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Pollution Litigation Review - June 2002
Pollution Litigation Review - June 2002
USA/Canada
On June 4, 2002, it was reported that the Potomac Electric Power Co. (PEPCO) has spent more than $65 million in cleanup and resource restoration costs after an April 2000 pipeline rupture spilled 126,000 gallons of oil into Swanson Creek and the Patuxent River. The company has agreed to spend an additional $2.7 million on additional natural resource restoration. BNA Chemical Regulation Daily 6/4/02
On June 27, 2002, it was reported that Brush Wellman Inc. has settled suit filed by 87 workers alleging exposure to beryllium dust caused their illnesses. The workers were seeking recovery under intentional tort and negligence. At the end of 2001, the company had reported that 193 beryllium dust exposure claims were pending against it. While the settlement amount remains confidential, the firm has stated that some of the settlement was covered by insurance and the remainder, some $1.13 million will be paid by the company. As part of the settlement, two class action suits seeking medical monitoring costs were dropped. American Metal Market 6/27/02
On June 28, 2002, it was reported that the premium charge to include mold coverage for an owner of a 52 unit California apartment complex amounted to a $21,850 increase ($420 per unit per year). Sacramento Business Journal 6/28/02
On June 27, 2002, it was reported that a New York jury ordered two distributors of asbestos-containing insulation to pay a former plant worker nearly $2 million (Adamec v. Buffalo Insulation). The plaintiff, diagnosed with lung cancer, sued the distributors who brought insulation into the plant where he worked for 33 years alleging that exposure to asbestos in their products caused his lung cancer. The jury found the distributors negligent and awarded $1.985 million. Buffalo Insulation was held liable for 40% of the damages and Niagara Insulation liable for 10% of the award. The jury found the plaintiff 50% liable for his injuries because he smoked one to two packs of cigarettes per day. Harris Martin Columns: Asbestos 6/27/02
In June 2002, it was reported that the EPA has spent $20 million to remediate schools and other Libby, Montana properties contaminated by asbestos from W.R. Grace's former mining activity. The agency estimates that the remediation of thousands of homes in the town and those within a four mile radius will cost an additional $55 million. It is also reported that W.R, Grace owes the U.S. government between $230 million (the company's estimate) and $1 billion (the government's estimate) in fines for environmental violations at their facilities. Asbestos & Lead Abatement Repot 6/02
On June 29, 2002, it was reported that a federal appeals court upheld an earlier decision finding several oil companies liable for the $100 million in cleanup costs spent to remediate a California Superfund site. The companies, Atlantic Richfield Co., Shell Oil Co., Texaco Inc. and Union Oil dumped sludge at the Fullerton site during the 1940s. The defendants argued that the government should foot the bill as the sludge came from increased production as part of the war effort. The Ninth Circuit Court of Appeals disagreed and upheld a decision finding the firms liable for 95% of the costs. Los Angeles Times 6/29/02
On June 29, 2002, it was reported that five North Carolina women have filed suit against timber company Weyerhaeuser Co. alleging that exposure to asbestos brought home on their husband's clothes caused their asbestosis. The women's husbands all worked at one of the company's paper mills. The suit states that Weyerhaeuser knew of the dangers of asbestos dust and did not warn their employees or their families. The plaintiffs' husbands have all retired from the company and all suffer from asbestos-related diseases. Associated Press 6//29/02
On June 28, 2002, it was reported that mold legislation has been introduced into the House of Representatives. The U.S. Toxic Mold Safety and Protection Act would create a federal mold insurance program, under FEMA, that would act as a second layer of insurance for homeowners with mold contamination. The coverage would be available to homeowners who were not fully compensated for mold remediation by their homeowners' carriers. The federal program, if passed, would also be retroactive, allowing homeowners affected during the past five years to access the federal program. The Act would also require medical studies into the possible adverse health affects of exposure to mold, a disclosure system for leases and purchases of real estate, mandatory mold inspections for real estate sales, and establish standards for mold remediation. Bestwire 6/28/02
On June 27, 2002, it was reported that California Bill SB1763 which would have mandated insurers cover mold claims and required disclosures of the presence of mold to home buyers has been withdrawn. The author of the bill intends to reintroduce the bill next year. Bestwire & Alliance of American Insurers Bulletin 6/27/02
On June 26, 2002, it was reported that according to the Insurance Information Institute, the costs per policyholder for Texas homeowners' mold claims increased by 1,805% between early 2000 and late 2001. Insurance Information Institute: Industry Financials and Outlook 2002 - First Quarter Results 6/26/02
On June 26, 2002, the Ohio Supreme Court ruled that Goodyear Tire & Rubber should be allowed to recover "all sums" for environmental liabilities caused by continuous pollution emanating from two sites and should get to choose a single primary policy among those triggered to respond to the claims (Goodyear Tire & Rubber v. Aetna Cas. & Sur. Co.). In doing so, the state's high court vacated directed verdicts granted to insurers. The case was remanded to determine questions of fact surrounding late notice and the applicability of the pollution exclusion. Mealey's Litigation Report: Insurance 6//26/02
On June 17, 2002, it was reported that Health Canada, citing studies finding a variety of adverse health affects from blistering to brain damage, has banned the sale of pesticides containing more than 30% DEET. Manufacturers and retailers will be allowed to deplete their stocks until December 2004. Financial Times Limited 6/17/02
In June 2002, it was reported that a Pennsylvania appeals court reversed a trial court decision which granted summary judgement to several corporate asbestos defendants in an asbestos premises case (Gutteridge v. A.P. Green). The appellate court found that there were questions of fact as to whether the defendants, in their capacity as landowners, not employers, violated their duty to the plaintiff, a business invitee, because they possessed superior knowledge regarding the hazards posed by asbestos contamination at their facilities. The plaintiff was an AT&T employee who alleges his mesothelioma was caused by exposure to asbestos while he worked at the defendants facilities. Defendants include: the Philadelphia Electric Co., Hercules Chemical Co. and Pecora Corp. Harris Martin Columns: Asbestos 6/02
On June 26, 2002, it was reported that a California jury ordered a chemical company to pay a mesothelioma victim $20 million in compensatory damages. The 42 year old plaintiff alleged that she was exposed to asbestos in the flooring of her childhood home which was manufactured by the defendant, Hill Brothers Chemical Co. The plaintiff alleged that the company was negligent in manufacturing an asbestos-containing product. The jury found the defendant had acted with malice, oppression and fraud and was 100% liable for the plaintiff's injuries. The defendant settled the case just before the punitive damages portion of the trial was to begin. Mealey's Litigation Report: Asbestos 6/26/02
On June 14, 2002, the U.S. Court of Appeals for the Tenth Circuit held that the definition of "occurrence" in a commercial umbrella policy does not require actual property damage to occur during the policy period to be a covered occurrence (Scott's Liquid Gold Inc. v. Lexington Ins. Co.). In a case involving groundwater contamination emanating from a facility that manufactured wood cleansers and preservatives, Scotts paid $6.2 million in cleanup costs and was seeking reimbursement from its insurers. Lexington argued that because the contaminant plume could not have migrated onto third party property during the years it provided coverage (1980 & 1981) there was no actual property damage taking place during the policy period and thus no "occurrence." The appeals court disagreed finding that " without a temporal qualifier [within the definition of occurrence requiring an event including continuous or repeated exposure to conditions which results in property damage during the policy period], the plain meaning of the definition is that an occurrence exists whenever an event happens that will result in property damage." The court affirmed the Colorado district court's finding of summary judgement to the insured on the question of coverage. [Note: The tenth circuit covers Wyoming, Colorado, Utah, Kansas, Oklahoma, and New Mexico] Morrison Mahoney & Miller Insurance Newsletter 6/28/02
In June 2002, it was reported that a Maryland jury exonerated the manufacturer of a degausser in an EMF bodily injury suit filed by two former National Security Agency employees. The former employees alleged that their brain tumors were caused by high levels of EMFs emanating from equipment used to erase magnetic data-storage tapes manufactured by Electro-Matic Products Co. The plaintiffs' attorneys lined up six expert witnesses to present evidence that EMFs caused brain tumors. Defense attorney's lined up five exerts to provide a rebuttal. In the end the jury found for the defendant. The plaintiffs were represented by Peter Angelos' law firm. Microwave News 6/02
On June 26, 2002, it was reported that lawsuits filed against the retailers and manufacturers of wood treated with chromated copper arsenate, or CCA a pesticide, are proliferating. To date two class actions, filed in Florida and Louisiana, and some 30 individual lawsuits have been filed against retailers, manufacturers and the trade group the American Wood Preservative Institute. According to one Indiana lawyer of the handful of cases tried before juries, the plaintiffs have prevailed in all of them. Other suits have been settled out of court and some have been dismissed due to statute of limitations or the plaintiffs failure to even make a preliminary case linking their ailments to CCA treated lumber. Retailers are supposed to provide warning information to consumers buying CCA treated wood, however, a recent survey of 250 retailers showed that some 80% provided only a condensed version of the required warning. The New York Times 6/26/02
On June 26, 3003, it was reported that retires in North Carolina who are suffering from asbestos-related diseases can no longer collect workers' compensation benefits. The Supreme Court has ruled that the law states that a worker must first be removed from the industry to be eligible to collect benefits. The court held that "If the worker has retired, then he or she cannot be removed from and thus is not eligible to collect workers' compensation for asbestosis." The first attempt by the North Carolina legislature to rewrite the law failed to pass. The state's Industrial Commission has been inundated with asbestos cases over the past four years from over 1,000 workers and retirees. The decision preventing retirees from collecting WC benefits may only result in facilitating additional litigation against asbestos defendants and employers. Knight Ridder Tribune Business News 6/26/002
On June 26, 2002, it was reported that MTBE levels in the drinking water of an Indiana elementary school have been measured at nearly eight times acceptable levels. State regulators have been aware of the contamination for at least two years but only recently ordered the school to shut down their well and to provide bottled water. Maximum acceptable levels of MTBE are 30 to 40 parts per billion (ppb). Levels in the school's drinking water have measured up to 300 ppb. The Department of Environmental Management is currently trying to find the source of the contamination. Associated Press 6/26/02
On June 26, 2002, it was reported that Terminix has agreed to settle a state action by paying a $1 million fine. The suit, filed by the State of Connecticut, alleged that the company frequently violated environmental laws by dangerously and ineffectively using pesticides numerous times between 1996 and 1998 which harmed both customers and the environment. The state also alleged that the company failed to keep or denied the state access to needed records. Associated Press 6/26/02
On June 25, 2002, the New Jersey Supreme Court reversed a appellate decision which had held that the starting point for the continuous trigger was when pollutants actually began seeping into the groundwater. The state's high court expanded the scope of the trigger, in the case at hand, by ruling that the point for the continuous trigger begins when wastes were initially dumped into the landfill because the initial deposit of the wastes set in motion the continuous process of injury. Morriison Mahoney & Miller Insurance Law Newsletter 6//28/02
On June 25, 2002, it was reported that CNA Financial Corp. added $2.1 billion to its asbestos reserves in 2001. This brought the company's asbestos reserves up to 9.8% of its total property and casualty industry loss reserves. The Chicago Sun-Times 6/25/02
On June 25, 2002, it was reported that an additional $48 million must be spent to remediate a New Hampshire Superfund site. According to the EPA more than 65,000 gallons of waste oil have already been removed from the 39 acre Beede Superfund site. The cleanup requires soil, sediment, groundwater and surface water remediation. Cleanup efforts taken to date already cost $19 million. Associated Press 6/25/02
On June 25, 2002, it was reported that PCBs continue to be discharged into New York's Hudson River due to high levels of PCBs in the soil at General Electric's Fort Edward facility. New York's Department of Environmental Conservation have found PCB levels in the riverbank soil at the facility in concentrations up to 48,000 parts per million (ppm). The state safety level for PCB contamination in soil is 0.005 ppm. The state is holding GE liable for the soil cleanup which, according to the company, has been delayed due to the complicated engineering necessary to perform the remediation. GE has already been deemed the liable party to cleanup PCB contamination in the sediment of the Hudson River which is expected to cost $500 million. Associated Press 6//25/02
On June 24, 2002, the Connecticut Insurance Department published it new rules for the use of mold exclusions. With regard to property coverage, the DOI will not allow mold arising from a covered peril or the perils of fire or lightning to be excluded. Property policies can cap mold claims arising as an ensuing loss to a minimum cap of $10,000. For personal lines policies, the DOI will not allow carriers to exclude "unless the policy includes liability coverage arising out of mold subject to a 'cap' or 'sub-limit' for the mold exposure." The minimum cap allowed for mold claims will be $50,000. Companies currently using a total mold exclusion or providing sub-limits of less than $50,000 must withdraw the exclusions and bring them into compliance with the new rule. For commercial lines liability coverage the DOI will allow carriers to exclude of limit coverage for mold claims. NAII Bulletin 6/24/02
On June 25, 2002, it was reported that a California jury ordered the builder of a 180 unit condominium complex to pay the homeowners association $7.8 million for leaky roofs and windows which allegedly led to mold contamination. The homeowners association at the Breakers at Bear Brand sued Shea Homes for property damage caused by the construction defects and mold contamination. The units were all built between 1989 and 1992. Knight Ridder Tribune Business News 6/25/02
On June 24, 2002, it was reported that for the second time this week a judge in a mold bodily injury lawsuit has decided to allow the plaintiff's expert medical witnesses to testify regarding the causal relationship between exposure to mold and the plaintiff's aliments (Stevens v. Fennessy). In a suit filed against a condominium association, a real estate firm and two property management firms, filed in Essex County Superior Court in Massachusetts, the plaintiff is alleging exposure to mold caused asthma, reactive airways disease, allergies and a compromised immune system. The plaintiffs moved out of her newly purchased condo on the advice of her doctor 6 weeks after moving in. Tests revealed the unit was contaminated with stachybotrys, aspergillus and penicillium. Earlier this week a Pennsylvania court also decided to allow the plaintiff's medical experts in a mold case to testify. Harris Martin Columns: Mold 6/24/02
On June 24, 2002, it was reported that a class action suit has been filed against the manufacturers and distributors of childhood vaccines containing the preservative Thimerosal is nearly 50% mercury. The class action, filed in New York, would represent millions of children who have developed autism and other neurological disorders or who are at risk of developing these conditions as well as their parents. Defendants include: Aventis Pasteur Inc., f/k/a Connaught Laboratories; Lederle Inc.; Wyeth Pharmaceuticals Inc., f/k/a Wyeth-Ayerst Pharmaceuticals Inc.; American Home Products Inc.; Merck & Co. Inc.; Galxosmithkline; Smithkline Beecham Corp.; Parke-Davis and Co.; Baxter Pharmaceutical Products Inc.; Abbott Laboratories; Pfizer Inc.; Warner-Lambert Inc.; Sigma-Aldrich Inc.; American International Chemical; Spectrum Laboratory Products; and Eli Lilly and Co. PR Newswire 6/24/02
On June 21, 2002, it was reported that the Maryland high court upheld a $9.2 million award to a 35 year old mesothelioma victim who alleged that she was exposed to asbestos in joint compound as a child when her father finished the walls and ceiling in their basement. The exposure to asbestos in Georgia Pacific's Ready Mix joint compound allegedly took place 25 years ago. Mealey's Litigation Report: Asbestos 6/21/02
On June 22, 2002, it was reported that a Pennsylvania court allowed the entire medical testimony of a plaintiff's medical experts on the causal relationship between brain damage and mold exposure in a mold bad faith suit filed by homeowners against their insurers (Traub v. Crawford & Co.). The plaintiffs allege that improper advice given them by the insurer after ice and snow damaged their home caused mold contamination and caused them to suffer from respiratory ailments and cognitive injuries. [Note: the Pennsylvania court joins courts in DE, FL and WA in allowing plaintiffs medical experts to testify in mold suits. Only courts in Texas have, so far, barred such testimony] Harris Martin Columns: Mold 6/22/02
On June 21, 2002, it was reported that State Farm Insurance Co. has stopped the writing of new homeowners business in 16 states and limited the number of new homeowners policies it will write in six other states. Citing a dramatic increase in the number of claims and the costs of remediating water damage and mold claims as the reasons the company had a net loss in 2001. For example, State Farm cited a 48% increase in the average costs of water damage claims in New Mexico between 2000 and 2001. The article points out that mold claims were next to nothing three years ago but last year cost insurers $1 billion. State Farm will not accept new homeowners' business in Alaska, Arkansas, California, Hawaii, Idaho, Kansas, Louisiana, Maryland, Missouri, Montana, North Carolina, Oklahoma, Oregon, Texas, Washington and West Virginia. The company will limit new policies in Arizona, Colorado, Nevada, New Mexico, Utah and Wyoming. Knight Ridder Tribune Business News a& The New York Times 6/21/02
On June 21, 2002, a Kansas judge ordered tobacco manufacturer, R.J. Reynolds to pay a smoker who developed peripheral vascular disease (PVD) nearly $15.2 million. While the jury declined to award any damages for pain and suffering or future expenses of losses, it did award the plaintiff $198,400 in compensatory damages. Subsequently, the judge awarded $15 million in punitive damages. The plaintiff began smoking in 1950 and quit when diagnosed with PVD in 1993. The judge found Reynolds' behavior in concealing the addictive nature of its product was "particularly nefarious." The judge determined that "there can be no question that Reynolds can afford to pay the maximum award authorized by law." Dow Jones & Associated Press 6/21/02
On June 21, 2002, it was reported that the Florida Supreme Court ruled that U.S. Sugar must pay a workers compensation claim to a former mechanic who alleged his illnesses were caused by repeated exposure to pesticides. The claimant worked for U.S. Sugar from 1968 to 1996 when he filed the workers compensation claim. Over these years he was repeatedly exposed to dursban, atrazine, paraquat and other pesticides. The company allegedly never warned him of any potential hazards related to the pesticide exposure and disputed his contention that his injuries were caused by pesticide exposure. The claimants diaphragm is paralyzed and one of his lungs is collapsed. He is wheelchair bound. The court held that the company must pay the claimant and his wife $150,000 each for compensation dating back to 1996 and pay the claimant an additional $500 weekly for the rest of his life. The company must also remodel the claimants house to make it wheelchair accessible and buy him a wheelchair-accessible vehicle. U.S. Sugar declined to discuss whether any other employees have alleged illnesses caused by pesticide exposures. Knight Ridder Tribune Business News 6/21/02
On June 20, 2002, it was reported that the owners of an apartment complex in Atlanta, Georgia agreed to pay $1.5 million to partially settle a mold suit. Under the settlement, 300 tenants will get $5,000 each to settle the relocation and property damages portion of the suit. The settlement does not include allegations of bodily injuries alleged by the tenants. Injuries allegedly caused by exposure to mold in the apartment buildings include: allergic symptoms, asthma, rashes, headaches, fatigue and infections. The complex is owned by Grant Park Village Limited Partnership. Regulators found "major mold problem[s]" in 37 apartments. The Atlanta Journal-Constitution 6/20/02
On June 21, 2002, it was reported that Fort James Operating, a unit of Georgia-Pacific will pay $10.1 million to settle allegations that it polluted Wisconsin's Fox River and Green Bay with PCBs emanating from its paper mill. The company will pay $1.6 million to reimburse federal and state costs spent for damage assessments and will pay $8.5 million for natural resource restoration projects. The company also agreed to permanently preserve over 1,000 acres of forest in northeastern Wisconsin. The New York Times 6/21/02
On June 21, 2002, it was reported that the California Air Resources Board has adopted the world's most stringent standards for particulate pollution emitted from a variety of sources including power plants, construction work, farms and auto exhaust. The new standard, which may take effect next years, limits the quantity of particles one-seventh the diameter of a human hair. The new standards are expected to prevent 6,500 deaths and 340,000 asthma attacks annually. Last year up to 2,431 tons of these fine particulates were released into the air daily in California. The European Union has adopted the same standards but they will not take effect until 2010. Associated Press 6/21/02
On June 20, 2002, it was reported that the federal government has found that at least 22 sites around the country where ore mined in Libby, Montana was shipped for processing into soil conditioner or insulation are contaminated by asbestos at levels that require remediation. The sites already found to be contaminated with high levels of asbestos are in: Arizona, California, Colorado, Hawaii, Kentucky, Maryland, Massachusetts, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, Oregon and Washington. The EPA will now check an additional 240 sites in 40 states where the ore was also shipped. Residents of Libby, Montana, the location of the vermiculite mine, have lung cancer and other fatal asbestos-related diseases at rates up to 60 times higher than normal. W.R. Grace operated the mine for 67 years before closing the mine in 1991. Associated Press 6/20/02
On June 19, 2002, it was reported that a South Carolina textile facility has been ordered to remediate perchlorethylene contamination at and surrounding the plant. The State Department of Health and Environmental Control has begun to study whether the contamination is responsible for causing cancer and other illnesses among nearby residents. The facility is owned by HealthTex. Associated Press 6/19/02
On June 19, 2002, it was reported that researchers at the U.S. EPA found that burning candles made in Asia can raise the level of lead in the air of a house to levels higher than those deemed safe. The EPA tested eight different brands of candles made in Asia, all were made with lead added to the wicks. The results showed that after burning just one candle for four hours lead levels in that room rose to 6.2 micrograms (mcg) of lead per cubic meter of air - over four times the federal limit of 1.5 mcg per cubic meter. Lead levels in the rest of the house were measured at 2 mcg per cubic meter. The worst candle of the eight tested increased lead levels in the room where the candle was burned to over 13 times the federal safety limit. The U.S. is considering banning leaded-wick candles. Agence France Presse 6/19/02
On June 10, 2002, a Texas jury ordered Brown & Root, a subsidiary of oil field services firm Haliburton, to pay the family of a deceased mesothelioma victim $1.7 million (Moore v. Brown & Root) . The jury found the construction company negligent for failing to warn the plaintiff that the projects being preformed by the defendant at the paper mill where the plaintiff worked cerated asbestos dust which could be harmful to his health. The jury award the plaintiff's family $210,000 in compensatory damages and finding the contractor acted with malice awarded $1.5 million in punitive damages. With regard to the negligence finding, the jury found Brown & Root 10% liable for the plaintiff's injuries. Harris Martin Columns 6/12/02
On June 20, 2002, it was reported that, according to the Personal Insurance Federation of California, California insurers have seen the average costs for a homeowner's water damage claim jump in the past six months from $3,000 to $36,000 because of mold or the threat of mold. Insurers reportedly paid $854.3 million for Texas homeowners' mold claims in 2001. USA Today 6/20/02
On June 20, 2002, it was reported that California's Senate Bill 1763 would not only mandate coverage for mold claims arising as an ensuing loss but would also require insurers to notify property owners when an incident for which a claim is filed is likely to lead to mold growth. Meanwhile, according to the Insurance Information Institute of California, the average homeowner's water damage claim in the state has increased by more than 21% because of the threat of mold. Los Angeles Times 6/20/02
On June 19, 2002, it was reported that BP-ARCO settled a suit filed by the State of California which alleged various underground storage tank violations at 59 gasoline stations by agreeing to pay $45.8 million. The company, which owns 1,178 gas stations in California, will pay a $25 million fine and spend $20.8 million to bring USTs up to federal regulations. The settlement does not cover allegations of actual contamination caused by leaking USTs. Suits regarding gasoline contamination are still pending in California courts. Associated Press 6/19/02
On June 18, 2002, it was reported that the continuing cleanup of contaminants from residential yards in Ruston and North Tacoma, Washington will cost Asarco an additional $90 million. The company has already spent $180 million remediating contamination that affected the towns. Asarco's smelting operation was the source of the contamination. Associated Press 6//18/02
On June 18, 2002, three Democratic senators have sponsored legislation that would ban asbestos-containing products by 2005. The bill does not yet have Republican support. Previous efforts to ban asbestos products have failed or were overturned in court. Associated Press 6//19/02
On June 18, 2002, the Ninth Circuit Court of Appeals reversed a lower court ruling that dismissed most of the claims in litigation against the previous operators of Hanford Nuclear Reservation. The appeals court held that some 4,000 residents from Washington, Oregon and Idaho could sue the contractors that ran the facility prior to 1986 for injuries allegedly caused by exposure to radiation released into the air and into the Columbia River. The plaintiffs are seeking damages for various cancers. In its ruling the appeals court lowered the amount of radiation exposure required to prove physical harm. The ruling also limits those who can seek damages for emotional distress to those that can show actual physical injury. Defendants include contractors which managed the facility back to 1943 and include General Electric Co. and DuPont Co. The case has been ongoing for 12 years. "Damage awards could reach tens of millions of dollars" [Note: P/C insurers began attaching a nuclear exclusion to policies around 1958]. Reuters 6/19/02
On June 17, 2002, it was reported that Amoco Oil has settled a state suit by agreeing to cleanup gasoline leaks at 61 Illinois gas stations. The leaks allegedly occurred between 1991 and 1997. The company will also pay a $1.1 million fine. Amoco previously settled another suit filed by the State of Illinois by agreeing to cleanup gasoline contamination at 394 other gas stations and pay a $2 million fine. Cleanup at many of the 394 gas stations is currently underway. [Keep in mind that the average cost to cleanup a leaking underground storage tank at a gas station is approximately $125,000.] Knight Ridder Tribune Business News 6/17/02
On June 11, 2002, the First Circuit Court of Appeals held that the absolute pollution exclusion contained in a CGL policy issued in 1994 was ambiguous and does not bar claims for "non-remediation" property damages and diminution of property values caused by an oil spill (Utica Mutual v. Weathermark Investments). The decision stems from a suit brought by landowners against a contractor hired to repair a fuel pump. Alleged negligence during the repair caused 3,000 gallons of oil to spill. The landowners sued the contractor. The contractor's insurer denied the claim based upon the absolute pollution exclusion. The appeals court affirmed the district court's decision finding that while the costs to cleanup the spilled oil are barred by the exclusion, the exclusion is ambiguous regarding non-remediation property damages caused by the spill, such as permanent damage to third party property, and diminution of property values. The court found that the term "respond" as used in the exclusion could be construed as limiting the scope of the exclusion only to claims seeking coverage for remediation costs. The court held that if the insured intended to exclude such damages it could have added a sentence to section P f (2) (a) of the exclusion to encompass them. The court suggested "To the extent that any of the above is determined to be...'Property Damage,'...said 'Property Damages' [are] also excluded" [Note: the First Circuit includes Maine, New Hampshire, Massachusetts, Rhode Island and Puerto Rico]. Morrison Mahoney & Miller Insurance Newsletter 6/21/02
On June 6, 2002, it was reported that a federal judge has ruled that a composites maker is liable for the cleanup of lead contaminated soil at a New Jersey Superfund. Spaulding Composites, which produced mica products, had waste slurry containing lead trucked to the Caldwell Trucking Superfund site from 1958 to 1973. The court held that the company must pay for the entire soil cleanup estimated to cost $6.8 million. Mealey's Pollution Liability Report 6/6/02
On June 18, 2002, it was reported that mold contamination found at a Texas high school is expected to cost $15.7 million to remediate. Construction of the Edinburg Economedes High School was completed only two years ago and cost $26 million to build. The school board is contemplating suing the design/build firm, Landmark Organization, and various subcontractors that worked on the school to recoup the mold remediation costs. The Brownsville Herald 6/18/02
On June 18, 2002, it was reported that an Oklahoma chemical company has agreed to pay $100 million to cleanup thorium contamination in Chicago waterways. Thorium is radioactive and has been linked to increased cancer rates. A West Chicago facility which made gaslight mantles dumped thorium along Kress Creek and the west branch of the DuPage River for decades beginning in the 1930s. Kerr-McGee Corp. bought the site in 19967 and has already spent about $400 million removing over a million cubic yards of contaminated soil from 600 houses, the factory site and a nearby park. The waterways cleanup is expected to cost an additional $100 million and take four years. The Chicago Sun Times via Data Times 6/18/02
On June 18, 2002, a Florida jury ordered four tobacco manufacturers to pay a flight attendant $5.5 million for chronic sinusitis allegedly caused by 14 ears of exposure to secondhand smoke. The verdict is the first time tobacco manufacturers lost a secondhand smoke case in U.S. courts. Some 1,846 other flight attendants have lawsuits pending against the tobacco makers all alleging illnesses arising from secondhand smoke. This is the second time in two weeks that a Florida jury has slammed tobacco manufacturers in court. Last week a jury awarded a former smoker suffering from tongue cancer $37.5 million in compensatory damages. The Miami Herald 6/19/2002
On June 15, 2002, it was reported that 10.000 gallons of hydrochloric acid spilled during the collapse of an above ground storage tank at a Pennsylvania chemical facility. The fiberglass tank, which was less than one year old, collapsed as it was being filled with liquid from a tanker truck. About 100 people in 25 homes adjacent to the Goldschmidt Industrial Chemical Corp. were evacuated after an irritating acidic vapor cloud formed during the release. Pittsburgh Post-Gazette 6/15/02
On June 14, 2002, it was reported that the first "toxic mold" case to go to trial in Kansas where there are allegations of bodily injuries is scheduled to begin in September (George v. Bryant-Ratliff). The builder of the house, Bryant-Ratliff Construction has already settled but the case against the remaining defendants, four sub-contractors, is expected to go to trial. The plaintiffs' attorneys are anxious to "demonstrate that the scientific link established between mold exposure and human illness is solid." Three expert witnesses will testify for the plaintiffs. The three expert witnesses have published dozens of papers and books that have subjected their findings for pier review. Kansas is a "Frye" in lieu of "Duubert," therefore, the plaintiffs attorneys believe their witnesses will be allowed to testify. Both the parents and their two children allege various injuries caused by exposure to mold. The remaining four defendants are: Butler Brothers Roofing Inc., J.W. Angel Masonry, Art's Furnace Co. d/b/a AFC Heating and Cooling, and Prairie Framing LLC. Harris Martin Columns: Mold 6/14/02
On June 5, 2002, it was reported that a Minnesota homeowner has been ordered to cleanup asbestos contamination on an adjacent beach. Ironically, the homeowner, who recently purchased the home , is the one who reported the contamination to the Minnesota Pollution Control Agency. State regulators determined that the asbestos-containing debris came from the house. Cleanup is expected to cost between $100,000 and $200,000. Star Tribune 6/5/02
In June 2002, it was reported that a new Canadian study by researchers at the University of Ottawa concludes that occupational exposure to electromagnetic fields (EMFs) can significantly increase the risk of developing an aggressive brain tumor. The study found that the risk of developing aggressive brain tumors, also known as glioblastoma multiform, were up to 12 times higher for workers exposed to EMFs of 6 millgaus of more. The study was published in the February edition of the International Journal of Epidemiology. Due to the small size of the study the author suggests caution when interpreting the results. Several previous studies by Swedish and U.S. researchers have also found higher rates of brain tumors among those with occupational exposures to EMFs. Microwave News May/June 2002
On June 17, 2002, it was reported that Texas homeowners filed over 44,000 mold claims in 2000 and 2001. Nearly 15,000 mold claims were filed in the last quarter of 2001. Although mold claims in Texas increased after Tropical Storm Allison, most of these claims were insured through the national flood insurance program and therefore are not as major cause of the increasing mold claims being filed against homeowners Carriers are responding in many ways including increasing homeowners' rates by up to as much as 200%. BestWire 6/17/02
On June 17, 2002, it was reported that according to new research by the New York Public Interest Research Group, 136,404 New York City children between the ages of 6 months and six years developed lead poisoning between 1995 and 2000. After reviewing State Health Department data showing over 6,200 children developed lead poisoning during 2000 and that only about 50% of the children under age six were tested, the report concludes that the true number is about twice that figure. Keep in mind that New York courts have handed down far more million dollar plus awards for a single lead poisoned child than any other jurisdiction. The New York Times 6/17/02, Daily News 6/14/02 & New York Newsday 6/13/02
On June 17, 2002, it was reported that a Louisiana appellate court held that an architect can be held liable for lead poisoning injuries to subcontractors hired to work on a project (Young v. Placquemine). Three construction workers hired as subcontractors by the general contractor working on the renovation of a building filed suit against the contractor and architect alleging various injuries caused by exposure to lead paint. The court held that the subcontractors could not sue the general contractor under the state's statutory employer defense laws as workers' compensation has been deemed the sole remedy under such circumstances, however, an architect to stated that there was "no threat of lead in the building" can be held liable for the injuries sustained despite the fact that there was no contractual obligation between the architect and the subcontractors. BNA Toxics Law Daily 6/17/02
On June 12, 2002, it was reported that over three years after a homeowners' mold suit was settled by the builder of her home, the Ohio homeowner filed suit again alleging that the contractor failed to remediate the mold rendering her home uninhabitable and causing her illnesses (Marshall v. Henry Fischer Builders). In the 1997 settlement of the first mold suit, the builder acknowledged the existence of construction defects, water damage and mold contamination. The new suit alleges that water intrusion and mold contamination continues and has resulted in injuries including allergic reactions, respiratory ailments, rashes and memory loss. Harris Martin Columns: Mold 6/12/02
On June 10, 2002, it was reported that a pesticide manufacturer and its liability insurer agreed to pay $750,000 to settle a toxic tort suit filed by three agricultural workers alleging injuries caused by pesticide exposure. The insured, Amvac Chemical Corp. manufactured the pesticide Phosdrin, which is applied to apple orchards, can be quickly absorbed through the skin. Exposure can reportedly cause blurred vision, confusion, respiratory difficulties, heart irregularities, vomiting, diarrhea and unconsciousness. The three workers were sprayed with the pesticide in 1993. The case was settled shortly before the trail was to begin. Phosdrin has since been removed from the US market but is still used in other countries. Lawyers Weekly USA 6/10/02
On June 16, 2002, it was reported that insurers estimate that over 10,000 families nationwide have had to evacuate their homes because of mold contamination and according to the Insurance Information Institute over 5,000 mold-related bad faith lawsuits filed against homeowners' carriers are pending in U.S. courts. Texas mold claims cost insurers $1.2 billion in 2001. The average homeowner's mold claim is costing insurers between $30,000 and $50,000. The New York Times 6/15/02
On June 16, 2002, it was reported that the number of Texas homeowners' mold claims rose from 11,318 in the third quarter of 2001 to 14,706 in the fourth quarter. Insurers reportedly paid $462 million for Texas homeowners mold claims in the second half of 2001 ($274 million in the third quarter and $188 million in the fourth quarter). According to the Southwestern Insurance Information Service, Texas homeowners' water damage and mold claims will exceed $1 billion for 2001. Amarillo Globe-News 6/16/02
On June 15, 2002, it was reported that the ventilation system of Stuyvesant High School in downtown Manhattan is contaminated with lead at levels nearly 30 times federally allowable levels. The lead was found in the schools ventilation system and it is believed that some of the lead contamination resulted from the collapse of the World Trade Towers and the trucking of debris created by the collapse in a route that took it by the school. The schools parents' association has hired counsel to represent them in a lawsuit unless the school produces a cleanup plan. New York Times 6//15/02
On June 11, 2002, a Montana family filed suit against St. Paul's Methodist Church alleging the church failed to remediate mold in a their church-owned residence. The suit seeks compensation for medical expenses, lost wages, pain and suffering and damage to personal property. Missoulian 6/11/02
On June 5, 2002, it was reported that a cleanup of contaminated soil at a Chicago park may cost much more than the $50 million cleanup agreed to by two utilities. Commonwealth Edison and Nicor Gas had settled with the Illinois EPA to cleanup contamination at a former gas manufacturing facility that is now a park. The discovery of higher than expected benzene levels entering the air during the cleanup may force the cost of the cleanup higher. The PRPs are now reportedly seeking to renege on their initial settlement with state regulators. Chicago Sun-Times 6/5/02
In June 2002, it was reported that Farmers Insurance received 10,150 mold claims in the first ten months of 2001. In Texas alone, the state's largest three homeowners insurers paid $79.5 million for mold claims during the first quarter of 2001. moldupdate.com 6/02
On June 12, 2002, it was reported that a Pennsylvania common pleas court dismissed 376 asbestos claims filed against Crown Cork & Seal Co. relying upon recent changes to Pennsylvania's corporate successor law. Crown Cork bought Mundet Cork, which owned an insulation division. Crown Cork paid $7 million for Mundet in 1963 and the acquisition has resulted in over $350 million of asbestos personal injury payments. In the fall of 2002, Pennsylvania amended its corporate successor law capping a successor company's asbestos liabilities arising from its merger activity at the total value of the merged company's assets adjusted for inflation. Dow Jones 6/12/02
On June 12, 2002, it was reported that a pipeline leak at a Nevada gold mine spilled about 40,000 gallons of cyanide solution onto the soil. A weld failure was determined to be the cause of the spill. The pipe carried cyanide solution from a storage pond to a heap leach pad. The mine is owned by Kennecott Minerals Co. and Pacific Rim Mining Corp. Cleanup operations were completed within three days. Associated Press 6/12/02
On June 11, 2002, it was reported that the San Gabriel Basin Water Quality Authority (WQA) has filed a suit against 67 companies identified by the EPA as PRPs for the cleanup of groundwater contamination in the South El Monte area of the basin. The suit seeks reimbursement of cleanup costs already spent and future cleanup costs for solvent plumes in the groundwater. Earlier this year, other PRPs responsible for solvent contamination of the Baldwin Park-Azusa of the basin settled with the WQA for $250 million. Groundwater in the San Gabriel Basin has been declared a federal Superfund site. PR Newswire 6/11/02
In June 2002, it was reported that a Washington district court has allowed a mold bad faith suit to proceed against a property carrier. The owners of the Alderwood Shopping Plaza filed claims with their property insurer, FM Global, seeking coverage for mold remediation discovered at the shopping plaza. The policy provides up to $800 million in limits. After FM Global allegedly had not acted on the claims, the insured filed a bad faith suit which includes allegations of breach of contract and unfair and deceptive trade and commerce. The insurer filed a motion for summary judgment arguing that the insured forfeited its rights under the policy by failing to produce requested documents and this failure has prejudiced the insurer's ability to determine coverage. The judge rejected the carriers motion finding that the insured had "cooperated extensively" with the insurer. Mealey's Litigation Reporter: Mold 6/02
On June 11, 2002, a Florida jury awarded a former smoker who lost is dying from tongue cancer $37.5 million in compensatory damages. This is believed to be the largest compensatory damages award to date in tobacco litigation. The plaintiff started smoking in 1943 and quit smoking cigarettes in 1971, but then took up cigars and pipe smoking. The jury awarded $25 million to the plaintiff and $12.5 million to his wife for loss of consortium. Defendants in the case were Brown & Williamson, Liggett Group and Philip Morris. Liggett Group was ordered to pay 50% of the award. Brown & WIlliamson and Philip Morris were each held liable for 22.5% of the award. The plaintiff was held responsible for 5% of the award which will be deducted from the original damages awarded. The Miami Herald 6/12/02
On June 10, 2002, it was reported that six Maryland homeowners have filed suit against the developer of Villages of Homeland East. The houses were built four years ago and the suit alleges that defective siding allowed mold contamination to proliferate inside their walls. The Daily Record 6//10/02
On June 11, 2002, it was reported that a new study by researchers at the University of Minnesota concludes that families of farmers that use pesticides in five northwestern Minnesota counties have nearly twice the number of birth defects as urban families. The study found 31 babies born with birth defects per 1,000 born among farm families versus 18 for urban families. Birth defects noted included disorders that affected the nervous, respiratory, gastrointestinal and reproductive systems. The lead researcher stressed that the data was "associative" there was not enough evidence to show a direct cause and effect. Star Tribune 6/11/02
On June 8, 2002, it was reported that a Missouri jury ordered a landlord to pay a lead poisoned child $1.25 million in damages. This is the first million dollar lead poisoning award in Missouri. The nine year old child was lead-poisoned eight years ago allegedly by lead-based paint in his St. Louis apartment. The suit alleged that the child's learning disabilities were caused by exposure to lead paint. While the landlord is dead and his company defunct, attorney's for the plaintiff have stated that the company's insurer will pay the award. St. Louis Post-Dispatch 6/8/02
On June 11, 2002, it was reported that the federal government has filed a motion to intervene in the bankruptcy litigation of W.R. Grace alleging the company diverted billions of dollars to spin-off companies in advance of their Chapter 11 filing to avoid liability for asbestos-related personal injury claims. Financial Times Limited 6/11/02
On June 9, 2002, it was reported that twenty percent of New Jersey day care centers failed lead-paint tests ordered by the state's Division of Youth and Family Services. Seventy-four of the 369 day care centers failed. The remaining 1,231 licensed day care centers in the state will be tested before the end of the year. Day Care centers that have lead paint hazards must submit a remediation plan within 30 days of the discovery of lead-based paint. Associated Press 6/9/02
On June 8, 2002, it was reported that the owners of Lubbock Park Towers Apartments settled a mold suit filed by tenants by agreeing to pay $500,000 in damages. The settlement covers allegations of personal injuries and property damages. The apartment owner relocated the tenants after stachybotrys and penicillium were discovered on interior walls and in carpets. The owners, Hurt & Stell Management, First Paradigm Management and Lubbock Park Towers Apartments, allege rainwater intrusion caused the mold contamination. The owners have filed a suit against their insurers including: St. Paul Fire and Marine, Zurich Ins., Columbia Casualty, Caliber One Indemnity, General Star Indemnity and Underwriters at Llyods of London seeking coverage for the settlement plus attorneys' fees and interest. The Lubbock Avalanche-Journal 6/8/02
On June 8, 2002, a New Jersey jury ordered DuPont to pay 3 plaintiffs in a toxic tort suit $380,000. The plaintiffs were part of the first group of 10 plaintiffs in a class action suit with nearly 1,600 members alleging that pollutants emanating from DuPont's Pompton Lakes chemical facility caused their various illnesses. Two of the three awarded damages will receive $140,000. The third was awarded $100,000. The jury failed to reach a decision as to whether DuPont should pay medical monitoring costs for the other seven plaintiffs in the group. The judge ordered a new trial for the seven remaining plaintiffs in the first group. DuPont has already spent $130 million to cleanup contamination around its Pompton Lakes facility. Associated Press 6//8/02
On June 6, 2002, it was reported that cleanup operations to remove tons of oil soaked soil at the site of 7 World Trade Center is scheduled to begin. About 130,000 gallons of oil leaked from a Con Edison substation contained within the building during the collapse. Additional oil leaked from two 6,000 gallon tanks owned by Salomon Smith Barney. Cleanup will require the removal of the top 27 feet of soil from the southern two-thirds of the site. Associated Press 6/6/02
On June 2, 2002, it was reported that a Texas homeowner received a total of about $1.5 million in settlements from various defendants in a mold suit. The homeowner alleged his family suffered illnesses including allergic reactions, flu-like symptoms, rashes and cognitive damage due to exposure to mold in their home. The plaintiffs alleged that a leaking pipe and water from a lawn sprinkler system caused the mold contamination. The final settlement was for $856,000 with $90,000 of that going to the couple's three children. Previous payments by the defendants insurers and the plaintiffs' homeowners' carrier brings the total paid to the family to about $1..5 million. Defendants included: Alvin Kicks (the previous owner), Riley Construction, Guy's Plumbing Heating and Air Co., Charles Walker Co., Clear Water Sprinkler Co., Prudential Ada Realtors, The Drawing Board, Golden Spread Redi-Mix and various other sub-contractors. Amarillo Globe-News 6/2/02
In June 2002, it was reported that a confidential settlement was reached in a mold suit filed by the owners of an apartment complex against their property insurer (Katayama International Inc. and Mayatek Corp. v. Republic Western Ins. Co.). The plaintiffs alleged that during renovation of the apartment complex, water damage was caused by the 1996 El Nino rainstorms. An arbitration panel issued a final appraisal award of over $1.4 million. Republic delayed payment of the claim alleging that the insured failed to appear for examination under oath and failed to supply proof of repairs to property. The insured sued the insurer and a jury awarded $2.9 million in compensatory damages and found the insurer acted with malice, fraud or oppression in its handling of the claim. The case settled before the punitive damages phase of the trail was to begin. Harris martin Columns: Mold 6/02
On June 10, 2002, it was reported that Farmers Insurance received 2,500 Texas homeowners' mold claims during the month of January 2002. A Farmers' spokesperson is quoted as saying "In my 23 years in this business, I've never seen anything ramp up like mold." An insurance industry economist from the Insurance Information Institute estimates that "Texas mold [claims] could cost carriers half a billion dollars." Fortune 6//1/0/02
On June 5, 2002, it was reported that Western MacArthur, a building supply manufacturer, was facing 5,000 asbestos personal injury claimants who had already filed suits against the company and another 5,000 claimants were waiting to make claims when Western MacArthur's insurer St. Paul settled its liability by agreeing to pay $987 million. Knight Ridder Tribune Business News 6/5/02.
On June 5, 2002, it was reported that according to a new survey by the Insurance Information Network of California, the state's homeowners' carriers have seen an increase in the number of water damage and mold claims filed and an increase in the amount insurers have paid for these claims. The survey included insurers representing 63% of the state's homeowners market. The number of claims climbed to 32% of all the homeowners' property claims filed in 2001 from 24% in 1997, water damage/mold claims cost these carriers $206.1 million. By 2001, these insurers paid $430.5. As of May 1, California's DOI received 287 requests to exclude or limit mold claims - mostly for commercial lines. Interestingly, the insurers were only to reduce premiums charged by 1% to 3% after excluding mold claims. This has sparked the ire of certain state legislators. Los Angeles Times 6/5/02
On June 5, 2002, a new report published by Fitch Ratings concludes that "asbestos-related claims filed against corporations were on the rise from 1998 through 2001 and continue to be on an upward trend...Fitch believes that this upward trend runs true for the majority of companies with asbestos liability." Business Wire 6/5/02
On June 5, 2002, the Oregon Court of Appeals reinstated a $79.5 million punitive damages award against Philip Morris in a suit brought by the family of s deceased smoker. The 1999 award, which also included medical costs and pain and suffering, totaled over $80 million but was reduced to $32 million by the trial court judge who deemed the punitive damages awarded excessive. The decision by the appeals court reinstating the punitive damages award was unanimous and the three judge panel decided the amount of damages fit within federal standards for punitive damages. The punitive damages were awarded on the grounds that the tobacco manufacturer knew of the harm caused by smoking but concealed the facts from the public. The deceased smoker died in 1997 after smoking for 42 years. Associated Press 6/5/02
On June 4, 2002 it was reported that oil field services provider, Haliburton Co. is facing over 200,000 asbestos personal injury claims. Most of the asbestos suits stem from Harbison-Walker Refractories Co., a spin-off of a Haliburton subsidiary, Dresser Industries. Associated Press 6/4/02
On June 4, 2002, it was reported that residents of Camden, New Jersey have filed a toxic tort suit against the City of Camden and 22 firms alleging that they were exposed to hazardous substances in their drinking water. The six wells, contaminated by heavy metals and other chemicals known to cause cancer and other injuries, provided drinking water for 50,000 Camden residents. The wells were closed between the early 1970s and 1998. In 1991, state regulators charges 21 individuals and companies of dumping pollutants that migrated into the well water. Knight Ridder Tribune Business News 6/4/02
On June 5, 2002, it was reported that arsenic contamination emanating from the former Asarco smelter in Washington contaminated a wider swath of land than previously realized. At the same time new studies are increasing concern for those exposed to the arsenic contamination. Previously, scientists believed the only possible adverse health affects that could be caused by the arsenic contamination was a treatable form of skin cancer. More recent studies have now linked low levels of arsenic exposure to lung, bladder and kidney cancers as well as neurological harm and hardening of the arteries. Children living on homes with soil levels of 200-400 parts per million of arsenic could face a cancer risk of 1 in a 100. Asarco has already spent $180 million on the ongoing cleanup. These new studies may force the company to: cleanup a larger area; adhere to more strict standards and may result in increased toxic tort litigation. Knight Ridder Tribune Business News 6/4/02
On June 4, 2002, it was reported that after ten years of negotiations, Kerr-McGee has agreed to remove radioactive contamination from Illinois' DuPage River and a tributary Kress Creek. Kerr-McGee acquired a gaslight mantle maker in 1967. A by-product of the manufacturing process, thorium contaminated sand-like material was spread around West Chicago as landscaping fill. Wastewater from the facility also contaminated the sediment of local waterways. The cleanup of the two waterways is expected to take four years. Natural resource restoration of the waterways is expected to take 10 years. Kerr-McGee has already spent over $400 million in cleanup costs remediating thorium contamination from about 660 properties in West Chicago. Cleanup continues on several residential properties and a former factory. Knight Ridder Tribune Business News 6/4/02
On June 3, 2002, it was reported that a California jury ordered a contractor to pay the plaintiffs in a mold contamination case $213,500 (Ayez v. Fullmer Construction). The condo owners alleged that an underground drain that was not hooked up resulted in water intrusion and mold contamination and sued the contractor, bank and condo association. The plaintiffs alleged various bodily injuries resulting from mold exposure including memory loss, fatigue, joint pain and skin rashes. The court did not allow the plaintiffs' medical experts to testify, eliminating their entire bodily injury case. The court also dismissed the cases against the bank and condo association but held the contractor liable. The court awarded the plaintiffs $148,500 in economic damages and $65,000 in noneconomic damages. Mealey's Litigation Report: Mold 6/3/02 & Harris Martin Columns: Mold 5/31/02
On June 3, 2002, it was reported that Artra Group has filed for bankruptcy protection due to increasing asbestos personal injury claims. The claims are arising from the company's subsidiary Synkoloid Co. At the time of filing for bankruptcy protection the company had approximately 50,000 asbestos claims pending against it. Mealey's Asbestos Bankruptcy Report 6/3/02
On June 3, 2002, it was reported that St. Paul Cos. will pay $987 million to settle asbestos personal injury claims arising from one insured - building products manufacturer Western MacArthur. St. Paul's USF&G unit insured Western MacArthur from 1948 to 1960. The money will be paid into a trust that will compensate claimants with asbestos-related diseases. St. Paul will pay $235 million during the second quarter of this year with an additional $740 million due upon the reorganization of Western MacArthur. The insurer will also pay $12.5 million in legal fees and costs. St. Paul's total environmental and asbestos reserves at the end of March were reportedly $852 million. Reuters 6/3/02
On June 3, 2002, it was reported that the Ohio Supreme Court has upheld a $1.6 million award to the estate of a former steel worker who died of asbestos-related disease. The award was originally handed down in 2000. The law firm representing the plaintiff is reportedly handling over 25,000 additional asbestos cases in Ohio. PR Newswire 6/3/02
On June 3, 2002, it was reported that The Bush administration has for the first time acknowledged that global warming is being caused by human activity, primarily the burning of fossil fuels and that global warming will result in far reaching effects including the disappearances of coastal marshes, mountain meadows, less fresh water for California. Rather than try to curb greenhouse gases, the administration suggests that humans adapt to the coming changes. The New York Times 6/3/02
On June 2, 2002, it was reported that the EPA is reviewing the potential cancer risks of two widely used weed killers, even though the agency had declared them safe just a few years ago. Herbicides, atrazine and 2,4-D (or dichlorophenoxyacetic acid) are arguably the most widely used herbicides in the world. While the EPA declared them safe in the mid-1990s, new research showing associations between the herbicides and deformities in wildlife and increased cancer risks in humans have caused the agency to launch additional investigations. About 60 million pounds of atrazine are applied in the U.S. annually and traces of the herbicide have been found in groundwater and drinking water in many parts of the country. Atrazine's major manufacturer is Swiss firm, Syngenta SG. EPA scientists have identified dozens of Midwestern towns where levels of atrazine in drinking water were likely to have exposed infants to levels higher than those considered safe. Americans also apply some 27 million pounds of 2,4-D to residential lawns and parks annually. Leading makers of 2,4-D include German company BASF, Australia's NewFarm Inc., the U.S. firm Dow AgroSciences and U.S.-Argintinian company Agro-Gor. Scott has mixed 2,4-D into its fertilizer and weed control products since 1947. According to the EPA's pesticide registration manager "the bottom line is [with regard to the potential cancer risk of 2,4-D]: we can't make the call. We can't rule it out, and we can't say for sure." Los Angeles Times 6/1/02 &b The New York Times 6/2/02
On June 1, 2002, it was reported that a newly released EPA study, examining the potential for increased cancer risks caused by just 32 toxins released into the environment, concludes that at two thirds of U.S. citizens live in areas where these chemicals pose an elevated cancer risk. Nearly 200 million Americans face greater than a 1 in 100,000 risk of contracting cancer due to exposure to these substances, but some areas face a much higher risk. Some 20 million Americans face an increased cancer risk of 10 per 1000. Californians living in the Los Angeles and Bay Area face a cancer risk as high as 1 in 5,000. The EPA generally considers a cancer risk of 1 in a million or greater as a matter of concern. Los Angeles Times & New York Times 6/1/02
International
On June 28, 2002, it was reported that the German federal government along with four German states have agreed to pay an additional 1.4 billion euros (US$1.389 billion) to restore natural resources damaged by decades of open pit coal mining that occurred in the former East Germany. Some 6 billion euros (US$5.95 billion) has already been paid for restoring the open pits over the past 10 years. Reuters 6//28/02
On June 28, 2002, it was reported that the Angolan government has fined ChevronTexaco US$2 million for environmental damage caused by two oil spills. The spills were caused by pipeline leaks from decayed pipes that transport oil from the offshore platforms. Associated Press 6/28/02
On June 25, 2002, it was reported that as of 2001 there were 129 legal landfills in Slovakia, but only 30% met the required environmental protection technical standards. Illegal dumps, however, can reportedly be found throughout the Slovak capital contaminating soil and groundwater. Under a law passed by the Parliament last year, producers of waste are to be held responsible for proper disposal of wastes. Producers could face fines if they are caught improperly dumping wastes, although according to a consultant to the country's Ministry of Environment, this has never happened. While large areas of the Rizinov area of Bratislava are contaminated by oil, gas and carcinogens, the state has yet to begin to study any possible adverse health affects caused by the contamination. These issues are coming to light as the country progresses towards EU membership and must meet current EU environmental laws and standards. Environment News Service 6//25/02
On June 27, 2002, it was reported that Japan's Environmental Disputes Coordination Commission has ruled that the illnesses affecting 50 residents living near a waste facility were caused by pollution emanating from the facility. The judgment marks the first time the commission has admitted a cause and effect relationship between pollution and adverse health affects without specifying a specific pollutant. The waste facility began operating in 1986 and since then local residents have complained of ailments including headaches, nausea, respiratory difficulties and other symptoms which have collectively become known as Suginammi disease. The commission will come out with compensation plans for those suffering from this affliction by year's end. Financial Times Limited 6/27/02 & Dow Jones 6/28/02
On June 26, 2002, it was reported that Equitas increased its asbestos reserves by GBP3.2 billion (US$4.87 billion) over the past two years. Equitas was set up to address pre-1993 liabilities facing Lloyd's names. Post Magazine 6/26/02
On June 26, 2002, it was reported that according to New South Wales' Minister for Industrial Relations, "NSW [Australia] has one of the highest rates of asbestos-induced disease in the world. This is due to the widespread use of asbestos in manufacturing, building, construction and refinery processes over the last century." Financial Times Limited 6/26/02
On June 26, 2002, it was reported that the Victorian Supreme Court (Australia) ruled against an attempt to block class action suits. Lawyers for defendants argued that legislation passed last year by the Victorian government enabling class actions lawsuits was invalid. Five of the six member panel ruled against the defendants' motion. Financial Times Limited 6/26/02
On June 21, 2002, it was reported that secretary-general of Zimbabwe's Congress of Trade Unions supported a decision not to ban asbestos until there was proof that exposure to asbestos was harmful. He stated "we cannot just have our people thrown out of jobs before there is scientific evidence of asbestos' harmfulness." Zimbabwe is the third largest asbestos producer in the world after Brazil and Canada. Financial Times Limited 6/21/02
On June 17, 2002, it was reported that European Union ministers have proposed a directive to ban the production and processing of asbestos and provide better protection to workers exposed to asbestos during maintenance and demolition work. Then directive will reportedly be adopted in 2003. Financial Times limited 6/17/02
On June 25, 2002, it was reported that it has been estimated that cleanup costs necessary to remediate soil and groundwater contamination in Taiwan will cost NT$30 billion (US$896 million) over the next 20 years. The cleanups will be ordered under the country's Soil and Groundwater Pollution Remedy Act enacted in February 2000. Financial Times Limited 6/25/02
On June 24, 2002, it was reported that Equitas paid GBP269 million (about US$405 million) in asbestos payments in 2001. If claims proceed at that rate, the company would exhaust its current provisions within 24 years. The Daily Telegraph 6/24/02
On June 21, 2002, it was reported that the House of Lords released their full written judgment overturning an appellate ruling which would have prevented asbestos victims exposed to asbestos while working for multiple employers from suing for compensation. The House of Lords stated that "a former employee's inability to identify which particular period of wrongful exposure brought about the onset of his disease ought not, in all justice, to preclude recovery of compensation... Each employer's wrongful exposure of its employee to asbestos dust and, hence, to the risk of contracting mesothelioma, should be regarded by the law as a sufficient degree of causal connection." The article again estimates a total payout for UK asbestos victims of GBP8 billion (US$11.67 billion). Associated Press 6/21/02
On June 20, 2002 it was reported that a new study by the World Health Organization concludes that smoking causes not only lung cancer but also stomach, liver, cervical and kidney cancers as well as myeloid leukemia. Twenty-nine researchers reviewed over 40 previous studies and reportedly found direct evidence of c causation. The study also found that nonsmokers exposed to secondhand smoke have a 20% increased risk of developing lung cancer. According to one of the researchers on the panel from the University of California at Berkeley, about 1 billion people will die from tobacco-related diseases world-wide this century. The Wall Street Journal 6/20/02
On June 20, 2002, it was reported that new research by Finland's Radiation and Nuclear Safety Authority found that prolonged exposure to EMFs from mobile telephones caused human cells to shrink which could hinder the ability of the human blood-brain barrier to filter harmful substances from the bloodstream. The Independent & ZDNet UK 6/20/02
On June 19, 2002, it was reported that according to a new study by Credit Suisse First Boston, asbestos personal injury claims will cost UK employers and insurers GBP3.5 billion (US$5.2 billion) over the next 40 years with UK insurers paying one third of the total or GBP1.2 billion (US$1.8 billion). This is the lowest of the estimates that have come to light since a recent House of Lords decision allowing asbestos victims to sue multiple employers for damages. Previous estimates put UK insurers' asbestos claims at between GBP3 billion (US$4.5 billion) and GBP8 billion (US$11.67 billion) over the next 20 years. The Credit Suisse analysis focuses primarily upon insurers which wrote employers' liability from the 1950s to the 1980s. According to their analysis: Zurich Financial Services, CGNU, AXA and Royal Sun Alliance may have written significant market shares of employers liability. The Credit Suisse report also concludes that "at present we believe those insurers exposed to UK asbestos-related losses have sufficient reserves to handle any increase in claims." Dow Jones 6/19/02
On June 19, 2002, it was reported that a new study has concluded that children of men who had been exposed to radiation at Britain's Sellafield nuclear plant have twice the normal rate of leukemia and non-hodgkin's lymphoma. The study is the biggest most comprehensive study of the issue to date. Researchers at the university of Newcastle compared the fates of 9,859 children fathered by men exposed to radiation at Sellafield with those of 256,851 other children born in Cumbria between 1950 and 1991. The incidence of leukemia and lymphoma was 15 times greater in children living in the village of Seacastle which is adjacent to the plant. NewScientist,com 6/19/02
On June 18, 2002, it was reported that according to the results of recent studies, huge numbers of Chinese children are suffering from lead poisoning at levels above those deemed safe by the World Health Organization. The most recent study of 11,348 children ages 3 to 15 from the city of Shenzhen found that nearly 66% of them were lead poisoned. Other studies over the past two years have found that 64% of the children living in Taiyuan are lead poisoned; 83% of the children of Guangzhou are lead poisoned and 20% of the children in Beijing. According to a recent Life Times Newspaper article "lead poisoning could afflict half of all urban Chinese youth." Los Angeles Times 6/19/02
On June 17, 2002, it was reported that two Chinese women filed a indoor pollution suit against the real estate firm that sold them their apartment seeking 460,000 yuan (US$55,000) in compensation for economic losses and "mental damage". Investigations have found high levels of formaldehyde in the apartment and doctors have reportedly attributed their injuries to exposure to pollution. The suit against Xiamen Wild Mountains Real Estate Corp. was filed in a district court in Xiamen city. Associated Press 6///17/02
On June 16, 2002, it was reported that the Dublin Docklands Development Authority has spent IEP30 million (US$36.1 million) remediating soil contaminated with heavy metals from a former gas works facility which was operational for a century. The cleanup including shipping some 250,000 tonnes of heavily contaminated soil to the Netherlands and Belgium. Cleanup of the 25 acre site took 20 months. Plans for the site include the construction of 1,000 housing units. Financial Times Limited 6/16/02
On June 17, 2002, it was reported that a French appeals court ordered Air France to pay a disabled worker 60,800 euros (US$57,400) for lung disease caused by occupational exposure to asbestos. The former worker was employed as a mechanical electrician applying asbestos cladding and asbestos wire insulation to the engines of aircraft from 1949 to 1959 without protective gear. The court held that the employer must have been aware of the danger and had failed in its duty to protect the employee. Agence France Presse 6/17/02 & Financial Times Limited 6/15/02
On June 13, 2002, it was reported that "legal observers" have stated that United Kingdom asbestos victims will likely receive up to GBP8 billion (US$11.67 billion) in compensation over the next 20 years as a result of the May asbestos decision by the House of Lords. A spokesperson for the Association of British Insurers has stated that the compensation would more likely be between GBP3 billion (US$4.38 billion) and GBP4 billion (US$5.84 billion) over the next 20 years. In 2001 about 3,000 people in the UK died of asbestos-related diseases. The number is expected to increase to 10,000 by 2010 and will reportedly keep increasing until 2020. BNA Toxics Law Daily 6/13/002
On June 13, 2002, it was reported that chemical company Azko Nobel will collaborate with Rijkswaterstaat in remediating oil and heavy metal contamination at the chemical harbor at Botlek, Rotterdam. Cleanup costs for the 5,000 square meter harbor area is expected to cost at least 500,000,000 euros (US$472.5 million). The expected cleanup costs could increase dramatically if it is decided that the area should be made clean enough to build housing there. Financial Times Limited 6/13/02
On June 12, 2002, it was reported that the Russian Supreme Court held that the government must pay back US$861 million in environmental fines imposed on hundreds of corporate polluters since 1999. Although these companies had often exceeded permitted releases of pollutants, the court held that such fines are illegal under the Russian constitution. The court held that taxes and levies can only be imposed by federal law and not an arbitrary government decree which is how it viewed the environmental fines. Without the threat of fines there is little to keep companies from exceeding their discharge permits at will. A Spokesperson for the United Nations Environmental Program states that "...now it will be very difficult dispute any environmental damage in court, because basically there is no [longer a] basis for the calculation of this damage." Russian President Vladimir Putin abolished the Stat Committee for Environmental Protection two years earlier. Financial Times Limited 6/12/02
On June 11, 2002, it was reported that French energy groups EDF and GDF signed an agreement to prevent exposure to and compensate employees in their gas and electricity divisions for adverse health affects of asbestos. Workers with asbestos-related illnesses will be offered early retirement at age 50, will help ill employees seek compensation from the government and the companies will pay for any medical treatment not covered by the state. Th agreement is expected to cost the two groups between 20 million and 30 million euros (US$18.7 million and US$28.3 million). Europe Intelligence Wire 6/11/02
On June 10, 2002, it was reported that the New South Wales (Australia) government's Civil Liability Act passed into law which caps damages and attorneys' fees in public liability cases. The new law caps compensation payments at A$350,000 for general damages and attorney's fess at A$100,000. The law which applies retroactively to March 30, 2002, also introduces minimum thresholds for claims. According to NSW Premier, without the new law there would be no public events held in the state due to increasing insurance premiums for public liability. Amendments to the new law which would have retained punitive damages for cases against asbestos and tobacco companies were defeated. Financial Times Limited 6/10/02
On June 12, 2002, it was reported that a collision between a freighter and an oil tanker chartered by Shell Oil Co. resulted in 495 tons of oil spilling into the waters off Singapore. Associated Press 6/12//02
On June 11, 202, it was reported that leakage from aviation fuel storage tanks in the Irkutsk region of Ukraine has contaminated the soil and groundwater with kerosene. Hundreds of hectares are so contaminated that local residents get free kerosene simply by digging a hole and ladling out the kerosene. While water in the area is no longer potable, residents say they have no choice but to drink it. Scientists are also concerned about adverse effects on the ecosystem of the Belaya River. Financial Times Limited 6/11/002
On June 4, 2002, a new study by Australian researchers concludes that exposure to environmental toxins has resulted in rising male infertility and parts of the world and rising rates of certain cancers, particularly testicle cancer. "A gradual degradation of male sperm counts over millions of years has snowballed in the past 50 years....[research suggests that] the declines have been so swift they can only be attributed to rising use of poisonous toxins since the end of the Second World War." The Canadian Press 6/4/02
On June 4, 2002, it was reported that hundreds of Peruvian villagers have filed a class action suit in the U.S. against Newmont Mining alleging personal injuries caused by a mercury spill. In June 2000, a truck carrying mercury wastes from a Peruvian gold mine overturned releasing some 330 pounds of mercury. Over 400 people were allegedly sickened and 80 homes were contaminated. Newmont has already paid US$14 million in cleanup costs for the spill. The villagers are seeking unspecified compensation for bodily injuries, emotional suffering, environmental damages and future medical monitoring costs and rehabilitation. The Peruvian government has also filed a suit against the mining company over the spill and fined the company US$500,000. Associated Press 6/4/02 |
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