In re Agent Orange Product Liability Litigation

Decision Date25 September 1984
Docket NumberMDL No. 381.
Citation597 F. Supp. 740
PartiesIn re "AGENT ORANGE" PRODUCT LIABILITY LITIGATION.
CourtU.S. District Court — Eastern District of New York

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Stephen J. Schlegel, Schlegel & Trafelet, Ltd., Chicago, Ill.; Benton Musslewhite, Law Offices of Benton Musslewhite, Inc., Houston, Tex.; Thomas Henderson, Henderson & Goldberg, Pittsburgh, Pa.; Phillip E. Brown, Hoberg, Finger, Brown, Cox & Molligan, San Francisco, Cal.; Stanley Chesley, Waite, Schneider, Bayless & Chesley, Cincinnati, Ohio; John M. O'Quinn, O'Quinn, Hagans & Wettman, Houston, Tex.; Neil R. Peterson and Gene Locks, Greitzer & Locks, Philadelphia, Pa.; Newton B. Schwartz, Houston, Tex.; Irving Like, Reilly, Like and Schneider, Babylon, N.Y.; David J. Dean, Dean, Falanga & Rose, Carle Place, N.Y.; Aaron Twerski, Hempstead, N.Y., of counsel, for plaintiffs.

Leonard Rivkin, Rivkin, Leff, Sherman & Radler, Garden City, N.Y.; Philip Pakula, Townley & Updike, New York City; Wendell B. Alcorn, Jr., Cadwalader, Wickersham & Taft, New York City; William Krohley, Kelley, Drye & Warren, New York City; Thomas Beck, Arthur, Dry & Kalish, New York City; Richard Goldstein, Shea & Gould, New York City, of counsel; David M. Gross, Budd, Larner, Kent, Gross, Picillo & Rosenbaum, New York City; Henry G. Miller, Clark, Gagliardi & Miller, White Plains, N.Y.; for defendants.

Arvin Maskin, Dept. of Justice, Washington, D.C., for third-party defendant United States.

WEINSTEIN, Chief Judge.

                                                 TABLE OF CONTENTS
                Preface and Summary ------------------------------------------------------------   746
                Introduction -------------------------------------------------------------------   748
                I.    Procedural History -------------------------------------------------------   750
                      A. Jurisdiction ----------------------------------------------------------   754
                      B. Conflict of Laws ------------------------------------------------------   755
                      C. Class Action ----------------------------------------------------------   755
                      D. Status of Third Party Complaints --------------------------------------   757
                II.   Fairness Hearings --------------------------------------------------------   758
                      A. Legal Requirements ----------------------------------------------------   758
                      B. Reaction of Class Members ---------------------------------------------   764
                         1. Hearings -----------------------------------------------------------   764
                            a. Need for Medical Help for Veterans and Financial Help for Those
                               Too Ill to Work -------------------------------------------------   765
                            b. Need for Medical and Financial Aid for Children Born with Birth
                               Defects ---------------------------------------------------------   765
                            c. Need for Information on Possible Genetic Damage to Veterans
                               and Their Children ----------------------------------------------   766
                            d. Dissatisfaction with the Veterans Administration and the Treatment
                               Received in its Hospitals ---------------------------------------   766
                            e. Inadequacy of the Settlement Amount to Pay Adequate Damages -----   767
                            f. Failure of Chemical Companies to Admit Fault --------------------   768
                            g. Failure of Government to Admit Fault, Participate in Settlement
                               and Accept its Responsibility for Caring for Veterans and their
                               Children --------------------------------------------------------   768
                            h. Possibility of a Coverup of Information with Sealed Files and
                               Return of Documents to Defendants -------------------------------   769
                            i. Need for a Full Open Trial to Vindicate the Plaintiffs and Protect
                               Their Rights to Individual Justice ------------------------------   770
                            j. Inability to Decide Whether to Accept Settlement Without Knowing
                               How it Would be Distributed and How Much would be Spent
                               in Attorneys' Fees ----------------------------------------------   771
                            k. Inadequate Payment by Defendants Relative to Their Resources ----   771
                            l. Inadequate Time to File Claims ----------------------------------   771
                            m. Need to Settle Now to Get on with Life --------------------------   771
                            n. Need for Further Research and Reassurances ----------------------   772
                         2. Written Communications ---------------------------------------------   773
                III.  Factual Problems with Claims ---------------------------------------------   775
                      A. Use of Agent Orange in Vietnam ----------------------------------------   775
                      B. Claimed Effects of Contact with Agent Orange in Vietnam ---------------   777
                         1. General Considerations ---------------------------------------------   777
                         2. Plaintiffs' Evidence of Causality ----------------------------------   782
                      C. Scientific Studies on Causality ---------------------------------------   787
                      D. Knowledge of Government and Defendants --------------------------------   795
                IV.   Legal Problems with Claims -----------------------------------------------   799
                      A. Statutes of Limitations -----------------------------------------------   800
                         1. Introduction -------------------------------------------------------   800
                         2. Standard Multijurisdictional Approach ------------------------------   800
                            a. CPLR 202 --------------------------------------------------------   800
                            b. Application of CPLR 202 to Agent Orange Litigation --------------   802
                            c. CPLR 214 --------------------------------------------------------   804
                
                         3. Single Time-bar Period Based Upon Federal or National Consensus
                            Law ----------------------------------------------------------------   804
                            a. Federal Substantive Law -----------------------------------------   804
                            b. National Consensus Law ------------------------------------------   804
                         4. Single Time-bar Period for Class Actions ---------------------------   805
                            a. General Theory --------------------------------------------------   805
                            b. Federal ---------------------------------------------------------   806
                            c. New York --------------------------------------------------------   808
                         5. Single Time-bar Period for American Veterans Based Upon Interpretation
                            of New York Statute ------------------------------------------------   810
                            a. Constitutionality -----------------------------------------------   811
                            b. Construing Provisions to Apply to Nonresidents ------------------   813
                         6. Wives and Children -------------------------------------------------   815
                         7. Vietnam Veterans Living Abroad -------------------------------------   816
                         8. Conclusion on Statutes of Limitations ------------------------------   816
                      B. Failure to Determine Who Was Harmed and Who Caused Harm ---------------   816
                         1. Facts --------------------------------------------------------------   817
                         2. Law ----------------------------------------------------------------   819
                            a. The Problem of the Indeterminate Defendant ----------------------   819
                               (1) Introduction ------------------------------------------------   819
                               (2) Applicable Law ----------------------------------------------   820
                                   (a) Enterprise Liability ------------------------------------   820
                                       (i) Legal Theory ----------------------------------------   820
                                      (ii) Application of Enterprise Liability Theory to this
                                           Case ------------------------------------------------   821
                                   (b) Alternative Liability and Its Variations ----------------   822
                                       (i) Legal Theory ----------------------------------------   822
                                      (ii) Application of Alternative Liability to this Case ---   826
                                   (c) Defendants' Individual Duty to Warn the Government
                                       of Dangers ----------------------------------------------   828
                                       (i) Duty to Warn of Danger in Their Own Product ---------   828
                                      (ii) Duty to Warn of Dangers in Another's Product --------   830
                                   (d) Summary -------------------------------------------------   833
                            b. The Problem of the Indeterminate Plaintiff ----------------------   833
                               (1) Scope of the Problem ----------------------------------------   834
                               (2) Preponderance Rule ------------------------------------------   835
                                   (a) Application of the Preponderance Rule to Mass Exposure
                                       Cases ---------------------------------------------------   836
                                   (b) Inadequacy of Individualized Solutions ------------------   837
                               (3) Possible Solution in a Class Action -------------------------   837
                                   (a) Analogy and Precedent -----------------------------------   839
                                       (i) Employment Discrimination Cases ---------------------   839
                                      (ii) Consumer Class Actions ------------------------------   840
                                   (b) Practical Advantages of Class-wide Solution -------------   841
                         3. Conclusion as to Indeterminate Defendants and Plaintiffs -----------   842
                      C. Nature of Liability and Relations to Defense of Government Knowledge --   843
                         1. Introduction -------------------------------------------------------   843
                         2. Defense Production Act ---------------------------------------------   843
                         3. Law to be
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