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June 19, 2007

OH Fed Judge Rules Columbus/Cincinnati Use of Contingency Agreement Valid In Lead Paint Lawsuits

Today, U.S. Judge Edmund A. Sargus of the Southern District of Ohio ruled from the bench that Ohio cities of Columbus and Cincinnati which are using contingency fee agreements with private counsel in lead-paint lawsuits "preserve city control of their lawsuits and agreements are therefore valid."  Their actions did not violate due process. This ruling is in response to the federal lawsuit Sherwin-Williams Company v. City of Columbus, et al., No 06-829, S.S. Ohio.

In that federal lawsuit, Sherwin-Williams had, reports Mealey's Litigation Report-Lead, June 19 E-mail Bulletin, sued several cities in OH "as a preemptive strike in an effort to prevent them and other cities that may later decide to sue the former makers of lead paint and pigment from doing so under a public nuisance theory of law." Sherwin-Williams had argued that those city lawsuits were in violation of its protected rights of free speech and due process . [Reports/documents relating to this are available from Mealey's Customer Relations Department 1-800-MEALEYS or www.lexisnexis.com/mealeys.]

In this same ruling, U.S. Judge Sargus indicated that unlike Columbus and Cincinnati, OH cities of Toledo, Lancaster and East Cleveland "have not preserved control of their respective lawsuits and must amend their agreements with private counsel."  They have 14 days to do this or face an injunction.

Further information available from Mealey's Editor James Cordrey, 610-205-1125, James.cordrey@lexisnexis.com.

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