Antitrust Law Daily Wrap Up, RICO NEWS: Trial law firm files counterclaims against gasket maker in asbestos suit, (Nov 18, 2015)

By Linda O’Brien, J.D., LL.M.

A law firm that was accused of violating civil RICO laws in pursuing asbestos litigation against asbestos gasket manufacturer Garlock Sealing Technologies has turned the tables on Garlock. Simon Greenstone Panatier Bartlett has brought RICO counterclaims against the manufacturer and Garrison Litigation Management Group over their alleged efforts to withhold evidence of the dangers of Garlock’s products and to file sham litigation against the firm. The suit is currently pending in the federal district court in Charlotte, North Carolina. The counterclaims were submitted in response to Garlock and Garrison’s January 2014 complaint against Simon Greenstone for concealing its clients’ exposure to other asbestos products (Garlock Sealing Technologies LLC v. Simon Greenstone Panatier Bartlett, Case No. 3:14-cv-00116, filed November 16, 2015).

Since 1970, Garlock has been a defendant in asbestos personal injury and wrongful death litigation across the country. From 1900 to 2001, Garlock manufactured asbestos-containing gaskets that were used in high heat applications, such as steam lines, pumps, and values. Beginning in 1930, scientific evidence demonstrated that the inhalation of asbestos could cause mesothelioma, lung cancer, and asbestosis. Garrison Litigation Management Group was formed in 1996 to manage Garlock’s asbestos litigation.

Garlock and Garrison’s complaint states that Simon Greenstone concealed evidence that several of its clients were exposed to other asbestos-containing products and as a result Garlock was defrauded into settling those cases.

Simon Greenstone denied the allegations and brought several affirmative defenses and counterclaims. Simon Greenstone asserts that Garlock and Garrison knowingly concealed material evidence that Garlock products caused disease in order to suppress the value of jury verdicts and settlements. Garlock and Garrison also filed a baseless fraud and racketeering lawsuit against Simon Greenstone for the improper purpose of obtaining money under false pretenses.

“Garlock and Garrison’s ulterior purpose in bringing the RICO Lawsuit against Simon Greenstone was to gain improper leverage against Simon Greenstone in the Garlock Bankruptcy by putting Simon Greenstone at financial risk with threats of economic harm through the damages pled in the RICO Lawsuit and by damaging Simon Greenstone’s reputation,” the law firm alleges.

The law firm asserts claims for fraudulent inducement, abuse of process, conspiracy, and RICO violations. The action seeks treble, compensatory, exemplary, and punitive damages, costs of suit, attorney fees, and any other just and proper relief.

The case is No. 3:14-cv-00116.

Attorneys: Michael W. Magner, Mark A. Cunningham, and Avery B. Pardee (Jones Walker LLP) for Simon Greenstone Panatier Bartlett, PC.

Companies: Garlock Sealing Technologies LLC; Garrison Litigation Management Group, Ltd.

News: RICO NorthCarolinaNews