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JM Eagle

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JM Eagle is an American corporation and a manufacturer of plastic pipe.[1] At its 22 plants in North America, the company manufactures polyvinyl chloride (PVC) and high-density polyethylene pipe for a variety of industries including utility, plumbing, electrical, natural gas, irrigation, potable water, drainage, and sewage.

History

In 1982, Formosa Plastics purchased the eight plants comprising the plastic-pipe operations of Johns Manville to form J-M Manufacturing, headquartered in Livingston, New Jersey.[2]

In November, 2005, Walter Wang acquired 100 percent of the company from Formosa Plastics.[3] J-M Manufacturing grew to a 14-plant enterprise by 2007, when it acquired the second largest plastic-pipe manufacturer, PW Eagle.[4] The company relocated its headquarters to Los Angeles in 2008.[5]

Lawsuits

In 2006, JM Eagle, then known as J-M Manufacturing, faced a whistleblower lawsuit.[6][7] In January 2006, an engineer accused JM Eagle of selling billions of dollars' worth of defective pipe to states and municipalities around the United States, and the company was sued under the federal False Claims Act.[8] A Los Angeles jury found JM Eagle liable for failing to make 100 percent of its pipe, according to Underwriters Laboratories standards, though an Underwriters Laboratories engineer testified that the company never fell out of compliance during repeated audits.[9][10] The whistleblower, John Hendrix, had been fired after a customer complained Hendrix had attempted bribery to favorably resolve a warranty claim.[11]

Only two of the five municipalities suing in the first phase of the trial reported any defective pipe, and two others, the state of Nevada and Norfolk, Virginia, both admitted they continued to purchase JM products while aware of the allegations in the lawsuit.[12] JM Eagle sued Phillips & Cohen for libel for post-verdict comments suggesting its products are dangerous and defective.[13][14]

J-M Manufacturing was involved in a federal qui tam action brought on by various public entities, but while the lawsuit was pending law firm Sheppard Mullin Richter & Hampton went on to represent one of the public entities involved. Both clients had signed engagement agreements stating they had waived any such conflicts of interest, but the agreements did not disclose the specific conflicts, and Shepard did not advise either client of the conflicts. In August 2018, the California Supreme Court reversed a fee award that had been granted in favor of the law firm, maintaining that the firm's conflict of interest invalidated its entire agreement with J-M Manufacturing, including the arbitration clause, and thereby rendered its fee award a nullity.[15][16][17]

Philanthropy

JM Eagle participates in various philanthropic efforts, particularly where polyvinyl chloride (PVC) piping can help facilitate the acquisition of natural resources in underprivileged communities. In 2009, Columbia University's The Earth Institute worked with the United Nations and JM Eagle to create innovative water systems for over 300,000 people in Sub-Saharan countries, including Rwanda, Kenya, and Uganda.[18]

JM Eagle donated 45,600 feet of PVC pipe to construct an 8.5-mile pipeline to facilitate the acquisition of clean water in Santa Cruz, Honduras.[19]

JM Eagle has provided scholarships for young African students to assist in education through college and aided in clean water delivery, including irrigation and sanitation systems, in Northern Thailand, in the villages of Santisuk and Pateung.[20] JM Eagle supports China's efforts to provide its entire population with clean water.[21][22][23][24]

References

  1. ^ "Plastics News - Pipe, Profile & Tubing Extruders". Plastics News. 4 July 2011. Retrieved 3 October 2011.
  2. ^ "J-M Manufacturing to celebrate 30 years in Pueblo West". Retrieved 13 January 2012.[permanent dead link]
  3. ^ "Members Committee 100". Retrieved 14 June 2020.
  4. ^ "PW Eagle to be bought by J-M Manufacturing". Reuters. 15 January 2007. Retrieved 3 October 2011.
  5. ^ "JM Eagle Completes Move to Los Angeles". National Driller. Retrieved 13 January 2012.
  6. ^ "States and water districts join qui tam suit against PVC pipe manufacturer". Phillips & Cohen. 2010-02-16.
  7. ^ Walsh, Mary Williams (12 February 2010). "Bursting Pipes Lead to a Legal Battle". The New York Times. ISSN 0362-4331.
  8. ^ "Whistleblower lawsuit claims PVC company knowingly sold faulty pipes". Daily News. 21 May 2010.
  9. ^ "JM Eagle Faces Billions In Damages After Jury Finds JM Liable For Fraud For Making And Selling Faulty Water System Pipes". www.wateronline.com. 15 November 2013.
  10. ^ Roulo, Candace (1 October 2010). "PVC pipe class action lawsuit filed against JM Eagle". www.contractormag.com.
  11. ^ Fisher, Daniel (6 June 2014). "Law Firm Can Be Sued Over Claims In Post-Verdict News Release, Judge Says". Forbes.
  12. ^ Kavanaugh, Catherine (17 November 2018). "Whistleblower case against JM Eagle ends in mistrial". Plastics News.
  13. ^ "Manufacturing Company Inc. v. Phillips Cohen LLP". Findlaw.
  14. ^ Fisher, Daniel (30 April 2014). "Taiwanese Plastics Heir Fights Cancer, Litigation To Build World's Biggest Pipemaker". Forbes.
  15. ^ Marinello, Mitchell L. (6 December 2018). "Ethics Misstep Leads to Fee Award Being Vacated". www.americanbar.org.
  16. ^ Cutler, Joyce E. (5 June 2018). "Sheppard Mullin Conflict Waiver Case Puts $4M Fee at Stake". news.bloomberglaw.com.
  17. ^ Jarvis, Peter R.; Rich, Trisha M. (7 September 2018). "Calif. Supreme Court Breaks New Ground on Arbitrability, Future Waivers and Quantum Meruit | Insights | Holland & Knight". www.hklaw.com.
  18. ^ "JM Eagle CEO Walter Wang Tours Millennium Villages in East Africa". Retrieved 14 June 2020.
  19. ^ "JMM Brings Clean Water To Small Village In Honduras". JM Eagle Official Website. Archived from the original on 17 November 2011. Retrieved 3 October 2011.
  20. ^ "Next step in 21st century education for students in Africa". Retrieved 14 June 2020.
  21. ^ "UCLA - The Optimists". Retrieved 14 June 2020.
  22. ^ "UCLA Foundation names new board members". Retrieved 14 June 2020.
  23. ^ "Emphasizing the 'Family' in Family Business". Retrieved 14 June 2020.
  24. ^ "A Tradition of Closeness and Compassion" (PDF). Retrieved 14 June 2020.
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