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Is My Drywall Chinese? - HB Litigation Conferences

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that there is a much smaller chance that they may make some inconsistent statement<br />

due to memory lapse or other inadvertence.<br />

A Note On Costs Many plaintiffs’ counsel may believe that defendants are<br />

unconcerned about litigation costs and, in fact, use high litigation costs against plaintiffs.<br />

This certainly was a tactic employed by some corporate defendants in the past but times<br />

have changed. Even prior to the current recession, corporate defendants were<br />

increasingly conscious of defense costs demanding reduced rates and limiting defense<br />

efforts. The current economic situation has exacerbated this trend. On the plaintiffs’<br />

side, the willingness of successful plaintiffs’ law firms to invest resources in cases and<br />

their ability to share information electronically has dramatically evened the playing field.<br />

This has resulted in a situation in which both sides share a common interest in reducing<br />

litigation costs.<br />

DRYWALL PROCEEDINGS<br />

Although an MDL has been established for federal drywall litigation, neither a venue nor<br />

judge has yet been selected. Therefore, we can only attempt to predict what the<br />

proceedings may look like based on the purpose of MDL and prior experiences.<br />

Relevant Examples Experiences in several past MDL proceedings (Vioxx, breast<br />

implant and asbestos) may be predictors of how the current MDL might be used.<br />

The breast implant MDL presented substantial issues of general causation. Based on a<br />

developing body of epidemiologic studies, defendants denied that the implants were<br />

capable of causing the types of injuries claimed by plaintiffs. Plaintiffs relied on earlier<br />

studies that showed a marginal effect. Analyzing the breast implant scientific studies,<br />

their results and conclusions required highly specialized knowledge of medicine,<br />

chemistry, toxicology and statistics not generally possessed by judges and attorneys. In<br />

a groundbreaking decision, the Court appointed a panel of experts to analyze the<br />

available information and provide an opinion as to whether there was a scientific<br />

consensus that breast implants could cause the claimed injury. The panel’s conclusion<br />

that the epidemiology failed to demonstrate general causation was the most important<br />

development in the litigation.<br />

It would be difficult to find a better example of a defendant using an MDL than Merck’s<br />

handling of the Vioxx litigation. The availability of the MDL procedure reduced pressure<br />

to use a class action to coordinate and consolidate the litigation nationwide. Avoiding<br />

the class action, Merck prevented the possibility that a single catastrophic judgment<br />

could be rendered against it. Merck lost little in accepting MDL proceedings because it<br />

was not seriously asserting a general causation defense. Merck’s primary defense was<br />

not that Vioxx could not cause plaintiffs’ claimed injuries (increased incidence of heart<br />

attacks). Rather, after establishing that there were many other general causes of heart<br />

attacks, Merck focused its defense on specific plaintiff’s claims of injury. Pursuing this

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