Appendix — Keene Corp. v. Lindsay
Supreme Court brief1992
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TABLE OF CONTENTS
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API
PAGI
U.S. Constitution, amendment I . Pes l
U.S. Constitution, amendment XIV, $1 ..... l
Harris County, Texas, District Court Order of
RE. Ss ME boa bo kee ae ee ake - 2
Transcript of Proceedings of March 24, 1992 in
Harris County, Texas, District Court.... 3
Harris County, Texas, District Court Order of
a ee a.) | errr errr ees 1]
Opinion of Texas Court of Appeals overruling mo
tion for leave to file mandamus petition, over
ruled, March 27, 1992, opinion filed Apmil 2,
1992 oer er 12
Opinion of Texas Court of Appeals overruling peti
tion for leave to file writ of prohibition, over
ruled March 27, 1992, opinion filed April 2,
aa a te aa eet ee oe ere “AAS 14
April 15, 1992 Order of The Supreme Court of
Texas dismissing as moot motion for leave to
file petition for writ of mandamus ..... 16
Keene’s motion addressed to The Supreme Court
of Texas for rehearing of motion for leave to
file petition for writ of mandamus......... 18
May 20, 1992 Order of The Supreme Court of
Texas overruling Keene’s motion for rehearing
of motion for leave to file petition for writ of
ET eee err Tere Tere Tere 39
Advertisements previously published by Keene
TEE 5 (cas s-ekigccnca ea cccne caveats es 4]
Opinion of Court of Special Appeals of Maryland,
in Keene Corporation v. Abate, et al., opinion
ae: ner reer re 70
App.
UNITED STATES CONSTITUTIONAI
PROVISIONS INVOLVED
Amendment |]
Congress shall make no law respecting an establishment
of religion, or prohibiting the free exercise thereof: or
abridging the freedom of speech, or of the press; or the
right of the people peaceably to assemble, and to peti
tion the Government for a redress of grievances.
Amendment XIV
Section 1. All persons born or naturalized in the United
States, and subject to the jurisdiction thereof, are citizens
of the United States and of the State wherein they reside.
No State shall make or enforce any law which shall
abridge the privileges or immunities of citizens of the
United States; nor shall any State deprive any person of
life, liberty, or property, without due process of law; nor
deny to any person within its jurisdiction the equal pro
tection of the laws.
Vé
at
advertisement which
ie) aced In the Houstor (Chro?
inty a jury was deliberating in a tma! in whic!
efendant Keene { Orporation Was a Party It is theref
(\1 EL y ‘ET a» >} ’ 4 ail
MIRDERED, ADJUDGED AND DECREED that Ke
poration shall not advertise regarding asbestos |i
} nanv ne : y ihliched in Harr ( nt |"
Nn any newspaper pudusned In Marris Vounty, iL
nt the verdict of the jury in the above-referenced ca
received bv this Court
‘ ‘ ’
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med Plaintiffs
7 ai
Wspapers WN
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per, on March
rary T ’
ALALIOL LL
tising regarding asbestos lit
>}
tached as Exhibit ‘‘A’’ to th
Keene Corporation. Fron
rdict * the
e Defendant Kee
of the jury is received by this C
1e Corporation is prohibited fron
tigation in any
ure published in Harns County, T:
this Order is a cor
a COD )
:
the Defendant Keene Corpora
t
e, a Harris County N
5, 1992. On that 1
n same day in Harris
t ‘ry a 7 mnrry TY Y Tet y rY\TOCOrnNDpD Ts
and S., IN ET Al ROTH JUDICIAL DISTRI
STATEMENT OF FACTS
EXCERPT OF PROCEEDINGS
MARCH 24, 1992
BE IT REMEMBERED that the above entitled and num
bered cause came on for Trial before said Honorable
Court, Tony Lindsay, Judge Presiding, at the Civil Courts
Building, 301 Fannin, Houston, Texas, on the 24th day
f March, 1992, and the following proceedings were had
APPEARANCES
FOR PLAINTIFFS JIMMY R. BLEVINS AND
SANDRA R. BLEVINS, ET AL
MR. JOHN EDDIE WILLIAMS
MR. ERIC BOGDAN
Umphrey, Burrow, Williams & Baile)
8441 Gulf Freeway
Suite 600
Houston, Texas 77017
MR. JOSEPH COX, JR
Ness, Motley, Loadholt, Richardson & Pool
151 Meeting Street
Suite 600
P.O. Box 11387
Charleston, South Carolina 29402
MR. CAMERON WADDELL
Ness, Motley, Loadholt, Richardson & Pool
2202 Jackson Street
P.O. Box 365
Barnwell, South Carolina 29812
FOR DEFENDANT KEENE CORPORATION
MR. JAMES H. POWERS
MS. GWEN FROST
Roberts, Markel, Folger & Powers
1010 Twenty-Four, Greenway Plaza
Houston, Texas 77046
FOR DEFENDANT PITTSBURGH-CORNING
MR. JOHN H. CUMMINGS
Hassard, Bonnington, Rogers & Hube
50 Fremont Street
Suite 3400
San Francisco, California 94105
MR. NICHOLAS S. BALDO
Weller, Wheelus & Green
P.O Box 350
>
Jeaumont, Texas 77704-0350
THE COURT: With regard to Mr. Powers’ motion, |
haven't seen a copy of it yet, but I assume that M)
Williams has.
MR. POWERS: Here is a copy, Your Honor
THE COURT: Okay. What is Mr.—who wants to reply
his motion? Anybody?
MR. WILLIAMS: I guess, well, Judge, it’s a motion for
reconsideration and you know-
THE COURT: The only difference that I see now is
that he gave me a copy of about six cases that I took
home last night. I don’t know if—I assume they are the
same ones that you have got.
MR. POWERS: Yes, ma’am. They are all the ones listed
in the motion.
THE COURT: So have you read or referred or
MR. WILLIAMS: I am not had an opportunity to read
and analyze those cases, so I am kind of
THE COURT: Okay. What it seems to me like is that
we probably have an order that is broader than it has
to be to do what I wanted to do to begin with. The order
does not prevent—regardless of what my view may De
on whether they should or not, it does not prevent Mr
Keene’s client from talking to the news media, it does
not prevent a news article, does not prevent them going
+
and talking to groups or whoever this is they want to
talk to. They can even go door to door if they want
At least that’s not prohibited by the order
MR. WILLIAMS: But not to any of our 138 jurors
THE COURT: Well, yes. They really get in trouble if
they go to them. But it was never particularly my inten
tion to prohibit them from running an advertisement In
the paper which would say we sold asbestos products In
such and such a year and asbestos causes cancer and we
contend this or that with regard to whether it does or
doesn’t cause cancer or whatever.
What my intention was is to prohibit any inflammatory)
advertisement directed at jurors on the subject of at
torneys fees and punitive damages. Like the ad that your
client ran when the jury was deliberating in Judge Wood's
court.
Now, I don’t know if to narrow that order, if it would
be appropriate to say that they are prohibited from ad
vertising regarding asbestos litigation, except for facts in
contention that have been brought out in this trial or have
been brought out in some other trial. I don’t know how
to—you are not going to get it out in trial, I assume, that
legal fees are up, up and away. If you put it that way,
would that cover what we are really wanting to cover?
MR. WILLIAMS: Yes, Your Honor.
THE COURT: Okay. Then draw me up another order
MR. POWERS: Your Honor, I still think that the court
t }
would be exceeding its power in making any order that
App. 6
restrains Keene from speaking, based on the content of
tne speech before the speech is uttered and I think that’s
the thrust of all of the cases that both our Supreme
Court, Texas Supreme Court and the United States Su
preme Court, that common thread runs throughout all of
the first amendment cases that pnor restraints are just
heir face invalid. And there hasn't been any show
ing—I know the court’s read Nebraska Press Association
vs. Stewart because I gave it to you yesterday and |
think that case is very instructive. In that case, if the
lls, the State court in Nebraska prohibited the
newspapers from talking to the prosecutors in a criminal
case. And Nebraska Press Association took it up. And the
Supreme Court paid particular attention to the fact there
had been no showing at the trial court level that other
means of protecting the fairness of the trial, which was
the court’s purpose in that case in entering the gag order
in the first place that no alternative measures had been
examined and found wanting.
And one of the ones that they suggested would take
care of the problem would be for the court to instruct
the jury on whatever issue it was that would be subject
to the news articles and I know that you, Your Honor
when you gave this jury their instructions, told them not
to read anything, not to discuss anything, not to look at
anything in the newspaper. And I think that instruction,
we have to presume the jury’s going to follow. And even
if the court gives that instruction on a periodic basis, like
perhaps every day, if the jury follows the court’s instruc-
tions, then our advertising which we are directing at the
public at large and not at any specific jury, then our ad-
vertising—we can get our purpose served and if the court
can get its purpose served by insulating this jury from
whatever effects the ad may have on their deliberations,
App 7
then I think that’s the proper way to do it under the first
amendment.
If it turns out—if the plaintiffs or the court is able to
establish that that, in fact, is not sufficient to protect the
integrity of the trial, then I think maybe we readdress
the matter on proper motion and examine it. And jus
look at the issue again.
But I think any prior restraint of Keene’s speech 1s in
permissible under the First Amendment, and that’s tl
basis of our motion.
THE COURT: Okay. If they hadn’t already managed
to speak that speech recently and if they were being re
strained for a very long time, I probably would agree with
you. Considering that they have already made the speech
to this audience and that they are only being restrained
for something like two and a half to three weeks, I think
that their interest in being able to inflame the jury pool
is so little that it doesn’t keep us from entering this order.
But I do want a less restrictive order.
MR. WILLIAMS: Sure, Judge. We must always bal
ance—the First Amendment, of course, is important but
also the amendment that gives us the right to a trial by
jury is also of equal importance and found in the same
Constitution. And must always balance things. It always
comes down to balancing. That’s what we are just ask-
ing the court to do. I think the court struck a very good
balance.
MR. POWERS: One of the problems with what you
said, I guess, is that—well, in addition to the fact tha
I disagree with everything you said, but one of the spe-
cific factual problems with what you said is that it’s true
that the court’s order is only for the pendency of this
trial. That is even—if it’s just while this jury is deliber
Ylal. Nat is even-—lLu il S US VM Lilt LiLiS jul 1S ae LIVE!
. : . 9 ;
IMINO — + w« 17h
uring our pre-triai wnen we
; > duet af xy : vail
ating. But if you will
App. 8
first discussed this issue, you yourself recognized that we
are subject to trial settings virtually every week in Har-
ris County. It’s conceivable, and I think likely, if you
enter this order, that other courts may do the same thing
and Keene will be faced with the prospect of never be-
ing able to express its views on the affect of asbestos liti-
gation on our judicial system and our economy so long
as there is a trial setting in Harris County because, for
example, I have been in trial almost every day in an as
bestos case since February 3rd of 1992 and had such an
order been entered on February 3rd, 1992, it’s now March
24th, isn’t it? And Keene would not yet be able to ex
press its views, would be facing probably another week
r so of being unable to express its views and I know
that I am set for trial sometime in the middle of Apmil
in Judge Cochran’s court. So I think there is a very real
danger that this type of order is going to completely pro-
hibit Keene from expressing any views on asbestos litiga
tion.
THE COURT: Are you all set
up at the end of this week. Are you all set next week
}
my two weeks will be
for asbestos cases’
MR. WILLIAMS: I don’t believe so.
MR. POWERS: Not in Harris County as far as | know
THE COURT: So the next setting is Judge Cochran’s
court in the middle of April?
MR. COX: It’s the 27th.
THE COURT: I’m only talking about Harris County.
MR. POWERS: I know. But you are not leaving us
much of a window. There is nothing to keep you from
advising during those two weeks after my case ends and
hers begins—
THE COURT: And if you are so inflammatory, I don’t
know what she is going to do with you. But—
MR. POWERS: Judge, I don’t think we are inflam-
matory, No. 1.
I don’t know what the court’s ruling is. I know what
the court’s intention is.
THE COURT: My ruling is they have got to give me
a less restrictive order.
MR. POWERS: Does that mean this order is still in
effect?
THE COURT: For the moment, yes.
MR. POWERS: So you are denying my motion:
THE COURT: Sort of.
MR. POWERS: I don’t mean to quibble but, Judge, |
think I told you when they first asked for this, we would
take some action and just so the court knows, I intend to.
THE COURT: Well, I am granting your motion but the
order’s still in effect until | get the other one which |
assume will be probably about the end of the day. But
I am granting the motion in part, obviously.
MR. POWERS: I understand.
THE COURT: You guys go to lunch.
(Court in recess).
(END OF EXCERPT.)
STATE OF TEXAS
Ss.
COUNTY OF HARRIS)
I, LaVearn Ivey, Certified Shorthand Reporter, hereby
certify that I attended the proceedings in the above num
bered and styled cause.
I further certify that I reported same in shorthand and
later reduced it in writing.
I further certify that the foregoing 15 pages contain a
true and accurate representation of my shorthand notes
so taken as aforesaid to the best of my knowledge and
belief
WITNESS MY HAND this the 26th day of MARCH, A.D
1992
s/ LAVEARN IVEY
Certified Shorthand Reporter
301 Fannin, Room 512
Houston, Texas 77002
221-5790
Certificate No. 822
Expires 12-31-92
App. 11
NO. 84-69709
IN THE
DISTRICT COURT OF
BENJAMIN C. WILLIAMS
AND NEOMA WILLIAMS
LO? WP Mm
HARRIS COUNTY, TEXAS
g 1I51ST [sic]
AC&S, INC. ET AI 8 JUDICIAL DISTRICT
ORDER
BE IT REMEMBERED that on March 16, 1992 com-
menced the consolidated trial in the 280th District court
of the above-named Plaintiffs against the Keene Corpora-
tion. From this day until the verdict of the jury is re-
ceived by this Court, the Defendant Keene Corporation
is prohibited from advertising regarding punitive damages
and attorney’s fees in reference to asbestos litigation, in
any newspapers which are published in Harris County,
Texas. Attached as Exhibit ‘“‘A”’ to this Order is a copy
of an advertisement which the Defendant Keene Corpora-
tion placed in the Houston Chronicle, a. Harris County
Newspaper, on March 5, 1992. On that same day in Har-
ris County a jury was deliberating in a trial in which the
Defendant Keene Corporation was a party. It is therefore,
ORDERED, ADJUDGED AND DECREED that Keene
Corporation shall not place advertisements regarding puni-
tive damages and attorney’s fees in reference to asbestos
litigation, in any newspaper published in Harris County,
Texas until the verdict of the jury in the above-referenced
cases is received by this Court. The ORDER of MARCH
16, 1992 prohibiting KEENE from advertising is WITH-
DRAWN.
SIGNED the 24th day of March, 1992.
s/ Tony LINDSAY
JUDGE PRESIDING
T 4
im «ne
Fourteenth Court of Appeals
P]
NO. €14-92-00312-CV
EENE CORPORATION, Relato
t?
V
THE HONORABLE TONY LINDSAY, JOHN EDDIE
WILLIAMS, THE ATTORNEYS OF THE LAW
[RM OF UMPHREY, BURROW, WILLIAMS, AND
BAILEY and THE ATTORNEYS OF THE LAW FIRM O!
NESS, MOTLEY, LOADHOLT, RICHARDSON
AND POOLE, Respondents
ORIGINAL PROCEEDING
WRIT OF MANDAMUS
OPINION
On March 16, 1992, respondent, the Honorable Tony
ordered that relator is prohibited from advertis
1? 9)
Lindsay, L
.
ing regarding asbestos litigation in any and all newspapers
that are published in Harris County, Texas.
Relator asks that we order Judge Lindsay to vacate
that order. We decline to do so and overrule the motion
o file petition for writ of mandamus
i
+
ror teave
PER CURIAM
Motion for leave to file Petition for Writ of Mandamus
Overruled March 27, 1992 and Opinion filed April 2, 1992.
Panel consists of Justices Junell, Robertson, and Draughn
(Justice Robertson not participating).
Do not publish - TEx. R. App. P. 90
NO. €14-92-003809-CYV
KEENE CORPORATION, Relator
THE HONORABLE TONY LINDSAY, JOHN EDDII
WILLIAMS, THE ATTORNEYS OF THE LAW
FIRM OF UMPHREY, BURROW, WILLIAMS, AND
SAILEY and THE ATTORNEYS OF THE LAW FIRM O}
NESS, MOTLEY, LOADHOLT, RICHARDSON,
AND POOLE, Respondents
ORIGINAL PROCEEDING
WRIT OF PROHIBITION
OPINION
\
On March 16, 1992, respondent, the Honorable Ton)
Lindsay, ordered that relator is prohibited from advertis
ing regarding asbestos litigation in any and all newspapers
that are published in Harris County, Texas.
Relator, in cause no. C14-92-00312-CV, asks that we
order Judge Lindsay to vacate that order. In this action,
relator asks that we prohibit respondents, John Eddie
row, Williams, and Bailey and the attorneys of the law
firm of Ness, Motley, Loadholt, Richardson, and Poole,
from requesting such an order in future asbestos litiga-
y
Having overruled the motion for leave to file writ of
CONSIS|
THE SUPREME COURT OF TEXAS
P.O. Box 12248
Supreme Court Building
Austin, Texas 7871]
John T. Adams, Clerk
Apri lo, 1992
Mr. James H. Powers Mr. Kenneth C. Baker
Roberts, Markel, Folger Roberts, Markel, Folge
& Powers & Powers
Weslayan Tower, Suite 1010 Weslayan Tower, Suite
24 Greenway Plaza 24 Greenway Plaza
Houston, TX 77046 Houston, TX 77046
Mr. John E. Williams, Jr. Mr. R. Lyn Stevens
Umphrey, Burrow, Williams Weller, Wheelus & Gre
& Bailey 550 Fannin Street
8441 Gulf Freeway, Suite 600 5th Floor, Petroleum Ti
Houston, TX 77017-5001 Reaumont, TX 77704
Ms. Melinda L. Wesner
Umphrey, Burrow, Williams
& Bailey
8441 Gulf Freeway, Suite 600
Houston, TX 77017-5001
RI Case No. D-2264
Style: KEENE CORPORATION
\ THE HONORABLE TONY LINDSAY, JUDGI
y°
1
LO1O
Ee}
we!
Today, the Supreme Court of Texas dismissed as moot
to file petition for writ of man
relator’s motion for leave
damus in the above styled case. (Chief Justice Phillips not
+++ ’
SILUINMN
ANCA E. MORIN
App. 18
IN THE TEXAS SUPREME COURT
KEENE CORPORATION,
Relator
VS
HONORABLE TONY LINDSAY
Respondent
RELATOR’S MOTION FOR REHEARING
Respectfully Submitted,
ROBERTS, MARKEL, FOLGER &
POWERS
By: JAMES H. POWERS
KENNETH C. BAKER
Weslayan Tower, Suite 1010
24 Greenway Plaza
Houston, Texas 77046
(713) 840-1666
ATTORNEYS FOR RELATOR
App. 19
CONTENTS
Sie Ol» ya rr [19]
LIST OF AUTHORITIES .. [20]
EXHIBITS ..... eo mch as 26)
App 20
LIST OF AUTHORITIES
Nebraska Press Ass Stuart, 427 U.S. 5389
UND RELA Sa ee sabeaseceuameron 23, 25]
State Lodge, 608 S.W.2d 910 (Tex. 1980)... [23]
franiar Mus m” Ora? v. €C ty of San Antonio
615 S.W.2d 202 (Tex. 198] [23]
se
App. 2]
IN THE TEXAS SUPREME COURT
KEENE CORPORATION.
Relator
HONORABLE TONY LINDSAY,
Respondent
RELATOR’S MOTION FOR REHEARING
Respectfully Submitted.
ROBERTS, MARKEL. FOLGER &
POWERS
By: JAMES H. POWERS
KENNETH C. BAKER
Weslayan Tower, Suite 1010
24 Greenway Plaza
Houston, Texas 77046
(713) 840-1666
ATTORNEYS FOR RELATOR
TO THE HONORABLE JUSTICES OF SAID COURT:
Keene Corporation files the following Motion for Rehear-
Ing:
I
On April 15, 1992, this Court dismissed as moot Rela-
tor’s Motion for Leave to File Petition for Writ of Man-
damus. This court erred in dismissing Relator’s Motion
for Leave to File Petition for Wnt of Mandamus because
the issues presented therein are capable of repetition, yet
evading review and therefore are not moot
I]
The name and addresses of the attorneys of record for
the parties to the trial court’s order are:
Mr. James H. Powers
Roberts, Markel, Folger & Powers
24 Greenway Plaza
Houston, Texas 77046
Mr. John E. Williams
Umphrey, Burrow, Williams & Bailey
8441 Gulf Freeway, Suite 600
Houston, Texas 77017
Mr. Frank Bean
Bean and Manning
1500 San Felipe Plaza
5847 San Felipe Road
Houston, Texas 77057
The remaining party to the trial court’s order is:
Honorable Tony Lindsay
280th Judicial District Court
Harris County Courthouse
Houston, Texas 77002
App. 23
- Iii.
In Nebraska Press Ass’n v. Stuart, 427 U.S. 539 (1976),
the United States Supreme Court considered a Nebraska
trial court’s order which prohibited publication by the
press of certain information pertaining to a criminal trial.
The order expired by its terms when the jury in the case
was impaneled. Jd. at 546. Before the Supreme Court could
hear the matter, the Defendant had been convicted and
sentenced to death. Jd. Nevertheless, the Court held that
“Jurisdiction is not necessarily defeated simply because
the order attacked has expired, if the underlying dispute
between the parties is one capable of repetition, yet evad-
ing review.” Jd. The Court further held that if it declined
to consider the issues presented on the grounds of moot-
ness, “‘the dispute [would] evade review, or at least con-
sidered plenary review . . . by [the] Court since these
orders are by nature short lived.” (emphasis supplied) Jd
at 547. This principle was recognized by the Texas Su-
preme Court in State v. Lodge, 608 S.W.2d 910, 912 (Tex.
1980) and again in Jranian Muslim Org’n v. City of San
Antonio, 615 S.W.2d 202, 209 (Tex. 1981).
IV.
The same scenario is presented here. While the order
complained of has expired, the issue almost certainly will
repeatedly confront Relator in each asbestos-related per-
sonal injury trial setting in Harris County which involves
Plaintiffs’ counsel below, John Williams. Attached as Ex-
hibit “‘A”’ is a currént listing of Relator’s asbestos-related
trial settings in Harris County involving Mr. Williams. In-
deed, Mr. Williams has expressed his intention to move
for an order similar to that entered by Judge Lindsay in
other cases involving Keene as a Defendant. Keene believes
App. 24
that other judges, without appropriate guidance from this
Court, will continue to accede to Plaintiff counsels’ de
mands for such orders.
V.
At least one judge, Judge Sharolyn Wood of the 127th
Judicial District Court of Harris County, has expressed
an intention to enter an order similar to Judge Lindsay’s
in future cases involving Keene. Indeed, Judge Wood has
entered two other orders touching upon this very sensitive
issue. On April 8, 1992, Judge Wood entered an order re
quiring Keene to produce all documents related to its
advertisement placed in the Houston Chronicle on March
6, 1992. See Exhibit “B’’. It is the placement of this ad
vertisement which prompted Judge Lindsay to enter the
order made the subject of Relator’s petition for Writ of
Mandamus before this Court. Following filing of a Mo-
tion for Leave to File Petition for Writ of Mandamus and
Petition for Writ of Mandamus in the Fourteenth Court
of Appeals in Houston, Judge Wood withdrew her order
and entered a new order dated April 22, 1992. This new
order requires that Keene, among other things, produce
documents pertaining to its March 6, 1992 advertisement.
See Exhibit “C’’. Clearly, these orders do not amount to
a prior restraint, nor do they restrict Keene’s exercise
of free speech. However, they do constitute an impermissi-
ble inquiry into the motives and mental processes behind
Keene’s exercise of free speech and demonstrates [sic] the
certainty for repetition of this issue. Absent intervention
by this Court, Keene fully expects to be required to initiate
mandamus proceedings in order to protect itself from fur-
ther Court interference with its First Amendment Rights.
VI.
Orders restricting Keene’s right to publish advertise-
ments pertaining to asbestos-related litigation will be re-
peated. Further, due to the short-term nature of such
orders, an individual order infringing upon Keene’s First
Amendment Rights will probably expire before review by
this Court is possible. Therefore, Relator respectfully
requests that according to the principles set forth in
Nebraska Press Ass’n v. Stuart, 427 U.S. 546 (1976), that
this Court grant its Motion for Leave to File Petition for
Writ of Mandamus and consider the issues presented in
its Petition for Writ of Mandamus.
Respectfully Submitted,
ROBERTS, MARKEL, FOLGER &
POWERS
JAMES H. POWERS
Texas State Bar No. 16217400
KENNETH C. BAKER
Texas State Bar No. 01584480
Weslayan Tower, Suite 1010
24 Greenway Plaza
Houston, Texas 77046
(713) 840-1666
ATTORNEYS FOR RELATOR
CERTIFICATE OF SERVICE
I certify that a copy of the foregoing instrument has
been forwarded to counsel of record by certified mail, re-
turn receipt requested, Lawyer’s Filing Service and/or
regular mail on ______ day of ____s,:-1992.
App. 26
EXHIBITS
Exhibit A— Current listing of Keene’s trial settings in
Harris County involving Mr. Williams
Exhibit B— Order dated April 8, 1992
Exhibit C— Order dated April 22, 1992
4/29/92
PLAINTIFF
GADUS, JOSEPH
HUHS, OSCAR
HUMPHREY, LINDSEY
KING, ARTHUR
MCCAFFETY, GEORGE
MCVAY, WILLIAM
HRAZ, JULIUS
ROUNTREE, EDGAR
SHERRILL, HORACE
TULLAR, GARLAND
VACHULE, CHARLES
CARR, CURLEY
COX, BEN
FOSTER, RICHARD
FROLICK, MILTON
GOODSON, DEWEY
ICKES, SAMUEL
KRAUS, WILMER
MCCALLUM, MAURICE
MICHALSKY, DANIEL
SABATIER, CHARLES
SCHULTZE, EUGENE
SIEMSEN, HUBERT
SOWELL, RAYMOND
STEPHENS, GENE
THIBODEAUX, HENRY
TOMPKINS, JACK
WISNOSKI, JOHN
BRYANT, JOHN P. JR
BUCK, RICHARD A., JR
GARCIA, MANUEL P
GARZA, RAMON
JACKSON, MACK C.
JIMENEZ, SYLVESTER
LEE, EARNEST JR. A
LEOS, JOE
MAY, EDWIN C.
MIRE, LARRY J.
OGLE, JAMES W.
> )
App. a
(
EXHIBIT A
COUNTY
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
DOCKET
NO
87-61045
87-31603
85-44380
85-60297
87-3492
87-51955
86-04693
86-15983
87-19969
85-68820
87-13298
87-42872
85-34559
89-53870
$5-65539
90-52152
88-03524
85-44884
90-24254
90-04960
85-50165
89-09839
89-43356
89-34694
88-12821
90-52136
86-15977
89-26762
86-04196
86-16053
86-16145
86-16026
87-0978 1
85-39421
87-3604 1
85-34558
85-44375
86-04695
86-28018
TRIAL
DATE
12/09/91
12/09/9]
12/09/9)
12/09/91
12/09/91
12/09/91
12/09/91
12/09/91
12/09/9]
12/09/91
12/09/91
1/13/92
1/13/92
1/13/92
1/13/92
1/13/92
1/13/92
1/13/92
1/13/92
1/13/92
1/13/92
1/13/92
1/13/92
1/13/92
1/13/92
1/13/92
1/13/92
1/13/92
1/20/92
1/20/92
1/20/92
1/20/92
1/20/92
1/20/92
1/20/92
1/20/92
1/20/92
1/20/92
1/20/92
App
4/29/92
PLAINTIFF
ORSAK, ERNEST
SALINAS, LUCIANO
SINGLETON, CHARLES |
SKILLMAN, GERALD
SPAMPINATO, SAM
TOWNSEND, CARL A
WHEELER, CHARLES E
GARCIA, BENNIE
BOLTON, ROBERT
WILKIE, JAMES B
ANDERSON, WILLIE M
BRAMEL, PAUL D
CLARY, JOE W.
DELEON, JUAN A
DRAYTON, WILLIE
FLETCHER, JEFF SR
FOSTER, TALMAGE JR
FOWLER, RAY D.
HUSTON, ROBERT M.
JOHNSON, MCELVIN
JOHNSON, RUSSELL
MENDOZA, PAUL S
MONTOYA, POLICARPIO M
NICHOLS, DAVID E
NORWOOD, ROBERT A
SAMUEL, JOHNNIE
SIMS, LEONARD
VINCENT, CLARENCE
ALFRED, ANDRIA
ALLEE, WILLIAM F
ARYES, RAY
BABIN, EVAN R.
BATTARBEE, FLOYD A
BLEVINS, JIMMY R
BOHANNON, PAUL D.
BRYANT, WILLIAM
BURKHALTER, GRADY R
BUTSCHEK, GILBERT P
71°)
EXHIBIT
A
COUNTY
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
DOCKET
NO AT
85-44379
86- 16079
86-04188
85-6882 1
87-34980
86-60035
86-0573 1
89-26973
89-36514
89-35726
90-19431
89-24849
89-54145
88-57430
90-52139
91-25396
89-55150
88-60024
91-04683
89-18671
89-43369
88-57050
90-30277
91-12212
89-26793
91-19336
88-60082
90-25239
89-53998
90-63362
89-23671
88-11401
90-52156
85-50166
89-26960
85-18515
90-27876
90-17737
1/20/92
1/20/92
1/20/92
1/20/92
1/20/92
1/20/92
]
2
20/92
‘
¢
~
\~
—
~
se
~
2/26/92
3/02/92
3/02/92
3/02/92
3/02/92
3/02/92
3/02/92
3/02/92
3/02/92
3/02/92
3/02/92
3/02/92
3/02/92
3/02/92
3/02/92
3/02/92
3/02/92
3/02/92
3/02/92
3/16/92
3/16/92
3/16/92
3/16/92
3/16/92
3/16/92
3/16/92
3/16/92
3/16/92
3/16/92
4/29/92
PLAINTIFF
CARTER, ALBERT E
CLAY, CLEVELAND
CREED, JOHN R.
CROW, LYNN L.
DAVIS, GRANT SR.
DAVIS, URBAN
DUFFEY, ARCHIE W.
FEIGLER, WILL E.
GREGORY, CHARLIE R.
GRUBBS, JAMES F
GUICHET, JULES J. JR.
HELLER, LOUIS W.
HOLCOMB, JUNE L.
KENNEDY, GEORGE T.
KNOWLES, JOE M.
LEJSAL, JOHN
MATHISEN, EARNEST J
MICHAELS, LEE R.
MORTON, GRADY D.
MOUTON, JAMES J.
PERRY, EMMETT N.
PLATT, MARION E.
RADICKE, HAROLD E.
RANEY, IKA JR.
REEVES, DAN
SCHISSER, ANTON F.
SCOTT, ROBERT D.
STEVENS, JOHN B.
STONE, DON D.
TERRY, MERVYN D.
TUCKER, GEORGE
WHEELER, WILLIAM L.
| nm
App. 29
WILLIAMS, BENJAMIN C.
WILLIAMS, JACK B.(JM ONLY)
WILLIAMS, WILLARD N.
WILLIS, HENRY C.
ALLOY, ADOLPH A.
BUTLER, JAMES F., JR.
EXHIBIT A
COUNTY
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
DOCKET
NO
87-61047
89-54365
85-1851]
86-10543
85-18514
85-18227
91-11027
85-39417
85-18233
85-34562
90-52154
86-50434
91-25376
9(0)-04995
85-68819
87-09784
91-23594
87-34983
85-50169
84-69709
87-57975
87-09790
90-63375
91-02736
90-63374
85-18236
85-18232
85-46937
89-19568
86-60034
87-34142
85-3453 1
85-50168
85-65520
85-18234
88-00037
89-011265
89-23668
TRIAL
DATE
3/16/92
3/16/92
3/16/92
3/16/92
3/16/92
3/16/92
16/92
3/16/92
3/16/92
3/16/92
3/16/92
3/16/92
3/16/92
3/16/92
3/16/92
3/16/92
3/16/92
3/16/92
3/16/92
3/16/92
3/16/92
3/16/92
3/16/92
3/16/92
3/16/92
3/16/92
3/16/92
3/16/92
3/16/92
3/16/92
3/16/92
3/16/92
3/16/92
3/16/92
3/16/92
3/16/92
4/06/92
4/06/92
oO
2
Oo
y J
>
1/29/92
INTI}
il
CHARLES, EASTON |
COLVIN, GEORGE R
COOPER, MARVIN
DILL, LEON M
REICHERT, WILLIE A
SALINAS, FELIPE
SHOCKEY, JOHN |
ROBERT
SONNIER, JUNEIR
TrHIBODEAUX, LILIRS
VERA, ROLANDO
WALLACE, CLINTEl1
WALLS, A.B.
WILLIAMS, WARREN K
ANDERSON, JAMES
BATES, AUBREY H
BLAIR, JAMES E.
BOOKER, JOSEPH J
CONTRERAS, RAFAE]
EVERETT, ARTHUR F
FOSTER, JAMES
FULCHER, WILLIAMS
HOWARD, JESSE M
MERRITT, MAXWELL K
POPE, MANDLE
RAMEY, LAVADA E
REAGAN, GUY D
ROBERTSON, GARNER W
SANCHEZ, JUAN
STAVELY, THOMAS
WARREN, ELROY
ALLEE, WILLIAM
ALLEE, WILLIAM F
BABINEAUX, AVERY J
BAIN, EARL G.
BOZARTH, AUBREY E
BROWNSON, JAMES SR
EVANS, SHELTON
GALLION, GATHER
SILLS
EXHIBIT
A
IUNTY
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
DOCKET
NO
RR. 16200
9]-02280
90-52169
8656-00420 1
R8-56479
89-32273
90-17736
89-44769
R5-06R8827
90-63373
90-53566
88-30495
87-058193
90-63414
87-51960
88-01922
88-01916
88-14375
88-01427
88-53458
88- 16004
RR-OY4AO LS
88-1799]
R&S FABRS
88-31549
88- 19608
88-63695
88-11361
88-35892
87-61232
88-10740
90-63362
90-63362
90-6228 1]
91-17165
89-34684
88-57425
90-54821
R8-27998
TRIA
A AVASCLA
DATE
4/06/92
4/06/92
4/06/92
4/06/92
4/06/92
4/06/92
4 UH Q?
4/06/92
4/06/92?
4/06/92
4/06/92
4/06/92
4/06/92
4/06/92
4/20/92
4/20/92
4/20/92
4/20/92
4/20/92
4/20/92
4/20/92
4/20/92
4/20/92
4/20/92
4/20/92
4/20/92
4/20/92
4/20/92
4/20/92
4/20/92
4/20/92
4/27/92
4/27/92
4/27/92
or Q9°
or >)
Z2i/9
o”r 2)
21/9
or Q°
»”~ Q°
App.
1/29/99
GILBERT, REX
GOFF, LIMON
HEARRON, JOHN H
HICKMAN, LINARD V
HICKS, LEO III
HIGGINS, RICHARD
LEBLOW, JOHN W.
MCLAUGHLIN, PAT SR
MECHELL, LESTER §S
REDDING, ROSCOE
SLOVACEK, CALVIN F
STUBBLEFIELD, ERNEST
THOMAS, NEBRASKA
AYRES, RAY
BABIN, EVAN R.
BETTANSKI, FRANK
COLLIER, BOBBY J
DARNELL, JAMES
DE LA VEGA, JESSE
GILBREATH, BILLY J
GLENN, JOHNNIE
GRAU, NOAN
GRIGGS, WILLIE
HINEY ill, WILLIAM
HUBBARD, RUSH R
HUTTO, GARY D.
JOHNSON, RAYMOND L
KOEPPEN, WILLIE G
MANNING, GRADY T
MEGISON, JOHN T.
NANCE, WILLIAM
NELSON, ROBERT
NILES, GERALD L.
PINSON, ARTHUR E
PLEASENT, SR., EDWARD
POWELL, EDDIE
ROGERS, MONZEL
ROHDE, ELGIN
SAWEY, CHARLES
3]
EXHIBIT A
COUNTY
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
DOCKET
NO
88-60025
88-14376
85-50179
90-66576
88-60405
88-32799
88-11346
88-35895
88-54439
88-55672
90-52135
88-12812
88-60195
89-2367 1
88-1140]
88-49097
88-20512
89-2193]
89-34719
88-20513
89-55118
89-40346
87-51956
89-14254
89-23700
89-43351
87-19917
89-11269
87-46228
8'-19922
88-37051
88-34532
88-54435
87-34986
89-48857
89-52238
88-52001
89-18663
88-30497
TRIAI
DATE
4/27/92
4/27/92
4/27/92
5/04/92
5/04/92
5/04/92
5/04/92
5/04/92
5/04/92
5/04/92
0/04/92
5/04/92
5/04/92
5/04/92
0/04/92
5/04/92
5/04/92
5/04/92
5/04/92
5/04/92
5/04/92
5/04/92
5/04/92
5/04/92
5/04/92
5/04/92
5/04/92
5/04/92
5/04/92
4/29/92
PLAINTIFF
of
SMITH, AUBREY L.,
TURNER, CLARENCE
WILSON, MILTON Y
ALLMAN, NORMA
ALLRED, JOSEPH
AUZENNE, ALVIN
BAILEY, WILLIAM
BRAINER, GLOSTER
BRAUD, CHARLES
BROWN, ALFRED
JR
CAMPBELL, JOE (JM ONLY
COOPER, JIMMY W.
DAVIS, EARL
DORSEY, CLARENCE
DOZIER, RAYMOND
DUNSON, KARL
ELLIS, HOBART
FITZGERALD, GEORGE
FREEMAN, HENRY
GAUTREAUX, EDWARD
GOMEZ, OCTAVINO
GONSOULIN, RAYMOND
GOOD, CARL
GRACE, GEORGE
GRAY, MONROE
HALES, MURL
HARLAN, INEZ
HECKLER, ALBERT
HERMAN, JOHN
HIBBARD, MASTIN
KAMINSKI, JOHN
KENNIE, NATHANIEL
KIBBE, UDEEN
KIRK, GEORGE
KNIGHT, BILLY
MARESH, EDWIN
MERRITT, ROBERT
MORGAN, DARREL
—
COUNTY
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
_-<ceeeseespaattaaat CL LL LA RLLLLLLLLLLLLLLL
DOCKE7
NO
87-50223
88-158991
90-65141
89-26786
88-17578
89-47749
88-36452
87-05212
88-03523
89-18673
85-65535
85-68824
89-18596
88-12702
89-26977
90-52140
88-11370
89-19262
89-26763
87-34974
88-13102
88-00376
88-09783
87-09780
89-22188
90-42927
89-21950
87-13361
88-17992
89-09161
89-28558
90-33911
88-01429
88-11345
85-54567
88-09397
89-54201
5/04/92
5/04/92
5/04/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
4/29/92
PLAINTIFF
MORRATTO, DOROTHY
MORRIS, JAMES
PAGE, J. W.
POTTIER, JAMES
REED, JOHN
REYNOLDS, CHARLIE
RICHARDSON, B.L.
RICHARDSON, LESTER
RIPORTELLA, PATSY
ROWLETT, JOE
SANCHEZ, COSME
SANTOS, JESSE JR.
SEFCIK, ALVIN
SETTLE, MARVIN
THOMAS, CHARLES JR.
THOMPSON, CHARLES
TYLER, LLOYD
WESTBROOK, WILLIAM
WHITFIELD, CLIFFORD
App. 33
WHITLOW, ERNEST (JM ONLY)
CAMPBELL, WILEY D.
COOPER, EDWARD S.
DETTMER, MARVIN E.
DODSON, ARTHUR L.
MANCHACA, JOE
MORRIS, WILLIS
DUDLEY, ROBERT B.
HILLMAN, WILLARD
MILLS, EDWARD S.
MOORE, EDWIN B.
WALLACE, THURMAN J
WHITAKER, JULIUS C.
WILLIAMS, ADOLPHUS
BURRELL, JOHNIE L.
PRICE, ALTON
STRINGFIELD, AVANELL
TIBBETS, CHARLIE M.
WILDER, LEONARD A.
EXHIBIT A
COUNTY
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
HARRIS
DOCKET
NO
90-23614
85- 18508
90-63364
88-60048
89-43368
87-61177
87-61226
89-26670
88-48304
89-54222
86- 16065
86-60030
90-2524
88-48302
90-54816
89-23684
90-53561
89-24345
89-09842
85-23739
90-63368
91-02284
90-53556
91-01837
90-53543
90-52144
90-53557
90-52130
91-01839
90-63366
90-44231
90-42832
90-43707
91-04656
91-06667
91-06669
91-03399
91-03407
TRIAL
DATI
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
7/06/92
8/03/92
8/03/92
8/03/92
8/03/92
8/03/92
8/03/92
8/31/92
8/31/92
8/31/92
8/31/92
8/31/92
8/31/92
8/31/92
9/14/92
9/28/92
9/28/92
9/28/92
9/28/92
App. 34
No. &5-44379
(Consolidated for trial)
(Cause
ERNEST J. ORSAK, ET Al IN THE
DISTRICT COURT OF
\
HARRIS COUNTY, TEXAS
THE KEENE
CORPORATION « 127TH JUDICIAL DISTRICT
YRDER
On March 6,
verdict in this consolidated tnal
the representations concerning the placement by
KEENE CORPORATION of the
5, 1992, it is therefore
1992, the Court conducted a hearing con
Based on
THE
advertisement of March
cerning tne
ORDERED, ADJUDGED AND DECREED that Keene
Corporation shall produce for the Court’s inspection all
documents, correspondence, in-house memos, drafts and
correspondence concerning KEENE’S advertising campaign
n any newspaper or other print media throughout the
nited States, particularly including any documentation
going to KEENE’S intent in placing the ad which ap
peared in The Houston Chronicle on March 5, 1992
ws bets
}
A
T
\
a
documentation showing whether or not the ad was part
of a nationwide campaign and whether or not it was
‘mere coincidence” that the ad appeared during the jury
deliberation in this consolidated trial, all as represented
by attorney for KEENE.
Counsel for The KEENE
dered, in open court.
CORPORATION was so or-
On March 30, 1992, at a hearing on Plaintiff's request
for discovery on the advertisement, all counsel were pres
copy of which is attached as Exhibit “‘A’’, and any other
———— en
App. 35
ent. Plaintiff's discovery is ORDERED abated at this time
due to the Court’s prior order to KEENE. The date of
April 20, 1992 is set by the Court as the date for the
production of the ordered documentation by THE KEENE
CORPORATION.
Signed April 8, 1992
s/ SHAROLYN Woop
Hon. Sharolyn Wood
Judge Presiding
App. 36
Legal fees
Up, up and away
GLENN W. BAILEY, chairman and president of Keene
Corp., isn’t the most objective observer of the asbestos
lawsuits his company has endured.
But since his company will be shelling out $500 million
in legal fees, Bailey does offer a unique insight into Amer.
ica’s court system.
In case you missed Bailey’s letter to the editor, here
is a synopsis: In 1968, Keene bought a small maker of
acoustical ceilings, ventilation systems and insulation prod-
ucts_for $8 million. Some of that insulation included as
bestos. The company ceased production in 1972
Keene’s losses didn’t end there. They had just begun
Asbestos led to lawsuits and a whopping $500 million in
court awards and legal fees. So far, 12 co-defendants have
been bankrupted.
Bailey says he doesn’t mind paying injured parties, but
the punitive damages and legal fees are absurd. Less than
half the $500 million will actually go to anyone injured
by asbestos. The rest—60 percent—goes to lawyers.
‘‘A criminal can be punished only once, while a manu-
facturer might be punished thousands of times for a single
act—even though as in our case, we did nothing that was
illegal,” Bailey wrote.
That’s not justice. It’s abuse.
Not only does injustice harm the nation’s soul, but its
economy as well. Vice President Dan Quayle’s Council on
Competitiveness found that litigation is now a $300 billion
drag on the economy.
App. 37
That’s what happens when you have 70 percent of the
lawyers in the world.
The above editorial appeared on December 31, 1991
in West Virginia’s Charleston Daily Mail
and is reprinted with its permission
‘We are encouraged
that the facts are getting through
concerning a serious problem
that affects all Americans.”’
For further information write to
Keene Corporation
200 Park Avenue, New York, NY 10166
Exhibit “A”’
App. 38
SHAROLYN WOOD
Judge, 127th District Court
Harris County Courthouse
Houston, Texas 77002
April 22, 1992
TO: POWERS, JAMES H.
24 GRNWY PLZ/1010
HOUSTON, TX 77046
COUNSEL:
THE COURT HAS MADE THE FOLLOWING DOCKET
SHEET ENTRY:
APRIL 20.1992: ORDER RE 21 DAY PRODUCTION SET
ASIDE. DEFENDANT KEENE TO ADVISE THE COURT IN
WRITING BY WHAT DAY DEFENDANT KEENE WILL
PRODUCE THE DOCUMENTS AS REPRESENTED TO THE
COURT ON MARCH 6, 1992. ORDER AND RULING RE
PLAINTIFFS DISCOVERY SET ASIDE AND RE DEFEN.
DANTS MOTION FOR PROTECTION SET ASIDE. THE
COURT INTENDS TO SET ASIDE THOSE MATTERS CON
SIDERED AT THE 3-30-92 HEARING ONLY. DEFENDANT
KEENE MAY SET ITS DISCOVERY OBJECTIONS FOR
HEARING IF CONTINUES TO URGE SUCH OBJECTIONS.
DEFENDANT KEENE WILL ADVISE THE COURT OF THE
NAME OF THE ATTORNEY THAT APPEARED FOR MR.
POWERS ON 3-30-92. IF THE COURT RECEIVES NO
RESPONSE WITHIN 5 DAYS, THE COURT WILL SET A
DATE FOR THE DOCUMENTS TO BE PRODUCED THAT
SUBSTANTIATE DEFENDANT KEENE’S REPRESENTA
TIONS TO THE COURT. ORDER SIGNED.
SHAROLYN WOOD,
JUDGE, 127TH DISTRICT COURT
CASE — 8544379 FILED — 080585 COURT — 127
TYPE — DAMAGES (ASBESTOSIS)
ORSAK, ERNEST J VS ACANDS INC
EXHIBIT C
App. ;
THE SUPREME COURT OF TEXAS
P.O. Box 12248
Supreme Court Building
Austin, Texas 78711
John T. Adams, Clerk
May 20, 1992
Mr. James H. Powers Mr. Kenneth C. Baker
Roberts, Markel, Folger Roberts, Markel, Folger
& Powers & Powers
Weslayan Tower, Suite 1010 Weslayan Tower, Suite 1010
24 Greenway Plaza 24 Greenway Plaza
Houston, TX 77046 Houston, TX 77046
Mr. John E. Williams, Jr. Mr. R. Lyn Stevens
Umphrey, Burrow, Williams Weller, Wheelus & Green
& Bailey 500 Fannin Street
8441 Gulf Freeway, Suite 600 5th Floor, Petroleum Tower
Houston, TX 77017-5001 3eaumont, TX 77704
Ms. Melinda L. Wesner
Umphrey, Burrow, Williams
& Bailey
8441 Gulf Freeway, Suite 600
Houston, TX 77017-5001
RE: Case No. D-2264
Style: KEENE CORPORATION
Vv. THE HONORABLE TONY LINDSAY. JUDGE
App 1()
Dear Counsel:
Today, the Supreme Court of Texas overruled relator’s
motion for rehearing of motion for leave to file petition
for writ of mandamus in the above referenced case
Sincerely,
John T. Adams, Clerk
by /s/ COURTLAND CROCKER
Courtland Crocker, Deputy
ec: Mr. Joe Cox
Honorable Tony Lindsay
App. 41
REST IN PEACE
16 COMPANIES DRIVEN TO BANKRUPTCY
TENS OF THOUSANDS OF JOBS LOST
OUR ECONOMY BATTERED
ALL CAUSED BY THE ASBESTOS LAWSUIT LOTTERY.
A runaway litigation nightmare that has clogged our
courts with many frivolous claims by people who are not
injured. As a result, deserving claimants and citizens with
other cases are delayed or deprived of their day in court.
Asbestos is 90th on the Environmental Protection Agen-
cy’s list of items that should concern Americans. But as-
bestos litigation is the number one cause of court-clogging,
the number one cause of bankruptcies of otherwise healthy
and productive companies and number one in generating
lawyers’ fees.
$9 billion dollars has been spent in asbestos litigation
but less than 35% has reached the plaintiffs, $6 billion
dollars has gone to lawyers!
From 1980 to 1990, the U.S. population increased by
23 million while the number of factory jobs decreased by
15%. American prices are being driven up, American jobs
are being lost, and American businesses are being forced
from the market place and into bankruptcy. American
competitiveness has slipped to fifth place. Japan is now
number one and Germany is number two!
It must give our foreign competition a lot of comfort
to watch the American Justice System cripple American
companies as they build theirs!
App. 42
Congress, the Judiciary and the White House have rec-
ognized the need to stop the asbestos lawsuit lottery. Now
they must act to solve this serious national problem before
even more jobs are iost.
Will your job and your company be next?
LEGISLATION IS NEEDED BEFORE IT’S TOO LATE.
Write to your elected congressional representatives now
and urge them to pass an administrative claims
process that would resolve the problem that is
strangling our courts and our economy.
For more Information write to:
KEENE CORPORATION
200 Park Avenue, New York, NY 10166
App. 43
Legal fees
Up, up and away
GLENN W. BAILEY, chairman and president of Keene
Corp., isn’t the most objective observer of the asbestos
lawsuits his company has endured.
But since his company will be shelling out $500 million
in legal fees, Bailey does offer a unique insight into Amer-
ica’s court system.
In case you missed Bailey’s letter to the editor, here
is a synopsis: In 1968, Keene bought a small maker of
acoustical ceilings, ventilation systems and insulation prod-
ucts for $8 million. Some of that insulation included as-
bestos. The company ceased production in 1972.
Keene’s losses didn’t end there. They had just begun.
Asbestos led to lawsuits and a whopping $500 million in
court awards and legal fees. So far, 12 co-defendants have
been bankrupted.
Bailey says he doesn’t mind paying injured parties, but
the punitive damages and legal fees are absurd. Less than
half the $500 million will actually go to anyone injured
by asbestos. The rest—60 percent—goes to lawyers.
‘‘A criminal can be punished only once, while a manu-
facturer might be punished thousands of times for a single
act—even though as in our case, we did nothing that was
illegal,’ Bailey wrote.
That’s not justice. It’s abuse.
App. 44
Not only does injustice harm the nation’s soul, but its
economy as well. Vice President Dan Quayle’s Council on
Competitiveness found that litigation is now a $300 billion
drag on the econom)
That’s what happens when you have 70 percent of the
lawyers in the world.
The above editorial appeared on December 31, 1991
in West Virginia’s Charleston Daily Mail
and is reprinted urth its permission
‘We are encouraged
that the facts are getting throug!
concerning a serious problem
that affects all Americans
For further information write to
Keene Corporation
200 Park Avenue, New York, NY 10166
App. 45
All Three Branches of GOVERNMENT ARE WORKING TO
SOLVE A MAJOR PROBLEM
THE LEGISLATIVE, JUDICIAL AND EXECUTIVE BRANCHES
of our Government are trying to correct a litigation prob-
lem that is causing bankruptcies, destroying jobs and
clogging our courts. The lawsuit logjam is depriving all
of us of our right to be heard promptly. Justice delayed
is Justice denied. Especially for meritorious claimants.
Last year the Ad Hoc Committee on Asbestos Litiga-
tion appointed by Chief Justice Rehnquist reported that
. ‘what has been a frustrating problem is becoming
a disaster of major proportions to both the victims and
producers of asbestos products, which the courts are
ill-equipped to meet effectively.’
In March 1991, the Ad Hoc Committee recommended
that Congress enact legislation to solve the Nation’s
asbestos litigation mess.
Both the House and Senate responded. Congressman
William Hughes of New Jersey, Chairman of the House
Judiciary Subcommittee on Intellectual Property and Judi-
cial Administration, began hearings on October 24th. On
February 18th of this year Senator Howell Heflin, Chair-
man of the Judicial Subcommittee on Courts and Ad-
ministrative Practice, also began hearings on this critical
situation.
The Executive Branch recognized the problem as shown
when Vice President Quayle told the American Bar
Association last August: ‘“‘Overuse and abuse of the civil
justice system has become a self-inflicted competitive
disadvantage.” In October, President Bush at a White
House ceremony noted that rules are being set because
the American legal system had “spun out of control.”
App. 46
The Council on Competitiveness has estimated that litiga-
tion is now a $300-billion annual drag on the economy. Be-
tween 1978 and 1991 sixteen major American-owned defen-
dant companies in asbestos litigation reorganized or liqui-
dated under U.S. bankruptcy laws. Thousands of Americans
lost their jobs.
In mid-1990 Keene Corporation had 76,000 personal injury
claims pending against it and, although more that 17,000
cases have been settled since then, there are now 87,000
pending! Many of these plaintiffs, who were recruited by trial
lawyers, have no health impairment but seek damages
because they claim to have been exposed to asbestos
The cost to date of the lawyer-inspired asbestos litigation
is estimated to be $9-billion, with approximately $6-billion
going to the lawyers! That equates to enough capital to
create over 200,000 jobs, or that sum could have been used
to build over 90,000 housing units! Civil justice abuse works
against the best interests of society.
If nothing is done to fix the civil justice system the final
cost could be astronomical. Pending asbestos cases could cost
another $20-billion while the ultimate cost could be $50
to $100-billion.
To prevent the unnecessary bankrupting of companies
which have been out of the asbestos business for ngany
years, an interim law is needed until a final bill can be
developed that would cover three things:
1. Eliminate punitive damages, the acknowledged
abuse in asbestos litigation.
2. Establish a pleural registry for unimpaired plain-
tiffs who have health concerns so that they could
be compensated should they later have health im-
pairment.
3. Suspend consolidations of diverse plaintiffs until the
fairness issue is resolved.
App. 47
Se ae ee Se
<> «< ~
LEGISLATION IS NEEDED BEFORE IT IS TOO LATE.
A start has been made by all three branches of govern-
ment. Let’s keep it rolling.
KEENE CORPORATION
200 Park Avenue, New York, NY 10166
App. 48
LITIGATION
IS CLOGGING OUR COURTS,
BANKRUPTING COMPANIES,
DESTOYING JOBS
From 1980 to 1990, the U.S. population increased by 23
million while the number of factory jobs decreased by 15
percent. American prices are being driven up, American
jobs are being lost, and American businesses are being
forced from the marketplace and into bankruptcy
WE NEED
LEGISLATION
Now
To SOLVE
THIS CRISIS
WHY? One major reason, as Vice President Quayle stated
in August before the American Bar Association: “Overuse
and abuse of the civil justice system has become a self-in-
flicted competitive disadvantage.”
Based on my own experience as chairman of the board
of Keene Corporation, I heartily agree.
Currently, I am spending 99 percent of my time on litiga-
tion and 1 percent toward growing Keene’s manufactur-
ing subsidiary. If I could spend most of my time develop-
ing that operation, by the end of the decade Keene could
have sales of $500 million per year and create 4,000 new
jobs.
App. 49
Some lawyers have said that they are concerned with the
future of Keene merely insofar as their clients are con-
cerned, implying that 4,000 jobs are not of concern to
them. How can we compete in world markets having to
spend management time fighting lawyers with attitudes
like this, especially in view of America’s increasingly pain-
ful unemployment situation?
Let me explain how Keene got into this litigation. In 1968,
Keene bought, for $8 million, a small manufacturer of in-
sulation products. Some of these products were required,
by customers’ specifications, to contain asbestos. Keene
stopped making these products in 1972 and closed the
company down in 1976, losing Keene’s entire investment.
End of tale? Not at all! Laws developed in the late 1970s,
strengthened in the ’80s, and applied in the ’90s to the
events of the ’40s, 50s and ’60s have caused Keene and
its insurers to spend $350 million on asbestos litigation.
Keene is willing to spend another $150 million in the
future, approximately 80 percent of its net worth. That’s
a half-billion dollars lost for the mistake of acquiring a
company for $8 million . . . and lawyers consume over
60 percent of those dollars!
A CRISIS EXISTS. Defendant firms are being bankrupted,
thereby creating two severe problems: 1) more American
workers will lose their jobs; 2) there will not be money
available for future plaintiffs with meritorious claims. One-
half of our co-defendant firms have been bankrupted, and
a contributing factor has been the growing punitive dam-
age awards. A criminal is punishable only once, whereas
a manufacturer might be punished thousands of times—
even though, as in our case, nothing was done that was
or is illegal!
Punitive damages demanded by lawyers and awarded
against Keene in five jurisdictions this year have amounted
App. 50
to $26 million. All are under appeal, as none of them is
justifiable. Elimination of punitive damages would release
$26 million, yielding $26,000 each for 1,000 widows in the
future.
So far in 1991, Keene has spent $10 million to defend itself
in frivolous suits—suits which Keene won. If Vice Presi-
dent Quayle’s proposed rule to have the loser pay the
other party’s legal expenses were instituted, such suits
would be dramatically reduced and unclog the courts.
Many Members of Congress are aware of the severity of
the litigation problems, and, in fact, eight Members par-
ticipated in a hearing conducted by Congressman William
Hughes of New Jersey. This hearing was on October 24th,
the day following the White House ceremony at which
President Bush noted that rules are being set because the
American legal system had “spun out of control.”
My concern is not just about Keene, but about the serious
economic decline of America. I am urging that you write
to your Members of Congress and urge them to examine
the facts that have been established and enact legislation
to solve the absestos litigation problem that is overwhelm-
ing our judicial system and hurting our economy.
s/GLENN W. BAILEY
Glenn W. Bailey
Chairman and President
KEENE CORPORATION
200 Park Avenue, New York, NY 10166
212/557-1900
ee eS
App. 5
‘‘Overuse and abuse of the civil justice system has
become a self-inflicted competitive disadvantage.’’
VICE PRESIDENT QUAYLE, addressing
the American Bar Association.
KEENE CORPORATION
200 Park Avenue, New York, NY 10166
212-557-1900 FAX 212-972-3959
FAX 212-697-5289
August 22, 1991
Mr. John J. Curtin, Jr., President
American Bar Association
750 North Lake Shore Drive
Chicago, IL 60611
Dear Mr. Curtin.
In rebutting Vice President Quayle’s remarks to your
Association, you said: “In our view, the civil justice
system and the lawyers who work in it are not the source
of America’s failure to compete effectively with foreign
countries.” Your statement stimulated me to write this
letter about my company’s experience during the week
of the ABA meeting.
On Monday, August 12, Fred Baron, a lawyer for the
asbestos plaintiffs in Texas and other states, persuaded
Judge John McClellan Marshall of the 14th District Court
in Dallas to sign an order requiring Keene to turn over
$4 million in cash and confidential corporate documents.
Baron did this via unsupported allegations and numerous
inaccurate statements, and Keene never had a chance to
point out to the Judge that Baron had made many false
statements. Baron simply presented his pleadings on a
App. 52
special calendar and stripped away Keene’s rights to a
fair hearing. Keene is a publicly held company and many
of Baron’s false allegations are easily refuted by its finan-
cial statements that are available to everyone. Keene is
appealing that order.
On Thursday, August 18, Baron had me involved in a
deposition and was constantly probing for confidential in-
formation, such as the names of creditors and bank ac-
counts, indicating that he would like to force Keene into
bankruptcy. Why does Baron want to bankrupt Keene?
Because Keene won’t give up and pay him whatever he
demands if he doesn’t accept the settlement guidelines
Keene developed to provide money for the plaintiffs with
severe impairment, both present and future. Baron’s be-
havior says to me that he wants all of Keene’s money
now for his clients and for himself, at the expense of
future plaintiffs.
During the deposition I mentioned that I was spending
99% of my time on litigation and 1% toward growing
Keene’s composite manufacturing subsidiary. If I could
spend most of my time developing that operation, by the
end of the decade Keene could have sales of $500 million
per year and create 4,000 new jobs. Baron indicated he
was concerned with the future of Keene merely insofar
as his clients were concerned, implying that 4,000 new
jobs were not of a concern to him. How can we hope to
compete in the world markets with this lawyer’s attitude,
especially in view of America’s painful unemployment situ-
ation?
Keene bought, for $8 million in 1968, a small manufac-
turer of insulation products. Some of them were required
by customers’ specifications to contain asbestos. Keene
stopped production of these products in 1972, and closed
App. 53
the company down in 1976—losing Keene’s entire invest-
ment. End of tale? Not at all! Laws developed in the late
1970s, strengthened in the ’80s and applied in the ’90s
to the events of the ’40s, ’50s and ’60s have caused Keene
and its insurers to spend $350 million on asbestos litiga-
tion. Keene is willing to spend another $150 million in the
future, approximately 80% of its net worth. That’s a half.
billion dollars lost for the mistake of acquiring a company
for $8 million. . . . and lawyers will consume over 60%
of those dollars!
Keene has spent $10 million so far in 1991 to defend
itself in frivolous suits which Keene won. If the proposed
rule that the loser pays the other party’s legal expenses
were instituted, these suits would be dramatically reduced
and unclog the courts.
Punitive damages demanded by lawyers and awarded
against Keene in five jurisdictions this year have amounted
to $26 million. All are under appeal, as none of them are
justifiable. Elimination of punitive damages would release
$26 million, yielding $26,000 each for 1,000 widows in the
future.
Mr. Curtin, please rethink your statement about lawyers
not being one of the sources of America’s failure to be
competitive. Keene’s experience shows that American
prices are being driven up and American businesses are
being forced from the marketplace and into bankruptcy
by the non-professional, self-aggrandizing and personal
greed of a number of American lawyers.
Sincerely,
/s/ GLENN W. BAILEY
Glenn W. Bailey
Chairman and President
App. 54
THE WALL STREET JOURNAL WEDNESDAY, JULY 15, 1992
Rule of Law — by Glenn W. Bailey
Litigation Abuse Is Destroying My Company
As the Democrats meet in New York this week, they
claim to be worried about the erosion of American Indus-
try. As an American industrialist, I can tell them that
one of the prime causes of our trouble is entirely within
the control of the political process: abusive litigation. If
they’re serious about repairing our industrial base, rein-
ing in the litigation monster is the place to start.
Twenty-five years ago, when I started Keene Corp., the
company was worth $800,000. Keene, a former Fortune
500 company, is now spending $800,000 each week on
asbestos-related litigation. On Monday, we were one of
six defendants found liable by a Baltimore jury in a huge,
non-consensual, consolidated asbestos trial, a trial that in-
volved 8,500 plaintiffs. And there is plenty more asbestos
litigation to come for us.
Why? Because out of the 50 acquisitions Keene made,
one, a company called Baldwin Ehret Hill, bought in 1968
for $8 million, made thermal insulation that contained
about 10% asbestos. From 1968 to 1972, Baldwin Ehret
Hill sold $15 million worth of asbestos-containing products
out of total sales of more than $500 million. In 1972 Keene
had its affiliate totally eliminate asbestos and in 1975 the
affiliate was closed.
Since then, Keene has paid out $400 million to resolve
asbestos claims brought against it because of its unprofjt-
able $8 million investment 24 years ago. Two-thirds, or
approximately $265 million, has gone to lawyers. Four of
App. 55
the plaintiff law firms have received fees exceeding
Keene’s original $8 million investment.
Not one of the plaintiffs was ever employed by Keene
or the company it bought. In fact, most of them worked
in Navy shipyards during World War II, 25 years before
Keene was formed. And here’s the greatest irony: Most
of these plaintiffs are not sick. They’re just worried about
what might happen in the future.
In asbestos litigation, courts are focusing on suppliers
like Keene even though Keene did nothing illegal or im-
proper. In response to the medical research of the time.
Keene’s cartons bore caution labels about how to handle
its products.
Suppliers like Keene are being sued, not because they
did anything wrong, not even because they were direct-
ly responsible for any harm done, but because lawyers
don’t make much in fees from suing the plaintiffs’ actual
employers. The employers are covered by workers’ com-
pensation programs. Nor do courts generally allow con-
sideration of the plaintiff's responsibility or his employer’s
safety practices to mitigate judgments against a supplier.
Nowhere else in the world could these lawsuits be suc-
cessfully brought against a company like Keene. No other
country countenances a justice system anything like the
U.S.’s ad hoe asbestos law, with its punitive damages, con-
solidation of entirely diverse cases, junk-science testimony
and huge contingency fees.
However, here in the U.S., because of this abusive
litigation, 16 of our co-defendants have been bankrupted.
Since they are no longer in the courtroom, the rest of
us must shoulder their burden, in addition to our own.
es
Under the ‘‘joint and several responsibility” rule, the last
App. 56
asbestos supplier standing will be liable for all the judg-
ments against all asbestos defendants. And the elimina-
tion of the remaining suppliers should come soon, as we
face 2,000 new lawsuits each month.
Contingency fees provide some of these lawyers returns
of well over $5,000 a hour, encouraging them to recruit
even more plaintiffs. Result? A clogging of the courts and
a wasting of funds.
The public panic has become so great that although asbes-
tos ranks 90th on the Environmental Protection Agency’s
“Priority List of Hazardous Substances,” asbestos litiga-
tion is the No. 1 cause of health and safety litigation. It’s
No. 1 in the number of claimants, No. 1 in the number
of defendant bankruptcies and No. 1 in the size of lawyers’
fees.
It’s time to reconsider what we are doing. Litigation
is the most ineffective way to get money to claimants.
In asbestos-related litigation, less than 35% of the award
typically gets to the plaintiff.
How have the plaintiffs’ lawyers accomplished this? An
ad hoe ‘‘asbestos law” was developed in the 1970s and
strengthened in the ’80s. Now it is being applied in the
90s to the events of the 1940s, ’50s and ’60s.
The single most wasteful example of asbestos panic can
perhaps be seen in the zeal to remove asbestos-contain-
ing insulation from buildings. Driving to an asbestos-
insulated building is 1,600 times more dangerous than
breathing the air in the building. Smoking is 22,000 times
as dangerous. The Environmental Protection Agency, the
American Medical Association and the Health Effects In-
stitute all say it is safer to leave existing asbestos insula-
tion in place than tc remove it.
App. 5
But lawyers slavering for more and more fees exploit
the American public’s fears to press America’s businesses
to pay for the unnecessary removal of asbestos insulation
from all buildings. And some judges under the special
“asbestos law” will not even allow a relative risk com-
parison to be argued in the defendant’s case.
The current civil-justice system wasn’t designed to han-
dle the multitude of asbestos claimants. An alternative
system of claims resolution is required. An administrative
alternative would be a more efficient solution for all pres-
ent and future meritorious claimants. It should also put
a cap on punitive damage awards, discourage frivolous
lawsuits, limit lawyers’ contingency fees and rule out
“Junk-science”’ experts. Such a solution has been proposed
to Congress.
Asbestos litigation, which is just the leading edge of the
“legalized extortion” epidemic, has cost American firms
approximately $9 billion—with about $6 billion of the total
going to lawyers. That’s enough money to support more
than 200,000 jobs or to build 90,000 housing units.
If nothing is done to fix the abuse and overuse of the
civil-justice system, asbestos-type legalized extortion will
spread to other industries. Now is the time for action to
save America’s industrial strength. Is anyone in Washing-
ton listening?
Mr. Bailey is chairman of Keene Corp. in New York.
TAMING THE ASBESTOS
LITIGATION MONSTER
Remarks to the Judges Panel
On Asbestos Litigation
By Glenn W. Bailey
Chairman and President
Keene Corporation
Seminar Sponsored by
Andrews Communications
May 21, 1992 Philadelphia
Keene ( ‘ornoratio? Sa sn al company ' ght ng to Sm
e the “asbestos litigation mess” that has bankrupted
16 major companies so far. Keene acquired a small con
pany in 1968 for $8 million and operated it for only four
years. A feu of that company's insulation products Ln
cluded small amounts Oo} asbestos to rmeet customers’ Spe
cifications. Yet, Keene has offered to pay out a total of
_- Bi } ) , ;
S000 miliion to pul asbestos litigation behind it. Mr
’ . , 7?
Bai eu s comments follou
I've been invited to speak to you today because my
efforts to resolve the asbestos litigation problem have ex
cited deep feelings among some judges and certainly most
plaintiff lawyers. My detractors have called me cranky,
irrational, impolitic, irate—and many other names not as
acceptable in polite society.
App. 59
But the issues at stake here are larger than individual
personalities. This litigation has spiraled out of control and
is harming our country’s economy and our civil justice
system.
I have come here to share my thoughts with you with
the hope that these thoughts might move us all along the
road toward a resolution of this difficult situation. We
have something in common. Keene wants what | think
the state and federal judges around the country want: to
clear all court dockets of all asbestos cases efficiently and
promptly. My hope is that by explaining where Keene is
coming from, we can work together with judges to achieve
this important national goal.
I’ve already had the opportunity to meet with some of
you personally, and to express my views of where we are.
how we got here and where we need to gO.
But today, the emphasis will be mainly on the last point-
where we need to go—because time is running out. If the
present situation persists, seminars like this won’t be
necessary or even possible. No companies will be left to
compensate people who get sick from exposure to asbes
tos. So let’s use this opportunity well.
Let me begin with a few points of background and his-
tory because we cannot deal effectively with the present
unless we understand the past.
Point 1. It is undisputed that. when properly handled,
asbestos-containing products are safe and of great so-
cial utility.
As some of you may know, as late as 1979. the U.S.
Navy still maintained that it was impossible to build ef.
ficient naval vessels without asbestos. Asbestos is and will
continue to be used in hundreds of products in the future.
However, while asbestos is number 90 on the EPA’s
list of items that should concern people, asbestos litiga-
(120M 1S:
App. 60
= Number one as a cause of court clogging
ew Number one in number of claimants
we Number one in causing bankruptcies of otherwise
healthy and productive companies, and
= Number one in generating lawyers’ fees
Point 2. The existing format for processing asbestos
claims—namely through the tort system—is the most
inefficient way to get money to claimants.
Even the much criticized Social Security system gets
98% of the funds to the intended recipient. But in asbes-
tos litigation less than 35% of the funds go to the plain-
tiff. And because a system has evolved which establishes
different legal standards for asbestos claimants—making
it easier for unimpaired claimants to obtain grossly in-
flated damage awards—an even smaller fraction of the avail-
able funds is delivered to the truly impaired plaintiffs.
Point 3. The present system—and all of its prob-
lems—is self-perpetuating. It has a life of its own.
Judges’ efforts to resolve cases all too often have re-
sulted in a perverse incentive, causing more cases and
more backlog.
This is what happens: the opportunity for contingent
fees that yield some lawyers returns of well over $5,000
per hour drive them to recruit more plaintiffs, most of
whom are not sick. When cases are settled, these lawyers
recruit still more plaintiffs and file still more cases result-
ing in still more serious docket clogging and the further
depletion of funds needed for truly impaired plaintiffs in
the future.
Let’s look at this a little more closely and I will use
as the example my company—Keene Corporation—and its
now defunct subsidiary Baldwin-Ehret-Hill, or BEH. BEH
App. 6]
actually manufactured the asbestos insulation products at
issue in this litigation. Keene bought BEH in 1968 and
by 1972, BEH no longer manufactured asbestos products.
It was shut down completely by 1975.
Now, today’s trials do not deal with whether the plain
tff’s injury was caused by Keene’s BEH subsidiary, or
whether BEH appropriately warned of the dangers of im
properly handling its products when medical research evi
dence became available.
Today’s trials do two things:
@ They limit the plaintiffs’ responsibility for ignoring
warnings, and
= They limit their employer’s responsibility for not
providing a safe workplace and enforcing the company’s
then-existing requirement to wear respirators in areas
where dust could not be controlled by the use of ventila
tion and dust collection equipment.
Today's trials focus solely on the supplier
Today’s trials also permit the introduction of irrelevant
and inflammatory evidence, resulting in verdicts not re
lated to the extent of the plaintiffs’ injury, but to the heat
of the lawyers [sic] rhetoric.
This combination (a) of limiting the responsibility of the
plaintiff and his employer, (b) of focusing all the liability
on the ever shrinking number of suppliers, and (c) of per-
mitting irrelevant and inflammatory evidence, inevitably
lead to more cases and more trials.
Point 4. Today’s trials yield unpredictable, inequita-
ble and arbitrary results.
Judge Weinstein and many others have noted that
juries, confronted with essentially the same facts, have
awarded damages ranging from zero to millions of dollars!
App. 62
This “asbestos lottery” and its attendant high contingency
fee payments have motivated plaintiff lawyers to recruit
increasing numbers of unimpaired claimants to perpetuate
their fee-feeding frenzy.
In some jurisdictions, Keene has been “‘gagged’’ from
commenting on matters of public concern and presenting
historical facts while judges and lawyers have publicly
aired opinions, frequently prejudicial to Keene.
Point 5. Since the bankruptcy of Johns-Manville and
other majer suppliers, plaintiff's law firms have scram-
bled to retool their practice and target smaller com-
panies like BEH.
The burden of larger and larger “lottery” type awards
now falls on fewer and fewer companies with less and less
money. Example: in a current case, with 8,555 plaintiffs,
approximately 85% of the 100 plus original defendants are
not in the courtroom. And furthermore, though BEH had
less than a few percent of the market and never mined
or milled asbestos, Keene now has &7,000 cases pending
against it.
Point 6. The asbestos litigation has cost the Amer-
ican economy $9 billion so far, with about $6 billion
going to lawyers.
What is the underlying significance of these numbers?
Those billions could have been used to invest in and create
over 200,000 jobs or 90,000 housing units. Some estimate
that continued uncontrolled asbestos litigation costs could
exceed $100 billion or the equivalent of 2 million jobs or
a million housing units!
Point 7. The asbestos litigation frenzy continues to
expand.
Contrary to the advice of the EPA, the American Medi-
cal Association and the Health Effects Institute, people
App. 63
are needlessly removing asbestos-containing insulation
from buildings and suing. Comparing recent statistics, we
learn that driving to a building containing asbestos insula-
tion is 1,600 times more dangerous than breathing air in
the building. Further, smoking is 22,000 times more dan-
gerous than breathing air in a building containing asbestos
insulation.
So, where has all this left us? The Ad Hoc Committee
of Judges calls it an impending disaster. We could never
have devised a system on purpose that would better guar-
antee hundreds of thousands of lawsuits, over 90% of
which have been brought by people who aren’t sick.
Forbes magazine reported that up to 80% of cases pend-
Ing a year ago involved those who are not sick. The data
at Keene, and I’m sure at other companies, are that the
number is much higher in new filings
What Comes Next
And, where are we going? Well, that is up to you, the
judges who have the responsibility for asbestos cases
around the country.
If the goal is to run the litigation until every defendant
has been bankrupted, thousands of people left uncompen-
sated, and thousands of workers without jobs, then con-
tinue to do what is now being done. On the other hand.
if your goal is to do justice to the parties and to the pub-
lic—and.I believe it is—the path is clear.
We need a system—uniform all over the United States—
which will do four things:
1. Provide fair compensation to truly impaired plain-
tiffs promptly.
2. Stop new case filings.
3. Control transactional costs—mainly lawyers’ fees,
both plaintiff and defendant.
App. 64
4. Keep defendants in business to provide compen-
sation for future meritorious claimants.
Solutions
Now, how do we get there? There are three sure ways:
1. We must make sure that the money gets only to
sick people.
The best way to ensure that is by the establishment
of court-mandated “‘pleural registries’’ or some similar
non-trial track docket.
By simply establishing a Pleural Registry and ordering
cases to it, Judges could make the trial track litigation
more manageable and unclog court dockets overnight.
A pleural registry would take the cases of all claimants
who do not have any asbestos-associated impairment off
the court’s active docket and suspend the statute of limi.
tations until the plaintiff becomes impaired.
Only then would he have the right to return to court
and have his case processed. It’s already being done in
some places, but to accomplish the previous goals of dis-
tributing money fairly, stopping new court filings, contain
ing transactional costs and keeping present defendants in
business, pleural registries must be implemented every
where. Otherwise, there simply isn’t enough money to pay
these claims nor enough courts to process them.
2. We must stop punitive damages.
Historically, punitive damages have been imposed on
defendants as punishment for intentionally causing harm
and as a deterrent to bad conduct. All punitive damage
awards punish, but in these asbestos cases they don’t act
as a deterrent. Why? Because these products haven’t been
made in decades, and no harm was intentionally caused—
at least not by Keene. What else can further awards of
punitive damages deter?
App. 65
As for punishment, Keene spent $8 million to buy BEH
in 1968 and has spent $400 million on this litigation. It
has been punished plenty! And, Keene has been punished
despite the fact that in our landmark insurance cove rage
case, Keene made billions of dollars available to compen-
sate sick claimants.
Sixteen bankruptcies are enough. The loss of tens of thou-
sands of jobs is enough. Awards of hundreds of millions
in punitive damage dollars are enough. In fact. 25% of
punitive damage awards since 1965 were in asbestos
cases. Enough!
But perhaps even more importantly, punitive awards are
windfalls for a few and will deprive compensation to pre-
sent and future meritorious claimants. There simply isn’t
enough money!
3. We must stop consolidations.
Consolidation of cases is used increasingly by some trial
judges to force settlements and to control their dockets.
This device actually is counter-productive. And it has re-
sulted in a significant increase in the rate of new asbes
tos claims filed. Why?
Well, as Judge William Butler of the Federal District
Court for the Southern District of Alabama 1 recognized
in his Cain opinion, large consolidations make it impossi-
ble for a defendant to get a fair trial. resulting in inflated
jury verdicts, which in turn create more incentive to file
more cases. When he granted a new trial in the Cain
opinion, he wrote:
“The congestion these cases caused in this district for
all civil litigants gives one a skewed view of how to re-
solve the problem. The ‘try as many as you can at one
tume’ approach is great if they all, or most, settle: but
when they don’t—and they didn’t here—thirteen sh ipyard
workers, their wives, or executors if they have died, got
NIP
i ik i
App 66
a chance to do something not many other civil litigants
can do—overwhelm a jury with evidence. Evidence that
would not have been admissible in any single plaintiffs
case, had these cases been tried separately. As the evi
dence unfolded in this case, it became more and more
obvious to this court that a process had been unleashed
that left the jury the impossible task of being able to
carefully sort out and distinguish the facts and law of
thirteen plaintiffs’ cases that varied greatly in so many
critical aspects. In the final analysis, the court is con-
vinced that the defendants did not receive a fair trial.”’
Not only are consolidations incompatible with doing
justice, they encourage the filing of tens of thousands of
additional cases.
Now there are also some other factors contributing to
perpetuation of the asbestos litigation disaster and more
judges could do to help solve it:
w The continued scheduling of trials for unimpaired
plaintiffs with the opportunity for huge verdicts, leads to
more filings. There’s a great incentive for plaintiffs’ at-
torneys to file new cases in which preparation has become
routinized—an easy one-third, or more, fee for little work
= You also have court rules or state laws or the inher-
ent power which would allow you to oversee and regulate
contingent fees, but other than Judge Shadur in the Con-
way case, I’m not aware of any judge who has used this
power. You should rethink this issue and superintend the
reasonableness of contingent fees.
Judge Weiner, in the federal Multi-District Litigation,
is considering many of the points I have mentioned to-
day and we support his efforts toward a fair and prompt
resolution of the federal cases
mt ST I BI PT IEG AT PGF CLO IE A EY RNS
App. 67
But the majority of cases are in the state courts. Unless
we stop the flood of filings and verdicts there, the asbes-
tos Monster will keep growing and your dockets will be
even more crowded than they are today.
So my earnest plea to you is to stop feeding this
Monster before it devours us all. Every judge with as-
bestos cases on his or her docket should seek sensible
solutions:
= To end asbestos litigation
= To preserve the jobs and the viability of defendant
companies, and
= To eliminate unnecessary costs that delay and de
prive impaired claimants of their recovery
Consolidations, repeated punitive damage awards. eas)
access to trial and watered-down burdens of proof hav
been attempted and have failed to achieve these goals
They just don’t work.
Where courts do not apply special rules that apply
to asbestos cases (‘‘Asbestos Law’’) and where they set
up pleural registries, court dockets are not clogged and
Cases gO away.
So the solutions are up to you.
Let me end this: just consider that Keene bought BEH
In 1968 for $8 million. The company already had warning
labels on its products. Keene stopped all production of
products containing some asbestos in 1972. Even when
BEH manufactured insulation products, those products
contained only 10% asbestos. Those products represented
15% of BEH sales. Those products represented only 2%
of Keene’s sales. BEH was losing money and was shut
down permanently in 1975.
PETS SPOOL IIIA PY” EP VOY. FFP POT PG ALBIN, CH OI NE PY ERT HME + PY Ne 88°
App. 68
o Despite this limited involvement, since 1975—for the last
17 years—Keene has spent $400 million defending and
resolving claims against BEH. If Keene had never bought
BEH, plaintiffs and their lawyers would have exhausted
BEH’s assets in 1980 and the insurance coverage door
might not have been opened. Keene now has only one
operating subsidiary—and its contracts, orders and em
ployees’ jobs are totally threatened by this litigation.
When I opened my remarks, I told you that I’ve been
described as cranky, irate, impolitic and lots more. If this
combination of events:
@ 2.000 new cases a month
es Continuing to pay fines for a company that stopped
existing 17 years ago, and
@ Spending millions to perpetuate the compensation of
undeserving claims and outrageous lawyers fees
were happening to you and your company, don't
you think you would be cranky, irate and impolitic too?
SP POP WS PF DBeghrrvy’ + BOLTS MES HS TH PE FY CPM PRT TO EP DYN iseal:
App. 69
OTHER QUOTES ON LITIGATION
AND THE ASBESTOS MONSTER
Overuse and abuse of the litigation-process is reducing
this nation’s competitiveness, raising the price of products
and eliminating thousands of American jobs
t
percent of the world’s attorneys—while Japan has on
lawyer for every 10,000 people
ryy ’ Cc ; a | ~ 4
The nation’s factory i0bs fell 15 percent hetween 1980
and 1990 while the country’s population increased by
as
milion
j 7 y
( 7797 mStice reforms are needed to create an adminis
, } ° }] ° } e J 7: ‘ +
rative solution fora present and future asbestos clarm
/
> y a ] 7,
Re forms are needed because more than 60 percent of
‘8 the mone if SPe nt so far on ashestos litigation has gone
O awyers.
» ] ] . . ] Ty l~h]
Reforms would unclog our courts and use available
4
inds to meet the needs of future meritorious claimants
For more information or additional reprints
write to Keene Corporation at
200 Park Avenue, New York, NY 10168
Or call (212) 557-1900
KEENE CORPORATION
er ee
App. 70
REPORTED
IN THE COURT OF SPECIAL APPEALS
OF MARYLAND
No. 616
September Term, 1992
KEENE CORPORATION
wy
ABATE, ET AL
Garrity
Bloom,
Motz,
da
Opinion by Motz, J.
Filed: July 1, 1992
The appeal before us is the most recent in the spate
of asbestos-related cases winding through the State’s court
system. The sole question with which we are now faced
is whether the Circuit Court for Baltimore City can con-
stitutionally enjoin Keene Corporation (‘‘Keene’’), one of
several defendants in a trial now underway, from adver-
tising its views, before the jury returns a verdict, on the
societal impact of the case and of asbestos litigation in
general. Because the First Amendment to the United
States Constitution and Article 40 of the Maryland Decla-
‘
ration of Rights prohibit such an injunction, on June 23,
App. 7]
1992, we entered a per curiam order vacating the lower
court’s order granting the injunction. We now explain the
reasons for our decision.
(1)
The trial below began in February of 1992. From the
outset, it has generated a great deal of public interest.
Members of the White Lung Association have staged nu-
merous demonstrations outside the courthouse. carrying
picket signs and handing out fliers. The demonstrations
at one point prompted the defendants, including Keene,
to move for an injunction against the demonstrators. The
trial court refused to grant the injunction because it “felt
on a balancing consideration” it “could favor the First
Amendment as [it] should and not have a risk to the jury”;
instead it instructed the jury to ignore the demonstrators
and to attempt to avoid them when entering and exiting
the courthouse. One protestor nevertheless managed to
corner a juror in a courthouse restroom in an effort to
relate to the juror a tragic story regarding an asbestos-re-
lated illness. The juror immediately reported the incident
to the court. The defendants moved for a mistrial which
the court, after questioning the juror and instructing her
to disregard the restroom conversation, denied.
On May 5, 1992, while evidence in the instant case was
still being presented, the plaintiffs/appellees (“plaintiffs’’)
filed a “Motion for an Order to Show Cause Against De-
fendant Keene Corporation.” The plaintiffs complained
that Keene’s president and chief executive officer, Glenn
W. Bailey, had improperly sent a letter ex parte to the
trial judge. They asked the court to enjoin Keene from
placing in local newspapers advertisements that might in-
terfere with the fair and impartial deliberations of the
’ . j | ’ T
! “he plaintiffs informed the tmal court that Keen
lant in similar litigation in Houston
naq peen a wngre
Texas. While the jury was deliberating in that case, Bailey
laced a paid odivertinunen! in the Houston Chronicle. As
a result of that advertisement, Keene was found in con
Llempt of court. In another asbestos case. also in Texas.
?
issued an order enjoining Keene from any fur
a judge
in any and
ther “‘advertising regarding asbestos litigation
all prt om vhich are published in Harris Count)
Texas” until the jury reached a verdict. The plaintiffs did
»|
en below that the advertisement in the Housto1
Chronicle was false or deceptive; in that advertisement
Bailey had sera that asbestos litigation had bank
rupted a dozen companies, that Keene alone could be re
quired to pay out millions “pr dollars, and that 60-percent
i the money would go to lawyers.
In the matter sub judice, the tnal court indicated that
t aborted”’ or “‘to allow
did not intend “to let this tnal be
undue publicity,’ and so set
the jury to be affected by
ig. Six
plaintiffs’ motion in for prompt briefing and heari
later, on May 11, 1992, after hearing argument fron
court com
{
lays
counsel, the trial court granted the motion. The
nted
Mr. Bailey does not have the absolute nght
lish anything he wants with regard to this case. He
is writing ex parte letters to this Court which is im
proper. But of more concern to me is the fact that
as I say, he takes out full page ads in newspapers
while juries are deliberating and that is absolutely
improper. He should not be allowed to communicate
with this jury and that is all that a full page ad in
tends to do is to improperly communicate with this
jury
to sign an order \ Pee n* adequat«
hich, in m)
I am going
to prevent him from placing such an ad \v
’ > > +7 - + | _ . ><) . rwitiy . +L,
view, nas no purpose otner than to iniluence tnis
jury.
In response to defense counsel’s argument that such an or
der would infringe upon Bailey—and Keene’s—First Amend
ment rights, the trial court stated: “I perceive a funda-
mental distinction between a newspaper reporter obtain
ing comment of both sides, Plaintiffs and Defendants, and
a man taking out a full-page ad during the pendency of
the case.”” On May 18, the court issued a written order
enjoining Keene from “advertising regarding asbestos
and/or asbestos litigation in any and all newspapers, tele-
vision, radio or other media in the Baltimore, Maryland
area during the pendency of this trial.”
Thereafter, on May 21, Keene placed a paid advertise
ment in the Philadelphia Jnquirer. In the advertisement,
Keene again complained of the high costs of asbestos liti-
gation and alleged that such litigation is “lawyer-inspired”’
and is causing “the unnecessary bankrupting of com-
panies.”” The company suggested legislation that it as-
serted would bring the perceived problem under control
and urged readers to support such legislation.
On May 13, pursuant to Maryland Courts & Judicial
Proceedings Code Annotated § 12-303(8\i), Keene timely
noted an appeal to this Court. Because of the important con-
stitutional question involved, we granted Keene’s request
to expedite consideration and advance the time for brief-
ing and oral argument. In the meantime, Keene moved
below to stay the injunction pending the instant appeal.
The trial court denied the motion in open court without
hearing argument from counsel. It did, however, offer fur-
ther explanation as to its reasons for initially granting
the injunction. The court referred to Glenn Bailey as a
“loose cannon” and remarked that, as far as possible
advertisements were concerned, “I don’t know what he
ADPDp
has in mind. And he doesn’t favor me with what he wants
to do.”’ It acknowledged that news articles about the trial
had been published throughout the pendency of the pro
ceedings, but again stated, “I see a big distinction be
tween a paid ad in the newspaper and a news article, per
se.”’ The court opined that “even though I have cautioned
my jury not to look at the newspapers, if they see a big
bold-faced, full-page advertisement in our phar
here, there is a risk that they will see it and look at it,
even fragmentarily, and I don’t think that a court na
to have to put up with that risk.’”’ The court commented,
on the other hand, that its instructions to the jurors to
avoid the demonstrators from the White Lung Associa
tion had ‘‘worked appropriately.”’ In regard to the adver
tisement in the Philadelphia Jnquirer, published after the
rder enjoining advertisements in the Baltimore area was
entered, the court commented that “it would be improper
for me to try to enjoin any publication in other news
LD
apers outside of Maryland
t
(11)
There can be no dispute that the order enjoining Keene
from “advertising regarding asbestos and/or asbestos liti
gation” in any and all media outlets in the Baltimore area
during the pendency of the trial operates as a prior re-
straint on speech. A threshold question, however, is what
type of speech the order seeks to regulate. The order an
ticipates an attempt by Keene to place advertisements,
similar to those placed in Houston and Philadelphia, in
Baltimore area newspapers. The trial court’s distinction
“between a paid ad in the newspaper and a news article”
suggests that it believed the advertisement amounted to
commercial speech. If that was the case, the advertise
ments would be entitled only to limited protection under
the First Amendment and Article 40. See generally Vir
ginia Pharamcy Bd. v. Virginia Citizens Consumer Coun
cil, Inc., 425 U.S. 748, 770-73 (1976) (commercial speech
afforded First Amendment protection so long as it is not
false and misleading and so long as transactions proposed
in advertisement are not themselves illegal). See also
Freedman v. State, 233 Md. 498, 505 (1964), »ev’d on other
JS. 51 (1965) (Article 40 of the Maryland
Declaration of Rights is to be interpreted in pari materia
with the First Amendment). That is not the proper classi
fication of the advertisements, however.
grounds, 380 |
Commercial speech is defined as ‘“‘speech that proposes
a commercial transaction.” Board of Trustees, State Univ
of N.Y. v. Fox, 492 U.S. 469, 482 (1989) (emphasis omitted)
(citing Virginia Pharmacy Bd., 425 U.S. at 761-62). In
common parlance, “advertising” means “the action of calling
something . . . to the attention of the public{,] esp[ecially]
by means of printed or broadcast paid announcements.”
Webster’s Third New International Dictionary 31 (1981)
The mere fact that speech is published in the form of a
paid advertisement does not render it commercial speech
See New York Times Co. v. Sullivan, 376 U.S. 254. 266
(1964) (a paid advertisement, regarding the civil rights
movement, that “communicated information, expressed opin
ion, recited grievances, protested claimed abuses. and
sought financial support on behalf of a movement whose
existence and objectives are matters of the highest public
interest and concern” was not commercial speech).
The paid advertisements placed by Keene in the Houston
Chronicle and the Philadelphia Inquirer, like the pai
advertisement in New York Times v. Sullivan, addresse:
a matter of public concern. They expressed Keene’s point
of view, aired its grievances, and, in the case of the Phil
adelphia Inquirer advertisement, proposed legislative solu
]
i
eatin
+
tions. Although the message that asbestos litigation should
be controlled clearly promotes Keene’s economic interests,
the advertisements in no way “propose[d] a commercial
transaction.’” Roard of Trustees, State Univ. of N.Y., 492
U.S. at 482. ‘deed, Keene contends that it halted pro-
duction of asbestos products 20 years ago. In short, the
advertisements simply cannot be viewed as commercial
speech. Because there is no reason to believe that the
advertisements fall within any other category of speech
warranting less constitutional protection, we can conclude
only that they were fully protected.!
Even assuming, arguendo, that the advertisements amounted
to commercial speech, it seems clear that an order enjoining simi
lar advertisements in Baltimore area newspapers would be im
proper. The Supreme Court explained in Board of Trustees, State
Univ. of N.Y., 492 U.S. at 480, that even restrictions on commer
cial speech must be “narrowly tailored to achieve the desired ob
jective.”’ In the instant case, the trial court indicated that its ob
jective was to prevent interference with the fair and impartial
leliberations of the jury. As we shall discuss infra, however, we
are not persuaded that the ads posed a threat to those delibera-
tions or that, even if they did, the court’s solution was narrowly)
tailored. See e.g., Peele v. Attorney Reg. and Disciplinary Comm’n.,
U.S. ___, 110 S.Ct. 2281 (1990) (rule prohibiting attorneys
rom truthfully advertising that they were specialists in certain
areas of the law struck down because it promoted no substantial
state interest); Shapero v. Kentucky Bar Ass’n., 486 U.S. 466
(1988) (prohibition on truthful and non-deceptive direct-mail solici-
ation of potential clients by attorneys struck down because it
served no particular objective); Posadas de Puerto Rico Assoc.
Tourism Co., 478 U.S. 328 (1986) (Puerto Rican act prohibiting
gambling casinos Peso ‘adv ertising locally if such advertisements
were directed at residents rather than tourists upheld as being
no more extensive than necessary to protect Puerto Rico’s citizens
from the harmful effects of gambling); Jn re R.M.J., 455 U.S. 191
(1982) (Missouri Supreme Court rule that limited the categories
of information allowable in lawyer advertisements struck down be
cause it excluded relevant, truthful information and promoted no
substantial State interest); Linmark Associates, Inc. v. Willing
boro, 431 U.S. 85 (1977) (town ordinance that banned the posting
Footnote continued on following page
“[PJrior restraints on speech and publication are the
most serious and the least tolerable infringement on First
Amendment rights.” Nebraska Press Ass’n v. Stuart. 427
U.S. 539, 559 (1976) (striking down a court order that en-
joined, until the jury was impaneled, certain news cover-
age in connection with a criminal trial). Moreover. the
“conflict between the right to an unbiased jury and the
First Amendment is ‘almost as old as the Republic.’ ”’
Quinn. v. Aetna Life & Cas. Co., 482 F.Supp. 22, 27 (E.D.
N.Y. 1979), aff'd per curiam, 616 F.2d 38 (2nd Cir. 1980)
(quoting Nebraska Press Ass’n v. Stuart, 427 U.S. at 547).
Although the right to a fair trial is jealously guarded, a
court seeking to insure a fair trial may not impose a prior
restraint unless “the gravity of the ‘evil,’ discounted by
its improbability, justifies such invasion of free speech as
ls necessary to avoid the danger.” Nebraska Press Ass’n.
supra, 427 U.S. at 562 (quoting United States v. Dennis.
183 F.2d 201, 212 (2d Cir. 1950), affd, 341 U.S. 494 (1951).
In State v. Cottman Transmission. 75 Md. App. 647
(1988), this Court was called upon to determine the pro-
priety of a trial court’s order, issued in a civil case at
the defendant’s request, which closed the case file and
proceedings to all but the participants and prohibited all
communications with the press. Jd. at 649. The defendant.
an auto transmission company accused of various decep
tive business practices, had alleged that the State was
damaging the company’s reputation and business by com-
On117 ued
of residential “‘For Sale’ signs struck down because there was ni
indication that it served the stated goal of StabDllzing nelgnbo?
hoods, and because iess restrictive measures. such as posting “No
for sale signs, were avaliable)
App. 78
municating with the news media during the course of the
trial. Jd. at 653. We vacated the closure order in its en-
tirety, id. at 658, and vacated the ‘“‘gag order’”’ to the ex-
tent that it prohibited even those communications with
the press that did not concern the merits of the case. /d.
at 661. We explained that a gag order can be upheld only
‘‘1) if the party seeking the order can establish that the
speech to be restrained poses a ‘serious and imminent
threat’ of interference with the fair administration of
justice, . and 2) the order is ‘tailored as precisely as
possible to the exact needs of the case.’”’ Id. at 659 (cita-
tions omitted). See also, Journal Newspapers, Inc. v
State, 54 Md. App. 98, 110-12, affd, 297 Md. 68 (1983)
(in vacating an order that enjoined certain classes of peo-
ple from making extrajudicial statements regarding a
criminal trial, this Court explained that, once a movant
establishes “‘the need for any restriction . . . the [trial]
court [should] proceed to look at the alternative methods
of implementing the restriction, choosing always that or
those which will do the job in the least intrusive and
onerous manner’) (emphasis in original); CBS, Inc. v
Young, 522 F.2d 234, 238 (6th Cir. 1975) (in vacating an
order that prevented parties to civil litigation from com-
menting to the press, the court noted that ‘‘[t]o justify
imposition of a prior restraint, the activity restrained must
pose a clear and present danger, or a serious or imminent
threat to a protected competing interest. . . . The re-
straint must be narrowly drawn and cannot be upheld if
reasonable alternatives are available having a lesser im-
pact on First Amendment freedoms’’).
Although Cottman involved news coverage rather than
paid advertisements, the speech that was the subject of
the gag order, as in the instant case, was promulgated
by a party to the case. We noted in Cottman that “a trial
App. 79
court has the power to ‘proscribe[ ] extrajudicial state-
ments by any lawyer, party, witness, or court official
which [might] divulgef ] prejudicial matters... .’” 75 Md.
App. at 660 (quoting Sheppard v. Maxwell. 384 U.S. 333,
361 (1966)) (brackets added by Cottman Court). Such pro-
scriptions, however, must be narrowly tailored. See Id
at 699-61. In applying the two-prong test set forth in Cott
man to the particular facts of that case. we recognized
that the speech at issue there could indeed interfere with
the fair administration of justice by, in effect, trying the
case in the press. “Because the tailoring of the trial
court's gag order lacked the definition necessary to be
constitutionally appropriate, [however,] this Court altered
the order so as to provide a better constitutional fit.’’ Id
at 660-61.
The trial court’s order in the instant case fails to satisfy
either prong of the two-prong test enunciated in Cottman.
73 Md. App. at 659.2 Although the advertisements that
* The few cases relied upon by the plaintiffs do not hold to the
contrary; indeed, rather than supporting the issuance of the gag
order, these authorities demonstrate the weakness of plaintiffs’
claim. For example, although plaintiffs cite Landmark Commun;
cations, Inc. v. Virginia, 435 U.S. 829 (1978), for the proposition
that “government may limit speech when compelling government
interests outweigh free expression interests of the speaker,” in
fact, in Landmark, the Court held that the First Amendment pro
hibited criminal prosecution of those publishing truthful informa
tion regarding confidential judicial inquiry proceedings. See also
Gentile v. State Bar of Nevada, ___ U.S. ___. 111 S.Ct. 2720
(1991) (Supreme Court reversed lower court and held that a state’s
application of its rule prohibiting a lawyer from making extrajudi-
clal statements to the press violates the First Amendment); Shep
pard v. Marwell, 384 U.S. 333, 335-58 (1966) (even in face of re-
versal because of extremely prejudicial publicity and carnival-like
trial atmosphere, Supreme Court did not advocate prior restraint
of press or parties by the trial court
i
App. 8&0
appeared in the Houston Chronicle and the Philadelphia
Inquirer complained of the high costs of asbestos litiga-
tion, neither advertisement in any way addressed the
merits of a particular case. It simply cannot be said that
publication of similar advertisements by Baltimore area
media, even if viewed by the jurors, would pose a serious
and imminent threat to the fair administration of justice.
This Court has explained that the record must contain
support for a trial court’s finding that a prior restraint
is necessary to ensure a fair trial. Journal Newspapers,
supra, 54 Md. App. at 111. The record before us contains
no such support. Assuming, arguendo, that the sort of
advertisements at issue here could have an adverse ef-
fect upon the trial, steps short of the prior restraint in
question, such as careful instructions to the jury or even
sequestration, could be taken. See Nebraska Press Ass'n,
supra, 427 U.S. at 563-64 (setting forth alternatives to
be tried before resorting to prior restraint of speech). The
trial court, in denying Keene’s earlier request for an in-
junction, concluded that the jurors could ignore demonstra-
tors who were holding picket signs and distributing fliers
outside the courthouse; that decision has not been chal-
lenged on appeal. It seems clear that properly instructed
jurors could equally well ignore news articles and paid
advertisements in the local media.
In sum, we are sympathetic to the experienced, long-
suffering, trial judge’s understandable, indeed commend-
able, desire to avoid prejudicial publicity and not per-
mit this months-long trial to be ‘‘aborted.’”’ The First
Amendment and Maryland Declaration of Rights, how-
ever, prohibit the use of a prior restraint to accomplish
these goals absent the establishment of a serious and im-
minent threat to the fair administration of justice and an
order tailored to the exact needs of the particular case.
App x]
Here, such a threat was never demonstrated. nor was
such an order fashioned, and so we were required t
acate the judgment of the court below
h
Except for the Texas courts, discussed within, that have sanc-
tioned Keene in other cases, our conclusion here appears to be
in accord with that reached by every other court to consider the
propriety of a similar injunction on advertising. See Quinn v
Aetna Life & Cas. Co., supra, 482 F.Supp. at 27 (and numerous
cases cited therein); Rutledge v. Liability Insurance Industry, 487
F.Supp. 5 (W.D. La. 1979); New York Public Interest Research
Group, Inc. v. Insurance Information Institute, 531 N.Y.S.2d 1002
Sup. Ct. 1988), affd, 554 N.Y.S.2d 590 (1990); Kenner [sic] v. Mon-
santo Co., 492 N.E.2d 1327 (Ill. 1986
-— ent
LU
This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.