviot” report. That analysis
proved that the design geometry and metallic composition were
defective. The analysis further proved that the failure of the
part could occur at any time during the rated use or time between
overhaul (TBO) of the whole engine which was at that time
2000 hours. (P.Ex.6). TSA and TEC recognized that these
defects presented a serious safety problem because the failure
of the part could cause an explosive in-flight engine failure. '

1. Based on the analysis, TSA’s chief engineer, Alain Calemard, testified
they knew that they had “a serious safety problem on our hands” constituting
“a rather alarming situation.” (Tr. Calemard 441; 443-444),

3

Instead of re-designing TU76 or adequately and honestly
warning consumers of the defects, TSA continued business as usual
and for competitive, commercial reasons actually increased the TBO
from 2000 to 2500 hours. (Tr. Meliet 160-161; Calemard 91: 481-
482). It was undeterred by a series of TU76 induced in-flight
failures, one of which resulted in serious (“grave”) injuries to at
least four persons in a single crash. Before the crash of Life Flight
2 on May 27, 1993, there had been at least seven accidents as a
result of TU-76 in-flight failures, several with total destruction of
the helicopter.’

TSA's corporate attitude concerning TU76 was summarized
in the following testimony of Mr. Jean Meliet, world-wide customer
support technical manager:

Q. Now notwithstanding the fact you know you have
a serious problem with TU76, you still keep
manufacturing Arriel engines with TU76
modifications in them without making changes,
isn’t that true, in design?

Yes.

Q. And you keep manufacturing them and selling
them without changing the metal, correct?

A. Yes.

Q. And that goes out on new aircraft and when
people bring their engines back for overhaul, TU76
with this weak metal gets put right back in them,
correct?

2. Dr. Alan Epstein, the Director of MIT’s turbine engine laboratory
with experience with military and civilian aircraft, described this as an
“enormous number” in the field of aviation. (Tr. 1507).

A. Yes.

* * *

Q. And during that period of time the number of
these cracks and the ruptures and the incidents
and accidents starts mounting, doesn’t it?

A. Yes.

* * *

Q. Nonetheless, the production line keeps rolling
and we keep making TU76 modified engines
for use in the world, correct?

A. Yes.
Q. Including these United States?

A. Yes.

* * *

Q. Okay so we know a third of these engines with
this part in it with a bad metal are coming here
to this country, correct?

A. Yes.

(Tr. Meliet 69-70: 73-74). The effects of this admitted serious
safety problem mounted to the point that in the same week of
the Life Flight 2 crash there were two other serious TU76 in-
flight failures in the United States. (Tr. Cocheteux 79).

Wei ete.

5

When Mr. Meliet was asked why TSA made a conscious
decision not to disclose the precise nature and seriousness of
the dangers of TU76 and its alarming safety history to
Turbomeca engine users, he stated that he “did not want to
disturb them” with such information because he knew it might
affect engine sales. (Tr. Meliet 163-164; 310-313).3

Ironically, the same day of the crash of Life Flight 2, TSA
completed its second numerical count of TU76 failures and
cracks in engines examined in France. (P.Exs.7 and 8). These
Studies showed a defect rate of approximately 6% for TU76
equipped engines. In the subsequent NTSB and FAA
investigation of the Life Flight 2 crash, neither TSA nor TEC
disclosed the results of either analysis to the U.S. safety
authorities although they had been asked to furnish “all details
of any known incidents, accidents or problems and any history
of discrepancies discovered at overhaul related to this part of
the engine.” (P.Ex. 172). Likewise, the “Saviot” report was not
disclosed to the U.S. authorities.

The jury hearing the evidence in this case found that TSA
and TEC’s conduct evidenced a conscious disregard for human
Safety under appropriate instructions‘ and assessed punitive
damages. Those damages were subsequently reduced and

3. Nodisclosure by any means of the existence of the built-in TU76 defects
was ever made. The deceptive and misleading service letters sent out to users
simply advised them to listen for any “rubbing noise”, a procedure known by
TSA and TEC to be wholly ineffective. No in-flight failure had been preceded
by any perceptible rubbing noise. Moreover, the defective part was housed in a
sealed module and could only be visibly inspected by TSA or TEC at overhaul.
No disclosure was made that TU76 broke apart in flight and caused explosive
engine shutdowns resulting in several crashes and injuries

4. See Bennett v, Owens-Corning Fiberglass Corp., 896 S.W. 2d 464 (Mo.
banc 1995) conforming Missouri instructional practice to the requirements of
Pacific Mut. Life Ins. Co. y, Haslip, 499 U.S. 1 (1991).

6

remitted by the trial court and were further reduced and remitted
by the Missouri Court of Appeals, Western District as set forth
in its opinion appended to Petitioners’ Brief. The Respondents
accepted the remittitur ordered by that court.

C. Subsequent Proceedings

On April 28, 1998, the Petitioners, without first requesting
a stay or seeking a reduction and continuation of their
supersedeas bond, paid the remitted judgment plus interest
thereon totaling $40,554,745 in Separate checks to the
Respondents as allocated by the Court.

As a condition for this payment, Petitioners required all
Respondents to execute in Open court the appended
Acknowledgment of Satisfaction and Waiver of Attorney’s Liens.
(App. A - pp. la-Sa; App. B - pp. 6a-l 1a). By that document,
which was prepared and approved by Petitioners’ attorneys,
the Respondents acknowledged that the “tender of payment
shall forever release and discharge defendants [TSA and TEC}
from any further obligations in this case except court costs...”
(Emphasis added).

After paying the judgment in this case and receiving the
foregoing release of all claims and satisfaction of judgment, the
Petitioners then filed their new brief in the Supreme Court of
Missouri in Letz v. Turbomeca Engine Corporation, et al., No.
80558. In support of that brief they attached the judgment
entered in this case on April 28, 1998 and expressly took the
position that their payment of the Barnett judgment entitled
them to an absolute credit against the Letz judgment in the sum
of $26,500,000 under the provisions of § 510.263.4, R.S. Mo.
(See Apdx. pp. A-10-12).

7

SUMMARY OF REASONS FOR DENYING THE WRIT

This case is moot. The underlying cause of action has been
extinguished by the execution of the release and satisfaction of
judgment appended hereto in which the Respondents released
and discharged the Petitioners from any further liability in this
case. In recognition of the finality of the release and the
satisfaction of judgment in this case and before filing the Petition
herein, the Petitioners claimed the benefit of all sums paid in
this case as an absolute credit against the punitive damages
awarded in a companion case now on appeal to the Supreme
Court of Missouri. There is thus no case or controversy
remaining to support this Court’s jurisdiction under 28 U.S.C.
§ 1257(a).

Apart from those considerations, there is no novel or
legitimate constitutional issue presented in the Petition. The court
below made a straightforward analysis of this case under the
due process principles set forth recently in BMW of North
America v. Gore, 517 U.S. 559 (1996), and correctly concluded
that the reprehensible and egregious conduct of Petitioners
shown of record warranted the imposition of substantial punitive
damages under the Missouri wrongful death statute. The
Petitioners had full advance notice that their persistent willful
and reckless conduct affecting the health and safety of Missouri
citizens could subject them to punitive damages when people
were killed or injured as a result of that type of conduct.
Petitioners’ tortious conduct was unlawful in every state in the
Union and elsewhere. The payment of the award did not
impermissibly affect the financial condition of the Petitioners
and in no way was violative of the Excess Fines Clause of the
Eighth Amendment.

8

REASONS FOR DENYING THE WRIT
I.

THE WRIT SHOULD BE DENIED BECAUSE THERE
IS NO LONGER A CASE OR CONTROVERSY FOR THE
SUPREME COURT TO RESOLVE BASED ON THE
FOLLOWING GROUNDS:

A. The Execution Of The Sworn Release Discharging
Petitioners From All Other Obligations To Respondents For
The Wrongful Death Of Their Son And Their Acceptance
Of Payment Of The Judgment Make This Action Moot.

The Petitioners did not bring to this Court’s attention the
appended Acknowledgment of Satisfaction of Judgment and
Waiver of Attorney’s Liens executed on April 28, 1998 by which
the Respondents released their claims against Petitioners. (App.
A - pp. la-Sa) . That release destroys any jurisdiction in this
Court. Under settled Missouri law, instigating the execution of
a general release from an opposing party without a reservation
of rights operates as an estoppel as a matter of law and constitutes
a settlement of all claims precluding further judicial action.’
Farmer v. Arnold, 371 S.W. 2d 265, 269 (Mo. 1963) makes
the point this way:

When the plaintiff Farmer paid Arnold $50 for a
release, and regardless of whether the release

5. By executing the general release and accepting payment in full
satisfaction of the judgment the Respondents did not simply extinguish their
cause of action against the Petitioners. Respondents’ acceptance of their
allocated portion of the judgment caused them to incur immediate income
tax liability for the punitive damage component of that judgment. They clearly
have detrimentally relied on the finality created by the general release and
payment of the judgment.

9

constituted the entire contract, the release was
executed at the instigation of Farmer for his own
immediate needs and benefit and he is now estopped
after rendering Arnold all but defenseless from
prosecuting one side of a tort action arising out of
a single transaction.

(Emphasis added).

Similarly, the Supreme Court of Missouri in Lugena v.
Hanna, 420 S.W. 2d 335, 341 (Mo. 1967), recognized that
litigation is ended when a party instigates and accepts a release
in his favor whether it be based on grounds of estoppel, waiver,
accord and satisfaction or other legal doctrines. Under Missouri
law, a release and payment precludes further action between the
parties as a matter of law because the cause of action has been
extinguished.° There is thus no longer a viable or justiciable
case or controversy between Petitioners and Respondents to
support this Court’s jurisdiction. The underlying cause of action
has been extinguished at the instigation of the Petitioners. This
case is moot.

Petitioners attempt to evade the mootness issue by citing
the dicta in County of Dakota v. Glidden, 113 U.S. 222, 224

6. Both Farmer v. Arnold and Lugena v. Hanna, supra, affirmed
summary judgments giving full preclusive effects to the releases in those
cases. Lugena v. Hanna at 341 captures the essence of the effect of the release
as follows:

in the absence of words in the operative part of a general release
which indicate an intention to limit or restrict its effect, it must
be concluded that the instrument was contemplated and
intended to be a complete settlement of all matters between the
parties to the release.

(Emphasis added).

10

(1885), stating the general rule that payment of a judgment,
standing alone, does not waive the payor’s right to appeal.
Petitioners’ reliance on that case is misplaced in view of the fact
that Petitioner’s sought and obtained a release and discharge of
all of their liability to Respondents in addition to paying the
judgment.

The Petitioners in this case thus stand on the same footing
as the Appellant in County of Dakota v. Glidden, supra. There
the court determined that the parties had effectively settled their
dispute which extinguished the cause of action and the judgment
based on it. The Court therefore dismissed the appeal as moot
when it was brought to its attention that the underlying cause
of action was extinguished.

In this case the general release executed by the Respondents
constituted a complete settlement of this case under Missouri
law. The resulting extinguishment of their cause of action
mooted this case. There is thus no case or controversy left for
this Court to resolve and the writ should be denied on the
authority of County of Dakota v. Glidden at 225 and the cases
cited therein.’

7. In County of Dakota v. Glidden at 224-225 the Court saw through
the argument that the appellant had merely paid the judgment to stay an
execution and noted: “But what was done was a different thing than that.”
That is also true in this case.

relist

11

B. The Case Is Moot Because The Petitioners Have Accepted
The Benefit Arising From The Release And Payment Of The
Judgment In This Case By Asserting To The Supreme Court
Of Missouri In Letz v. Turbomeca Engine Corporation, et
al., No. 80558 That They Are Entitled To A $26,500,000
Credit Against The Punitive Damages In That Case Under
Section 510.263.4, R.S. Mo.

The Petitioners also did not disclose to this Court that
following the execution of the general release and the payment
of the judgment, Petitioners on May 6, 1998 filed a new brief
in the Supreme Court of Missouri in the Letz case asserting as a
matter of law that they were entitled to a $26,500,000 credit
against the Letz judgment under Section 510.263.4, R.S. Mo.
by virtue of the payment and satisfaction of the Barnett
judgment.®

The acceptance of the benefits of the finality and satisfaction
of the Barnett judgment in the Letz case has adverse
jurisdictional consequences for Petitioners in this case. Dismissal
of the writ for certiorari is fully warranted based upon the
recognized jurisdictional principle that one who accepts the fruits
or benefits of a judgment may not appeal from it. See Tech
Hills II Associates v. Phoenix Home Life Mut. Ins. Co., 5 F.3d
963, 970 (6th Cir. 1993) and the cases cited therein.

Petitioners cannot simultaneously attack the Barnett
judgment in this Court and rely on it in the Supreme Court of
Missouri to be relieved of the $26,500,000 judgment for punitive
damages in that case. Petitioners legally bought out and

8. Petitioners’ baseless argument that it is subject to a “double whammy”
under Section 510.263.4, R.S. Mo. will be dealt with under Point II.D., below.
Suffice it here to point out that Petitioners are seeking the protection and
benefit of that statute in Letz based on the payment and finality of the Barnett
judgment.

|

12

extinguished the Barnetts’ interest in this case so that they could
perfect their right to a credit under Section 510.263.4, R.S.
Mo. in the Letz case with the consequence that the jurisdiction
of this Court has been similarly extinguished.

Il.

THE PETITIONERS HAVE NOT BEEN DENIED DUE
PROCESS AS A RESULT OF THE PUNITIVE DAMAGE
JUDGMENT OF $26,500,000.

There are no important due process issues presented in this
case nor any Rule 10 considerations present to justify granting
a writ of certiorari. The court below expressly applied the Due
Process standards recently enunciated by this Court in BMW of
North America v. Gore, 517 U.S. 559 (1996) and related decisions
to an unique, egregious case of tort liability involving a persistent
course of wilful conduct occurring over a seven year period. The
Missouri Court of Appeals’ analysis of the facts under BMW
overwhelmingly supports the reduced punitive award in this case.

A. Petitioners Knew That Their Tortious Conduct Involving
A Conscious Disregard For Human Safety Could Subject
Them To Punitive Or Aggravating Circumstances Damages
For Causing A Wrongful Death In Missouri.

Stripped to the essentials, the Petitioners argue that as far back
as 1986 that they have believed they could get away with what the
Missouri Court of Appeals determined was “unparalleled” tortious
conduct without suffering significant punitive consequences.’ They

9. TU76’s were known by Petitioners to break apart in-flight, detonate,
| stop engines and cause crashes and injuries. The continuing manufacture,
sale and servicing for almost seven years of such a known, dangerous product
and the active concealment of its dangerous characteristics from users and

(Cont'd)

el

a ,

13

now claim ignorance of a long line of Missouri cases holding
damages for “aggravating circumstances” under Section 537.090,
R.S. Mo. are punitive in character.’ In view of those cases there is
no substance to their claim that they had no notice that they could

(Cont'd)

safety authorities makes this case unique in U.S. product liability experience.
In no case has non-disclosure of a serious safety defect been so closely linked
to sales. In no case has a deliberate decision been made to substantially
increase the risk of product failure and injury by extending the time between
overhaul or repair for brutally commercial or competitive reasons. Cf. BM W
of North America v. Gore, supra, involving no such reckless disregard for
the health and safety of others, concealment or improper motives.

10. For at least 100 years before the Life Flight 2 crash it was
recognized that punitive or exemplary damages were recoverable under the
Missouri wrongful death statute if aggravating circumstances were shown to
exist. In Haehl v. Wabash R. Co., 24 S.W. 737, 741 (Mo. 1893) the Supreme
Court of Missouri stated:

It needs no argument to show that under this law, in a proper case,
exemplary damages may be given. It has been so held or assumed
as a self-evident proposition in every case in which the attention
of this Court has been called since the law was first enacted in
1855.

Under this law, damages akin to punitive damages were previously upheld in
crashes of aircraft upon the requisite showing of aconscious disregard or reckless
indifference to human safety. Weast v. Festus F lying Serv., 680 S.W. 2d 262, 267
(Mo. App. 1984) (removal of an anti-ice pump three weeks before the crash,
failure to record the removal and dispatch into potentially icy conditions), Blum
v. Airport Term. Serv., Inc., 762 S.W. 2d 67, 74 (Mo. App. 1988) (misfueling of
aircraft by use of jet fuel ina piston engine by an employee who was on the job
for only one week and received inadequate training). TSA and TEC were thus
on notice that isolated acts of misconduct, much less a nearly seven year continuing
course of tortious conduct, would subject them to the equivalent of punitive
damages when that conduct resulted in a wrongful death in Missouri. Missouri
was not a “safe harbor” for Petitioners’ reprehensible conduct that directly
impacted the health and safety of its citizens.

~~

14

be subjected to when people were killed in Missouri as a result of
a long running course of life-endangering tortious conduct.

Petitioners further equivocally state at page 10 of the brief
that TSA “may not even been aware that any of its engines had
found their way into Missouri.” That is a misstatement of fact.
TSA's advertising and promotional brochure used to promote
sales in the U.S. (P.Ex. 281) contains a photograph of a
helicopter in use as an air ambulance. The identifying number
on that helicopter is N728LF. That helicopter was Life Flight 2
shown flying in the State of Missouri.

B. The Petitioners’ Long-Term Wilful Conduct Was Not
Lawful In Any State In The United States Or Elsewhere
And Is Not Shielded By The Due Process Clause.

In an effort to trivialize the effects of their wilful conduct,
Petitioners equate their self-described “minimal” tortious
behavior with that shown in the BMW case. Petitioners suggest
that not all states or jurisdictions would regard its life-
endangering conduct as illegal or unlawful. Accordingly, they
argue that the Missouri courts did not accord them due process
by allowing evidence of the world-wide, harmful effects of their
centralized decision to keep selling a known defective part
common to all engines wherever sold or used in the world.
They cite no authority which even remotely suggests that the
following conduct is lawful anywhere in the world, much less
in France:

1. Continued sale and servicing for almost seven years of
a known, defective part that could unpredictably,
prematurely, and explosively fail in flight.

2. Continued sale and servicing of such a defective part
with knowledge of an increasing rate of failures resulting

15

in crashes involving serious personal injuries and total
destruction of helicopters.

3. Deliberate concealment and failure to warn buyers and
users of what Turbomeca management regarded as a
“serious safety problem” because such warning might
adversely affect sales.

4. Extension of the TBO from 2000 hours to 2500 hours
to keep up with their competition with knowledge of
the serious TU76 product defect that was literally built
into its engines.

5. Deliberate concealment of the true frequency and
magnitude of the TU76 produce failures and
consequences from U.S. safety authorities after the crash
of Life Flight 2.

There is obviously a vast difference between universally
condemned tortious conduct that can kill and injure people and
the repainting or touch-ups of luxury automobiles. BMW cannot
reasonably be stretched to shield the reprehensible conduct
shown of record in this case. Business decisions taken in the
executive offices of TSA with a conscious disregard for human
safety had a direct and foreseeable effect on the life of James
Barnett, Jr., and the other victims in Life Flight 2. Those
corporate decisions resulted in identically caused engine failures,
injuries and crashes in the U.S. and elsewhere.

Those corporate decisions produced the only truly unlawful
extraterritorial effect in this case, not the punitive damages
merited by those decisions.

16

C. Neither Petitioners’ Business Operations Nor Their
Finances Have Been Affected By The Punitive Damages
Assessed Against Them.

The Petitioners have failed to bring to the Court’s attention
that both of them were protected by a liability insurance policy
with liability limits of approximately $1,000,000,000 for all
damages arising out of this case. It is clear from the record
below that Petitioners’ considered this liability insurance as a
component of the net worth of both of the closely related
entities. In resisting the production of net worth information
by way of discovery, here is what one of their witnesses had to
Say at a hearing held below at page 37 of the hearing transcript
following a request for net worth information.'' (App. E - p.
21a):

THE WITNESS: Your Honor, I wonder if we
could cut through this if I get information from the
broker which shows that the — instead of it being
five billion french francs its 4.99 billion, is there
any point in chasing this net worth question around?

(Emphasis added).

The net worth issue presented on this appeal is, in any
event, makeweight.'? Contrary to Petitioners’ brief, the award
below has not been “financially ruinous” for them nor have
they been put out of business. They were fully protected by

11. This hearing was applicable in all Life Flight 2 cases based on the
case consolidation order for discovery purposes.

—_

12. The concurring opinion in BMW of North America v. Gore, supra
at 591, recognized that consideration of a defendant’s wealth or net worth is
not necessarily intended to act as a significant constraint on punitive awards
in any event.

17

insurance. The net worth point raised by Petitioners is calculated
solely to divert the Court’s attention away from the recognized
controlling factor in this case — the judicially determined
reprehensibility of their conduct under BMW in relation to other
appropriate factors. (Petitioners’ Apdx. pp. A-39-50). The
enormity of Petitioners’ conduct fully supports the judicially
reduced punitive award in this case.

D. There Is No Live Issue In This Case That Petitioners
Have Been Subjected To Any Impermissible Cumulative
Punishment Based On The Letz Case.

As noted above, the Petitioners are in fact seeking the
available protection of a statutory credit of $26,500,000 against
the punitive damages in the Letz judgment by virtue of the
payment and satisfaction of the Barnett judgment under the
very same Missouri statute they erroneously claim subjects them
to “a double whammy”, Section 510.263.4, R.S. Mo. Their
entitlement to such a statutory credit is now before the Supreme
Court of Missouri. The asserted issue of “cumulative
punishment” can only arise appropriately in that case; it is a
non-issue in this one. They have paid the judgment in this case
and taken a release which has extinguished the Respondents’
cause of action. If they do not obtain a credit from the Supreme
Court of Missouri in the Letz case in these circumstances, the
asserted issue of “cumulative punishment” will then, but only
then, be ripe for a petition to this Court in that case.

18
Il.

THE EXCESS FINES CLAUSE OF THE EIGHTH
AMENDMENT DOES NOT APPLY TO CIVIL ACTIONS
FOR DAMAGES BROUGHT AND MAINTAINED BY
PRIVATE LITIGANTS.

This Court has never applied the Eighth Amendment’s
Excess Fines Clause to a civil action. There is no compelling
reason to do so in a civil action for actual and punitive damages
brought by private litigants where due process and fairness is
already afforded under the standards articulated in BMW of North
America v. Gore, supra, and Pacific Mut. Life Ins. Co. v. Haslip,
499 U.S. 1 (1991). That is true notwithstanding the fact that a
State may be a passive beneficiary of a portion of punitive
damages. The Eighth Amendment’s Excess Fines Clause should
appropriately be reserved for fines levied directly by the
Government as punishment for a criminal offense. See United
States v. Bajakajian, __ U.S. __, 118 S. Ct. 2028 (1998).

The Petitioners implicitly concede the correctness of this
analysis by simply re-arguing their due process contentions
under this point.

19
CONCLUSION

For each of the reasons set forth in Respondents James
Barnett, Sr. and Wanda Barnett’s Brief, this Court should deny
the Petition for Writ of Certiorari filed by TSA and TEC.

Respectfully submitted,

JOHN J. WILLIAMS, III
GEORGE M. BOCK
Counsel of Record
SLAGLE, BERNARD

& GORMAN, P.C.

600 Plaza West Building
4600 Madison Avenue
Kansas City, Missouri 64112
(816) 410-4600

DUKE W. PONICK, JR.
2800 City Center Square
1100 Main Street

Kansas City, Missouri 64105
(816) 842-1130

Attorneys for Respondents
James §. Barnett, Sr. and
Wanda L. Barnett

APPENDIX

*

la

APPENDIX A — ACKNOWLEDGMENT OF
SATISFACTION OF JUDGMENT AND WAIVER OF
ATTORNEY’S LIENS FILED APRIL 28, 1998

IN THE CIRCUIT COURT OF
JACKSON COUNTY, MISSOURI
AT KANSAS CITY
CASE NO.: CV93-24644
DIVISION 8
KYONG JU BARNETT, et al.,
PLAINTIFFS

V.

LA SOCIETE ANONYME TURBOMECA FRANCE
A/K/A TURBOMECA, S.A.., et al..

DEFENDANTS.

ACKNOWLEDGMENT SATISFACTION OF
JUDGMENT AND WAIVER OF ATTORNEY’S LIENS

Plaintiffs James Barnett, Sr. and Wanda Barnett, and their
attorneys of record, and each of them, pursuant to Supreme Court
Rule 74.11, RSMo 511.570 and RSMo 537.675, do hereby
acknowledge that the final money judgment entered in their favor
against the defendants herein on April 28, 1998, in this matter has
been fully and finally satisfied and that no further action in this
case is required of defendants for any purpose. Defendants’ tender

2a
Appendix A

of payment shall forever release and discharge defendants from
any further obligations in this case except payment of court costs
as determined in the ordinary course by the office of the Clerk of
the Circuit Court of Jackson County, Missouri. Said plaintiffs
and their attorneys further state that all liens for attorney’s fees
and expenses be and hereby are expressly waived in this matter.
APPROVED AND ACKNOWLEDGED:

Dated: 4-28-98 s/ James S. Barnett, Sr.
James Barnett, Sr.

Dated: 4-28-98 s/ Wanda L. Barnett
Wanda L. Barnett

Dated: 4-28-98 s/ Duke Ponick, Jr.
Duke Ponick, Jr.

Dated: 4/28/98 s/ John J. Williams III

John J. Williams, III for himself and
Slagle Bernard & Gorman, LLC

ATTORNEYS FOR PLAINTIFFS
JAMES BARNETT, SR. AND
WANDA BARNETT

STATE OF MISSOURI )

a
COUNTY OF JACKSON _ )

On this 28 day of April, 1998, before me, appeared James
Barnett, Sr., to me personally known, who being by me duly
sworn, did say that he has read the foregoing Acknowledgment
of Satisfaction of Judgment and Waiver of Attorney’s Liens, that

Dg at Nin Ds OCZLNADY a asi pce cl Ap ds PRahcn ANN Ds a Bol

3a

Appendix A

the facts set forth therein are true and correct and that he has
signed the same as his free act and will.

IN WITNESS WHEREOF, I have hereunto set my hand and
affixed my notarial seal at my office the day and year last above
written.

s/ Teresa A. Shell
Notary Public

My Commissions Expires:

[stamp] TERESA A. SHELL
Notary Public — Notary Seal
STATE OF MISSOURI
Platte County
My Commission Expires: April 9, 2000 [stamp]

STATE OF MISSOURI )
) ss
COUNTY OF JACKSON)

On this 28 of April, 1998, before me, appeared Wanda
Barnett, to me personally known, who being by me duly sworn,
did say that she has read the foregoing Acknowledgment of
Satisfaction of Judgment and Waiver of Attorney’s Liens, that
the facts set forth therein are true and correct and that she has
signed the same as her free act and will.

IN WITNESS WHEREOF, I have hereunto set my hand and
affixed my notarial seal at my office the day and year last above
written.

_

eee EE

4a

Appendix A

s/ Teresa A. Shell
Notary Public

My Commission Expires:

[stamp] TERESA A. SHELL
Notary Public — Notary Seal
STATE OF MISSOURI
Platte County
My Commission Expires: April 9, 2000 [stamp]

STATE OF MISSOURI )
) ss
COUNTY OF JACKSON __)

On this 28 day of April, 1998, before me, appeared John J.
Williams, III, to me personally known, who being by me duly
sworn, did say that he has read the foregoing Acknowledgment
of Satisfaction of Judgment and Waiver of Attorney’s Liens, that
the facts set forth therein are true and correct and that she has
signed the same as his free act and will.

IN WITNESS WHEREOF, I have hereunto set my hand and
affixed my notarial seal at my office the day and year last above
written.

s/ Teresa A. Shell
Notary Public
My Commission Expires:

[stamp] TERESA A. SHELL
Notary Public — Notary Seal
STATE OF MISSOURI
My Commission Expires: April 9, 2000 [stamp]

Sa

Appendix A

STATE OF MISSOURI )
) ss
COUNTY OF JACKSON __)

On this 28 day of April, 1998, before me, appeared Duke
Ponick, Jr., to me personally known, who being by me duly sworn,
did say that he has read the foregoing Acknowledgment of
Satisfaction of Judgment and Waiver of Attorney’s Liens, that
the facts set forth therein are true and correct and that he has
signed the same as his free act and will.

IN WITNESS WHEREOF, I have hereunto set my hand and
affixed my notarial seal at my office the day and year last above
written.

s/ Teresa A. Shell
Notary Public

My Commission Expires:

[stamp] TERESA A. SHELL
Notary Public — Notary Seal
Platte County
STATE OF MISSOURI
My Commission Expires: April 9, 2000 [stamp]

6a

APPENDIX B — EXCERPTS OF TRANSCRIPT OF
PROCEEDINGS, DATED APRIL 28, 1998

IN THE CIRCUIT COURT OF
JACKSON COUNTY, MISSOURI

SIXTEENTH JUDICIAL CIRCUIT, DIVISION 8
HONORABLE LEE E. WELLS, JUDGE

No. CV93-24644

KYONG JU BARNETT, et al.,
Plaintiffs,

VS.
TURBOMECA ENGINE CORPORATION, et al.,
Defendants.
TRANSCRIPT OF PROCEEDINGS
On Tuesday, the 28th day of April, 1998, the above-entitled

cause came on regularly for hearing before the honorable Lee E.
Wells, Judge of Division 8 of the Sixteenth Judicial Circuit, at Kansas

City.

APPEARANCES
Mr. Gary C. Robb Mr. Craig S. O’ Dear
Ms. Anita Porte Robb Mr. Nicholas L. DiVita
Robb & Robb, L.L.C. Bryan Cave, L.L.P.
Attorneys at Law Attorneys at Law

900 One Kansas City Place Suite 3500

6 senile

Ta

Appendix B

200 Main Street 1200 Main Street
Kansas City, Missouri 64105 Kansas City, Missouri 64105
Attorneys for plaintiffs Attorneys for defendants

Kyong Ju, Jesse, and Mia Barnett

Mr. John J. Williams, II]

Slagle, Bernard & Gorman, P.C.
Attorney at Law

600 Plaza West Building

4600 Madison

Kansas City, Missouri 64112

and

Mr. Duke W. Ponick, Jr.
Attorney at Law
1100 Main Street
Kansas City, Missouri 64105
Attorneys for plaintiffs James and Wanda Barnett

Mr. Edward F. Downey

Mr. Douglas E. Nelson

Office of Attorney General
Supreme Court Building

P.O. Box 899

Jefferson City, Missouri 65102

* * *

[9] Honor, we’ve now signed and executed and are in the
process of notarizing the acknowledgments.

8a

Appendix B

At this time we would like to present to counsel for the
defendants a fully executed and signed acknowledgment of
satisfaction of judgment and waiver of attorneys’ liens signed by
Mrs. Barnett on behalf of minor child, Mia Barnett, and myself,
and my law partner on behalf of our law firm, Your Honor.

MR. O’DEAR: We acknowledge receipt of this document.

MR ROBB: Also on behalf of Mrs. Kyong Ju Barnett, her
son, Jesse Barnett, myself, and my law partner, Anita Robb, for
our law firm, we present to counsel for defendant Turbomeca the
acknowledgment of satisfaction of judgment and waiver of
attorneys’ liens, Your Honor.

MR. O’DEAR: Again, we acknowledge receipt of this
document as well.

MR. WILLIAMS: If you will, we'll dispense with this
ceremony of doing it in this fashion. I think Mr. and Mrs. Barnett
are keeping in mind the reason that we’re here in the first place
was occasioned by the death of their son. They have executed
the acknowledgment, and I think we can handle this in the routine
fashion as far as exchanging the [10] checks.

THE COURT: You want the acknowledgment on the record
of course?

MR. O’DEAR: Yes.

Your Honor, at this time the Turbomeca defendants would
tender to Mr. Williams and Mr. Ponick on behalf of their clients,
James Barnett, Sr. and Wanda Barnett, a check for $5,603,117,
Check No. 2189581.

9a

Appendix B

We also acknowledge on the record the receipt of an
acknowledgment of satisfaction of judgment and waiver of
attorneys’ liens signed by James Barnett, Sr. and Wanda L. Barnett.
Duke Ponick, Jr., and John Williams for himself. and Slagle,
Bernard & Gorman, L.L.C. Is that correct, Mr. Williams?

MR. WILLIAMS: That’s right. It’s a professional association
but I think we’ve done all right.

MR. O’DEAR: Your Honor, the last check that we have is
to the State of Missouri.

Whoever is going to accept this on behalf of the State of
Missouri, could you identify yourself?

MR. NELSON: Douglas E. Nelson for the State of Missouri.
Your Honor.

Teresa, if you would be so kind to notarize ours, I would
appreciate it.

[14] THE COURT: Yes.

MR. ROBB: Another administrative matter. We ask counsel
for defendant to supply us with a copy of the executed
satisfactions of judgment.

MR. O’DEAR: We would be happy to do so, and we’ll
make copies as soon as the hearing is over.

10a

Appendix B

I would like to say too for the record, I’m presuming
everybody is going to go to the bank this afternoon. There
shouldn’t be any reason why anybody doesn’t have the money
by this afternoon.

MR. ROBB: On behalf of our client, that’s our intention,
Your Honor.

MR. WILLIAMS: Weare too, but I’m unfamiliar with the
banking rules for clearing these checks.

MR. O’DEAR: All right.

MR. ROBB: Your Honor, on behalf of our clients, Kyong
Ju, Jesse, and Mia Barnett, we ask this Court to sign the final
judgment indicating that there has been satisfaction of that
judgment in full, and then release and discharge the defendants
other than the payment of court costs as reflected in the document.

THE COURT: Judgment has been executed and the costs
will be taken care of by the cost department.

MR. WILLIAMS: Your Honor, if I may, I take it [15] the
defendants have approved the form and content of the satisfaction
of judgment since you supplied it to is that correct?

MR. O’DEAR: Oh, yes. Yes.

THE COURT: Are you going to file those with the Court?

MR. O’DEAR: Yes.

lla

Appendix B
THE COURT: I want to thank everybody for the cooperation
that’s been shown in obtaining a final closure on this matter. It’s
been exceptional and I’ve appreciated all of the help that was
received from all sides, and I’m delighted we’ re finally able to
conclude matter.

Thank you.
We'll be in recess.

(Adjournment. )

12a

APPENDIX C — SUBSTITUTE BRIEF FOR
APPELLANTS, FILED MAY 6, 1998

IN THE
SUPREME COURT OF MISSOURI

No. 80558

JODIE A. LETZ, Individually and as Guardian Ad Litem
and Next Friend of ERIC DAVID LETZ and
CHRISTOPHER SCOTT LETZ, Minor children, and as
Representative and Administratrix of the Estate of
SHERRY ANN LETZ, Deceased,

Plaintiffs-Respondents,

Vv.

TURBOMECA ENGINE CORPORATION and
TURBOMECA, S.A.,

Defendants-Appellants,
and

ROCKY MOUNTAIN HELICOPTERS, INC.,

Defendant.

Appeal from the Circuit Court of Jackson County,
Division 8
Hon. Lee E. Wells

—

SUBSTITUTE BRIEF FOR APPELLANTS

13a

Appendix C

BRYAN CAVE LLP

Thomas C. Walsh #18605

David S. Slavkin #21712

Elizabeth C. Carver #34328
One Metropolitan Square
211 N. Broadway
St. Louis, Missouri 63102
314-259-2000

Attorneys for Appellants

Following 17 days of trial, the case was submitted to the
jury on theories of strict liability, negligence, and failure to warn.
Defendants objected to the submission of damages for aggravating
circumstances (L.F. 478, 487; Tr. 3015), but the court submitted
all theories of recovery and aggravating circumstances ona single
verdict form, a practice condemned by this Court just two weeks
later in Bennett v. Owens-Corning Fiberglas Colp., 896 S.W.2d
464 (Mo. banc 1995).?

2. In the Barnett case, which was tried after Bennett, the same judge
submitted compensatory damages separately from aggravating circumstances
damages. The total verdict in that case was $175,000,000 for compensatory
damages and $1 75,000,000 for aggravating circumstances damages. On post-
trial motions in Barnett, the trial court ordered a remittitur to $77.5 million. The
Court of Appeals further reduced the judgment to $3,500,000 for compensatory
and $26,500,000 for aggravating circumstances. This Court denied transfer in
Barnett (No. 80559), and the plaintiffs in that case consented to the remittitur.
This Court may take judicial notice of the final judgment in that case, which is
reproduced in the Addendum to this brief. That judgment has now been satisfied,
as the Circuit Court's records reflect.

14a

Appendix C

~

After plaintiffs and RMH had solemnly stipulated before the
jury that the TU-76 was defective (Tr. 911-12), plaintiffs’ counsel
told the jury in closing not to award any damages against RMH
(Tr. 3120). The jury was also asked to assume that decedent had
died instantly and not to award any damages for her pain and
suffering (Tr. 3109).

We respectfully urge that the present case, if not reversed, is
a textbook candidate for application of the principals underlying
the doctrine of remittiur. And if this Court does not order a new
trial, defendants are entitled to a credit of $26,500,000 against
the punitive component of any surviving judgment under
§ 510.263.4 RSMo. by reason of the payment of that sum as
punitive damages in Barnett.

CONCLUSION

For the reasons stated, the judgment of the Circuit Court of
Jackson County should be reversed and the case remanded with
directions to enter judgment for defendants on the issue of
aggravating circumstances and to conduct a new trial on all other
issues.

15a

Appendix C

Respectfully submitted,

s/ Thomas C. Welsh
BRYAN CAVE LLP
Thomas C. Welsh #18605
David S. Slavkin #21712
Elizabeth C. Carver #34328
One Metropolitan Square
211 N. Broadway
St. Louis, Missouri 63102
314-259-2000

Attorneys for Appellants

May 6, 1998

16a

APPENDIX D — EXCERPTS OF DECLARATIONS PAGE
FOR LIABILITY INSURANCE POLICY NO. 93/14313
WITH LIABILITY LIMITS PAGE

FAUGERE & JUTHEAU

FAUGERE & JUTHEAU, S.A.
Société Anonyme de Couverage d’ Assurance

* . *

NOTE DE COUVERTURE

Nous soussignés, FAUGERE & JUTHEAU S.A. confirmons
avoir procédé au placement des risques defines d’aprés

SOUSCRIPTEUR-ASSURE: Société LIBINAL
5 Avenue Newton
MOTIGNY
LE BRETONNEUX — 78000
Agissant lant pour son compte
que pour le compte des
Sociétés qui loi sont affiliées et/
ou dans lesquelles elle
dériendrail des intéres, et
notamment:
— TURBOMECA
— TURBOMECA ENGINE

CORPORATION

PERIODE: 12 Mois in effet du ler Janvier
1993 (O heure)

RISQUES GARANTIS: (a) PARTIE A: 75 % Partie
de 100 “%:

17a

Appendix D

— lere Ligue: 250.000.000 de
Francs par occurrence et/
ou par année d’assurance,
y compris la contrevaleur
de US$ 100 Millions pour
le risque d’ Arrét des Vols:

* REUNION AERIENNE/
UAP: 75 % partie de
100%.

Cette Assurance s’exerco
suivant les Clauses.
Conditions et Exclusions de
la Police

N° 93 14313 énuse par la
REUNION AERIENNE

— Zéine Kugye (Excess):
4.750.000.000 de Francs
par occurrence et/ou par
année d’assurance, en
complément et/ou aprés
epuisement de 250.000.000
FF par occurrence et/ou par
année d’assurance.

* REUNION AERIENNE/
UAP: 32.50% partie de
100%

* AXA (AVIAFRANCE):
10.00% partie de 100%

18a

APPENDIX E — EXCERPTS OF TRANSCRIPT OF
PROCEEDINGS, DATED MAY 3, 1995

IN THE CIRCUIT COURT OF
JACKSON COUNTY, MISSOURI
SIXTEENTH JUDICIAL CIRCUIT, DIVISION 8
HONORABLE LEE E. WELLS, JUDGE
CV93-19156
JODIE LETZ, et al.,
Plaintiffs,
VS.

TURBOMECA ENGINE CORPORATION, et al.,

Defendants.
TRANSCRIPT OF PROCEEDINGS

On Wednesday, the 3rd day of May, 1995, the above-entitled
cause came on regularly for hearing before the Honorable Lee E.

Wells, Judge of Division 8 of the Sixteenth Judicial Circuit, at
Kansas City (Jackson County)

APPEARANCES
Mr. Gary C. Robb Mr. Randy W. James
Ms. Anita Robb Attorney at Law
Attorneys at Law Suite 100

3900 One Kansas City Place 10680 Barkley

Appendix E

1200 Main Street

Kansas City, Missouri 64105
Attorneys for plaintiffs
Letz

Mr. John Edward Chick, Jr.
Attorney at Law
2601 Kendallwood Parkway
Kansas City, Missouri 64119
Attorney for plaintiff

Roth

Mr. Dougias N. Ghertner

Mr. Lee M. Baty

Attorneys at Law

210 Plaza West Building

4600 Madison Avenue

Kansas City, Missouri 64112
Attorneys for defendants
Turbomeca, S.A. and

Turbomeca Engine Corporation

Mr. Paul V. Herbers

Attorney at Law

2400 City Center Square

P.O. Box 26770

Kansas City, Missouri 64196
Attorneys for defendant
Rocky Mountain Helicopters

Overland Park, Kansas 66212
Attorney for plaintiff
Hedrick

Mr. John J. Williams, III

Attorney at Law

600 Plaza West Building

4600 Madison Avenue

Kansas City, Missouri 64112
Attorney for plaintiffs
Barnett

20a
Appendix E

Mr. Michael R. Thiessen

Attorney at Law

1200 Main Street

Suite 1700

Kansas City, Missouri 64105
Conservator for Letz children

[6])* * *

THE COURT: I think you should provide them with a net
worth statement that is certified by some audit.

THE WITNESS: Your Honor’s goal is to get this done
expeditiously. I don’t know who their auditors are. I wouldn't
know how to go about getting that done expeditiously. I don’t
know who they are. I don’t know how to get it expeditiously. It
seems the expeditious way of resolving this net worth question is
the way that I thought you and I understood one another before
and that is if we have an annual report of Labinal which breaks
out Turbomeca, S.A. and Turbomeca Engine Corporation, we'll
give them the picture or give them a copy of the annual report if
we have an extra one around. If we don’t, we'll give them a
picture of the pertinent portions.

MR. WILLIAMS: If, Your Honor, I may get my [37] two
cents worth in. I assume the certified financial statements are a
part of the auditing process which I assume applies in Europe as
well as here. They have subsidiary balance statements for each
of the family of the Labinal companies; and, again, it should be
either in their hands or among the work papers of their auditors
that have to certify the financial statements of the parent, and I’m
confident that it would be in those records.

aaa LLL

2la

Appendix E
THE COURT: I would imagine they have that.

THE WITNESS: Your Honor, I wonder if we could cut
through this if I get information from the broker which shows
that the — instead of it being five billion French francs it’s 4.99
billion, is there any point in chasing this net worth question around?

* x *

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386006_1753%3A2. Public record. Not legal advice.
