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All of the coordinated lawsuits were assigned to Judge Jack
Tenner.
The Milk Producers Settlement
On July 30, 1990, Judge Tenner held a settlement hearing on
the milk producers action. The parties orally stipulated that
all causes of action alleged in the milk producers complaint be
dismissed, except for negligent infliction of emotional distress.
The Bank Defendants would pay $20 million as payment in full for
that cause of action. Judge Tenner specifically found, on the
record, that the claims pending in the Knudsen bankruptcy
proceeding were "for the production and delivery of milk which
was not paid for", and that the settlement in the milk producers
action did not affect the rights of plaintiffs to receive payment
elsewhere for the lost milk.
The judge then added:
The Court has been with this litigation for some time
and has read all of the allegations, and finds that the
negligent infliction of emotional distress is a much
more serious claim as far as the individual farmers are
concerned; and, therefore, that would be the basis of
the allocation, plus my familiarity with file cabinets
full of paper in this lawsuit.
Judge Tenner also stated his understanding that the settlement
6(...continued)
reorganization was finally confirmed and effected, the lawsuits
would be finally dismissed with prejudice.
The record does not reflect whether or when the cases were
actually dismissed with prejudice.
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