Back to the Library
On this day in 1984, the court gave final approval to a settlement between firm client UV Industries and Reliance Electric, a subsidiary of Exxon Corporation, ending nearly four years of litigation and relying on an “army” of firm talent. In 1979, Reliance purchased Federal Pacific Electric Company from UV. But around the same time, the Consumer Product Safety Commission investigated the circuit breakers that Federal Pacific manufactured, and Reliance complained that the circuit breakers were faulty and prone to cause fires. In 1980, Reliance sued the liquidating trustees of UV Industries for $345 million in damages or for rescission relating to its purchase of Federal Pacific. The UV Trust retained Jerry Solovy, who soon deployed what he referred to as his “UV Army,” consisting of more than 20 lawyers and numerous paralegals, most of whom spent the majority of their time working on the case for the next two to three years. The lawsuit came after the UV Trust had distributed more than $600 million to unit holders and held up UV’s distribution of another $400 million. Under the settlement, UV refunded Reliance $41,850,000 of the purchase price of Federal Pacific, enabling the UV Trust to distribute its remaining funds.