-Caveat Lector-

> ===========================================
> P A N U P S
> Pesticide Action Network Updates Service
> ===========================================
>
> DuPont Convicted of Racketeering in Benlate Case
>
> August 17, 2001
>
> A Florida jury has found DuPont Co., makers of the fungicide Benlate
> (benomyl) liable for racketeering, negligence, fraud and defective
> product claims in a lawsuit filed by two Costa Rican-based plant
> nurseries. DuPont was ordered to pay US$78.3 million to the
> nurseries,
> but announced that it would appeal the decision.
>
> This is the latest in a long line of cases against DuPont that have
> resulted in litigation and settlement charges totaling approximately
> US$1.3 billion to the company over the last ten years. In April 2001,
>
> DuPont announced that it would phase out sales of Benlate around the
> world by the end of 2002. (See PANUPS: DuPont Withdraws Benlate from
> Market, May 7, 2001 at
> http://www.panna.org./panna/resources/panups/panup_20010507.dv.html.)
>
> The racketeering charges were based on information gathered from
> internal DuPont documents showing that the company conducted tests in
>
> Costa Rica in 1992, but destroyed the records as claims against
> Benlate
> mounted. The growers' attorney maintained that DuPont had launched a
> corporate "damage control" program by assigning an attorney to
> supervise
> the testing, skewing some results and discarding those that were
> unfavorable.
>
> A plant pathologist from Pennsylvania State University, testifying
> for
> the growers, stated that DuPont documents dating back to 1980
> describe
> Benlate as an unstable product prone to deterioration in hot, moist
> conditions. According to his testimony, some plants treated with
> Benlate
> grew to only 10% of their expected height, miniature roses in Florida
>
> dropped all of their leaves within two days of treatment, and
> Hawaiian
> orchids treated with Benlate were too malformed to sell. The plant
> pathologist attributed the problems to a natural byproduct of the
> breakdown of Benlate that, in his opinion, turned the fungicide into
> an
> herbicide.
>
> DuPont's attorney stated that after U.S. testing in 1992, "DuPont
> reached the conclusion, the inescapable biological conclusion, that
> Benlate could not be the cause of the damage." According to DuPont,
> the
> problem was due to a one-time incident of herbicide contamination at
> a
> Benlate mixing plant. However, growers' complaints about crop damage
> continued long after the contamination occurred.
>
> In a related story, attorneys representing growers in another Benlate
>
> case five years earlier made a side deal with DuPont as part of the
> settlement. The attorneys, who represented 20 farmers and nurseries
> suing DuPont for Benlate damage, personally collected US$6.4 million
> in
> return for agreeing to never bring another Benlate case against the
> company. The growers accepted a settlement of US$59 million from
> DuPont,
> but were not told about the side agreement with their lawyers, who
> also
> received US$20 million in fees for the case.
>
> Some of the growers have since filed a malpractice suit against the
> lawyers and are also seeking punitive damages. DuPont defends the
> payment to the lawyers saying that the company didn't feel it was in
> its
> interest to bankroll the additional cases that these attorneys were
> threatening to pursue. DuPont maintains that while the side agreement
>
> was confidential, the confidentiality did not apply to the lawyers'
> clients. Attorneys for the plaintiffs are in the discovery phase and
> no
> trial date has been announced.
>
> Sources: "DuPont hit with $78.3 million fine, ditches Benlate,"
> Reuters,
> August 13, 2001. "Costa Rican farmers seek $29 million in Miami
> trial,"
> Associated Press, August 8, 2001. "DuPont suffers blow as Benlate
> racketeering trial gets under way in Miami," Associated Press, July
> 9,
> 2001. "Clients sue over secret agreement," Miami Herald, February 22,
>
> 2001.
>
> Contact: PAN North America.
>
> PANUPS is a weekly email news service providing resource guides and
> reporting on pesticide issues that don't always get coverage by the
> mainstream media. It's produced by Pesticide Action Network North
> America, a non-profit and non-governmental organization working to
> advance sustainable alternatives to pesticides worldwide.
>
> You can join our efforts! We gladly accept donations for our work and
>
> all contributions are tax deductible in the United States. Visit our
> extensive web site at http://www.panna.org to learn more about
> getting
> involved.
>
>
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> Pesticide Action Network North America (PANNA)
> 49 Powell St., Suite 500, San Francisco, CA 94102 USA
> Phone: (415) 981-1771
> Fax: (415) 981-1991
> Email: [EMAIL PROTECTED]
> Web: http://www.panna.org
> ===========================================
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