Paint company sanctioned for bad faith settlement negotiations in asbestos case
A Pennsylvania paint manufacturer has been sanctioned $10,000 by a judge who found that the company wasted the court’s time by acting in bad faith at mediation in an asbestos lawsuit.
Judge Mary Johnston of the Superior Court of the State of Delaware, New Castle County, issued the fine after finding that Scranton-based United Gilsonite Laboratories wasted the court’s time and resources by pushing cases to trial as part of its settlement strategy, contrary to Delaware’s rules governing alternative dispute resolution. The case proceeded through jury selection and halfway through trial when the case settled. The company said that it decided to settle after one of its employees testified at trial. However, the judge found that there was nothing significantly different from the same employee’s deposition testimony to make a difference at trial. The judge said that the company’s bad faith conduct needlessly burdened the court, bailiffs, clerks, jury services, court reporters, the judge, jurors, and the plaintiffs. The $10,000 fine will go to Delaware’s Combined Campaign for Justice, which provides legal service to the poor.
