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Pollution Litigation Review - February 2002
Pollution Litigation Review - February 2002
USA/ Canada
On February 15, 2002, it was reported that an Oregon appellate court held that a homeowner cannot sue it homeowners' carrier for bodily injury claims allegedly arising from an insurer's delay in repairing a water damage claim which lead to mold growth resulting in illness. The court held that under Oregon law, to bring a tort claim based in conduct that is also a breach of contract, the insured must have violated a special standard of care that is not part of the insurer's contractual obligations. The court found that this special relationship does not exist with respect to an insured's refusal to settle a claim. The appellate court did affirm the lower court's award of $195,000 in property damages for breach of contract against the insurer (Strader v. National Grange Mutual Ins. Co.). Morrison Mahoney & Miller 2/15/02
On February 26, 2002 it was reported that a Texas jury ordered a manufacturer of joint compound to pay a contractor $2,025,000 for his asbestosis (Pace v. The Synkoloid Co.). The self employed contractor alleged his illness was caused by exposure during the 1960s and 1970s to asbestos contained in the company's joint compound. The suit alleged that the company became aware that the joint compound contained asbestos in 1969, but did not take action to remove the asbestos until 1975. The jury awarded the plaintiff $525,000 for past and future mental anguish and $1.5 million for future medical costs. Harris Martin Columns Asbestos 2/26/02
On February 28, 2002, it was reported that four consolidated Pennsylvania asbestos cases against manufacturers, distributors or suppliers of products containing asbestos has settled for $11.5 million. All four plaintiffs were mesothelioma victims. Defendants settling four days into the trial were Amchem/Benjamin Foster Inc., Certainteed Corp. and Georgia Pacific. Other defendants which settled before trial for undisclosed amounts include Mobil oil Corp., Carlock Corp., Pecora Corp., Westinghouse Electric Corp., American Standard, Flintoke Co., General Electric Corp. and Pfizer Inc. The family of one plaintiff, who died at age 46, will receive $7 million. The remaining plaintiffs will receive between $1 million and $1.5 million. law.com 2/28/01
On February 26, 2002, it was reported that 1,600 Pompton Lakes New Jersey residents have filed a toxic tort class action against DuPont alleging that contaminants emanating from the company's former explosives manufacturing facility contaminated drinking water and caused a variety of illnesses including cancer, reproductive maladies and neurological damages. Tests have revealed that lead, zinc, mercury, chloroethylene and chloroethane have contaminated groundwater. The judge in this case has decided to allow ten plaintiffs to represent the class. If damages are awarded the amount would be extrapolated to the hundreds of others with similar injuries. DuPont settled a similar suit filed by 427 Pompton Lakes residents in 1997 for $38.5 million. Knight Ridder Tribune Business News 2/26/02
On February 20, 2002, it was reported that according to the National Underwriter "mold-damage claims will lower the financial strength ratings of some Texas insurers..." The article cites a marked increase in both frequency and severity of Texas mold claims. Loss ratios for Texas homeowners business averaged just below 60% for the four years preceding 2000. In 2000, loss ratios shot up to 86% and "were well into the triple digits through the first nine months of 2001." MoldUpdate.com 2/20/02
In February 2002, it was reported that due to high lead levels part of downtown Omaha, Nebraska will be added to the Superfund list . Recent tests have shown that hundreds of children in the area have elevated lead levels. Asbestos & Lead Abatement Report 2/02
On February 27, 2002, it was reported that Motorola and several other corporate defendants will pay $61 million to settle a toxic tort class action filed on behalf of Scottsdale and Phoenix, Arizona residents. The suit alleged that the defendants improperly disposed of trichloroethylene (TCE) in the 1960s and 1970s which contaminated groundwater resulting in personal injuries and property diminution. While the settlement amount is substantial, there are some 32,000 plaintiffs in the suit and about half of the settlement will go to legal fees and costs. Motorola agreed to settle even though a jury had previously absolved the company of liability to avoid future litigation costs. Associated Press 2/27/02
On February 27, 2002, it was reported that a new study by Missouri state health officials found that 28% of children under age seven living near the Herculaneum, Missouri Doe Run lead smelter have lead levels over federal safety levels. Forty-five percent of the children living nearest smelter have blood-lead levels over federal lead poisoning limits. Associated Press 2/27/02
On February 27, 2002, it was reported that drinking water wells of some 100 Minnesota homes near the Lake Elmo Airport have been contaminated with trichloroethylene (TCE). The drinking water of another 225 homes will be tested for contamination. The highest levels of TCE, a degreaser a dry cleaning solvent, was found in groundwater beneath the airport. cause liver and kidney damage and impair the immune and nervous systems. Residents with drinking water with 5 micrograms or more of TCE should stop using the water for drinking and cooking. Some residential wells had more than three times that level. The previous safe level for TCE exposure was 30 micrograms, however, the EPA recently has come to believe that TCE is more toxic than previously thought. Associated Press 2/27/02
On February 26, 2002, it was reported that over 2,000 residents of Mission, Texas have filed a toxic tort suit against Hayes-Simmons Chemical Co., which later became Tex-Ag, several of its suppliers and Union Pacific Railroad alleging that pesticide contamination emanating from several sites in Mission caused cancers, birth defects, stillbirths and liver and kidney diseases. Tests of 20 homes and businesses in close proximity to former Hayes-SImmons pesticide manufacturing and warehouse sites have discovered high levels of the pesticide DDT. Twenty years ago the EPA found that the Hayes-Simmons warehouse complex was so contaminated, with levels of DDT a billion times the level considered safe, that it was declared a Superfund site. Adjacent third party properties were not tested for contamination until recently. One home that obtained fill from the company thirty years ago was subsequently found to be contaminated with high levels of DDT and cost $750,000 to remediate. The home was worth $250,000. Knight Ridder Tribune Business News 2/26/02
On February 25, 2002, it was reported that General Motors Corp., is spending approximately $10 million annually on asbestos personal injury claims. The suits generally allege that the plaintiff was exposed to asbestos in automobile brake products. According to GM, many of the claimants do not have an asbestos-related illness. Reuters 2/25/02
On February 22, 2002, it was reported that the Louisiana Department of Insurance (DOI) will allow insurers to exclude certain mold claims from coverage. The Louisiana DOI has determined that mold caused by a sudden and accidental incident will remain covered, however, mold arising from slow leaks caused by maintenance problems can be excluded. The costs of testing and fumigation will be excluded. Associated Press 2/22/02 & insure.com 2/26/02
On February 15, 2002, it was reported that the Alabama Department of Insurance has approved ISO's request to allow insurers to cap coverage for mold damage claims in homeowners policies at $10,000. Birmingham Business Journal 2/15/02
On February 25, 2002, thirteen Texas families have filed a toxic tort suit against Chevron Pipe Line Co. alleging that leaks from one of its pipeline booster/pump station have contaminated groundwater with MTBE. The contaminated groundwater includes the Twin Mountains aquifer which is designated a major fresh water source by the Texas Natural Resources Conservation Commission. Samples taken from one of the plaintiff's drinking water wells revealed MTBE contamination at about 30 times the level allowed under Texas guidelines. Records from monitoring wells reportedly show that MTBE contamination had been detected in the groundwater under the booster station back to 1995. The suit is seeking unspecified damages. Dow Jones News Service 2/25/02
On February 24, 2002, it was reported that Pennsylvania's Department of Conservation and Natural Resources had discovered some 225 illegal dumps in the state's forests and parks. State regulators have targeted the worst twelve for cleanup this year. Associated Press 2/24/02
On February 23, 2002, it was reported that 18 months ago an assistant U.S. surgeon general, who is also the Chief doctor at the National Institute of Occupational Safety and Health, stated that "even minimal handling [of Zonolite insulation] by workers or residents poses a substantial health risk." The EPA is still debating on whether to issue a public warning on the W.R. Grace insulation product which may contain trace amounts of asbestos. The company has already settled hundreds of lawsuits which from claimants alleging injuries caused by exposure to the Zonolite insulation. W.R. Grace estimates that Zonolite insulation has been installed in 12 million to 35 million homes, schools and offices throughout the country. Removal and cleanup of the insulation, according to one EPA manager, could cost over $10 billion. Associated Press 2/23/02
On February 22, 2002, it was reported that the Illinois Supreme Court has upheld a $3.2 million award for four children who contracted cancer of the nervous system allegedly caused by contamination from an old coal gasification site. The exposure allegedly occurred during the remediation of the site when dust containing carcinogens from the excavated coal tar was blown over the surrounding community. Court papers reportedly show that AmerenCIPS, formerly, Central Illinois Public Service Co., knew the site was contaminated with coal tar but did not report the contamination until a subsequent owner of the site discovered it. Court papers also reportedly show that remediation contractors advised the utility to evacuate residents during the cleanup operation but the utility refused. Associated Press 2/22/02
On February 22, 2002, it was reported that the 3,500 plaintiffs that recently prevailed in a decision finding chemical companies Monsanto, Solutia and Pharmacia liable for injuries and damages arising from PCB contamination in Anniston, Alabama are seeking hundreds of millions of dollars in damages. The first phase of the trial dealt with only sixteen individual plaintiffs and one business entity. Subsequent trials will involve groups of 50 plaintiffs alleging the exposure caused a variety of illnesses including cancer, liver disease, thyroid disease, neurodevelopmental problems and severe emotional distress. The judge adjudicating the case has urged the parties to reach a settlement. Business Wire 2/22/02 & Associated Press 2/25/02
On February 22, 2002, it was reported that PCBs from a former General Electric facility in Guelph, Ontario Canada are migrating into the Grand River System. According to documents from the Ministry of Environment, PCBs have contaminated the Speed River, a tributary of the Grand River. PCB contamination has also been discovered near another former GE facility in Toronto. Associated Press 2/22/02
On February 22, 2002, a New York childhood lead poisoning case was settled for $496,668. The child, now age 10 was exposed at the age of one, allegedly suffers from cognitive deficits and learning disabilities. The child's highest blood-lead level was 28 micrograms per deciliter. The apartment owner agreed to the settlement. The defendant's insurer is Nationwide. law.com 2/22/02
On February 22, 2002, it was reported that a Kansas jury ordered two cigarette makers to pay a plaintiff with lung disease $198,400 (Burton v. R.J. Reynolds and Brown & Williamson Tobacco). The plaintiff alleged that his 40 years of smoking caused his peripheral vascular disease. The jury ordered R.J. Reynolds to pay 99% ($196,416) and Brown & Williamson to pay 1% ($1,984) in compensatory damages. Punitive damages, if any are to be awarded, will be determined by the judge at a later date. Reuters 2/22/02
On February 22, 2002, it was reported that a federal court has fined Allegheny Ludlum $8 million for "chronic severe violations of the Clean Water Act" from three Pennsylvania steel mills and finishing plants. The EPA alleged that the company violated discharge permits for hazardous substances including chromium, copper, nickel, zinc and oil on 1,122 days from July 1990 to February 1997. On 180 days the discharges exceeded permitted levels by over 1,000 percent. The contaminants were discharged into the Allegheny and Kiskiminetas Rivers. Associated Press 2/22/02
In February 2002, it was reported that a federal district court in Texas held that exposure to asbestos at three separate locations all owned by the defendant constitute three separate occurrences under the defendant's primary insurance policy (Fina Inc. et al. v. The Travelers Indemnity Co et al.). Travelers had provided Fina with $300,000 in limits of primary coverage from 1973 to 1976. The insurer had argued that the continuous exposure clause in its policy limited the claims to one occurrence since all the claims arose from the company's failure to protect its employees. The court was unpersuaded. Harris Martin Columns Asbestos 2/02 On February 25, 2002, it was reported that an Alabama jury found Monsanto, Solutia Inc. and Pharmacia Corp. liable for endangering the health of residents and contaminating the town of Anniston with PCBs. The damages phase of the trial has yet to begin. Some 3,500 residents initially filed suit against the company, but, it recently has come to light that another law firm is representing another 15,000 residents alleging injuries and/or damages caused by exposure to the PCB contamination. Associated Press 2/25/02
On February 25, 2002, it was reported that the EPA has determined that there is a possibility of an elevated cancer risk associated with exposure to the herbicide oxyfluorfen. Oxyfluorfen, now classified as a possible carcinogen for humans, is widely used on trees, vines and crops as well as on roadsides and residential areas. Financial Times Ltd. 2/25/02
On February 24, 2002, it was reported that after over a $100 million cleanup of the Raybestos sites in Connecticut, some 125 homes up to a mile from the company's Stratford brake lining manufacturing facility are being tested for contamination. Groundwater, soil and air samples are being taken at the homes after concerns arose from the possibility that contaminants may have migrated from the Raybestos facility. Cleaning up the facility and capping some 41 other sites where contaminated material were dumped as fill have already cost over $100 million. Associated Press 2/24/02
On February 22, 2002, it was reported that the Connecticut Supreme Court upheld the temporal meaning of the sudden and accidental pollution exclusion (Buell Industries Inc. v. Greater New York Mutual Ins. Co.). The court also refused to the plaintiff's regulatory estoppel argument alleging that insurers mislead state insurance regulators and also found that there was no coverage for pollution under a policy's personal injury provision. Mahoney Morrison and Miller Insurance Law Newsletter 2/22/02
On February 21, 2002, it was reported that a California jury ordered ExxonMobil Corp. to pay a former employee $5.1 million for cancer allegedly caused by exposure to toxic fumes emanating from crude oil. The former employee, who has bladder and prostrate cancer, was awarded $1.3 million for loss of earnings and $3.8 million for pain and suffering. Dow Jones International News Service 2/21/02
On February 20, 2002, it was reported that Cargill Pork Inc. will pay $1.55 million for releasing animal wastes from one of its hog farms into the Loutre and Missouri rivers. State regulators alleged that in July 2000, valves incorporated into the containment pond system were opened discharging the wastes into the Loutre River , a tributary of the Missouri River, killing about 53,000 fish. The company never reported the release to the state's Department of Natural Resources as required. Cargill has paid $500,000 in cleanup costs related to the spill and has agreed to pay a $1 million fine and $51,000 in restitution to the state. Associated Press 2/20/02
On February 19, 2002, it was reported that dredging one million cubic feet of contaminated sediment in the Indiana Harbor and Ship Canal will cost an estimated $247 million and will begin this spring. Dredging will continue until 2035. Groundwater monitoring will continue to 2065. The waterway has been lined with various industrial facilities. The article makes no mention of potentially responsible parties which may be held liable for the cleanup costs. Associated Press 2/19/02
On February 18, 2002, it was reported that 80 Nevada state employees have filed a lawsuit against the State and "other entities associated with" eleven office buildings where the employees allege they were exposed to mold. Stachybotrys, aspergillus and penicillium were found in the buildings which have housed several Nevada Child and Family Services programs since the 1970s. The suit seeks damages for injuries including dizziness, heart palpitations, respiratory infections and chronic fatigue syndrome. Mold remediation has begun at some of the buildings after the state secured $1.5 million for the remediation work. The remediation is expected to be completed in June 2002. Las Vegas Review Journal 2/18/02
New global warming studies presented at the annual meeting of the American Association for the Advancement of Science. A new study from researchers from the Universities of Colorado and Alaska concludes that recent estimates of sea level increases of between 11 to 43 centimeters (4.3 to 16.9 inches) made by the United Nation's Intergovernmental Panel on Climate Change (IPCC) may dramatically underestimate the sea level increase that may occur during this century. The miscalculation reportedly arises from the IPCC's failure to account for the melting of glaciers in Alaska, Canada, Greenland and Antarctica. The new study concludes that with the melting of glaciers the sea level increase could rise to 89 centimeters (35 inches). The study reports that a 30 centimeters (11.8 inches) rise in sea level "will typically cause a retreat of shoreline of 30 meters (32.8 yards). In another new study presented at the meeting, a researcher from the Georgia Institute of Technology's School of Earth and Atmospheric Sciences concludes that "even if emissions of greenhouse gases are curbed now, global warming will persist for at least a century." NewScientist.com 2/19/02 & Lycos Environment News Service 2/18/02
On February 18, 2002,, it was reported that a Pennsylvania painting contractor has lead guilty to illegally dumping 55 tons of lead contaminated sandblasting waste onto his warehouse site. Manganas Painting Co. admitted to violating hazardous waste laws when it dumped the material sandblasted from a railroad bridge onto its warehouse site. The law allows for fines of up to $92 million to be imposed against the company although it is doubtful that the full amount will be levied. Lycos Environment News Service 2/18/02
On February 15, 2002, it was reported that the first "World Trade Center syndrome" trial has begun with tenants alleging a variety of adverse health affects caused by WTC dust in their apartment building. The tenants have withheld their rent to try and force the building management firm, WSA Management, to remediate the building at 80 John Street. The management firm did some cleaning of the building, however, tests performed by an indoor air quality specialist five months after the collapse found WTC dust in several apartments, stairwells, on or near fans, air conditioners and other ventilation areas. Tests confirmed that the dust contained asbestos. The indoor air quality specialists that preformed the tests has been deemed by the judge trying the case as qualified to be an expert witness for the tenants. Newsday 2/15/02
On February 15, 2002, it was reported that oil field services firm Haliburton Co. is facing 200,000 pending asbestos personal injury claims. Haliburton bought Dresser Industries in 1998. The purchase included Harbison-Walker, unit of Dresser. About one-third of Haliburton's asbestos claims have been filed against Harbison-Walker. Haliburton has stated that "it has enough insurance to cover the claims." Associated Press 2/15/02
On February 14, 2002, it was reported that insurer American Financial Group Inc.'s earnings for the year were "dramatically reduced by after tax losses of $81.3 million related to asbestos and environmental exposure in the company's property and casualty subsidiaries." The Cincinnati Post 2/14/02
On February 14, 2002, it was reported that the Hammond, Illinois Health Department ordered three apartment buildings evacuated after an inspection discovered "enormous amounts of visible mold" in the buildings. Residents of three of the River Park Apartments, each containing 24 apartment units, were given ten days to evacuate. The inspections were performed after numerous complaints were filed by tenants. Pinnacle Realty Management Group manages the 700 unit complex. According to the health department, the owners of the building attempted to remediate the mold by cutting out contaminated sections of walls, however, this resulted in dispersing mold spores into the air exacerbating the problem. The Times Online 2/14/02
On February 15, 2002, it was reported that two landlords agreed to settle a New York lead poisoning suit by agreeing to pay a structured settlement with a present value of $1.5 million (Futrell v. Anderson Avenue Associates and Norwax Associates Inc.). The plaintiff, ,now 10, was allegedly lead poisoned at age 4 while living in an apartment owned by the defendants. The child's blood lead levels at that time measured between 27 micrograms per deciliter (mpds) and 35 mpds. The defendant's insurance carrier is State Insurance Fund. law.com 2/15/02
On February 14, 2002, it was reported that as of February 5th, 16,059 homeowners nationwide have retained counsel and filed mold claims against their insurers. At least seven states have over 500 homeowners that have filed mold claims against insurers. These are Texas, California, Florida, Arizona, Oklahoma, Tennessee and North Carolina. harrismartin.com 2/14/02
On February 14, 2002, it was reported that nineteen former day care workers and nine additional family members have filed a toxic mold suit against the Paragon Casino Resort and other defendants alleging they were injured due to exposure to mold in the walls of an on-site day care center. Plaintiffs allege that mold caused skin rashes, memory loss, nausea and hair loss. Mold was discovered in the sheet rock in the Louisiana casino's hotel and in the walls of the day care center called Kids Quest. Other defendants include: New Horizon Kids Quest Inc., Berg Inc., Pecot and Company Architects, Tunica Biloxi Construction Co., G.W. Moreau Metal Buildings, Jes Inc., Larry Stockwell Heating and Air-Conditioning Inc., and Jefferson Sprinkler. Associated Press 2/14/02
On February 14, 2002, it was reported that A.P. Green Industries and Harbison-Walker Refractories Co. have become the latest companies to file for bankruptcy protection due to increasing asbestos personal injury claims. Harris Martin Columns Asbestos 2/14/02
On February 14, 2002, it was reported acid discharges to cost a coal mining firm $1.6 million. Action Mining has paid $225,000 in fines and natural resource damages, built a treatment system at a cost of $400,000 and will put $975,000 into a fund over the next seven years for the future treatment of acid discharges into a stream that feeds Pennsylvania's Casselman River. The settlement with the state's Department of Environmental Protection, comes after the company has admitted to secretly installing an illegal pipeline to drain millions of gallons of contaminated water into Coal Run. Associated Press 2/14/02
On February 13, 2002, it was reported that Kaiser Aluminum filed for bankruptcy protection citing increasing asbestos personal injury claims, a weak aluminum market and debt as the reasons for the move. Kaiser paid $99.5 million in asbestos settlements and defense costs in 2000 and paid $86.9 million in the first nine months of 2001. The company is reportedly facing 112,400 open asbestos personal injury claims. By the end of the third quarter of 2001, the company had put up $633.1 million for future asbestos liabilities, up from the $492.4 million the company had up at the end of 2000. Kaiser also states that it has $501.1 million in expected insurance recoverables for its asbestos liabilities. Business Insurance Daily News 2/13/02
On February 13, 2002, it was reported that the aquifer under Cape Cod, Massachusetts, which is the sole drinking water source for Cape Cod residents is heavily contaminated with fuels, solvents, sewage, landfill leacheate and explosive compounds. There are more than 15 contaminant plumes moving through the aquifer emanating from what is now known as the Massachusetts Military Reservation. Numerous occupants of the site have contributed to the contamination since 1911. The cost to remediate, which will be borne by the Department of Defense, are expected to top $1 billion. Lycos Environment News Service 2/13/02
On February 11, 2002, it was reported that a Michigan environmental testing laboratory has plead guilty of defrauding over 25 customers by producing falsified test results when testing for contaminants. Martin Environmental Laboratories falsified results by deliberately understating contaminant levels in samples and in some cases did not actually perform the tests at all, but billed clients for the tests. Associated Press 2/11/02
On February 13, 2002, it was reported that government scientists knew by September 23rd that the dust created by the WTC collapse was highly corrosive and posed a serious potential health hazard but did not disclose the information to rescue workers or downtown residents. Scientists from the U.S. Geological Survey took samples from 35 locations and found that most of the samples had about the same alkalinity as ammonia and two of the samples had the alkalinity as drain cleaner. Newsday 2/13/02
On February 13, 2002, it was reported that lumber companies have agreed to phase out the use of chromated copper arsenate (CCA)-treated lumber in the wood used for playground equipment, decks and picnic tables by December 2003. Between now and then, they have agreed to reduce the use of CCA-treated lumber destined for residential use. CCA is a powerful pesticide used as a wood preservative, however, recent studies have concluded that dangerous levels of arsenic leach from the wood and may pose a danger to children coming in contact with the wood. Associated Press 2/13/02
On February 12, 2002, it was reported that as part of its transaction to spin off Travelers Property and Casualty, Citigroup has offered to pay up to $800 million of asbestos-related claims if the insurer posts more than $150 million in additional asbestos claims in a year net of reinsurance. Travelers has stated that some 81%, or $665 million of its asbestos reserves are IBNR leaving 19%, or $155 million, is for pending asbestos claims. Travelers will pay Citigroup a $1 billion dividend before the initial public offering. Bestwire & Comtex 2/12/02
On February 9, 2002, it was reported that a third lawsuit has been filed against eight mining companies by another Oklahoma family alleging the defendants concealment of research data and the delay in the remediation of lead contaminated soil caused the lead poisoning of their child. The families that have filed suit have come from the Tar Creek area of Oklahoma where there was heavy lead and zinc mining activity from the 1880s to 1960. A recent studies of lead levels in Tar Creek residents found high levels of lead, arsenic and other metals in hair samples from 49 residents. Defendants in the suit include: RJJ Inc., Asarco Inc., Blue Tee Corp., Goldfields Mining Corp., NL Industries Inc., Rialto Chat Farm, Childress Royalty Co., The Doe Run Corp., and Ore and Mineral Recovery. The plaintiffs are seeking $6 million in damages for adverse health affects, potential loss of earnings and possible lifelong disabilities. The Daily Oklahoman 2/9/02
On February 12, 2002, it was reported that a federal appeals court held four oil companies liable for the vast majority of $100 million in cleanup costs at a Superfund site just south of Los Angeles. The site, a golf course and a residential community sitting on top of 100,000 cubic yards of hazardous wastes left over from operations to manufacturer high octane gas during the World War II era. The decision culminates 12 years of litigation. The liable parties, Shell oil Co., Union Oil of California, BP and ChevronTexaco Corp. will pay $94.5 million. The federal government has agreed to pay $5.5 million. Associated Press 2/12/02
On February 11, 2002, it was reported that according to a spokesperson for the National Association of Home Builders' research center, "28 percent of the builders reported that they had mold in at least one house under construction in the past year...Eighteen percent have reported at least one occupied house with a mold problem." Knight Ridder Tribune Business News 2/11/02
On February 11, 2002, it was reported that the Virginia Department of Environmental Quality estimates that the state's portion of cleanup costs necessary to remediate pollutants, primarily nutrient runoff, in the Chesapeake Bay will be $1.7 billion to $2.7 billion. The federal EPA estimates that a multistate agreement to remediate the bay will cost Virginia, Maryland and Pennsylvania about $10 billion. Virginia is also under a court order, arising out of a lawsuit filed by environmental groups, to remediate contaminated streams and rivers which is expected to cost an additional $363 million. If the state falls behind a court mandated cleanup schedule the EPA has been ordered to take over the cleanup projects. It is likely that the three states will not have the funds to preform the required remediation. Left unasked by the article; will the states or the federal government be forced to turn to PRPs to fund the remediation? Associated press 2/11/02
On February 11, 2002, it was reported that Dow Chemical Co. had an estimated $230 million in asbestos liabilities of which $10 million were estimated to be covered by insurance. Wall Street Journal 2/11/02
On February 9, 2002, it was reported that 29 samples of drinking water fountains in eight Corvallis, Oregon schools showed unacceptable levels of lead in the water. Some of the tests showed lead levels five times higher than state regulations allow. The lead is believed to be leaching from galvanized pipes, fountain fixtures and solder. All 29 contaminated fountains have been shut off. Associated Press 2/9/02
On February 8, 2002, EPA officials acknowledged that the pace of Superfund cleanups has slowed due to a reduction in funding under the current administration and the complexity of remaining cleanups. On average, during the Clinton administration 87 Superfund sites were remediated annually compared to 47 last year and a projected 43 in fiscal year 2003. Inside EPA 2/8/02
On February 8, 2002, it was reported that U.S. automakers lost in their bid to consolidate some 20,000 asbestos personal injury claims into one case to be heard in a federal court. The claims allege exposure to asbestos in brake friction products and target some 31 defendants including General Motors, Ford Motors, DaimlerChrysler, BMW AG, Volkswagen AG, Nissan Motor, and Honeywell International. Reuters 2/8/02
On February 7, 2002, it was reported that about the interiors of "at least a few buildings" near the World Trade Center (WTC) site were coated with enough asbestos to warrant cleanup under federal regulations for asbestos remediation. the insides of at least two apartment buildings in the area were found to contain high levels of asbestos. In one 52 story apartment building indoor asbestos levels were measured at 550,000 fibers per square centimeter. "Acceptable" levels are 500 to 1,000 fibers per square centimeter. Several community groups have had indoor testing for contaminants performed in buildings near the WTC site and have stated that the "findings suggest the potential health risks are greater than officials have indicated." Community groups are concerned that building owners may have not cleaned/remediated the interiors of buildings thoroughly enough. Air samples taken on October 2nd and December 25th one mile from the WTC site contained "startling" levels of sulfur, silicon, titanium, vandium and nickel. Much of these contaminants were found in very fine particles that could penetrate deep into lungs. Lead and mercury were also found in these samples, although at lower levels than the other contaminants. Some 1,300 people have given notice to the City of New York that they may file suit against the city for injuries or damages caused by the WTC attack. These 1,300 potential plaintiffs may seek an estimated $7.2 billion. The vast majority of those potential plaintiffs include firemen, police officers and other rescue workers who allege injuries caused by exposure to toxic substances while working at the site. Some of the toxins present at and around the site that are posing worries for those building owners and those living and working in the area include: asbestos, PCBs, dioxins, lead and benzene. Associated Press 2/12/02, USA Today & Associated Press 2/7/02
On February 8, 2002, it was reported that a New York jury awarded a deceased asbestos victim $53.5 million (Brown v. ACandS). The award was against several defendants but Bendix, a former unit of AlliedSignal, now part of Honeywell International Inc. was the only defendant who had not settled by the time the trial concluded. Other defendants in the case included ACandS, General Motors and Worthington Pump. The plaintiff alleged he was exposed to asbestos from friction products while working part time at a gas station. Honeywell may be responsible for 30% of the award. Honeywell reportedly has some $2 billion in insurance coverage specifically for asbestos-related liability. Harris Martin Columns Asbestos & Reuters 2/8/02
On February 8, 2002, it was reported that Minnesota Mining & Manufacturing Co (3M) settled a federal action by agreeing to pay $15.5 million in cleanup costs and natural resource damages associated with contamination at a 47 acre landfill that is now located on a national park. Some 5,000 leaking drums containing solvents, herbicides, paint wastes, inks and industrial sludges were found at the site. Other settling PRPs had already contributed $35.5 million to the cleanup. 3M has agreed to pay $14.7 million in cleanup costs and $800,000 in natural resource damages. Associated Press 2/8/02
On February 8, 2002, it was reported that children growing up in Los Angeles, California are facing a cancer risk 70 times that allowed by federal regulators. The EPA generally considers a 1 in a million risk of contracting cancer acceptable. A new study by the National Environmental Trust concludes that a study of just three air pollutants in Los Angeles concludes that children reach a 1 in a million chance of cancer by the time they're two months old. By the time children growing up in Los Angeles reach age 18, they face a 70 in a million risk of contracting cancer simply by being exposed to the levels of 1,3 butadiene, benzene and formaldehyde in Los Angeles' air. The report studied emissions of the three chemicals between 1995 and 2000. Knight Ridder Tribune Business News 2/8/02
On February 7, 2002, it was reported that Asarco will pay to hook residents up to a public drinking water system after high levels of arsenic emanating from the company's lead smelter in East Helena, Montana were discovered in an aquifer used by 15 residential wells. Test results showed arsenic contamination almost 500 times the federal standard in a monitoring well only three blocks from the residential wells. In the past arsenic tainted water was kept in a lake and in an unlined pit on the smelter site. A system of underground pipes at the facility often leaked and also could have contributed to the contamination. According to an EPA spokesperson, arsenic in the groundwater beneath the smelter site are "some of the highest in the country" and the groundwater flows towards East Helena. Associated Press 2/7/02
On February 7, 2002, it was reported that a new study by Yale University concludes that diesel fumes emitted by school buses may account, at least in part, for the dramatic rise in childhood asthma cases across the country. Tests on 75 bus runs showed the interior of all diesel buses exceeded the state's 24 hour background level for fine particulates. According to the study, U.S. children breath school bus exhaust for 180 hours per year. Associated Press 2/7/02
On February 7, 2002, it was reported that 140 families will not participate in the class action settlement electric utility Nicor reached with 900 other families for mercury contamination of their Illinois homes. Nicor has agreed to pay class members $1.85 million in damages. Many of the 140 families that have opted opt of the settlement believe they would not be adequately compensated for damages under the settlement and will be able to pursue their own lawsuits against the company. Associated Press 2/7/02
On February 7, 2002, it was reported that Texas state environmental regulators have fined Dow Chemical $433,000 for air pollution violations occurring in 1999 and 2000 at its Freeport, Texas facility. The violation include 24 unauthorized releases of benzene into the air. Financial Times Information Limited 2/7/02
On February 7, 2002, it was reported that the EPA has paid $2.6 million to cleanup lead and PCB contamination at a Massachusetts junkyard. Owners of the Gendron Junkyard will pay $650,000 toward the cleanup. The contamination reportedly arose form an automobile shredding operation. Associated Press 2/7/02
On February 6, 2002, it was reported that 13 current and former employees of Acordis Industrial Fibers Inc. have filed suit against the company alleging that exposure to asbestos contained in the company's Alabama facility caused their asbestosis. Acordis is an automotive products manufacturer. Associated Press 2/6/02
On February 6, 2002, it was reported that the EPA enforcement and compliance efforts resulted in record results for fiscal year 2001. These actions include:- Securing over $1.7 billion in cleanup costs from potentially responsible parties (PRPs) - a 21.4% increase over fiscal year 2000;
- Issuing over $125 million in civil penalties - a 79% increase over the previous year;
- Settling 222 civil judicial cases;
- issuing 3,228 administrative orders and field citations;
- Securing nearly $95 million in criminal fines - down 22% from last year; and
- Securing agreements with PRPs for the installation of $4.3 billion in pollution control equipment - about a 75% increase over fiscal year 2000.
Lycos Environment News Service 2/6/02 & EPA's web site @ http://es.epa.gov/oeca/main/2001eoy/2001numbers.html
On February 6, 2002, it was reported that Canadian mining firm, Placer Dome, has spent CAD$50 million (US$31.2 million) in cleanup costs to remediate contamination in the Philippines Province of Marindoque caused by the failure of containment ponds in the early 1990s. According to this article, the mining company has told Canadian Prime Minister that it was willing to pay an additional CAD$30 million (US$18.7 million) in cleanup costs and CAD$12 million (US$7.5 million) in compensation to victims. The Philippine Star 2/6/02
On February 5, 2002, it was reported that the California Supreme Court held that residents can sue water utilities for damages if the companies violated federal or state drinking water standards. The decision overturned an appellate court decision which held that customers could not sue water companies regulated by the state's Public Utilities Commission. The state Supreme Court decision will allow a suit filed by hundreds of Southern California residents alleging bodily injuries and mental pain and suffering to go forward. The suit alleges that the companies knowingly provided them with drinking water contaminated with possible carcinogens. The plaintiffs are seeking damages for negligence, trespass, wrongful death and fraudulent concealment. The defendants include: Southern California Water Co.; California American Water Co.; Suburban Water Systems; Southwest Water Co.; California Domestic Water Co.; Covina Irrigating Co.; Valley County Water District; and San Gabriel County Municipal Water District. The plaintiffs have also filed suit against eight other businesses for allegedly dumping toxins that contaminated the water supply. Associated Press 2/5/02
On February 5, 2002, it was reported that a Rhode Island Superior Court judge has allowed the state's suit against nine lead paint defendants to go forward on one issue - whether lead paint constitutes a public nuisance. The Attorney General of Rhode Island has sued Atlantic Richfield Co., Sherwin Williams Co., Glidden Co. a unit of Imperial Chemical Industries PLC, SCM Chemicals Inc. and American Cyanamid Co. whose lead paint liabilities were assumed by Cytec Industries, DuPont Co., and NL Industries Inc. Associated Press 2/5/02
On February 4, 2002, it was reported that the office building at 90 Church Street adjacent to the World Trade Center (WTC) site, is so contaminated with asbestos, lead dust, mold, fiberglass, mercury and other heavy metals that no one is allowed in the building without a respirator and full hazard suit. The contamination has been found throughout the building including behind walls, in the insulation, inside ducts and on surfaces. The building reportedly became more contaminated over time as fumes from the fires burning under the WTC site entered the building through ventilator shafts and other openings. Remediation will include stripping the interior of the building down to the slab, destroying all furniture and most electronic items. Many paper documents will be decontaminated. Remediation may take a year to complete. The Hartford Group will reportedly pay to refurbish the building. The building, which held 450 office workers, is managed by Boston Properties and is owned by the U.S. Postal Service. The New York Law Journal 2/4/02
On February 4, 2002, it was reported that while a toxic mold suit filed by the Alamo (Texas) school district against the contractors of the Pharr-San Juan-Alamo High School settled for more than $20 million, the suits filed by 1,600 students and staff seeking damages for bodily injuries are still pending. Houston Chronicle 2/4/02
On February 4, 2002, it was reported that mold remediation projects at a San Benito (Texas) elementary school and middle school will cost $1.4 million and $4.4 million respectively. Houston Chronicle 2/4/02
On February 4, 2002, it was reported that up to 14,000 gallons of crude oil from a Crown Well Services facility in Indiana spilled into Scott Creek. Some of the oil flowed eight miles downstream and entered the Wabash River about 30 miles north of Evansville. The oil escaped from tanks at the facility during an oil pumping operation. Associated Press 2/4/02
On February 4, 2002, it was reported that a federal judge ordered environmental testing firm, Intertek Testing Services, to pay a $9 million fine for producing questionable lab results when testing for contaminants. The federal government alleged that firm falsified results. The Richardson, Texas lab handled up to 250,000 samples from 59,000 contaminated sites nationwide between 1994 and 1997 . The firm is now defunct. The Dallas Morning News 2/4/02
On January 29, 2002, it was reported that a Washington D.C. family has filed suit against the U.S. government. American University and four developers alleging that they were aware of toxic substances buried under a large section of their Spring Valley neighborhood. The suit seeks $32 million in damages. The toxic substances, including arsenic and munitions, were allegedly left over after World War 1. Other residents may also file suit. The Washington Post 1/29/02
On January 22, 2002, it was reported that Minnesota Mining & Manufacturing has paid $122 million for asbestos personal injury claims filed against the company primarily resulting from its manufacture of masks and respirators. Entertainment company Viacom is facing about 130,000 asbestos personal injury claims arising from its purchase of CBS Corp., formerly known as Westinghouse Electric Co. Chicago Sun-Times 1/22/02
On February 1, 2002, it was reported that mold remediation projects at three Austin, Texas schools will cost an estimated $18 million. National Public Radio 2/1/02
On February 1, 2002, it was reported that Transcontinental Gas Pipeline Corp (Transco) has agreed to settle a federal action by agreeing to test for and remediate contamination along its 10,500 mile natural gas pipeline system which runs through 12 states from Texas to New York. The company also agreed to complete a storm water monitoring program, conduct storm water sampling at several compressor sites and pay a $1.4 million civil penalty. From the 1950s to the mid 1980s, Transco disposed of natural gas pipeline condensate, which contains benzene, and other waste materials by dumping them in unlined pits at their compressor sites. Transco has 53 compressor sites along its pipeline system. PCB contamination has also been discovered at a number of its compressor stations some of this contamination migrated onto third party properties. The company has completed the cleanup of mercury contamination at its metering stations except for ongoing cleanup projects at metering stations in New Jersey, New York and Louisiana. Transco is a subsidiary of Williams Corp. Associated Press 2/1/02
On February 1, 2002, it was reported that the Administrator of the EPA has signed the final record of decision ordering General Electric to dredge tons of sediment contaminated with PCBs from the Hudson River. The dredging operation, which will include removing some 2.65 million cubic yards of sediment to remove 150,000 pounds of PCBs, could cost GE $500 million. In a previous settlement between GE and the federal government, the company agreed to pay between $316 million and $716 million to cleanup PCBs from its former Pittsfield, Massachusetts facility and several miles of the Housatonic River. Dow Jones International News Service 2/1/02 & excite.news 4/3/00
Rest of World
On February 28, 2002, it was reported that the French high court has held that employers are responsible for the asbestos-related diseases of former employees and found 29 of 30 companies, including auto parts maker Valeo SA, must compensate former employees suffering from asbestos-related diseases. In its ruling the court stated that "the employer has a safety obligation, especially with regard to sickness contracted by the employee due to products made or used by the company." The ruling may pave the way for thousands of asbestos claims from former workers and from families of former employees who have died as a result of asbestos-related diseases. The previous French ruling, from 1898, had held that employees would receive only limited compensation for occupational diseases. Reuters 2/28/02 & Le Monde 3/2/02
On February 26, 2002, it was reported that cleaning up mountains of oil drill cuttings on the sea bed floor of the North Sea could cost oil companies GBP20 billion (US$28.3 billion). It has been estimated that up to 3,750 square kilometers (2,330 square miles) of North Sea floor is covered with drill cuttings containing oil and toxic materials. Some 330 tons of oil reportedly leak from these piles into the sea annually. In 1998, the 15 European governments which are members of the Ospar Convention decided that all oil rigs must be removed from the North Sea. Since most of the drill cuttings are under and around these rigs removing the rigs may disturb the piles releasing much of the pollution into the sea. Remediation options include removing the cuttings and disposing of them on shore; capping the piles with concrete; or injecting the piles back into the sea floor where they came from. It will be up to the Ospar Convention members to decide the ultimate cleanup plan, but, whichever plan is chosen it will be very costly. The Guardian 2/26/02
On February 27, 2002, it was reported that 8 Thai villagers have filed a lawsuit against the operator of a lead separation facility alleging that exposure to surface water contaminated with lead caused their illnesses. The plaintiffs are seeking 100 million baht (US$2.3 million). The facility is owned by Lead Concentrated Co. Financial Times Ltd. 2/27/02
On February 27, 2002, it was reported that the British Environment Agency has recorded over 200 water pollution incidents arising from the burning and burial of slaughtered cattle during the hoof and mouth epidemic. Over four million cattle were slaughtered and burned or buried at 99 sites around the country. Effects of the disease caused by water pollution appear to be "short term and localized" but the agency could not rule out the potential for long term adverse health affects. Associated Press 2/27/02
On February 26, 2002, it was reported that the Nigerian government has approved accession of the country to the 1992 Civil Liabilities Convention and the 1992 Fund Convention. This will increase the maximum liability for any one oil spill from US$78 million to US$176 million. Financial Times Ltd. 2/26/02
On February 25, 2002, it was reported that a privately owned dump in County Wicklow, Ireland is leaching contaminants into surface and groundwater. Samples have shown excessive levels of barium, nickel, manganese and potassium. The contaminated area sits above an important drinking water aquifer. The dump, which began operation in the early 1980s, was permitted to accept dry nontoxic solid waste for a period ending in 1999. Not only did the dump stay in operation past 1999, but also allegedly accepted industrial waste outside the scope of its permit. The Irish Times 2/25/02
On February 25, 2002, it was reported that Rio de Janeiro state regulators fined the British firm Cunard Lines $410,000 after one of its cruise ships, Caronia, spilled 7,800 gallons of oil into Guanabara Bay. Cleanup of the spill has been completed. Associated Press 2/25/02
On February 26, 2002, it was reported that the number of sites in Japan found to have soil contamination exceeding standards increased to 134 in fiscal year 2000 compared to 129 the previous year. The slight increase is thought to be the result of increased surveys for contaminants. The most common contaminants discovered at the 134 sites were lead, arsenic and trichloroethylene. Earlier this month a bill was submitted to the government which, if passed, would require landowners and other to conduct site assessments for contaminants and if excessive levels are discovered remediation would be required. Associated Press 2/26/02
On February 25, 2002, it was reported that some 6,000 claimants will receive 25.14 Yen (US$187.8 million) in compensation for damages resulting from the 1997 oil spill from the Russian oil tanker Nakhodka off the Japanese coast. The claims will be paid by the International Oil Pollution Compensation Fund. The Yomiuri Shimbun/Daily Yomiuri 2/22/02
On February 24, 2002, it was reported that Italy's highest court ruled that residents exposed to a toxic cloud who did not suffer physical injuries are entitled to "moral damages" for the anxiety they went through. The ruling could cost chemical manufacturer Icmesa tens of millions of Euros as some 10,000 residents have filed suit for mental anguish. An explosion at the firm's Seveso facility in 1976 caused a toxic cloud to contaminate the town. Givauden, the parent company of Icmesa, has already reportedly paid EUR103.9 million (US$90.3 million) in cleanup costs and compensation to those who suffered physical injuries as a result of the incident. Dow Jones International News Service 2/24/02
On February 20, 2002, it was reported that the European Commission approved a proposal to ban the sale of 43 chemicals used in paints, varnishes, inks and adhesives to the public as of April 2003. These chemicals are suspected endocrine disrupters and are believed to cause cancer and reproduction maladies. The chemicals will still be sold to "professional users." Reuters 2/20/02
On February 19, 2002, it was reported that according to research from PricewaterhouseCoopers, mesothelioma and lung cancer claims arising from asbestos exposure will cost the European insurance industry Euro80. billion (US$70.1 billion). The article also states that "Equitas is going to have to increase its reserves to meet the cost of many of the legal [asbestos] claims and settlements hitting some of the biggest corporations in the U.S. Equitas is engaged in almost 500 lawsuits, many of them involving asbestos use in the construction and engineering industries." Financial Times Ltd. 2/19/02
On February 18, 2002, it was reported that a new study by researchers at Belgium's Katholieke Universiteit Leuven concludes that small particles of air pollution, such as those produced by diesel-powered engines, can pass from the lungs into the bloodstream quite quickly and may help explain the relationship between exposure air pollution and cardiovascular disease. Previously, it was generally believed that only gasses and vapors, not particles, could pass through the lung-blood barrier. Reuters Health 2/18/02
On February 14, 2002, it was reported that the International Oil Pollution Compensation Fund (IOPCF) and the insurer Skuld have filed a lawsuit against the Milford Haven Port Authority seeking to recover some GPB34 million (US$48.6 million) spent on the cleanup and compensation to victims of the Sea Empress oil tanker spill. The suit also seeks to hold the port liable for future claims payments. The spill occurred off the UK coast in February 1996 spilling 71,800 tonnes of oil into the sea. The shipowner's insurer Skuld and the IOPCF have paid GBP34 million to date and there are GBP4 million in claims pending. The suit alleges that the port is liable for failing to take reasonable care when piloting the oil tanker into port and for not having adequate procedures in place to reduce the risk of an oil spill. The Western Mail 2/14/02
On February 6, 2002, it was reported that the Japanese Ministry of Land, Infrastructure and Transport plans to submit a bill which will limit the use of construction materials containing chemicals that contribute to sick building syndrome (e.g. formaldehyde, pesticides). According to ministry research, of the 4,500 homes tested, about 27% were found to have more formaldehyde in the indoor air than governmental guidelines allow. Dow Jones International News Service 2/6/02
On February 6, 2002, it was reported that the international oil pollution compensation fund has examined 82 percent of the claims filed by victims of the Erika oil spill which occurred in December 1999 off the French coast. To date, 141 million Euros (US$121.9 million) in damages has been paid to victims in addition to cleanup costs. Le Monde 2/6/02
On February 6, 2002, it was reported that Canadian mining firm, Placer Dome, has spent CAD$50 million (US$31.2 million) in cleanup costs to remediate contamination in the Philippines Province of Marindoque caused by the failure of containment ponds in the early 1990s. According to this article, the mining company has told Canadian Prime Minister that it was willing to pay an additional CAD$30 million (US$18.7 million) in cleanup costs and CAD$12 million (US$7.5 million) in compensation to victims. The Philippine Star 2/6/02
On February 5, 2002, it was reported that UK insurer Royal & Sun Alliance increased its asbestos reserves by GBP317 million (US$448.5 million) to GBP634 million (US$897 million). Stock analysts had been stating the company needed to double the GBP317 million it had up in asbestos reserves . Dow Jones International News Service 2/5/02 & Europe Intelligence Wire 1/23/02
On February 1, 2002, it was reported that a United Kingdom court awarded the widow of a retired shipyard worker GBP18,000 (US$25,497) for injuries caused by asbestos-related disease her late husband never knew he had. The plaintiff's deceased husband died of an unrelated brain hemorrhage at age 70. The asbestosis was only discovered during an autopsy. The court reportedly held "it was clear in law that a physical injury of which the victim was unaware could give rise to a cause of action." The court did reason that an award for damages would obviously be higher if the plaintiff knew and was subject to prolonged suffering or anxiety caused by the disease. Belfast Telegraph 2/1/02 |
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