IN RE: Celotex Corp. "Technifoam" Products Liability Litigation
MDL No. 210
J.P.M.L.May 1, 2015Background
- Plaintiffs (Wallison) own a New York home and allege interior walls contain Celotex "Technifoam" boards and ceilings contain a two-part polyurethane foam manufactured by defendants (Witco/Upjohn/unknown).
- Plaintiffs assert diminution of value and uninhabitability due to fire/flammability characteristics; claims include strict liability, negligence, breach of warranty, and fraudulent misrepresentation.
- The Judicial Panel on Multidistrict Litigation (JPML) had previously centralized related Technifoam actions in the District of Minnesota under 28 U.S.C. § 1407 and assigned them to Judge Weiner.
- The JPML conditionally transferred Wallison to the District of Minnesota for coordinated pretrial proceedings; plaintiffs support transfer; Upjohn and Witco oppose and moved to vacate.
- Upjohn and Witco argued Wallison differs because it involves multiple manufacturers and products (two-part foam) with local witnesses/documents in New York, creating hardship if transferred.
- The Panel concluded Wallison shares common factual questions—especially concerning Celotex—and transfer is necessary to avoid duplicative discovery and inconsistent rulings; unique issues can be managed by the transferee judge.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Wallison should be transferred under 28 U.S.C. § 1407 | Transfer promotes coordinated pretrial proceedings and prevents duplication | Transfer imposes undue hardship; Wallison involves different products/defendants and local witnesses in NY | Transfer ordered; common issues with Celotex justify § 1407 consolidation |
| Whether presence of unique parties/issues defeats transfer | Unique issues can be managed by transferee judge; discovery can be limited for unrelated parties | Unique parties and unrelated product liability distinguish Wallison from MDL actions | Uniqueness is not an obstacle; transferee has discretion to handle common and unique issues concurrently |
| Whether transfer will cause undue burden on non-transferee parties | Use of lead/liaison counsel, local depositions, and document depositories limits burdens | Travel and document/witness location in NY would be costly | Transfer need not cause undue burden; measures exist (local depositions, depositories, counsel coordination) to mitigate expense |
| Whether transfer eliminates duplicative discovery re: industry-wide testing orgs | Wallison involves industry-wide technical assistance common to multiple defendants | Opponents did not dispute common industry issues but emphasized local aspects | Transfer will eliminate duplicative discovery about industry organizations and common issues |
Key Cases Cited
- In re Celotex Corporation "Technifoam" Products Liability Litigation, 68 F.R.D. 502 (J.P.M.L. 1975) (prior centralization of Technifoam cases in Minnesota)
- In re Japanese Electronic Products Antitrust Litigation, 388 F. Supp. 565 (J.P.M.L. 1975) (presence of unique parties/issues does not preclude MDL transfer)
- In re Republic National-Realty Equities Securities Litigation, 382 F. Supp. 1403 (J.P.M.L. 1974) (transferee judge has broad discretion to design pretrial discovery)
- In re Stirling Homex Corporation Securities Litigation, 405 F. Supp. 314 (J.P.M.L. 1975) (depositions may be taken where witnesses reside despite transfer)
