Stephen R. Patton, P.C. - Partner

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Stephen R. Patton, P.C.

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Chicago
Phone: +1 312-862-2406
Fax: +1 312-862-2200
Overview News

Professional Profile

Senior litigation partner in Kirkland’s Chicago office. Past Chairman of Kirkland’s Firmwide Client Development Committee and Firmwide Litigation Management Committee.

Extensive trial experience in a wide variety of complex commercial litigation, including contract, antitrust, and product liability cases.

Advisor to senior management in connection with a number of "bet the company" exposures.  Role in one such matter -- the $206 billion tobacco industry settlement -- was featured in the cover article of the January/February 1999 issue of The American Lawyer.

Fellow of the American College of Trial Lawyers.  In 2008, voted by peers as one of the Illinois "top 100 SuperLawyers."  In 2007, selected by peers for inclusion in The Best Lawyers in AmericaChambers USA named Steve as one of America's Leading Lawyers for Business in Litigation/General Commercial (2004-2009) and in Products Liability (2006-2009).  Named one of five "highly recommended" Chicago-based litigators in Global Counsel's Dispute Resolution Handbook.  Named by Corporate Board Member magazine as one of America's Best Corporate Lawyers.  In 2007, featured in The Legal 500 U.S. for work in product liability and mass tort defense.


Representative Matters

Current and Recent Representations 

1.  R.J. Reynolds Tobacco Company; Master Settlement Agreement Litigation

  • Lead counsel for RJR in several related judicial and arbitral proceedings involving claims for more than $1 billion in "non-participating manufacturer" adjustments to payment obligations under Master Settlement Agreement (“MSA”) between tobacco companies and 46 states.
  • Lead counsel in two nationwide arbitrations in which RJR and other “Participating Manufacturers” prevailed over 46 “Settling States” in 2006 and 2007.
  • Lead counsel in litigation in 46 Settling States in 2006-2007 over whether certain State defenses must be arbitrated before one nationwide panel of former federal judges or litigated in 46 state courts.  Of the 43 trial and appellate courts to rule so far, 42 have granted the tobacco companies’ motions to compel arbitration.
  • Recently argued appeals on behalf of all “Participating Manufacturers” before the Supreme Courts of Connecticut, Delaware, Maine, Massachusetts, New Hampshire, North Dakota, New York, and Vermont.  All eight of the eight appellate courts to rule so far have ruled in the favor of the Participating Manufacturers.

2.  Vodafone and Verizon Wireless; Ohio Reseller Litigation (Cleveland and Columbus, Ohio)

  • Lead counsel for Verizon Wireless and Vodafone Americas in five suits brought by alleged resellers and a putative class of subscribers of wireless telephone services alleging price discrimination before Public Utility Commission of Ohio (“PUCO”) and in state court in Cleveland.
  • In August 2006, PUCO dismissed two cases filed there.  Ohio Supreme Court affirmed in January 2007 (Discount Cellular, Inc. v. Pub. Util. Comm., 112 Ohio St.3d 360 (2007)).
  • In May 2007, in a separate appeal, the Ohio Supreme Court ruled in Verizon’s favor on statute of limitations applicable in suits filed in state court, holding that one (instead of six) year limitations period applied (Cleveland Mobile Radio Sales, Inc. v. Verizon Wireless, 113 Ohio St.3d 394, 2007-Ohio-2203).  Parties are currently litigating whether that ruling fully disposes of plaintiffs’ claims in two state court actions.
  • In fifth case, arbitration panel dismissed plaintiffs’ claims in 2005.  Parties are currently litigating plaintiffs’ attempt to relitigate these claims in state court.

3.  R.J. Reynolds Tobacco Co., et al. v. State of Minnesota (St. Paul, Minnesota)

  • Lead counsel for RJR in breach of contract and constitutional challenge to "health impact fee" on cigarette sales.
  • Trial court granted 100% of relief requested.
  • Argued on behalf of entire industry in expedited appeal to Minnesota Supreme Court, which reversed in 2006.

4.  Sanders, et al. v. Brown & Williamson Tobacco Corporation, et al. (San Francisco, California)

  • Lead counsel for Brown & Williamson in putative class action raising antitrust and other challenges to legality of $206 billion Master Settlement Agreement between tobacco manufacturers and 46 states.
  • Argued defendants’ motion to dismiss, which was granted.  Case is currently on appeal to the Ninth Circuit.

5.  State of Texas v. Brown & Williamson Tobacco Corporation (Texarkana, Texas)  

  • Lead counsel for Brown & Williamson in suit brought by Texas Attorney General for $21 million and other relief for alleged breach of 1997 settlement agreement.
  • Tried case in bench trial.  Court entered judgment for Brown & Williamson and dismissed all of Texas’ claims with prejudice.  Affirmed by Fifth Circuit in 2006.

6.  United Airlines, Inc. v. U.S. National Bank, et al. (Chicago)

  • Lead counsel for United in antitrust suit seeking to block repossession of planes by group of aircraft lessors/financiers owning 30% of United's fleet.
  • After lessor group gave notice of immediate repossession of 14 aircraft, obtained injunctive relief assuring United's continued use of planes.  Injunction reversed by Seventh Circuit.

7.  Morefield v. Exelon Corporation, et al. (Chicago, Illinois)

  • Lead counsel for defendants in one of the first cases to be tried under the Sarbanes-Oxley Act’s “whistleblower” provision.  Plaintiff, former chief financial officer of one of Exelon’s subsidiaries, alleged accounting and other wrongdoing.
  • Tried case in two-week trial.  Case settled on confidential terms.

8.  States of New York, Illinois and Maryland v. Brown & Williamson Tobacco Corporation (New York, Chicago, and Baltimore)

  • Lead counsel for Brown & Williamson in suits brought by Attorneys General of New York, Illinois, and Maryland for more than $40 million of sanctions for alleged violation of marketing restrictions in 1998 Master Settlement Agreement.
  • After Brown & Williamson’s extensive evidentiary submission, case settled $1.5 million contribution to various not-for-profits.

9.  United States v. Concord EFS and First Data Corporation (Washington, D.C.)

  • Lead counsel for Concord EFS in Department of Justice Clayton Act Section 7 suit to block $7 billion merger between two leading participants in debit card network and processing and electronic funds transfer industry.
  • Over Government’s opposition, succeeded in getting trial set for expedited, two-week trial on the merits.  Case settled on the eve of that trial, and proposed merger was completed.

10.  Cellnet of Ohio v. Vodafone, Verizon Wireless, et al. (Cleveland, Ohio)

  • Retained by Vodafone, Verizon Wireless and related defendants as lead trial counsel in suit by Ohio wireless reseller seeking $1.5 billion in damages.  Defendants previously had been found liable for violating price discrimination and other provisions of Ohio utility law in a decision affirmed by the Ohio Supreme Court.
  • Over the next six weeks, succeeded in dismissing 80% of plaintiff’s damage claims before trial.
  • Case settled on confidential terms on the first day of six-week jury trial.

11.  In re Cigarette Antitrust Litigation, MDL 1342, and related cases (Atlanta, Georgia)

  • Lead counsel for Brown & Williamson in 42 federal and state actions brought on behalf of various putative nation- and state-wide classes alleging a conspiracy to fix the price of cigarettes.  In the consolidated federal cases (MDL 1342) plaintiffs sought damages of $11 billion before trebling.
  • After extensive discovery and other pretrial proceedings, summary judgment on entered for defendants, see 231 F. Supp. 2d 1253 (N.D. Ga. 2002), and affirmed by the Eleventh Circuit, see 2003 WL 22171708 at *35 (11th Cir. Sept. 22, 2003).

12.  C&F Packing Co. v. Pizza Hut (Chicago, Illinois)

  • Retained by Pizza Hut to try this $400-700 million claim for misappropriation of trade secrets.  Similar claim against co-defendant IBP, Inc. was tried to a jury and won by plaintiff and affirmed by the Federal Circuit.
  • Case settled on favorable terms on eve of three-week jury trial.

13.  DeLoach v. Philip Morris, et al. (Greensboro, North Carolina)

  • Lead counsel for Brown & Williamson in putative class action brought on behalf of 500,000 U.S. tobacco farmers and quota holders alleging a conspiracy among cigarette manufacturers and leaf dealers to fix the price of leaf tobacco sold at auction.  Plaintiffs claimed damages of more than $1 billion before trebling.
  • After extensive pretrial proceedings, case settled on favorable terms.

14.  Cigarettes Cheaper! v. Brown & Williamson Tobacco Corp. (Los Angeles, California)

  • Retained as trial counsel for defendant in this case brought by largest cigarette retailer in U.S. alleging $100 million in damages from price discrimination in violation of Robinson-Patman Act.
  • After extensive discovery, case settled on favorable terms.

15.  Village of Arcanum, et al. v. Dayton Power & Light Company (Washington, D.C.)

  • Lead counsel for DP&L in dispute concerning long-term power service agreements with 11 municipalities.
  • After one-week trial, judgment was entered for DP&L on all claims.  Judgment for client was affirmed on appeal.

16.  Porter v. Saddlebrook Resorts, Inc. (Dade City, Florida)

  • Retained by Saddelbrook to overturn $24 million verdict in suit by adjacent landowners alleging flooding.
  • After a four-day evidentiary hearing, succeeded in overturning verdict on ground that plaintiffs’ chief expert witness had testified falsely at trial.  New trial order was affirmed by the Florida Appellate Court.
  • Case settled on eve of retrial for $350,000.   

17.  New York Daily News v. Goss Graphic Systems, Inc. (New York, New York)

  • Lead counsel for Goss, world's leading manufacturer of printing presses, in action seeking $63 million in damages for alleged fraud and breaches of warranty.
  • Client’s motion to dismiss Daily News' complaint with prejudice was granted by trial court and affirmed by appellate court.

18.  Dairy Farmers of America v. Niro, Inc. (Kansas City, Missouri)

  • Lead counsel for DFA, U.S.'s largest dairy cooperative, in suit seeking damages for breach of warranty in connection with defective design and manufacture of world's largest non-fat dry milk processing plant.
  • After extensive discovery and other pretrial proceedings, case settled with DFA receiving most of the relief requested.

Other Trials and Significant Representations

General: 

1.  Brown & Williamson Tobacco Corporation; Global Settlement

  • Lead counsel for Brown & Williamson and one of three lead negotiators for industry in connection with $206 billion Master Settlement Agreement with 46 states, the District of Columbia, and Puerto Rico.  Role in negotiations was subject of cover story in January/February 1999 issue of The American Lawyer.  Also served as lead counsel for Brown & Williamson in connection with prior, June 1997 proposed $368 billion settlement with various state attorney generals, plaintiffs' attorneys, and public health groups.
  • Represented Brown & Williamson in various Congressional hearings, including Brown & Williamson's CEO's testimony before the House Commerce Committee and the Senate Commerce Committee.
  • Lead negotiator for Brown & Williamson in connection with:  fall 1997 negotiations with White House concerning implementing legislation; $350 million October 1997 settlement of flight attendant-second-hand smoke case; $15.3 billion January 1998 settlement of Texas Medicaid recovery suit; and $6 billion May 1998 settlement of Minnesota Medicaid recovery suit.

2.  State of Illinois v. City of Chicago (Chicago, Illinois)

  • Lead counsel for City and Mayor Daley in two suits in which the State and other plaintiffs sought to enjoin City’s closing of Meigs Field.
  • After one-week evidentiary hearing, U.S. District Court for Northern District of Illinois denied plaintiffs’  motion for preliminary injunction.  The Seventh Circuit affirmed.
  • The City likewise prevailed in a separate proceeding in the Circuit Court for Cook County, Illinois, defeating the State’s motion for a preliminary injunction.

3.  Ameritech v. MCI Telecommunications Corporation (Chicago, Illinois)

  • Lead counsel for Ameritech in false advertising case seeking to enjoin MCI’s claim, in newly-competitive market for local toll calls, that its rates "are always lower than Ameritech’s."
  • Ameritech’s motion for a TRO was granted.
  • After an extended evidentiary hearing (essentially a trial on the merits), Ameritech’s motion for a preliminary injunction was granted.

Key Antitrust Cases: 

4.  Brown & Williamson Tobacco Co.; Department of Justice Antitrust Investigation (Washington, D.C.)

  • Lead counsel for Brown & Williamson in antitrust investigation by Department of Justice concerning a possible conspiracy among cigarette companies to prevent development and sale of a "safer cigarette."
  • Department’s three-year investigation terminated without enforcement action.

5.  Brooke Group, Inc. v. Brown & Williamson Tobacco Co. (Winston-Salem, North Carolina)

  • Retained to assist in overturning $149 million jury verdict entered against Brown & Williamson in this predatory pricing case.
  • Brown & Williamson's motion for judgment notwithstanding the jury's verdict was granted by trial court, affirmed by Fourth Circuit, and affirmed by Supreme Court.  See 964 F.2d 335 (4th Cir. 1992); 509 U.S. 209 (1993).

6.  UMCO v. Whirlpool Corp. (Miami, Florida)

  • Trial counsel for defendant in suit in which terminated Whirlpool distributor for Puerto Rico, Venezuela, and Colombia claimed more than $15 million in damages.
  • After six-week jury trial, case settled for small fraction of damages originally claimed.

Key Contract Cases: 

7.  Energy Cooperative, Inc. v. Northern Illinois Gas Company (Morris, Illinois)

  • Represented plaintiff energy supplier in suit against utility for breach of long-term fuel supply contract.  Utility claimed performance was excused by force majeure, commercial impracticability, and frustration of purpose.
  • After seven-week trial, jury returned verdict for client of $305,500,000, at the time the largest verdict in an Illinois state court action.

8.  Black Butte Coal Co. and Big Horn Coal Co. v. Commonwealth Edison Co. (Cheyenne, Wyoming)

  • Represented plaintiffs in breach of contract suit involving force majeure and other excuse claims and complex damage issues.
  • Trial counsel in 13-week jury trial in the United States District Court for the District of Wyoming.
  • Jury returned $39.4 million verdict for clients, 100 percent of relief requested.

9.  SMC Mining Co., Wolf Creek Collieries, and Kermit Coal Co. v. Carolina Power & Light Co. (Raleigh, North Carolina and Pikeville, Kentucky)

  • Lead counsel for SMC, Wolf Creek, and Kermit in arbitration and related litigation concerning suspension of deliveries and attempted termination of long-term coal agreement.
  • When CP&L suspended, obtained a TRO forcing continuation of deliveries.  Thereafter, successfully prosecuted preliminary injunction action to preserve status quo pending arbitration.
  • After extensive, expedited discovery and other pretrial proceedings, case settled on eve of three-week arbitration hearing.  Under the settlement, clients received $244 million in cash.  In addition, CP&L agreed to accept all contract tonnages for the remaining term of the contract and to grant sourcing and other flexibility.

ERISA and Employment Claims: 

10.  Peter Kiewit Sons', Inc./O'Connell v. Continental Can (Chicago, Illinois)

  • Lead counsel for Continental Can in suit brought by 225 former employees seeking $6 million of severance and retirement benefits.
  • Continental's motion to dismiss was granted.  Dismissal affirmed on appeal by Seventh Circuit.

11.  Peter Kiewit Sons', Inc.; Continental Can Class Action Litigation (Newark, New Jersey)

  • Retained by Kiewit, Continental's parent, after adverse liability rulings, to defend class actions in which former Continental employees sought more than $3 billion in damages for alleged violations of ERISA and RICO.
  • Lead counsel for defendants in three trials concerning ERISA damages at 45 Continental plants.
  • All claims settled for $415 million.

Pro Bono: 

12.  Colleen Day, et al. v. Lincoln Park Community Shelter (Chicago 2005-2006)  

  • Represented homeless shelter sponsor in litigation brought by neighbors seeking to close shelter, including trial before Chicago Board of Zoning Appeals.
  • Dispute settled in 2006, with Shelter receiving zoning approval for continuation of its programs and renovation of its facilities.

Memberships & Affiliations

Immediate past chairman, Board of Advisors, Chicago Volunteer Legal Services Foundation

Member, Board of Directors, Chicago Bar Foundation

Trustee, Court Theatre at the University of Chicago

Other Distinctions

Recipient, Illinois State Bar Association's 2000 Pro Bono Service Award

Courts

Admitted to practice before the United States Court of Appeals for various circuits, the United States District Court for the Northern District of Illinois and various other federal district courts, and the Supreme Court of the State of Illinois.
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