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Shavertown McDonald’s under renovation; drive thru open

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Filing asks judge to block Jewelcor president from intervening in TIF case

<p>A lawsuit seeking $619.3 million for 4,400 past and present Avoca-area residents exposed to creosote from the defunct Kerr-McGee Corp. wood treatment plant has been moved to federal court in Scranton.</p><p>As reported by the Times Leader last month, Avoca plaintiff Stanley Waleski filed the action on behalf of the group in the Luzerne County Court of Pleas against a Philadelphia law firm and two of its attorneys.</p><p>The defendants &#8212; Montgomery, McCracken, Walker &amp; Rhoads and attorneys Natalie D. Ramsey and Leonard Busby &#8212; filed notice this week that they have moved the case to federal court through an automatic action known as a &#8220;notice of removal.&#8221;</p><p>U.S. District Judge Robert D. Mariani posted notice that he has been assigned to the case and will hold a case management conference within four months to discuss any pending motions, settlement, discovery deadlines and other relevant matters.</p><p>Waleski&#8217;s complaint accuses the Montgomery firm of breach of contract for allegedly failing to take actions seeking top-dollar compensation for the local victims in the 2009 bankruptcy of Kerr-McGee and related entities.</p><p>The Powell Law Group hired the Montgomery firm for its bankruptcy expertise in 2009. Powell Law had initiated litigation against Kerr-McGee for the 4,400 plaintiffs that was resolved through the bankruptcy.</p><p>The Avoca plaintiffs have blamed cancer, respiratory problems, heart conditions, rashes and other medical issues on carcinogens and chemicals used at the Kerr-McGee operation for four decades until 1996.</p><p>In this week&#8217;s notice of removal, the Montgomery firm said the change to federal court was proper because the alleged breach of professional obligations asserted by Waleski are tied to a bankruptcy case that was processed through federal court.</p><p>Waleski&#8217;s suit also attempts to &#8220;challenge and circumvent&#8221; a 2014 decision of the U.S. District Court of the Southern District of New York approving a $5.15 billion settlement with Kerr-McGee and related entities and the distribution of those funds, the notice of removal said.</p><p>While Waleski&#8217;s suit was filed April 11, the notice of removal was filed within the required 30 days because the defendants were not served with the complaint until May 10, it said.</p><p>The suit argues $619.3 million should be paid because the Avoca plaintiffs were entitled to $949 million but ended up receiving $329.7 million. It accuses the Montgomery firm of conflict of interest and failing to contest the addition of claims from Mississippi, where Kerr-McGee also had a site, leading to a reduction in funds left for the Avoca plaintiffs.</p><p>The Montgomery firm has defended its work and contested the &#8220;phantom malpractice&#8221; argument in an unrelated legal action involving Powell Law and the payment of legal fees.</p><p>In this case, the Philadelphia firm will move to dismiss Waleski&#8217;s claims, the notice of removal says.</p><p>Myers, Brier &amp; Kelly in Scranton and Thompson Hine in Cincinnati are representing the defendants.</p><p>Pittsburgh attorney Scott M. Hare filed the suit. He also filed motions last month asking the county court to assign the case to a county judge, schedule a status conference and authorize him to establish a website updating the 4,400 prospective class-action members on legal filings. </p><style>
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<div class="neFile"><img class="neImage" src="https://www.timesleader.com/wp-content/uploads/2018/06/web1_kerrmcgee.jpeg">
<div class="neCaption">James Haddock. Aimee Dilger | Times Leader</div></div><div class="metaInfo"><photo0>https://www.timesleader.com/wp-content/uploads/2018/06/web1_kerrmcgee.jpeg</photo0><caption0>James Haddock. Aimee Dilger | Times Leader</caption0><photoCredit0>Aimee Dilger | Times Leader </photoCredit0></div></div>
<div class="metaInfo"><bylineMeta><p>By Jennifer Learn-Andes</p><p>jandes@www.timesleader.com</p></bylineMeta></div><div class="metaInfo"><shirttailMeta><p>Reach Jennifer Learn-Andes at 570-991-6388 or on Twitter @TLJenLearnAndes.</p></shirttailMeta></div>

Avoca suit seeking $619.3 million moved to federal court