Document Q85qLo9vn8nBY0pOw7M83ego

C U f FORD A, JONES H ERBEP I M, JONES W CLVlN 0 * C LO S E, J R JOSEPH W. BROWN GARY R. GOOOHEAR7 HlCM AE L E, BUCKLEY W ILL KEMP KIRK P, HARRISON DOUGLAS O. CR0S9V RiCHARD F, JO S T J . RANDALL JONES Ch a r l e s h . h a c h e a , s n . JANET L. CHUBB DOUGLAS M i COHEN V A LU A N L i C O U L7MARO P A T R IO * J , CURTS DEREK C. CNCE J A M E S W. ER SE C K j o h n w. f ie l d GARY x FOREMASTER ANTHONY C. GORDON J A M E S O. G R EE NE R IC H A R D F, HO LLEY OAVtD G , JO HNSON JO HN Ci LEACH PAUL A . LEMCKE KIRK G, LCNHARD MARK D, LERNCR RENEE R. REUTHER STEPHEN H i RICE M AR Y KAY S 'N tC K I N ik s k r in j a Ric JANE A STECKBLCK KEVIN H . STOLWORTHY J ones, J ones, Close &Brown Ch artered A P B O r C S S IO N A L C O R PO R ATIO N SEVENTH FLOOR - VALLEY BANK PLAZA 3 0 0 SOUTH FOURTH STREET LAS VEGAS, NEVADA 89101*0020 February 5, 1991 John L. Thorndal, Esq. 4 Thorndal, Backus, Maupin & Armstrong 1100 E. Bridger Avenue Las Vegas, Nevada 89125-2070 TELEPH O N E (702)3BB-4202 (70T2E1L E3CBOP*I-E2R276 (702) 3 0 3 * 0 0 0 6 o * eouH&E*. LYLE RIVERA Re: Nevada Power Co. v. Monsanto, et al Dear John: You may want to consider immediate settlement discussions in this matter, before Nevada Power's reply brief must be filed on February 11. The reason for this unusual suggestion is that defendants' brief leaves us with little choice but to suggest in our reply brief that the Ninth Circuit solicit amici curiae briefs from the insurance carriers for Monsanto and Westinghouse. Time is thus of the essence. The problem we confront is defendants' position in their brief that the EPA-imposed expenses Nevada Power seeks to recover are beyond the scope of the "damages" recoverable in indemnity. See Defendants' brief at 37. This position conflicts directly with the position of Monsanto and Westinghouse in their litigation against their insurance carriers,1 where they must prove that identical expenses suffered by these defendants impliedly fall within the meaning of "damages" in the insurance indemnification agreements. See e.g., Chesapeake Utilities Corp. v. American Home Assurance C o . . 704 F. Supp. 551, 558-61 (D. Del. 1989) Doubtless this inconsistency is unintentional, but the result necessarily is a bad faith posture in both cases which could result in a judicial estoppel ruling in both cases. See generally, R. Boyers, Precluding Inconsistent Statements: The Doctrine of Judicial Estoppel, 80 Northwestern Univer. L. Rev. 1244 (1987) (estoppel from inconsistent statements in ongoing litigation); Parkland Hosiery Co. v. Shore. 439 U.S. 322 (1979) (offensive non- 1. Westinghouse's case is cause No. L6935287, Superior Court of New Jersey, Union County, filed May 8, 1987. Monsanto's case is cause No. 88C-JA-118-1-CV, Superior Court of Delaware, New Castle County, filed January 20, 1988. The complaints in both cases appear in the record of this case as exhibits 29 and 30 to Nevada Power's opposition to defendants' motion for summary judgment below. R E N O O F F I C E - 1 E A S T L I B E R T Y , S U I T E 614 R E N O , N E V A D A 6 9 5 0 1 - 21(0 T E L E P H O N E (7 0 2 ) 3 4 6 - 0 8 8 0 T E L E C O P I E R (7 0 2 ) 3 4 8 - 0 6 6 6 John L. Thorndal, Et.*. February 5, 1991 Page 3 We offer to meet at a mutually convenient location on Saturday, February 9, 1991 with counsel and key executives for all defendants to discuss immediate settlement of all issues. We would of course appreciate an early indication of your likely response so that travel arrangements might be made, if necessary on a contingency basis. Very truly yours JONES, JONES, CLOSE & BROWN, CHARTERED C H M :jlg Charles H. 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