Plainview Milk Products
$25 million co-op owned by local dairy farmers. $2 million of debt.
- Company had major product recall (no injury to consumers)
- Company faced 5 lawsuits filed in different jurisdictions around the country. Lawsuits had face value of $30 million.
- Like most co-ops, Plainview had no significant assets to pay claims and was only valuable as a going concern to its dairy farmer owners
- Product liability insurance totaled $5 million
- Company counsel suggested to one of the 5 judges handling the litigation that this overall case would be better handled via mediation and judge agreed.
- Company hired MorrisAnderson to provide court and litigants with an objective analysis of what the Company could economically contribute to settlement.
- Judge convinced other 4 judges and all litigants to informally stay of all litigation to attempt a mediation.
- MorrisAnderson presented its analysis in court to judge and all parties.
- Case settled with Company contributing $2 million over time and the majority of insurance coverage turned over to claimants.
- Claimants received approximately 50% of their valid claims in cash within 2 years.
- Company survived and continues to do well.