TimesLeader.com

Tronox late in paying, lawyer says

By Sheena Delazio sdelazio@timesleader.com
Staff Writer

WILKES-BARRE – Attorneys for plaintiffs in a lawsuit involving more than $900,000 said in court papers filed Tuesday that the defendant, Alabama-based Tronox Inc., has continued to delay in paying plaintiffs and has “thumb(ed) its nose” at the Luzerne County court system.

The lawsuit involves nearly 3,500 plaintiffs, who filed 24 original lawsuits in January 2005 alleging they developed health problems, including cancer, from chemicals released into the air by the former Avoca-based Kerr McGee Corp., now owned by Tronox.

According to court papers filed Tuesday in Luzerne County court, Angel Mae T. Webby, an attorney with the Powell Law Firm, said that Tronox “has not only refused to attend the scheduled deposition, but has done so in bad faith in an attempt to avoid honoring their obligations. …”

Webby said Tronox did not appear for a meeting on Dec. 10 where deposition was to be taken in the case, and violated a subpoena order.

On Nov. 21, a Luzerne County judge upheld an arbitration award decision made by a federal judge totaling $943,885.72 to be paid to eight of the plaintiffs. In early December, attorneys served Tronox with a subpoena to ascertain the company’s assets. Tronox said that the subpoena lacked “sufficient notice and was unduly burdensome” and did not file necessary court papers to stop the subpoena, court papers say.

On Dec. 8, attorneys for both Tronox and the plaintiffs arranged for deposition to be heard sometime in January 2009. Two days later, Webby said Tronox failed to appear as required by the subpoena for deposition. Webby said in court papers that Tronox is “now a judgment debtor whose bank accounts have been lawfully garnished. This is a serious and critical position and (Tronox) cannot now ‘thumb its nose’ at this honorable court and the laws of Pennsylvania.”

Webby asked a judge to sign an order requesting: Tronox to pay damages totaling $943,885.70, plus delay and post-judgment interest within 10 days or face sanctions totaling $10,000 for each day Tronox fails to pay; an order for Tronox to comply with the issued subpoena, or be fined $10,000 a day; permit the plaintiffs to submit a bill of costs including attorney fees; and to order Tronox to pay the bill of costs within 10 days or face a fine of $1,000 a day.

A spokeswoman for Tronox has previously said the company cannot comment on ongoing litigation.

A hearing was set for Jan. 26, 2009 at 9:30 a.m. for attorneys to argue the subpoena.

The Kerr-McGee company manufactured railroad ties from 1956 until it closed in 1996. The plaintiffs allege they developed health problems from three highly toxic substances – creosote, arsenic and benzene – that were released into the air from the plant.