Eugene E. Stearns

Shareholder
Miami
305-789-3400
estearns@stearnsweaver.com
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Eugene Stearns, a trial lawyer since 1972, serves as Chairman of the Firm's Board of Directors and Chairman of its Litigation Department. His trial experience over nearly four decades has been in jury and non-jury trials in state and federal courts in Florida and other jurisdictions (a substantial percentage of which were tried to verdict and final judgment), as well as extensive arbitration and administrative law proceedings. Mr. Stearns has briefed and argued appeals to Florida's appellate courts, including the Florida Supreme Court, and in the federal system to the United States Courts of Appeals for the Third, Fifth, Ninth, and Eleventh Circuits. He has also successfully argued before the United States Supreme Court in a matter that, when decided, ended almost a decade of disagreement among the federal circuits involving federal diversity jurisdiction.

Mr. Stearns' areas of practice have been wide-ranging, including complex disputes involving the purchase and sale of securities, the adequacy of disclosure by public companies, intellectual property rights (including significant disputes over pharmaceutical patent claims), contract rights, defamation and libel law, insurance coverage, bank and insurance regulation, lender liability, deceptive and unfair trade practices, directors and officers’ liability, construction, development rights, voting rights, constitutional issues, and a myriad of other common law and statutory issues.

Prior to joining the Firm, from 1967 until 1972, Mr. Stearns served on the Staff of the Florida House of Representatives including the Constitutional Revision Session of 1967 (resulting in Florida's Constitution of 1968), two years as senior staff member of the House Committee on Governmental Reorganization (which organized the Executive Branch of Florida government into 22 Departments), and two years as Chief Assistant to Florida's Speaker of the House, Richard A. Pettigrew. In 1970, Mr. Stearns co-authored for Gubernatorial candidate Reubin Askew the "Fair Share Tax Plan," which became the principal campaign theme of Askew's successful campaign for Governor. Mr. Stearns served Governor Askew for two years prior to leaving Florida government to begin the private practice of law. 

Mr. Stearns continues to be actively involved in a host of public policy issues on both the state and federal level, in virtually every instance on a pro bono basis. Mr. Stearns has successfully represented communities throughout South Florida who have aspired to create new local governments including organizing groups for what are now the Village of Key Biscayne, the City of Aventura, the Village of Pinecrest, the City of Sunny Isles, and the City of Islamorada. Mr. Stearns represented a group of African American leaders in Voting Rights Act litigation to require local governments to provide single member districts that led to a favorable decision in the United States District Court and a landmark decision of the Eleventh Circuit. Mr. Stearns is a frequent lecturer throughout Florida on issues related to the organization of local government. 

Representative Experience

• Lead Counsel in class action against Exxon Corporation (U.S. District Court for the Southern District of Florida, U.S. Court of Appeals for Eleventh Circuit, and U.S. Supreme Court). On behalf of a class of Exxon dealers, Mr. Stearns obtained a jury verdict against Exxon for compensatory damages of approximately $500 million. The jury found that Exxon breached uniform sales agreements in setting fuel prices and fraudulently concealed the breach for years. With prejudgment interest, the total award was approximately $1 billion, making it the largest compensatory damage award by a Florida jury. The Eleventh Circuit affirmed the jury's verdict in a unanimous opinion. The Supreme Court then granted certiorari review, and, after additional briefing and oral argument, affirmed the judgment and opinion of the Eleventh Circuit. Since that time, Mr. Stearns has had overall responsibility for developing and administering a claims process to prosecute each and every one of the 11,000 claims that were filed against the $1.07 billion paid by Exxon to the Fund. The Firm has prosecuted every single claim to a Special Master appointed by the District Court, with unprecedented success.
• Government action against UBS (U.S. District Court for the Southern District of Florida). Mr. Stearns Co-counseled with Cravath, Swaine & Moore LLP and Wachtell, Lipton, Rosen & Katz to oppose an IRS petition seeking information on many thousands of client accounts located exclusively in Switzerland, even though compliance would have compelled UBS employees to commit crimes in Switzerland. After extensive briefing and expedited discovery, the case was resolved by a favorable settlement brokered among the United States government, the Swiss government, and UBS.
• Contract dispute between U.S. Global, LLC and Progress Energy (Florida Circuit Court, and Fourth District Court of Appeal). On behalf of U.S. Global, a Fort Lauderdale based energy company, Mr. Stearns obtained a jury verdict which, with prejudgment interest, exceeded $132 million. The case involved a complex contract dispute arising out of the sale of facilities which produced a synthetic fuel from coal qualifying for federal tax credits. An appeal to Florida’s Fourth District Court of Appeal is pending.
• Receiver-filed action against Peninsula Bank (U.S. District Court for the Eastern District of Pennsylvania, and U.S. Court of Appeals for the Third Circuit). After the Receiver for a Ponzi entity obtained a $14 million jury verdict against Peninsula Bank, which was represented by another firm at trial, Mr. Stearns was asked to take over the defense of the litigation, including any appeals. Mr. Stearns filed a motion for relief from judgment, and briefed and argued the case to the Third Circuit, which issued a unanimous opinion reversing the jury verdict and remanding for entry of judgment in favor Peninsula Bank and the other defendants. The case remains pending, awaiting final orders.
• Securities actions against Tradestation (Florida Circuit Court). Mr. Stearns successfully defended Tradestation and its principals in two jury trials (one in Miami and the other in Fort Lauderdale) which were tried to conclusion. The cases involved securities and common law fraud claims brought by shareholders who claimed that their sale of millions of shares to either the company or its principals was induced by fraud. The shareholders sought in excess of $50 million. Both juries returned verdicts for the defendants. The cases then settled on terms favorable to the defendants.
• Insurance coverage dispute (Florida Circuit Court). Mr. Stearns was lead counsel for a developer in a suit seeking recovery under a builders-risk insurance policy, following a catastrophic fire. After two weeks of trial, the insurer settled for $27 million, which represented the entire amount sought in the litigation, plus attorneys’ fees and exposure for bad faith liability. By agreement, the names of the parties cannot be disclosed.
• Defense of Bluegreen "Poison Pill" (U.S. District Court for the Southern District of Florida). Mr. Stearns co-counseled with Wachtell, Lipton, Rosen & Katz in defense of Bluegreen's "poison pill," precluding the assemblage of voting stock in excess of described limits without board approval. After extensive and expedited briefing and discovery, an evidentiary hearing before a federal magistrate resulted in a report and recommendation in favor of Bluegreen, requiring a large shareholder to divest substantial holdings acquired under unusual circumstances. The case settled with acceptance of a modified report thereafter.
• Claim against ITT involving reverse osmosis plant that failed (Florida Circuit Court, and Third District Court of Appeal). On behalf of La Gorce Country Club, Mr. Stearns tried non-jury claims against ITT and a professional geologist involving liability for a water treatment plant that suffered a catastrophic failure. The case remains pending, awaiting final orders.
• Contractual dispute over general contractor's claims involving Ritz Carlton, Key Biscayne (Arbitration). Mr. Stearns represented the hotel owners in a protracted dispute over the cost of construction and delays involved in the construction of a successful hotel property. The result, regrettably, was adverse to the owners.
• Representation of generic drug maker in efforts to get generic version of anti-cancer drug to market (U.S. District Court for the Central District of California, and U.S. Court of Appeals for the Ninth Circuit). On behalf of IVAX Corporation, Mr. Stearns successfully obtained dismissal of an injunction action brought by Bristol Myers and others, which attempted to bar IVAX from marketing a generic version of the anti-cancer drug Taxol. After an appeal to the Ninth Circuit was briefed and argued, the parties achieved a favorable settlement.
• Defense of orange juice processing plant against multi-million dollar damage claim (Florida Circuit Court, and Fourth District Court of Appeal). Mr. Stearns was lead counsel for Caulkins Indiantown Citrus in a suit by growers alleging overcharges in an orange juice processing operation. The suit was fueled by allegations from the company’s former chief executive officer who had been discharged. Mr. Stearns negotiated an early and favorable settlement with most of the growers and tried to a jury those claims where settlement was rejected. At trial, the plaintiffs were awarded only nominal damages. Appeals to the Fourth District Court of Appeals resulted in a reduction of the award of damages.
• Prosecution of RICO action for BankAtlantic (U.S. District Court for the Southern District of Florida, and U.S. Court of Appeals for the Eleventh Circuit). Mr. Stearns was lead counsel for BankAtlantic in a case against numerous individuals and companies who participated in selling the bank millions of dollars of fraudulent consumer loans. The jury award, trebled, totaled $77 million, making it one of the largest civil RICO verdicts ever awarded. The judgment was affirmed by the Eleventh Circuit.
• Securities action against Jack Nicklaus and company (U.S. District Court for the Southern District of Florida). Mr. Stearns served as lead counsel for Jack Nicklaus and his company in connection with litigation arising from the misfeasance of a senior officer of a subsidiary company. The entire matter was resolved by favorable settlement, including a court-approved going-private transaction.
• Insurance coverage dispute against Reliance National Indemnity (Administrative Agency, and Florida Circuit Court). Mr. Stearns was lead counsel for Ocean Club Development Company in an administrative hearing and companion civil action arising from a fire which substantially damaged a condominium structure under construction. The builders-risk insurer, Reliance National Indemnity, sought to have the structure repaired rather than demolished. Mr. Stearns obtained a favorable determination at a formal hearing by an administrative agency that the fire-damaged, partially-completed building was a total loss, requiring demolition. After a brief stint in Florida Circuit Court, Reliance National Indemnity settled for its $25 million policy limit.
• Securities action against IVAX Corporation (U.S. District Court for the Southern District of Florida, and U.S. Court of Appeals for the Eleventh Circuit). Mr. Stearns was lead counsel for IVAX Corporation in a series of law suits over several years which claimed damages of hundreds of millions of dollars from alleged securities law violations in connection with market declines in IVAX securities. Each of the cases was dismissed with prejudice, and each of the dismissals was affirmed by the Eleventh Circuit in published opinions; two of which are frequently cited in cases involving the Private Securities Litigation Reform Act.
• Claim by Trustee for Southeast Bank against First Union (U.S. District Court for the Southern District of Florida, and U.S. Court of Appeals for the Eleventh Circuit). Mr. Stearns was co-counsel for First Union in connection with the claim by the Trustee of Southeast Bank that First Union breached contractual obligations in connection with its acquisition of Southeast Bank from the FDIC simultaneously with the FDIC takeover. Mr. Stearns successfully argued for dismissal of the case with prejudice, which was affirmed by the Eleventh Circuit.
• Class action against Bank of America (U.S. District Court for the Southern District of Florida, and U.S. Court of Appeals for the Eleventh Circuit). Mr. Stearns was lead counsel for Bank of America in a class action which alleged that bad check fees were interest and that the resulting "interest" was usurious. Mr. Stearns obtained a summary judgment in favor of the Bank, which was affirmed by the Eleventh Circuit.
• Case seeking multi-million dollar brokerage fee from AIG (U.S. District Court for the Southern District of Florida). On behalf of AIG, Mr. Stearns obtained summary judgment rejecting a claim by former employees of Smith Barney who alleged that they had successfully brokered a series of substantial policies with the Chilean government. The summary judgment was affirmed by the Eleventh Circuit.
• Action to terminate control of Capital Bank by its founders (Florida Circuit Court, The State of Florida Division of Administrative Hearings, and Florida's Comptroller and Banking Commissioner). On behalf of unhappy shareholders of Capital Bank, Mr. Stearns was lead counsel in a series of administrative and circuit court proceedings which sought to remove the Holtz family from control of the institution. Following a four-month administrative hearing pursuant to Florida's Administrative Procedure Act, the State hearing officer found the controlling officers of Capital Bank to be unfit to continue in that capacity and ordered their removal. Companion derivative litigation involving the same parties was concluded shortly thereafter when the Holtz' conceded, allowing a merger of Capital Bank with Union Planters in a transaction that concluded all claims in favor of the shareholders.
• Claim by Ecuadorian family against Bank of America arising from Ecuador's "sucretization" program (Florida Circuit Court). Mr. Stearns was lead counsel for Bank of America on a claim that a predecessor institution had wrongfully taken collateral to repay a substantial loan. The borrower claimed the bank had modified the loan to exchange his obligation for that of the Central Bank of Ecuador. The jury returned a verdict for the Bank in all respects.
• Lender liability suit against First Union (Florida Circuit Court). Mr. Stearns was lead counsel for First Union in defense of a multi-million dollar claim that a predecessor institution wrongfully foreclosed on a real estate project. The jury returned a verdict in favor of the Bank on all issues.
• New York Knicks vs. The Miami Heat (Arbitration before NBA Commissioner David Stern). Mr. Stearns was lead counsel for the Miami Heat in an arbitration involving a claim by the Knicks that the Miami Heat wrongfully acquired the services of head coach Pat Riley while he was under contract to the Knicks. The arbiter was NBA Commissioner David Stern. After trial but before a final order was entered, the parties settled the dispute on a favorable basis.
• Securities action against Precision Response Corporation (U.S. District Court for the Southern District of Florida). On behalf of PRC, Mr. Stearns obtained voluntary dismissal with prejudice of a securities class action. The dismissal was taken following the filing of Precision Response's motion to dismiss and motion for sanctions pursuant to Rule 11.
• Securities class action against Omega Research (U.S. District Court for the Southern District of Florida). On behalf of Omega Research, Mr. Stearns obtained a dismissal with prejudice of a securities class action alleging damages from a precipitous decline in the market for the company's equity securities. The plaintiffs abandoned their appeal in exchange for a waiver of attorneys' fees and costs.
• Voting Rights Act claim against Miami-Dade County government (U.S. District Court for the Southern District of Florida, and U.S. Court of Appeals for the Eleventh Circuit). Mr. Stearns was lead counsel for a member of Congress and other prominent African Americans in a voting rights act case brought against county government which resulted in the elimination of at large elections for the county commission and the creation of single member districts. The judgment was affirmed by the Eleventh Circuit.
• Defense of plaintiff against lawyers seeking excessive fees (Florida Circuit Court, and Fourth District Court of Appeal). Mr. Stearns was lead counsel for a Palm Beach doctor whose prior attorneys had obtained a $20 million jury verdict in his favor. The underlying litigation settled on appeal and his attorneys claimed fees of over 60% of the amount of the settlement. After a lengthy trial, the trial court rejected the fee demand entirely, finding that the lawyers had forfeited any entitlement to fees because of unprofessional actions. The Fourth District Court of Appeal affirmed the findings and affirmed the rejection of the percentage fee agreement, but reversed the denial of all fees as unduly punitive. The appellate court directed an award of fees based on the time expended in the case less damages caused by the unethical conduct. The matter then settled on an agreed basis.
• Case against A.H. Robins for Dalcon Shield use (U.S. District Court for the Southern District of Florida, and U.S. Court of Appeals for the Eleventh Circuit). Mr. Stearns obtained one of the largest verdicts recorded against A.H. Robins arising from the IUD device known as the Dalcon Shield. Of particular significance, Mr. Stearns took over the case only two days before the six-week trial was to begin. The multi-million dollar judgment that followed was affirmed by the Eleventh Circuit.
• Injunctive and administrative actions to restrain acquisition of voting stock in Flagship Banks, Atlantic Federal, Century Banks, and other Florida banks (Various Venues). Considerable litigation arose over the rights of insurgent investors during the period of consolidation in Florida banking. Mr. Stearns was lead counsel in defense of the acquisitions of each of those institutions, defending a combination of federal court securities actions and administrative proceedings, all of which ended favorably for the Firm's clients.
• School board bid dispute (Florida Division of Administrative Hearings, and Third District Court of Appeal). Mr. Stearns was lead counsel for an architectural firm in an administrative action against the Dade County School Board which resulted in the reversal of a school board decision to award a substantial architectural contract to a competitor disguised as a minority owned firm. The decision was affirmed by the Third District Court of Appeal.
• Suit seeking multi-million dollar brokerage fee for Bahamas school construction project (U.S. District Court for the Southern District of Florida, and U.S. Court of Appeals for the Fifth Circuit). Mr. Stearns defended a prefabricated materials contractor against a claim brought by a broker who had a written contract to receive 10% of all contracts awarded to the contractor by the Government of the Bahamas. The contractor had received and completed a contract to build numerous school buildings throughout the Bahamas. The jury found in favor of the contractor, and awarded the broker nothing. The judgment was affirmed by the Fifth Circuit.
• First jury trial results in $1.9 million jury verdict against REIT (Florida Circuit Court, and Fourth District Court of Appeal). In his first year in practice, Mr. Stearns was lead counsel in a suit brought as a counterclaim against a real estate investment trust. He obtained summary judgment on the main claim brought against his client and tried the counterclaim to a jury which awarded $1.85 million. The judgment was affirmed by the Fourth District Court of Appeal.

Professional and Community Involvement

• West Point Center for Study of the Law of Armed Conflict, Member, Board of Advisors

Recognition

• Chambers USA: America's Leading Lawyers for Business: Ranked #1 in Litigation, 2005-2009
• The Best Lawyers in America®, selected for inclusion, 2003-2010
• The Best Lawyers® Annual Guide to Commercial Litigation, selected for inclusion, 2009-2010
• Florida Super Lawyers, selected for inclusion, 2006-2010
• Florida Super Lawyers, Corporate Counsel Edition, selected for inclusion, 2010
• Florida Trend's Florida Legal Elite, selected for inclusion, 2004-2009
• South Florida Legal Guide - "Top Lawyers in South Florida," selected for inclusion, 2000-2008; 2010; "Top Lawyers in Litigation-Commercial and Business," selected for inclusion 2010; "Top Lawyers in Trial Practice," selected for inclusion 2010

Contact

Miami Office
Museum Tower
150 West Flagler Street, Suite 2200
Miami, FL  33130
305 789 3200 phone
(305) 789.3395 fax