Trust Company Bank v. United States Gypsum Co.

950 F.2d 1144 (1992)

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Trust Company Bank v. United States Gypsum Co.

United States Court of Appeals for the Fifth Circuit
950 F.2d 1144 (1992)

Facts

The Trust Company Bank (TCB) (plaintiff) hired a contractor to erect a building in downtown Atlanta, Georgia. In constructing the building, the contractor used several fireproofing materials that contained the carcinogen asbestos. The building was completed in 1969. The presence of asbestos in the building caused TCB to institute an expensive abatement program. In 1989, TCB sued United States Gypsum Company (USGC), the company that designed and manufactured the fireproofing materials used in TCB’s building that had asbestos, in state court in Mississippi to recover some of the expense of the abatement program. TCB alleged that USGC manufactured defective and unreasonably dangerous products knowing that they could release toxic asbestos fibers. USGC removed the case to federal district court in Mississippi and moved for dismissal, alleging that because the building was in Georgia, the claim was a local action over which the Mississippi court lacked subject-matter jurisdiction. The district court denied the motion before it reversed and granted the motion and dismissed the case. TCB appealed.

Rule of Law

Issue

Holding and Reasoning (Johnson, J.)

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