Court Calls Off Arrangement To Settle 3M Earplugs Claims

Court Calls Off Arrangement To Settle 3M Earplugs Claims

Introduction

The federal court in Florida hearing over a slew of earplug claims filed against 3M has called off efforts to arrange a settlement.

However, in U.S. Bankruptcy Court in Indiana, mediation between 3M and attorneys representing thousands of former and current military members who claim that defective 3M earplugs caused hearing loss continues. It's the latest strange twist in a lengthy court battle over possibly billions of dollars in damages.

In one of the greatest mass tort cases in US history, 3M is facing over 200,000 complaints in US District Court in northern Florida. Military plaintiffs have won 10 of 16 earplug bellwether trials in Florida in the last two years, and juries have awarded them nearly $300 million.

However, the proceedings did not result in a global settlement of all lawsuits. As a result, a U.S. District Judge in Pensacola, Florida, ordered formal mediation in June.

The judge ruled a stalemate. According to the judge, given the parties' evidently implacable attitudes, additional formal mediation sessions would be ineffective at this time.

She also stated that 3M has stated that it has no willingness to negotiate a worldwide settlement before her court and is adamant about resolving all claims only through the bankruptcy system. Meanwhile, the plaintiffs' counsel has stated unequivocally that any bankruptcy-only remedy is unacceptable.

Following years of litigation, 3M filed for Chapter 11 bankruptcy protection for its Aearo Technologies business this summer, effectively suspending litigation against Aearo. 3M's earplug business began at Aearo, which is also cited as a defendant in 3M's earplug lawsuits.

Aearo petitioned the United States Bankruptcy Court in Indianapolis to extend the litigation freeze or automatic stay to 3M, a contentious action aimed at removing earplug lawsuit authority. In December, two co-mediators were selected, one of whom had previously served as a mediator in the earplug dispute.

The co-mediators stated in a bankruptcy court filing that they have had phone conversations and "extensive" emails and messages with attorneys for 3M and the claimants. Both parties have operated in "good faith," and I want to hold a formal mediation session in early February.

In a statement, 3M stated it "continues to support Aearo Technologies by engaging in mediation negotiations toward a resolution in the Chapter 11 process. Our goal remains on resolving this case in an efficient, equitable, and speedy manner, and we look forward to working with all parties, as well as the mediators and the courts."

Plaintiffs' attorneys stated in a statement that they will continue to mediate in good faith as directed by the bankruptcy court, despite the fact that 3M has now stated that the ultimate goal is not a 'efficient and equitable' resolution, but an indefinite delay in justice for the service members they have harmed.