Dallas Jury Awards $23.3 Million Against Texas Instruments For Toxic Contamination of Eagle Family Property; Chemical Contamination Spread to Surrounding Property.

DALLAS--(BUSINESS WIRE)--March 24, 1999--A Dallas jury today awarded $23.3 million to Eagle Lincoln-Mercury Inc. for environmental damage to its property by Texas Instruments.

The jury found that TI had negligently allowed toxic chemicals used in its manufacturing operations to contaminate the soil and groundwater at its former site at 6000 Lemmon Ave. The contamination had migrated off the TI site to adjoining land and businesses, including an automobile body shop operated by Eagle Lincoln-Mercury Inc.

The jury awarded $13.3 million in actual damages and $10 million in punitive damages to Eagle Lincoln-Mercury and Three Birds Property Company. The company also owns several new car dealerships in Dallas and Houston and has been doing business in Dallas for over 35 years.

At the trial, which lasted 8 days, attorneys for Eagle showed that TI used tons of chlorinated solvents for decades at the plant. TI began operations at the site in 1947 and it was the original location of the business before its rapid growth in the 1950s led to it establishing new headquarters at Central Expressway and LBJ. The Lemmon Avenue site currently is owned by Raytheon which purchased the Defense Industries facilities of TI in 1997.

Moments before the jury returned with the verdict, the two parties settled the case for $7 million. "Even though the jury awarded Eagle more than we settled for, the settlement spares the company the frustration and expense of an appeal," says Mark S. Werbner, one of the attorneys representing Eagle at trial and a partner in the Dallas law firm of Sayles & Lidji. "It also means the clean-up will begin immediately. This case was never about money."

Eagle Lincoln-Mercury and Three Birds Property Company brought suit against TI in 1996, contending that the company was negligent in the handling and disposal of toxic chemicals used in its business. The Plaintiffs also contended that TI fraudulently concealed the contamination from the surrounding property owners and misled the Texas Natural Resource Conservation Commission. TI attempted to show that while its operations may have caused some environmental damage, most of the harm was caused by other businesses.

John Eagle, president of Eagle Lincoln-Mercury, who attended the entire trial and testified in the case, says he is gratified by the jury's findings.

"My family brought this lawsuit only after TI stubbornly refused to accept responsibility for their contamination and forced us to file suit," Eagle says. "TI tried to conceal the severity of the contamination for many years. We felt we owed it to the community to take the company to task for trying to sweep this serious problem under the rug." Brian Melton, who also represented Eagle at trial, says the family's presence at the trial made a difference.

"The credibility of Bob and John Eagle in the Dallas community obviously made a big impact on the jury," says Melton, who along with his father, Wayne Melton, have represented the Eagle family for more than 35 years.

The trial was held in the court of 162nd State District Judge Bill Rhea. TI and Raytheon were defended by Barry Barnett of Dallas. Also representing the Plaintiffs with Werbner and Melton was Joe Guida of Dallas' Guida, Slavich and Flores, an environmental law firm.