3 janvier, 2007 18:28
Hot Topics, January 2006 - North America
Asbestos & Lead
January 30, 2006 - Connecticut court sides with reinsurers over the Hartford in asbestos dispute
A Connecticut court has sided with reinsurers over the Hartford Insurance Co. in a coverage dispute over asbestos claims. Then ruling, if upheld, could cost the Hartford $117 million it was expecting to collect from reinsurers Lloyd's of London syndicates and other London reinsurers. The underlying claims involve some 17,000 asbestos personal injury claims filed against insulation distributor and installer MacArthur Co. The Hartford provided coverage to MacArthur from 1967 to 1975. The coverage action was heard in Waterbury Superior Court. The Hartford Courant on 01/26/2006
January 30, 2006 - Maryland appeals court finds continuous trigger appropriate in lead poisoning insurance coverage actions
A Maryland appellate court held that the continuous trigger is appropriate in lead poisoning coverage actions (Riley v. United Services Automobile Assoc.). The court also allowed expert testimony stating that the child sustained bodily injuries throughout the tenancy. Four policy years were deemed to be triggered in this case. Goldberg Segalla LLP Toxic Tort & Environmental Litigation Update on 10/04/2005
January 30, 2006 - USG Corp. to establish a trust to fund asbestos personal injury claims
USG Corp. has announced an agreement to resolve all current and future asbestos personal injury and property claims by establishing a $3.95 billion trust fund to handle all asbestos claims. The trust will be funded by $900 million in cash and a $3.05 billion contingent note. The first of the contingent payment of $1.9 billion would be made 30 days after the adjournment for the current session of Congress. Another $1.5 billion is due 5 months later. If, however Congress passes the federal asbestos trust fund (The Fairness in Asbestos Injury Resolution Act) the contingent note will be cancelled and no additional payments after the $900 million would be placed into the trust. PR Newswire on 01/30/2006
January 25, 2006 - Federal appeals court rules against St. Paul Travelers in asbestos case
The U.S. Court of Appeals for the Third Circuit has voided an arbitration decision in an asbestos coverage dispute that was in favor of St. Paul Travelers. The arbitration decision found that asbestos personal injury claims filed against insured ACandS were subject to a single occurrence limit. The federal appellate court voided this decision finding that each claim constitutes a separate occurrence. ACandS installed insulation containing asbestos from 1948 to 1974 and estimates its total asbestos liabilities to be about $2.8 billion. The company is seeking nearly half of that amount from St. Paul Travelers. As of 9/30/05, St. Paul Travelers had asbestos reserves of $3.67 billion, up from $3.11 billion the year before. Bestwire on 01/25/2006
January 19, 2006 - Judge approves $1.5B - $2B asbestos bankruptcy trust
A district court judge has approved a settlement plan which would settle some 300,000 asbestos personal injury claims facing McDermott International Inc.. The claims stem from a subsidiary Babcock & Wilcox. The settlement plan depends in part upon whether the federal government establishes a $140 billion trust fund to handle asbestos personal injury claims. Under the settlement, if the federal government passes the $140 billion trust fund, McDermott will establish a separate fund with $1.1 billion from its liability insurers and $350 million from McDermott. If the federal trust fund is not established, McDermott will have to pay an additional $350 million in cash and a $250 million note into their asbestos trust fund. Associated Press on 01/19/2006
January 18, 2006 - Chemical company reaches $15M settlement with insurance carrier over asbestos liability
Quaker Chemical has reached a settlement over an asbestos personal injury claim with insurer Hartford A&I whereby the insurer will pay the company $15 million. Asia Intelligence Wire on 01/18/2006
January 13, 2006 - Grace's Canadian subsidiary granted bankruptcy protection from 8 asbestos class actions
An Ontario Superior Court has granted Grace Canada Inc., a subsidiary of W.R. Grace, bankruptcy protection which will stay and legal actions against the company until at least April 1, 2006. Homeowners are in the process of filing eight class actions against Grace Canada over losses arising directly or indirectly by asbestos-containing attic insulation manufactured and distributed by the company. The insulation was sold under the name Zonolite. Zonolite insulation contains vermiculite which contains asbestos. It is estimated that up to 300,000 Canadian homes have Zonolite insulation. Mealey's Asbestos Bankruptcy Report on 12/01/2005
January 13, 2006 - Combustion Engineering and reinsurer reach tentative agreement on asbestos liability
Combustion Engineering (CE) has reached a tentative agreement with Everest Reinsurance under which the reinsurer will pay $17.9 million for asbestos personal injury claims. Some 409,000 claimants have filed asbestos personal injury claims against CE since 1989. The bankruptcy court, overseeing CE's bankruptcy, must still approve the settlement. Mealey's Asbestos Bankruptcy Report on 11/01/2005
January 13, 2006 - New York appeals court upholds asbestos awards against welding rod manufacturers
The New York Supreme Court, Appellate Division, First Department has upheld multi-million dollar awards granted to two mesothelioma victims who alleged they were exposed to asbestos in welding rod fumes. It is reported that billions of welding rods sold up to the early 1980s contained asbestos. In July 2005, a New York jury found two welding rod manufacturers liable for the asbestos-related diseases of two plaintiffs (Gomez v. ACandS, Tucker v. ACandS, Perkins v. ACandS). The jury found that in two of the three consolidated cases, the welding rods exposed the plaintiffs to asbestos, the welding rods were defective, the manufacturers negligent for failing to adequately warn users of the exposure and the manufacturers acted with reckless disregard for the safety of others. Defendant Lincoln Electric was ordered to pay the first plaintiff 75% of $3,192,485 for his lung cancer. The jury found the plaintiff 25% responsible because of his smoking habit. Defendants Lincoln Electric and Hobart Brothers were each ordered to pay half of the second plaintiff's $3,453,359 award for his mesothelioma. While the jury found the third plaintiff had been exposed to asbestos from the welding rods without adequate warning, the negligence was not found to be a substantial factor in causing the plaintiff's mesothelioma. PR Newswire on 01/09/2006
January 31, 2006 - Capacitor maker to pay $20M to settle natural resource damages lawsuit
Capacitor manufacturer Schlumberger Technology Corp. has agreed to pay the federal government $20 million to settle its liability for natural resource damages to Lake Hartwell which straddles the border between South Carolina and Georgia. A company facility which operated from the mid-1950s to the late 1970s allegedly discharged PCBs into Twelve Mile Creek which feeds then lake. The company previously agreed to remediate contamination caused by the discharges. The most recent settlement resolves federal and state claims (both Georgia and South Carolina) for natural resource damages. Knight Ridder Tribune Business News on 01/31/2006
January 30, 2006 - Cleanup of contaminants at former copper mine expected to cost $100M - $1B
The remediation of contaminants at and from the former Anaconda copper mine in Nevada will cost between $100 million and $1 billion. One of the responsible parties, Atlantic Richfield, is negotiating with the federal EPA over work plans and feasibility studies to determine whether the contaminant plume is also responsible for high levels of heavy metals in the well water of nearby residents. Associated Press on 01/30/2006
January 26, 2006 - New Jersey Superfund site will likely cost $51.1M to remediate
The Imperial Oil Superfund site in New Jersey will likely cost $51.1 million to remediate. To date, the ongoing cleanup has already cost about $24.3 million and waste oil still floats on the groundwater beneath the site. The site was added to the federal Superfund list 22 years ago. New Jersey officials are concerned about where the addition necessary cleanup funds will come from because the fund set up to remediate Superfund sites has run out of money. Knight Ridder Tribune Business News on 01/26/2006
January 16, 2006 - Companies reach settlements with New Jersey for natural resource damages
New Jersey regulators announced settlement agreements with several companies for natural resource damages (NRDs). Merck & Co. has agreed to pay $2.4 million for NRDs arising from four of its New Jersey manufacturing sites. Motiva Enterprises has agreed to pay $2.2 million for NRDs arising from some 400 gas stations and oil change facilities. Other settlements include: $390,000 from Ethicon Inc., $108,000 from Northend Industrial Park, and another $1.1 million from eleven other companies. In addition to the monetary payments, these companies also agreed to donate 81 acres of undeveloped land to the state. In the past four years, New Jersey has recovered over $35 million in settlements for natural resource damages including $17 million from Honeywell. Companies have also turned over 5,200 acres of undeveloped land as part of the settlements. In addition to the settlements, the state has filed 65 NRDs lawsuits against firms that have refused to settle and are reportedly poised to file another 50 lawsuits. Settlement discussions are underway with another 50 firms. Knight Ridder Tribune Business News on 01/13/2006
January 18, 2006 - California firm proposes to settle UST violations by agreeing to pay $25M
AT&T has agreed to pay $25 million to settle allegations that it failed to properly maintain a network of underground storage tanks (USTs) throughout California. The company used the USTs to refuel vehicles and for backup generators. Regulators alleged that AT&T repeatedly failed to comply with inspection laws and to fix faulty systems. Under the proposed settlement, which still must be approved by the court, the company will pay $14 million in fines, $1.5 million in legal fees, $2.5 million to enforcement agencies and $4.5 million to enhance its storage tank compliance program. Associated Press on 01/18/2006
January 31, 2006 - Scientific panel deems C8 a "likely human carcinogen" for the second time
A panel of scientists, working for the EPA's Science Advisory Board, has again determined that C8, a.k.a. PFOA (perfluorooctanoic acid or ammonium perfluoroctanoate) is a "likely human carcinogen." In its previous study of C8, the panel found the exposure to the chemical, used to make Teflon, was associated with the development of four types of cancer - liver, testicular, pancreatic and breast as well as supression of the immune system and developmental disorders. While the EPA can accept or reject the panel's conclusions, it is rare that the agency to dismiss recommendations made by the panel. The EPA is still working to determine the greatest exposure pathways exposing consumers to C8 and while non-stick cook ware may be one pathway, some believe food packaging may be of greater concern. Associated Press, Knight Ridder Tribune Business News on 01/31/2006
January 30, 2006 - C8 can leach into food from packaging
C8, also known as PFOA, is used to coat food packaging to keep oils from bleeding into the packaging. Some researchers contend that the chemical can leach into French fries from the small bags used typically by fast food chains. C8 can also leach onto popcorn as the microwavable packaging is coated with a teflon-like material. The chemical is also used to coat pizza delivery boxes. When heated the chemical can be released from the packaging. CNN on 01/29/2006
January 19, 2006 - New study links pesticide exposure to male infertility
A new study by researchers from the University of Michigan, Harvard University and the U.S. Centers for Disease Control and Prevention links exposure to the pesticide chlorpyrifos to lower testosterone in males. The researchers measured the level of TCPY, a breakdown product of chlorpyrifos, in mens' urine and found the higher the levels of TCPY, the lower the testosterone. Additional studies are necessary. Europe Intelligence Wire on 01/19/2006
January 9, 2006 - Maryland High Court rules pollution exclusion does not apply to injuries caused by workplace fumes
Maryland's highest court has ruled that a pollution exclusions were not intended to bar claims for injuries caused by noxious workplace fumes. The underlying case involved workplace exposures to manganese in welding rod fumes which plaintiffs allege is responsible for Parkinson's disease and other neurological disorders (Clendenin Brothers Inc. v. U.S. Fire Ins. Co.). The insured, Clendenin Brothers, manufacturers welding rods. After being named in numerous welding rod fumes personal injury lawsuits the company sought defense and indemnity from U.S. Fire which provided both CGL and Commercial Umbrella coverage with both policies containing a total pollution exclusion. Citing a previous ruling (a lead poisoning case), which involved an "absolute" pollution exclusion and despite the fact that the present case involved interpretation of a "total" pollution exlcusion, the Court of Appeals of Maryland treated them equally, ruling that pollution exclusions apply only to environmental claims - not claims arising from "the normal course of business operations." In support of its decision, the Maryland court cited various other federal and state court opinions finding pollution exclusions ambiguous. This ruling by the state high court will now likely be applied to a broad spectrum of workplace fume exposure cases heard in Maryland. Maryland Court of Appeals on 01/06/2006
January 26, 2006 - EPA asks companies to voluntarily eliminate emissions & use of C8 (a.k.a. PFOA)
The EPA has asked eight firms to phase out their use of the chemical C8, a.k.a. perfluorooctanoic acid or PFOA. The EPA has rarely taken such a sweeping action against an industrial compound. The agency has asked eight firms to reduce their use of C8 by 95% by 2010 and to halt use by 2015. DuPont is the only U.S. manufacturer of C8 which uses the chemical in the production of Teflon, but seven other companies use the chemical in other products such as textiles, automobile fuel systems, computer chips, telecommunications equipment, electronic wiring, fire fighting foams and certain paper. C8 can be found in the bloodstream of most Americans and C8 is transferred to fetuses in the womb. While scientists are still trying to determine whether the chemical causes adverse affects in humans, animal tests have shown that high doses of the C8 causes liver cancer, immune suppression and developmental disorders. The eight firms asked to eliminate use of C8 are: DuPont, 3M/Dynean Co., a unit of 3M, French company Arkema Inc., Japan's AGC Chemical/Asahi Glass, Switzerland's Ciba Specialty Chemicals Holding Inc., Japan's Daikin Industries Ltd, Switzerland's Clariant Corp. and Italy's Solvay Solexis. If these companies comply, the use of C8 would be reduced by some 75% leaving China as the largest producer of the chemical. Los Angeles Times, The Wall Street Journal on 01/26/2006
January 30, 2006 - Louisiana appeals court upholds homeowners' mold exclusion
A Louisiana appellate court has upheld the mold exclusion in a homeowners' policy when the mold was caused by humidity and condensation (Morgan v. Auto Family Ins. Co.). The court rejected the insured's argument that the mold was an ensuing loss. Goldberg Segalla LLP Toxic Tort & Environmental Litigation Update on 10/04/2005
January 30, 2006 - Ohio appeals court upholds homeowners mold exclusion
An Ohio appellate court has upheld a mold exclusion contained in a Homeowners' policy (Polk v. Walden Condo. Assoc.). The court rejected the insured's ensuing loss argument finding that "because the mold damage is [specifically] excluded, it cannot be an ensuing covered loss." Goldberg Segalla LLP Toxic Tort & Environmental Litigation Update on 10/04/2005
January 30, 2006 - California appeals court leaves $3.9 million award in place for benzene contamination
A California appellate court upheld a jury's award of $3,915,851 in cleanup costs for benzene contamination of soil and groundwater (Watson Land Co. v. Shell Oil Co.). The landowner filed suit against Shell Oil Co. for the cleanup costs. The jury also awarded the plaintiff over $14M which the jury believed was the benefit that Shell derived by not remediating the oil sooner, but the appellate court reversed this part of the judgment. Goldberg Segalla LLP Toxic Tort & Environmental Litigation Update on 10/04/2005
January 26, 2006 - Food flavoring makers settle diacetyl lung disease suit before appeal of $20M award
Butter flavoring manufacturer International Flavors & Fragrances and its subsidiary Bush Boake Allen Inc. have reached an out of court settlement with a plaintiff previously awarded $20 million in damages for his illness allegedly caused by breathing in fumes of the chemical diacetyl used in the flavoring. The terms of the settlement remain confidential. Juries have awarded four diacetyl plaintiffs nearly $53 million in damages. In addition to the $20 million award which is the subject of this settlement, juries have awarded two other plaintiffs $15 million each and a fourth verdict awarded then plaintiff $2.75 million. All three of the other verdicts are also on appeal. In addition, food flavoring manufacturers have reached confidential settlements with at least an additional 25 other plaintiffs. There are nearly 100 additional plaintiffs that have filed lawsuits alleging exposure to diacetyl in butter flavoring caused their illness. Cases are currently pending in Missouri, Iowa and Ohio. Associated Press on 01/25/2006
January 19, 2006 - New Jersey residents file a pollution lawsuit filed against Ford
Attorneys have filed a pollution/toxic tort lawsuit on behalf of 717 New Jersey residents alleging pollution dumped into the soil caused injuries and property damage (Mann v. Ford Motor Co.). The plaintiffs allege that one of the company's manufacturing facilities dumped thousands of tons of paint sludge and other toxins into the soil. The firm's Mahwah, NJ plant was operational from 1955 to 1980. The site was listed on the Superfund list in 1983. By 1994, after Ford removed 7,000 cubic yards of contaminated soil, the EPA, relying on reports from Ford, deemed the site clean and removed from the Superfund list. Subsequently, additional contamination was discovered and since 2004 another 13,000 tons of waste was removed from the site. The State's Department of Environmental Protection has called for a criminal investigation of Ford stating that there was a "pattern of misconduct" and a "direct link between the false and misleading submissions made to federal and state regulators and the persistence of potential risk to human health and the environment." PR Newswire on 01/19/2006
January 13, 2006 - Canadian court allows mad cow class action to go forward
An Ontario Superior Court has allowed a BSE (mad cow) lawsuit seeking compensation for losses arising from the 2003 U.S. and international ban on cattle importation to go forward against animal feed manufacturer Ridley Inc. and several Canadian governmental agencies. The plaintiffs will now seek permission to have the lawsuit become a class action. Canadian Press on 01/13/2006
January 12, 2006 - Boeing pays $30 M to settle toxic tort lawsuit filed by California residents
Boeing has settled a toxic tort lawsuit by agreeing to pay 133 Simi Valley, California residents who alleged that pollutants emanating from the company's nearby Santa Susana Field Laboratory caused thier illnesses $30 million. The dispute has been ongoing for eight years. The plaintiffs alleged that pollutants arising from rocket engine and nuclear testing at the facility caused the residents to suffer from various cancers, autoimmune disorders and tumors. Associated Press on 01/12/2006
January 11, 2006 - Lymphoma victim files benzene exposure lawsuit
A plaintiff diagnosed with lymphoma has named several former employers, premises owners, and product manufacturers as defendants in a benzene occupational exposure lawsuit (Conley v. AK Steel Holding Corp.). The suit, filed in New Castle County Superior Court in Delaware, alleges that exposure to benzene while working with various products at several different employers caused his illness. The lawsuit names AK Steel, BP America Inc., Radiator Specialty Co., Toyota Motor Corp., and 11 additional companies as defendants. Mealey's Emerging Toxic Torts on 12/22/2005
January 11, 2006 - Most benzene exposure defendants settle liability with family of deceased paint plant worker
Most of the dozen or so companies named as defendants in a benzene exposure lawsuit have reached confidential settlements with family members of the deceased plaintiff (Loyola v. Union Oil Co. of California). The suit was filed on behalf of a former employee of paint manufacturer, ICI Paints, who died of leukemia. Defendants in the case are suppliers of solvents used by ICI. Two solvent suppliers are still defendants in the ongoing litigation, Univar USA Inc. and Neville Chemical. Defendants allege that there is no proof that the deceased ever used their products and that ICI Paints is a "sophisticated user" and knew, or should have known, of the dangers associated with solvent use and therefore it was the employer's responsibility to ensure employee safety.. Mealey's Emerging Toxic Torts on 12/22/2005
January 10, 2006 - A former auto worker files a benzene exposure lawsuit against 9 defendant companies
A Michigan man who worked in the auto industry for some 30 years has filed a lawsuit against nine companies alleging his leukemia was caused by occupational exposure to benzene emanating from their products (Reynolds v. Chevron USA). Defendants include: Chevron USA, Inc., E.I. DuPont de Nemours & Co., ExxonMobil Corp., Monsanto Co., PPG Industries Inc., Radiator Specialty Co., Shell Oil Co., Union Carbide Co., and WD-40 Co. The lawsuit was filed in New Castle County Superior Court in Delaware. Mealey's Emerging Toxic Torts on 12/22/2005
January 10, 2006 - Texas jury awards $7.5M in benzene exposure suit
In 2/03 a Texas jury awarded plaintiffs $7.5 million in a personal injury/benzene exposure lawsuit (City of San Antonio v. Pollock). The plaintiffs' alleged that benzene escaping from a municipal landfill caused their five year old daughter's acute lymphoblastic leukemia (ALL). In 11/04, the U.S. Fourth Circuit Court of Appeals upheld the award. The city has appealed to the Texas Supreme Court. Mealey's Emerging Toxic Torts on 12/22/2005
