Case Study

AT ISSUE: Dryvit Systems Inc. faced multiple product liability lawsuits in various venues across the country. The company makes exterior finish and insulation products and a large hotel chain sued Dryvit, claiming its stucco product damaged their buildings.

Dryvit disputed that their products were at fault. But the hotel company filed more than 20 lawsuits against Dryvit between 2001 and 2003. These product liability suits were filed all across the country.

SUMMARY: Dryvit turned to Womble Carlyle attorney Dave Mazza to coordinate its national defense effort. The firm had represented Dryvit in several North Carolina lawsuits and had developed a wealth of knowledge about the company and its products. Mazza worked with numerous law firms in various states to coordinate litigation efforts and plan defense strategy. Initially, the hotel company demanded a multi-million dollar settlement to resolve all current and future lawsuits. However, Dryvit rejected that demand and one of the lawsuits went to court in Oklahoma.

IMPLICATION/RESULT: Dryvit obtained a summary judgment in the Oklahoma case, with the judge agreeing to award attorney’s fees to Dryvit once the case was resolved. This is particularly significant because Oklahoma is considered a difficult state for a defendant to obtain a summary judgment. Following Dryvit’s victory in Oklahoma, the hotel company greatly reduced its settlement demands. In late 2005, Dryvit settled all current and future lawsuits for a mere 3 percent of the original settlement demand, a savings to the client of millions of dollars. The potential damages to Dryvit could have been even worse had the cases gone to trial and the company lost. The settlement covered more than 800 hotels, including those the hotel chain obtained after the lawsuits were filed. Dryvit officials were extremely pleased with the outcome of these cases.

ABOUT THE ATTORNEY: Dave Mazza has extensive experience in product liability litigation, including defending construction product manufacturers, manufacturers of medical devices, pharmaceutical companies and makers of recreational watercraft. He also has considerable experience and expertise in general business litigation as well as medical malpractice cases. He practices in the firm’s Product Liability Litigation Practice Group in Winston-Salem.