Dow, Corning Win Round in Implant Case

Dow Chemical Co. and Corning Inc. won a round at the U.S. Supreme Court on Monday in their fight to gather thousands of pending silicone breast-implant lawsuits into a single Michigan federal court.

America’s highest court Monday rejected an appeal by breast-implant plaintiffs. They were challenging an appeals court ruling that ordered a Michigan federal judge to take jurisdiction over suits against Dow and Corning that are pending in other federal and state courts--even though the judge has repeatedly said she doesn’t want to do so.

The tangled jurisdictional dispute centers on Dow and Corning’s attempts to use the bankruptcy of their jointly owned partnership, Dow Corning Inc., to collect all pending suits into the same Michigan federal court district that’s supervising the bankruptcy.

Federal law permits a federal court to take control of lawsuit claims that could affect a bankruptcy proceeding in the same jurisdiction.

“This is the only way for there to be an efficient and timely resolution of these lawsuit claims,” Dow Chemical spokesman John Musser said.

Silicone breast-implant plaintiffs have argued that Dow and Corning are not in bankruptcy and shouldn’t be allowed to take advantage of Dow Corning’s bankruptcy case to lump thousands of suits into a single federal court. That action, they’ve said, could cause long delays and force plaintiffs from all parts of the country to fight their lawsuits in Michigan.

Dow and Corning have countered that letting one court coordinate all similar cases will streamline the process, saving time and money.

Their arguments hadn’t gotten far with Michigan-based U.S. District Judge Denise Page Hood. She initially ruled that--while claims against Dow Corning should be gathered in the court where that company has sought bankruptcy protection--she didn’t have jurisdiction over claims against the corporate parents, Dow and Corning, because they weren’t in bankruptcy.

The Cincinnati-based U.S. 6th Circuit Court of Appeals overturned that ruling. Because Dow Corning and its corporate parents have been jointly sued in many cases, and because they shared many liability insurance policies, the appeals court said lawsuits against Dow and Corning could claim money that would otherwise be available for distribution to Dow Corning’s bankruptcy creditors.

The Supreme Court earlier this year rejected an appeal of that ruling by breast-implant plaintiffs.

Dow Chemical shares rose 56 cents to close at $90.75 on the New York Stock Exchange. Corning shares rose 56 cents to close at $43.88, also on the NYSE.