Home / Crime and Justice / Judge Rules Asbestos Law Firms Must Face RICO Claims
Judge Rules Asbestos Law Firms Must Face RICO Claims
7 Nov
Summary
- Law firms face a civil racketeering lawsuit from JM Eagle.
- Judge ruled the firms must face claims of a scheme to defraud.
- The case now moves to discovery after two years pending.
US District Judge Robert Gettleman has ruled that law firms Simmons Hanly Conroy and Sokolove Law must defend against a civil racketeering lawsuit initiated by plastic pipe maker JM Eagle. The suit, pending for two years in Chicago federal court, accuses the firms of a multi-faceted scheme to defraud asbestos plaintiffs and defendants.
Gettleman denied the law firms' motion to dismiss, citing exceptions to the Noerr-Pennington doctrine when litigation activity is alleged to be a sham. He stated that JM Eagle sufficiently pleaded its case to avoid dismissal.
The ruling allows JM Eagle's racketeering claims to proceed to discovery, where the company can examine how the law firms generated and pursued their cases. The judge dismissed JM Eagle's claims for common law fraud, unjust enrichment, and civil conspiracy without prejudice.
JM Eagle alleges that Simmons Hanly suppressed evidence, used false testimony, and committed fraud in thousands of asbestos cases, leading to billions recovered from defendants. The lawsuit also claims Sokolove Law acted as a lead generator for Simmons Hanly, sharing in recoveries and lawyers.
This decision is significant for companies facing serial, sham claims, according to JM Eagle's representation. The case, J-M Manufacturing Company, Inc. v. Simmons Hanly Conroy, LLP et al, is proceeding in the US District Court for the Northern District of Illinois.
