Barnes & Thornburg attorneys defended The Valspar Corporation in a case brought by an over-the-road trucker who alleged he developed Reactive Airways Dysfunction Syndrome (RADS) when exposed to fumes from our client’s paint product, which leaked from 55-gallon drums plaintiff was hauling. The defendant proved that the steel drums had been reconditioned by a third-party, which had marked the drum according to its specification under the Department of Transportation’s (DOT) Hazardous Materials Regulations (HMR) implementing the federal Hazardous Materials Transportation Act (HMTA). Granting Valspar’s motion for summary judgment, the Court found, that the defendant was “entitled to rely on the reconditioner’s mark when it accepted the drum in question and is not ultimately liable for any potential defects attributable to the reconditioner. ” The Court held that the HMTA preempted all of Plaintiff’s claims. This case could set a precedent for future cases as it addressed and affirmed the preemptive effect of a shipper’s federal right to rely on the DOT specification markings on an allegedly defective container supplied by a third party. Plaintiff has appealed to the U. S. Court of Appeals for the Seventh Circuit. The decision is reported at Noffsinger v. The Valspar Corp.

The State of Indiana, a Barnes & Thornburg client, will now be able to seek up to $177 million in damages against IBM for breaches of a $1.6 billion services agreement to help enhance the state’s public welfare system.

The Indiana Court of Appeals reversed a lower court ruling on Feb. 13, saying that IBM fell short of what it promised. In her majority opinion, Chief Judge Nancy H. Vaidik wrote: “In the most basic aspect of the contract – providing timely services to the poor – IBM failed.”

The Court also affirmed that no deferred fees ($43 million) were owed to IBM and reversed two separate awards of prejudgment interest and fees to IBM of more than $13 million; awards on equipment fees and assignment fees for IBM were affirmed, to be offset by the State’s damages.

The case now goes back to Marion County Superior Court to determine the State’s damages.

Barnes & Thornburg partners Peter Rusthoven and John Maley headed a litigation team that included Curt Greene, Meredith White, Kyle LeClere, Roxanne Larrison and multiple others throughout several offices.