The Supreme Court ruled Wednesday that 29 peanut farmers in Texas can proceed with their lawsuit against Dow Agrosciences after the chemical giant's weed killer unexpectedly destroyed their crops.
WASHINGTON — The Supreme Court ruled Wednesday that 29 peanut farmers in Texas can proceed with their lawsuit against Dow Agrosciences after the chemical giant's weed killer unexpectedly destroyed their crops.
The ruling reinstates the farmers' claim that Dow essentially failed to warn of possible risks. A lower court had dismissed the claims, reasoning that federal law barred states from imposing labeling requirements on pesticides and herbicides other than those set by the Environmental Protection Agency.
But in an opinion by Justice John Paul Stevens, the court ordered the New Orleans-based 5th U.S. Circuit Court of Appeals to take a second look at the case.
Stevens said Dow's claim that the lawsuit should be barred because it relates to the company's labeling isn't necessarily accurate, since the claims could also involve questions of whether the product, known as Strongarm, or manufacturing were defective.
At issue was the question of whether federal law bars, or pre-empts, state law in tort lawsuits alleging a defective product. Corporate defendants, most notably the tobacco industry, have often used the defense to throw out lawsuits or move their case to more defendant-friendly federal courts.
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"The long history of tort litigation against manufacturers of poisonous substances adds force to the basic presumption against pre-emption," Stevens wrote. "If Congress had intended to deprive injured parties of a long available form of compensation, it surely would have expressed that intent more clearly."
In a separate opinion, Justices Clarence Thomas and Antonin Scalia agreed that the lower court should take a second look. However, they suggested the peanut farmers will fail again upon further review unless they do a better job of stating how their claims don't relate to federal labeling requirements.
Dow's appeal had drawn the support of several industry groups, including the U.S. Chamber of Commerce and the Bush administration, who argued they would be unfairly exposed to additional lawsuits if the peanut farmers prevailed.
"Pesticide manufacturers would be subject to multiple and inconsistent labeling regimes and would be forced to abandon or alter EPA-approved labels to avoid liability," acting Solicitor General Paul Clement wrote in filings.
Dow Agrosciences LLC is a subsidiary of Dow Chemical Co. In trading on Wednesday, Dow Chemical shares fell 70 cents to close at $44.77 on the New York Stock Exchange.
The case is Bates v. Dow Agrosciences, 03-388.
Source: Associated Press
