Toxic Tort Alert August 31, 2010 Author: Michael E. Waller michael.waller@klgates.com +1.973.848.4132 Joanne Roman Jones New Jersey Appellate Division Affirms “Dual Persona” Analysis and Allows Take-Home Claim Despite Workers’ Compensation Bar to Direct Exposure Claim joanne.romanjones@klgates.com +1.973.848.4137 K&L Gates includes lawyers practicing out of 36 offices located in North America, Europe, Asia and the Middle East, and represents numerous GLOBAL 500, FORTUNE 100, and FTSE 100 corporations, in addition to growth and middle market companies, entrepreneurs, capital market participants and public sector entities. For more information, visit www.klgates.com. On August 20, 2010, the Superior Court of New Jersey, Appellate Division, in Bonnie Anderson and John R. Anderson v. A.J. Friedman Supply Co., Inc., et al.,1 upheld a jury verdict of $7,000,000 for the wife of an Exxon Mobil employee diagnosed with peritoneal mesothelioma, as well as the $500,000 awarded to her husband for his loss of consortium claims. Of particular significance is that in doing so, the Court affirmed the trial court’s novel “dual persona” analysis, allowing Plaintiffs to assert their “take-home” exposure claim against Exxon Mobil, despite what would otherwise be claims subject to the workers’ compensation bar. The Appellate Division found that the concept of “dual personas” applied, because Exxon Mobil took on a “completely separate and independent role with respect to the employee” concerning Mrs. Anderson’s claimed non-employment related asbestos exposure.2 Factual Background Plaintiffs married in 1967. From 1969 until his retirement in 2004, Mr. Anderson worked in various positions at a refinery owned by Exxon Mobil Corporation (the “Refinery”). After a three-month training period, he worked as a chemical process operator until 1975. This work involved the removal of external insulation associated with the repair of pumps and filters. Mr. Anderson also dumped raw asbestos into tanks and coffee cans, as part of his duties in repairing filters. Mr. Anderson worked in his street clothes, and he brought those clothes home to be laundered by Mrs. Anderson.3 From 1975 to approximately 1978, Mr. Anderson worked as a console operator inside a control room. However, he continued to work overtime removing insulation and repairing equipment. Plaintiffs claimed that Exxon Mobil never advised Mr. Anderson about hazards associated with taking his work clothes home from work. From 1979 until 2004, Mr. Anderson worked as an instrument technician; and although his clothes were cleaner, he continued to be in contact with asbestos-containing insulation. Although Exxon Mobil was supplying lockers, showers, and uniforms at this time, Mr. Anderson never used the 1 2 3 --- A.2d ----, 2010 WL 3289061, 2010 N.J. Super LEXIS 173 (August 20, 2010). Id. at *23. Id. at *2-3. Toxic Tort Alert showers and brought his laundry home because, he claimed, the laundry chemicals Exxon Mobil used caused him discomfort.4 Mrs. Anderson worked at the Refinery from 1975 to 1986. She trained for three years in different capacities around the Refinery, but never worked in the chemical plants. She had no recollection of working with or around asbestos-containing insulation during this time. From approximately 1978 to 1986, Mrs. Anderson worked as an electrician, but claimed she did not disturb insulation during her work. Mrs. Anderson worked as a school librarian from 1986 until 2004.5 In 2001 Mrs. Anderson was diagnosed with malignant peritoneal mesothelioma.6 Plaintiffs filed a complaint against Exxon Mobil as well as against numerous manufacturers and suppliers of asbestos-containing products. Exxon Mobil moved for summary judgment, arguing that the workers’ compensation act provided the exclusive remedy, and that it barred Plaintiffs’ claim. Judge Ann G. McCormick denied the motion without prejudice. After discovery, the company moved again for summary judgment on the same grounds, with the same result. As all other Defendants resolved with Plaintiffs prior to trial, the matter proceeded to trial only against Exxon Mobil.7 At trial, Plaintiffs alleged that Mrs. Anderson developed mesothelioma as a result of (1) her own personal employment at the Refinery from 1975 to 1986, (2) through “take-home” exposure incurred by laundering her husband’s clothes during his own employment at the Refinery from 1969 to 2004, or (3) both. At trial both parties offered witnesses to argue liability and causation. Exxon Mobil moved for judgment at the close of Plaintiffs’ case and again at the close of all 4 5 6 7 Id. at *3-4. Id. at *4-5. Id. at *6. Id. at *9. evidence. The judge denied the first motion and reserved decision on the second.8 The jury awarded $500,000 in compensatory damages to Mrs. Anderson only. Plaintiffs moved for, and were granted, a new trial on damages. Exxon Mobil’s leave to appeal the new trial order was denied. Exxon Mobil’s motion for a new trial on all issues was also denied by the trial judge. Leave to appeal that decision was also denied.9 After the second trial on damages, a different jury awarded Mrs. Anderson $7,000,000 and Mr. Anderson $500,000. The judge ordered prejudgment and post-judgment interest. Exxon Mobil appealed, arguing that workers’ compensation act barred Plaintiffs’ recovery, and that the judge erred in her ruling on several evidentiary issues and in granting Plaintiffs a new trial on damages while denying Exxon Mobil’s motion for a new trial on all issues.10 The Decision The Appellate Division affirmed the decision of the trial court and rejected all of Exxon’s arguments. Exxon Mobil first argued on appeal that the trial court should have granted summary judgment because the claim was barred by the exclusivity provisions of the workers’ compensation act. The Appellate Division disagreed. The Appellate Division found that the facts in this case showed an injury caused by one (or both) of two different means of exposure. The Appellate Division noted that the “source of the responsible exposure ultimately controls the legal basis of recovery.”11 The Appellate Division noted on appeal that Judge McCormick had correctly characterized the issue at trial as “dual exposure” and had found that the New Jersey Supreme Court’s ruling in 8 9 Id. at *16. Id. at *17. 10 11 Id. at *18. Id. at *18. August 31, 2010 2 Toxic Tort Alert Olivo12 made clear that secondary exposure could be a basis for a cause of action. The Appellate Division further noted that the issue before the trial court was whether Mrs. Anderson could assert her claim against Exxon Mobil from her alleged secondary exposure from washing her husband’s clothes, which included the time she, herself, was an employee. In response to this issue at trial, Judge McCormick discussed the “dual persona doctrine” as detailed in a workers’ compensation treatise.13 Although the trial judge found no illuminating or factually similar case law, she nevertheless found that Exxon Mobil indeed had a “dual persona,” as it held both an employer relationship and a bystander relationship to Mrs. Anderson. As a result of this analysis, the Appellate Division noted that the trial judge correctly permitted the case to proceed based on Mrs. Anderson’s claims of bystander (or “takehome”) exposure, which was unrelated to her employment at the Refinery.14 After reviewing the lower court decision, the Appellate Division agreed with the trial court’s analysis. It found that the “dual persona doctrine would apply in situations when the employer has undertaken a completely separate and independent role with respect to the employee.”15 The Appellate Division found that this application of the “dual persona” doctrine is supported by the New Jersey Supreme Court’s decision in Olivo “to impose a separate duty on employers for injuries to a worker’s spouse caused by bystander exposure to the asbestos brought home on work clothes.”16 In sum, although the workers’ compensation bar eliminated Exxon Mobil’s liability with respect to Mrs. Anderson’s direct exposure while present on the Refinery premises, Exxon Mobil could be held liable pursuant to Olivo and with respect to Mrs. Anderson’s secondary exposure to asbestos brought home by her husband. Therefore, the Appellate Division affirmed the trial court’s denials of Exxon Mobil’s motions for summary judgment on this basis.17 Conclusion The Superior Court of New Jersey, Appellate Division’s decision in Anderson establishes the availability of the “dual persona” analysis in asbestos claims brought by an employee against an employer. Because of the unique factual scenario, this case may be limited to its facts. However, the decision may be employed by plaintiffs’ counsel in future attempts to circumvent the workers’ compensation bar in other claims brought in New Jersey, as well as other jurisdictions. It remains to be seen whether Exxon Mobil will seek to appeal this decision to New Jersey’s highest court. 12 Olivo v. Owens-Illinois, Inc., 186 N.J. 394, 895 A.2d 1143 (2006) (In Olivo, the New Jersey Supreme Court found a duty of care was owed by the premises owners for injuries to a worker’s spouse in take-home cases.) 13 Arthur Larson, Larson’s Workers’ Compensation Law, Vol. 6, § 113.01[1], p. 113-2 (2009). 14 15 16 Id. at *23. Id. at *23. Id. at *24. 17 Other issues were addressed in the opinion that are not discussed in this alert, including the trial court’s decision to limit the testimony of a defense medical expert, Dr. Gerald Kerby, regarding the causes of peritoneal mesothelioma in women, which was also upheld on appeal. August 31, 2010 3 Toxic Tort Alert Anchorage Austin Beijing Berlin Boston Charlotte Chicago Dallas Dubai Fort Worth Frankfurt Harrisburg Hong Kong London Los Angeles Miami Moscow Newark New York Orange County Palo Alto Paris Pittsburgh Portland Raleigh Research Triangle Park San Diego San Francisco Seattle Shanghai Singapore Spokane/Coeur d’Alene Taipei Tokyo Warsaw Washington, D.C. K&L Gates includes lawyers practicing out of 36 offices located in North America, Europe, Asia and the Middle East, and represents numerous GLOBAL 500, FORTUNE 100, and FTSE 100 corporations, in addition to growth and middle market companies, entrepreneurs, capital market participants and public sector entities. For more information, visit www.klgates.com. K&L Gates is comprised of multiple affiliated entities: a limited liability partnership with the full name K&L Gates LLP qualified in Delaware and maintaining offices throughout the United States, in Berlin and Frankfurt, Germany, in Beijing (K&L Gates LLP Beijing Representative Office), in Dubai, U.A.E., in Shanghai (K&L Gates LLP Shanghai Representative Office), in Tokyo, and in Singapore; a limited liability partnership (also named K&L Gates LLP) incorporated in England and maintaining offices in London and Paris; a Taiwan general partnership (K&L Gates) maintaining an office in Taipei; a Hong Kong general partnership (K&L Gates, Solicitors) maintaining an office in Hong Kong; a Polish limited partnership (K&L Gates Jamka sp. k.) maintaining an office in Warsaw; and a Delaware limited liability company (K&L Gates Holdings, LLC) maintaining an office in Moscow. K&L Gates maintains appropriate registrations in the jurisdictions in which its offices are located. A list of the partners or members in each entity is available for inspection at any K&L Gates office. This publication is for informational purposes and does not contain or convey legal advice. The information herein should not be used or relied upon in regard to any particular facts or circumstances without first consulting a lawyer. ©2010 K&L Gates LLP. All Rights Reserved. August 31, 2010 4