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2015
TOP VERDICTS OF NEW YORK
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Corporation of America. They noted that Magnesium Corporation of America had accrued a massive amount of debt, and they claimed that the company’s solvency was further imperiled by its inability to produce competitively priced magnesium, its generation of enormous amounts of hazardous wastes, and its standing as the nation’s largest emitter of chlorine gas. Plaintiff’s counsel further claimed that Magnesium Corporation of America’s hazardous-waste generation was drawing daily civil penalties in the amount of $25,000, and they also claimed that the company faced the cost of an enormous environmental remediation. Plaintiff’s counsel contended that the company was virtually insolvent, but that Renco Group forced transactions that generated $150 million of debt.
Defense counsel contended that the defendants’ actions did not bankrupt or weaken Magnesium Corporation of America or Renco Metals. They claimed that 1996, 1997 and 1998 were marked by strong financial performances, that the companies promptly repaid all debts, that the companies had sufficient cash, and that the companies’ available credit exceeded $20 million. They acknowledged that Renco Metals issued $150 million of bonds, but they claimed that demand greatly exceeded the offering.
Defense counsel also contended that Renco Group could not have foreseen the eventual insolvency of Magnesium Corporation of America or Renco Metals. They noted that the disputed transactions concluded in 1998, but that bankruptcy was not pursued until 2001. They suggested that the companies’ insolvency was a result of a collapse of their revenue, a global recession and an unforeseeable decline of the demand for magnesium.
Defense counsel further contended that plaintiff’s counsel exaggerated the extent of Magnesium Corporation of America’s hazardous-waste generation. They claimed that the company was not outputting illegal amounts of chlorine gas. They acknowledged that the United States Environmental Protection Agency sued Magnesium Corporation of America, but they noted that the suit was filed in 2001.
Defense counsel also contended that Renco Group’s officers and directors did not breach a fiduciary duty. They noted that the officers and directors were shared by Renco Group and Renco Metals, and they contended that shared officers do not retain a fiduciary duty to the subsidiary.
Defense counsel further contended that the disputed transactions occurred before Ryan and Sadlowski became officers of Renco Group.
INJURIES/DAMAGES Buchwald sought recovery of $118,445,675, which represented the total amount of dividends and conveyances that were disputed. Buchwald also sought recovery of interest and punitive damages.
RESULT The jury found that the disputed transactions did not cause insolvency of Magnesium Corporation of America or Renco Metals; it found that the disputed trans- actions did not unreasonably diminish the capital of those companies; and it rejected the individual claims that addressed D’Atri, Ryan and Sadlowski.
However, the jury also found that fraudulent conveyances were executed; that Brown, Kaplan, Legge, Ogaard, Renco Group, Rennert and Thayer were liable for fraudulent conveyances; that Rennert aided and abetted fraudulent conveyances; that Brown, Fay, Kaplan, Legge, Rennert and Thayer breached a fiduciary duty; that Brown, Fay, Kaplan, Legge, Renco Group, Rennert and Thayer aided and abetted a breach of fiduciary duty; and that Rennert and/or his trustees were unjustly enriched.
The jury determined that damages totaled $118,222,000. Renco Group’s liability totaled $102 million, and Rennert’s liability totaled $16,222,000. Damages were not assessed against the remaining defendants.
NUMBER THREE
CONSTRUCTION
Construction — Accidents — Falling Object — Slips, Trips & Falls — Fall from Height — Workplace Safety — Worker/Workplace Negligence — Negligent Repair — Wrongful Death — Survival Damages
Crane’s deadly collapse a result of frugality, lawsuit alleged
LEE E. BUCHWALD
ACTUAL AWARD
$101,000,000 Commercial: breach of fiduciary duty, fraudulent conveyances (Renco Group)
$16,222,000 Commercial: breach of fiduciary duty, fraudulent conveyances (Rennert)
$1,000,000 Commercial: punitive damages (Renco Group)
$117,222,000
DEFENDANT(S)
TRIAL LENGTH
TRIAL DELIBERATIONS
JURY VOTE JURY
POST TRIAL Judge Allison Nathan denied defense counsel’s motion to set aside the ver- dict, but she vacated the award for punitive damages. Thus, the verdict was reduced to $117,222,000. Nathan also awarded prejudgment interest.
EDITOR’S COMMENT This report is based on information that was provided by plain- tiff’s counsel. Additional information was gleaned from court documents. Counsel of Brown, D’Atri, Fay, Kaplan, Legge, Ogaard, Renco Group, Rennert, Ryan, Sadlowski, Thayer, and Cadwalader, Wickersham & Taft did not respond to the reporter’s phone calls, and the remaining defendants’ counsel was not asked to contribute.
12 VerdictSearch’s Top New York Verdicts of 2015
AMOUNT
TYPE CASE VENUE JUDGE
DATE
INJURY TYPE(S)
PLAINTIFF(S)
PLAINTIFF ATTORNEY(S)
PLAINTIFF EXPERT(S)
$95,971,644
Verdict-Plaintiff
Estate of Leo v. Lomma New York County Manuel J. Mendez
August 3, 2015
other - death
Estate of Ramadan Kurtaj (Male, 27 Years),
Estate of Donald Christopher Leo (Male, 30 Years)
Susan M. Karten; Susan M. Karten & Associates, LLP; New York, NY, for Estate of Ramadan Kurtaj
Michael G. O’Neill; Law Office of Michael G. O’Neill; New York, NY, for Estate of Ramadan Kurtaj
Craig H. Snyder; Susan M. Karten & Associates, LLP; New York, NY, for Estate of Ramadan Kurtaj
Robert G. Schacht; of counsel, Bernadette Panzella, P.C.; Staten Island, NY, for Estate of Donald Christopher Leo
Bernadette Panzella; Bernadette Panzella, P.C.; Staten Island, NY, for Estate of Donald Christopher Leo
Robert Mulhall; of counsel, Bernadette Panzella, P.C.; Staten Island, NY, for Estate of Donald Christopher Leo
Eric Kaufmann ; Welding; Bethlehem, PA called by: for Michael G. O’Neill Susan M. Karten Bernadette Panzella
Bernd Fischer Ph.D.; Foreign Culture; Fort Wayne, IN called by: for Susan M. Karten
Ashraf Metwally ; Structural; New York, NY called by: for Michael G. O’Neill Susan M. Karten Bernadette Panzella
Howard Schwartz M.D.; Internal Medicine; Bronx, NY called by: for Michael G. O’Neill Susan M. Karten Bernadette Panzella
Richard McSwain Ph.D., P.E.; Metallurgical; Pensacola, FL called by: for Michael G. O’Neill Susan M. Karten Bernadette Panzella Jonathan Cunitz D.B.A.; Economics; Westport, CT called by: for Michael G. O’Neill Susan M. Karten Bernadette Panzella
Lawrence Shapiro ; Engineering; Lynbrook, NY called by: for Craig H. Snyder Susan M. Karten Bernadette Panzella
TES Inc., James F. Lomma, J.F. Lomma Inc., Mattone Group LLC, Mattone Group Ltd., 1765 First Associates LLC, Sorbara Construction Corp., Brady Marine Repair Co. Inc., New York Crane & Equipment Corp., Mattone Group Construction Co. Ltd., Leon D. DeMatteis Construction Corp., Branch Radiographic Laboratories Inc., Howard I. Shapiro & Associates, Consulting Engineers, P.C.
11 months
3 Days 6-0
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