April 1999

CASE TYPE : Environmental

CASE: Three Birds Property Co. Inc. v. Texas Instruments Inc., No. 96-13374-I (Dist. Ct., Dallas Co., Texas)

PLAINTIFFS' ATTORNEYS: Mark Werbner, of Dallas' Sayles & Lidji P.C., and Brian Melton, of Dallas' Melton & Melton

DEFENSE ATTORNEY: Barry Barnett, of the Dallas office of Houston's Susman & Godfrey

JURY VERDICTS: $23.3 million

Texas Instruments Inc. began making component parts for bombs and missiles at its Dallas plant in the 1950s, said plaintiffs' counsel Mark Werbner. During this production process, he said, "[Texas Instruments] used tons and tons of chlorinated solvents." These solvents, which included the carcinogens carbon tetrachloride and trichlorylethlyene, he added, "contaminated the groundwater and soil on the Texas Instruments property, then migrated" to the adjacent property, owned by Bob Eagle and his two sons.

In 1990, "Texas Instruments discovered the contamination," he said, and informed the Texas state environmental authorities. "But [Texas Instruments] didn't tell the landowners." After the Eagles discovered the contamination, he said, their companies, Three Birds Property Co. Inc. and Eagle Lincoln-Mercury Inc., sued Texas Instruments, charging negligence, fraudulent concealment and trespass.

The defendant denied the charges, but on March 24, a Dallas jury awarded the plaintiffs $13.3 million in actual and $10 million in exemplary damages. There will be no appeal. A few minutes before the jury returned its verdict, the two sides agreed to a settlement, Mr. Werbner reported. Raytheon Co., which had bought the Dallas site from Texas Instruments in 1997 and at that time had indemnified Texas Instruments for these claims, will pay the plaintiffs $7 million, including $2.5 million for the property and $4.5 million for damages and attorney fees. Under the terms of the agreement, Raytheon will "acquire the property from the Eagles and clean it up," said Mr. Werbner, and indemnify the Eagle companies from any future environmental claims involving the property.