John Grisham - The Appeal

Mr. Trudeau looked lean and tanned, and he was thrilled with the latest summaries.

The sixteen-point lead dominated the dinner conversation. Carl quizzed Rinehart relendessly about the numbers. Could they be trusted? How were they arrived at? How did they compare with Barry's other races? What would it take to blow the lead? Had Barry ever seen such a big lead evaporate?

Barry all but guaranteed a win.

For the first three quarters of the year, Krane Chemical reported dismal sales and weak earnings. The company was racked with production problems in Texas and Indonesia.

Three plants shut down for major, unscheduled repairs. A plant in Brazil closed for undisclosed reasons, leaving its two thousand employees out of work. Huge orders were unfilled. Longtime customers left in frustration. The sales force could not get product. Competitors cut prices and poached business. Morale was down and there were rumors of major cutbacks and layoffs.

Behind the chaos, Carl Trudeau was skillfully pulling all the strings. He did nothing illegal, but cooking the books was an art he'd mastered many years ago. When one of his companies needed bad numbers, Carl could deliver them. During the year, Krane wrote off huge chunks of research and development, shifted unusually large sums of money into legal reserves, borrowed heavily on its credit lines, stifled sales by sabotaging production, bloated expenses, sold two profitable divisions, and managed to alienate many of its customers.

Through it all, Carl coordinated enough leaks to float a printing press. Since the verdict, Krane had been on the radar of business reporters, and all bad news got plenty of ink. Of course, every story referred to the massive legal problems the company was facing. The possibility of bankruptcy had been mentioned several times, after careful plants by Carl.

The stock began the year at $17.00. Nine months later, it was $12.50. With the election just two weeks away, Carl was ready for one last assault on the battered common shares of Krane Chemical Corporation.

The phone call from Jared Kurtin seemed like a dream. Wes listened to the words and closed his eyes. It could not be true.

Kurtin explained that he had been instructed by his client to explore the possibilities of settling the Bowmore litigation. Krane Chemical was a mess, and until the lawsuits went away, it could not regain its focus and compete effectively.

His proposal was to gather all the attorneys in one room at one time and start the process. It would be complicated because there were so many plaintiffs with so many issues. It would be difficult because there were so many lawyers to control. He insisted that Wes and Mary Grace act as lead counsel for the plaintiffs' lawyers, but they could work out those details at the first meeting. Time was suddenly crucial. Kurtin had already reserved a convention room at a hotel in Hattiesburg, and he wanted the meeting to begin on Friday and run through the weekend, if necessary.

"Today is Tuesday," Wes said, gripping the phone with white knuckles.

"Yes, I know. As I said, my client is anxious to begin this process. It could take weeks or months to complete, but we're ready to sit down."

Wes was ready, too. He had a deposition set for Friday, something that was easily postponed. "What are the rules?" he asked.

Kurtin had the benefit of hours of planning. Wes was reacting out of shock and excitement.

Plus, Kurtin had been around the block a few more times than Wes. He had negotiated mass settlements on several occasions. Wes could only dream of one.

"I'm sending a letter to all known plaintiffs' attorneys," Kurtin said. "Look over the list and see if I'm missing anyone. As you know, they're still popping up. All lawyers are invited, but the easiest way to screw up a settlement conference like this is to give the trial lawyers the microphones. You and Mary Grace will talk for the plaintiffs. I'll talk for Krane. The first challenge is to identify all persons who are making any sort of claim. Our records show about six hundred, and these range from dead bodies to nosebleeds. In my letters, I'm asking the lawyers to submit the names of clients, whether they have filed suit or not. Once we know who expects a piece of the pie, the next challenge will be to classify the claims. Unlike some mass tort settlements with ten thousand plaintiffs, this one will be manageable in that we can talk about individual claims. Our current numbers show 68 dead, 143 wounded and probably dying, and the rest with various afflictions that, in all probability, are not lifethreatening."

Kurtin ticked off the numbers like a war correspondent reporting from battle. Wes couldn't help but grimace, nor could he suppress another vile thought about Krane Chemical.

"Anyway, we'll start the process of going through these numbers. The goal is to arrive at one figure, then compare it with the cash my client is willing to spend."

"And what might that number be?" Wes asked with a desperate laugh.

"Not now, Wes, maybe later. I'm asking each lawyer to fill out a standardized form for each client. If we can get these back before Friday, we'll have a head start.

I'm bringing a full team, Wes. My litigators, support staff, experts, number crunchers, and I'll even have a guy with some spine from Krane. Plus, of course, the usual crew from the insurance companies. You might want to reserve a large room for your support people."

Reserve with what? Wes almost asked. Surely Kurtin knew about the bankruptcy.

"Good idea," he said.

"And, Wes, my client is really concerned about secrecy. There is no reason for this to be publicized. If word gets out, then the plaintiffs and their lawyers and the whole town of Bowmore will get excited. What happens then if the negotiations go nowhere? Let's keep a lid on this."

"Sure." How ridiculous. Kurtin was about to send his letter to no fewer than twenty law firms. Babe at the coffee shop in Bowmore would know about the settlement conference before she began serving lunch.

The following morning the Wall Street Journal ran a front-page story about Krane Chemical's settlement overtures. An anonymous source who worked for the company confirmed the truth of the rumors. Experts chimed in with varying opinions, but it was generally regarded as a positive step for the company. Large settlements can be calculated. Liabilities can be contained.

Wall Street understands hard numbers, and it hates unpredictability. There is a long history of battered companies shoring up their financial futures with massive settlements that, while costly, were effective in cleaning up litigation.

Krane opened at $12.75 and advanced $2.75 in heavy trading.

By midafternoon Wednesday, the phones were ringing nonstop at Payton amp; Payton, and many other law firms as well. Word of a settlement was out there, on the street and flying around the Internet.

Denny Ott called and talked to Mary Grace. A group of Pine Grove residents had gathered at the church to offer prayers, exchange gossip, and wait for a miracle. It was like a vigil, he said. Not surprisingly, there were different versions of the truth. A settlement had already been negotiated, and money was on the way. No, the settlement would take place on Friday, but there was no doubt that it would happen. No, there was no settlement at all, just a meeting of the lawyers. Mary Grace explained what was happening and asked Denny to pass along the truth. It quickly became apparent that either she or Wes would need to hustle over to the church and meet with their clients.

Babe's was packed with spirited coffee drinkers, all looking for the latest word.

Would Krane be required to clean up its toxic dump? Someone claiming authority answered yes, that would be a condition of the settlement. How much would the death claims be worth? Someone else had heard the figure of $5 million each. Arguments raged.