First Bellwether GM Rice Trial Ends in Verdict for Plaintiffs; Court Allows Punitive Claims to Proceed

According to a news source, a federal jury has awarded conventional rice farmers about $2 million in compensatory damages for the economic losses they allegedly experienced when European markets closed to U.S. rice imports that were found to be contaminated with genetically modified (GM) rice. In re: Genetically Modified Rice Litig., MDL No. 1811 (E.D. Mo., verdict reached December 4, 2009). The verdict was reached in the first bellwether cases to be tried. The next bellwether trial is apparently scheduled to begin in January and involves farmers from Arkansas and Mississippi. Defendant Bayer AG apparently indicated that it was pleased the jury did not award punitive damages and was preparing for the upcoming trials, which “will be different from these initial cases.” See Product Liability Law 360, December 4, 2009.

In a related development, the MDL court has entered an order disposing of pre-trial motions related to the second bellwether trial. Among other matters, the court on December 9 dismissed claims for public nuisance, negligence per se, and violations of the North Carolina Unfair and Deceptive Trade Practices Act. The court granted plaintiffs’ summary judgment motions on the affirmative defenses of compliance with regulations and intervening cause. The claims that will be tried are for private nuisance and negligence. The court has also determined that “Bayer is not entitled to summary judgment on the claims for punitive damages,” finding that plaintiffs “presented evidence from which a factfinder could conclude that, even given its knowledge of these risks and the potential for severe impact on the market, Bayer did not take reasonable steps to attempt to prevent the contamination.”