|
| 
Pollution Litigation Review - December 2001
Pollution Litigation Review - December 2001
USA/ Canada
On December 14, 2001, it was reported that a Louisiana appellate court held that an absolute pollution exclusion is inapplicable to an explosion of a chemical agent in a rail car (Gaylord Container Corp. v. CNA Insurance Companies, et al.). The case stems from a rail car explosion that resulted in a chemical cloud forming and drifting over parts of Louisiana and Mississippi. Numerous toxic tort suits were filed as a result of the incident. Gaylord sued ten insurers seeking coverage including CNA Insurance Cos., Westchester Fire Insurance Co., Reliance National Insurance Co., Travelers Insurance Co., Agricultural Insurance Co., Federal Insurance Co., RLI Insurance Co., United national Insurance Co., American National Fire Insurance Co., and Royal Indemnity Co. The appellate court, citing the state's Supreme Court decision in Doerr, held that the absolute pollution exclusion applies only to claims for environmental damage and not to routine accidents that incidentally involve a chemical. Andrews Hazardous Waste 12/14/01
On December 21, 2001, it was reported that the nation's two largest hog producers have settled a Clean Water Act suit filed by the EPA and a citizens environmental group by agreeing to install $50 million worth of pollution control equipment at their facilities in Missouri. The two companies, Premium Standard Farms and Continental Grain Co., will also pay a fine of $35,000 in addition to $650,000 in fines to the State of Missouri. Operations of the two firms within the state include: over 1,000 hog farms, 163 animal waste lagoons and 21 large animal feedlots. A previous agreement with the state requires the companies to spend $25 million on the development of new pollution control equipment. Andrews Hazardous Waste Litigation Reporter 12/21/01
On December 28, 2001, it was reported that four New Jersey municipalities have joined Newark in filing suit against lead paint industry defendants. The four municipalities are: Bayonne, Jersey City, Passiac and the Township of Hillside. Mealey's Litigation Reporter Lead 12/28/01
On December 7, 2001, it was reported that a Chicago brain tumor victim has filed a lawsuit against cellular telephone industry defendants seeking $1.5 billion (Murray et uxor v. Motorola Inc. et al.). The suit alleges that the manufacturers and trade associations withheld information about the dangers associated with cell phone use. The plaintiff is seeking $250 million in compensatory damages, $250 million in consequential damages and $1 billion in punitive damages. The suit states that documents filed by Nokia Mobile Phones of Finland with for their the U.S. Patent supports the plaintiff's allegations. The information included a radiation shield "that reduces the irradiation of the user, especially the brain and nerve tissues." Mealey's Emerging Toxic Torts 12/7/01
On December 7, 2001, it was reported that Georgia Pacific has agreed to pay $22 million to settle a toxic tort class action suit filed residents of Columbus, Ohio alleging injuries caused by pollutants emanating from a formaldehyde manufacturing facility. Some 6,000 residents are potential class members. Plaintiffs' allege that exposure to methanol, solvents, volatile organic compounds and phenols emanating from the plant. Mealey's Emerging Toxic Torts 12/7/02
On December 7, 2001, it was reported that a rubber manufacturer has agreed to settle a toxic tort suit filed by residents of Yellow Spring, Ohio by agreeing to cleanup pollution emanating from their rubber manufacturing facility, meeting all appropriate environmental regulations, paying $850,000 to cover the plaintiffs' legal costs plus paying a $25,000 fine for violating the Water Pollution Control Act (Hertzler v. Vernay Laboratories Inc.). Contaminants allegedly include chromium, barium, methyl acetate, acetone, benzene, vinyl chloride, toluene and xylene. Mealey's Emerging Toxic Torts 12/7/02
On December 7, 2001, it was reported that a former employee of Bell Atlantic has filed a toxic tort suit against manufacturers of carbonless copy paper alleging that she and other office workers have suffered chronic disabilities as a result of exposure to chemicals in their products. The suit seeks $63 million in compensatory damages and $300 million for fraud. The complaint alleges that the manufacturers withheld information about the dangers of exposure to the chemicals n their products. Defendants include Appleton Papers Inc., Moore Corp., and The Mead Corp. (Smith v. Appleton Papers Inc. et al.). Mealey's Emerging Toxic Torts 12/7/01
On December 20, 2001, the Indiana Supreme Court ruled that (1) an insured can allocate its entire loss to one policy year or any and all policies under an "all sums" theory. The court stated that the insured "may elect to seek indemnity from any or all of the policies at risk..." (2) The state high court also adopted the continuous trigger finding that continuing pollution arising from one occurrence triggers multiple years of coverage. (3) While finding that groundwater beneath an insured's property is "owned property," the court found that the owned property exclusion found in Allstate's CGL policies issued in 1980 and 1981 was ambiguous. The court seems to have drawn a distinction between voluntary and government mandated cleanup of owned property, finding that the exclusion is ambiguous with regard to government mandated cleanup of owned property. The court states that "the exclusion can be fairly read to apply only to exclude repair or replacement of [the insured's] property, not to exclude liability to third parties....it does not exclude 'damages from' injuries to self-owned property. Given these frequently cited maxims of insurance law [any ambiguity should be strictly construed against the insurer] that is enough to confer coverage." (4) The court also examined whether third party pollution could be covered under personal injury. Here the court held that (4.a) the "wrongful eviction" provision of personal injury coverage applies to a pollution claim only if a tenant was compelled to vacate a location because of environmental damage; (4.b) there is no coverage for pollution claims under the "invasion of rights of privacy" provision under personal injury; and (4.c) the court expressed no opinion as to whether there would be coverage for pollution under the "wrongful entry" provision under personal injury. The litigation involved an auto parts manufacturer seeking coverage for cleanup costs at and emanating from 63 of its facilities (Allstate Insurance Co. v. Dana Corp.). Morrison Mahoney & Miller Insurance News Letter 1/4/02
On December 28, 2001, it was reported that the U.S. Senate has passed legislation previously passed by the House of Representatives which creates an exemption under CERCLA (the Superfund law) for de minimis generators. A de minimis generator under the bill is defined as a business with not more than 100 employees that generates less than 110 gallons of liquid waste or 200 pounds of hazardous solid waste. The bill also requires the EPA to consider a PRP's ability to pay when assessing liability for cleanup costs. These are modest changes to CERCLA and is not expected to affect cleanup or liability at many Superfund sites. Best Wire 12/28/01
On December 26, 2001, a New Jersey appellate court held that a "non-cummulation" clause in a CGL policy restricts the insurer's indemnity obligation to the single occurrence limit regardless of whether the pollution claims occurred over a number of years (Spaulding Composites Co. v. Liberty Mut. Ins. Co.). Morrison Mahoney & Miller Insurance News Letter 1/4/02
On December 21, 2001, A California jury ordered a manufacturer of asbestos fiber binding products to pay an asbestosis victim $2,303,751 in damages (Laguna v. Calaveras Asbestos Ltd.). The plaintiff alleged that his asbestosis was caused by exposure to asbestos binding products used primarily in the asbestos cement products industry while working at a Johns-Manville facility which produced Transite pressure pipes. The jury awarded the plaintiff $1.75 million in compensatory damages and awarded his wife $550,000 for loss of consortium. No punitive damages were awarded. Harris Martin Columns 12//28/01
On December 14, 2001, a Maryland circuit court dismissed an asbestos premises liability suit filed against an electric utility by a former laborer employed by a hired contractor (Mackenzie et al. v. Potomac Electric Power Co. [PEPCO].). The plaintiff, diagnosed with mesothelioma in 1999, worked for Bechtel Corp. during the construction of a PEPCO power plant from 1962 to 1965. The circuit court held that the Maryland legislature intended to insulate landowners from claims by its employees and the employees of independent contractors operating on its property. The court also reasoned that there was no evidence that PEPCO had exercised any control over the construction process. The court held that recovery by the employee falls under the state's workers' compensation laws. In November 2001, a Maryland circuit court awarded the plaintiff $2.5 million in damages against ACandS Inc. mealeys.com 1/4/01
On December 7, 2001, it was reported that a Maryland circuit court dismissed a suit filed against paint manufacturers and the Lead Industries Association by the owners of eight homes who alleged injuries arising from intentional misrepresentations made by the manufacturers of lead-based paint and that fraudulent misrepresentations made by the defendants were relied upon by the public (Young et al. v. Lead Industries Assoc.). The suit sought damages and equitable relief for lead paint abatement. The court dismissed the case because the plaintiffs did not allege that they relied upon fraudulent information. Asbestos & Lead Abatement Report 12/01
In December 2001, it was reported that "State Farm representatives are quoted as stating that for every dollar in premium they are receiving [for Homeowners coverage in Texas], they are spending $1.69 for mold claims. Edwards & Angel, LLP Insurance & Reinsurance Update 12/01
On December 31, 2001, it was reported that Dominion Virginia Power, formerly Virginia Electric & Power Co., has settled a federal suit by agreeing to pay a $600,000 penalty for violating the Clean Water Act at its Dumfries, Virginia power plant. Violations reportedly included failure to promptly repair visible oil leaks and providing inadequate secondary containment for two 21 million gallon above ground oil tanks. BNA Toxics Law Daily 12/31/01
On December 28, 2001, it was reported that Coors Brewing has settled a state suit by agreeing to pay $500,000 to restore Colorado wetlands. The state's Division of Wildlife filed suit after the accidental release of 100,000 gallons of beer into Clear Creek. The release, which occurred on August 24, 2001, killed thousands of fish along 7.4 miles of the creek. BNA Toxics Law Daily 12/28/01
On December 29, 2001, it was reported that responsible parties will pay $340 million towards the cleanup of a California landfill placed on the Superfund list 15 years ago. Some 177 companies have agreed to pay $340 million to contain and monitor contaminants at and emanating from the 190 acre Operating Industries site. To date, this brings the total cleanup costs born by responsible parties to over $600 million, making it the most costly nonfederal owned Superfund site. The cleanup has been ongoing for the past 12 years. Containment and monitoring efforts are expected to continue for 30 to 50 years. Individual agreements in the latest round of settlements include $5.6 million by Southern California Gas and $4.2 million by Anadarko Petroleum Corp. Los Angeles Times 12/29/01
On December 27, 2001, it was reported that the remediation of mold contamination at eight Broward County, Florida elementary schools has not been completed and resulted in parents complaining about adverse health affects experienced by their children. Mold was discovered at the eight schools in the mid-1990s after teachers and students complained of respiratory ailments. The schools are: Virginia Shuman Young Elementary; Central Park Elementary; Cooper City High; Coral Park Elementary; Croissant Park Elementary; Plantation High; South Broward High and Majory Stoneman Douglas High. The reasons cited for the incomplete remediation include contractors hired to perform remedial work did sub-standard work and work performed by the school district's maintenance department was not done well. The Miami Herald 12/27/01
On December 26, 2001, it was reported that according to the Texas Insurance Commissioner, the average water leak claim has increased from $4,000 in 1995 to $40,000 today and sometimes spiking to $100,000. Best Wire 12/26/01
On December 25, 2001, it was reported that a train derailed near Rochester, New York spilling thousands of gallons of acetone. The train was operated by CSX Corp. Some residents were evacuated. The New York Times 12/25/01
On December 21, 2001, it was reported that Allstate will no longer provide its comprehensive homeowners policy (the HO-B policy) in Texas. The comprehensive policy covered mold remediation claims. The company announced it will still provide the less comprehensive HO-A policy, which does not cover mold claims, and will also offer an HO-A-Plus policy which will provide a $5,000 sublimit for mold remediation claims. Dow Jones 12/21/01
On December 20, 2001, a Texas transportation company has become the latest firm to file for bankruptcy protection arising out of asbestos personal injury litigation. Swan Transportation Company's asbestos liabilities arise from its subsidiary Tyler Pipe. In November 2000, several former Tyler Pipe employees sued the company for asbestos-related illnesses and were awarded more than $25 million in the first round of trials. The remaining cases were then settled. Harris Martin Columns 12/21/01
On December 21, 2001, it was reported that the Vermont Supreme Court has held that an absolute pollution exclusion does not apply to exclude claims for the remediation of contaminated third party property, unless the claim involves costs arising out of a government request where a responsible party is found strictly liable without in fact being found negligent under the Superfund law (Agency of Natural Resources Harbor Management Corp. The Summit Management Corp. v. United States Fire Ins. Co. & North River Ins. Co.). The Vermont high court stated that although the exclusion states that "this insurance does not apply to .... any lost cost or expense arising out of any governmental direction or request that you test for, monitor, cleanup, remove, contain, treat, detoxify or neutralize pollutants," the exclusion "was never intended to be construed to insulate insurers from providing coverage for third party property damage caused by pollution whenever a cleanup was requested or ordered by a government authority," but should only apply to on-site, first party cleanup costs. Although this case involved a modified ISO absolute pollution exclusion (entitled "Vermont Changes Pollution " Endorsement - approved by the states DB&I) a similar provision, excluding government mandated cleanups, exists in ISO's current standard absolute pollution exclusion. This case involved the contamination of third party property arising out of a leaking underground storage tank. Morrison Mahoney & Miller Insurance Newsletter 12/21/01
In December 2001, it was reported that as of September 30th, a dozen companies were facing 1,041,054 pending asbestos personal injury claims. Halliburton, Viacom, Foster Wheeler, Kaiser Aluminum and Metropolitan Life were all facing more than 100,000 asbestos personal injury claims. Also, asbestos-related payments made by several companies during 2000 included: Fiberboard paid $920 million; Owens-Corning paid $685 million; T&N paid $324 million; Johns Manville paid $266 million; Armstrong paid $227 million; USG paid $162 million; Garlock paid $120 million; Dresser paid $117 million; W.R. Grace paid $89 million; DANA paid $78 million; Owens-Illinois paid $78 million and Foster Wheeler paid $56 million. Harris Martin Columns 12/01
On December 21, 2001, the town of Libby, Montana contaminated with asbestos from decades of vermiculite mining activities will be added to the federal Superfund list. Cleanup is expected to cost between $30 million and $50 million. The New York Times 12/21/01
On December 20, 2001, the owner of JTA Real Estate Brokerage and Property Management of Manchester, New Hampshire plead guilty to violating federal regulations requiring the disclosure of lead paint to residential tenants which resulted the death of a nearly three year old child. The company also plead guilty to obstructing justice and falsifying documents related to the case. This is the first child to die of lead poisoning in the U.S. in ten years. The tenants lived in one of the eight rented apartments in the building owned and managed by the defendant. The Boston Globe & Lycos Environment News Service 12/20/01
On December 19, 2001, it was reported that the ongoing mold remediation at an Illinois high school has cost about $6 million to date. The total costs are expected to be considerably high as walls, floors and ceilings in one wing of the building still need to be removed and replaced and work on the main wing of the high school will continue for several more weeks. Mold remediation at St. Charles East High School is not expected to be completed until mid-July 2002. The Chicago Tribune 12/19/01
On December 19, 2001, a federal court has ordered Honeywell International Corp. formerly Allied Signal Inc. and Amphenol Corp., the successors of Bendix Corp. to reimburse the EPA $3.5 million in investigative and oversight costs related to the Sidney landfill Superfund site in New York. The companies are expected to reimburse an additional $1.5 million by early next year. In August 2001, a federal court held both firms responsible for the cleanup of the landfill which was operational from 1967 to 1972. Bendix allegedly dumped at least 2,500 gallons of waste oil at the landfill each week in 1968 and continued the dumping even after state regulators ordered that company to stop. Lycos Environment News Service 12/19/01
On December 19, 2001, additional information from the Tom's River, New Jersey childhood cancer study was released. In addition to high rates of leukemia, the children in Tom's River had particularly high rates of brain and central nervous system cancers. The ten year study found a "strong association" between leukemia in young girls and low levels of groundwater and air pollutants emanating from nearby chemical facilities. The study concluded that girls under age five whose mothers lived near a former Ciba-Geigy facility were 19 times more likely to contract leukemia than other girls in the township. The study also found that girls under age 20 were six times more likely to develop leukemia if their mothers drank from a specific contaminated well while pregnant and girls who lived within a half mile of a Ciba-Geigy pipeline also had higher rates of leukemia. Knight Ridder Tribune Business News & New York Newsday 12/19/01
On December 18, 2001, it was reported that the manufacturer, distributors and sellers of the pesticide methyl parathion have agreed to settle a suit filed on behalf of 80 children exposed to the agricultural pesticide when unlicensed exterminators illegally applied it to homes in Mississippi. Some of these children are now part of a federally funded study examining the long term affects of the pesticide. The confidential settlement is subject to court approval. Initial cleanup of the 1,500 Mississippi homes sprayed with the pesticide cost $43 million. Homes in other states where exterminators illegally applied methyl parathion indoors have cost an addition $31 million to remediate. Knight Ridder Tribune Business News 12/18/01
On December 18, 2001, it was reported that nearly 800 former Philips Lighting employees have filed a toxic tort suit against the company and other defendants alleging that exposure to mercury, arsenic and other toxic substances caused bodily injuries and put them at a higher risk of developing cancer, leukemia, lung diseases and other adverse health affects. The suit seeks a medical monitoring fund, compensatory damages for emotional distress, lost wages, medical expenses and punitive damages. Other defendants in the case include: former site owner Westinghouse Electric Corp., its successor, Viacom Inc., and chemical suppliers, Chem Quick, Par Chem, Blue Ribbon Paint Co. and Charleston Valve and Fitting Co. Dow Jones International News Service 12/18/01
On December 18, 2001, it was reported that a new study conducted by the New Jersey Department of Health and Senior Services and the federal Agency for Toxic Substances and Disease Registry has concluded that air and water pollution from chemical facilities appears to be responsible for at least some of the cases of childhood cancers in Tom's River and Dover Township, New Jersey. Scientists cautioned, however, that the report does not conclusively link all of the unusually high levels of childhood cancer in the area to pollution. The New York Times 12/18/01
On December 18, 2001, it was reported that according to a new study by a toxicologist, the EPA's cleanup plan for PCB contamination in Wisconsin's Fox River and Green Bay would leave 40,000 individuals highly exposed to adverse health affects. The study concludes that those individuals would face a cancer risk roughly equal to smoking two to three packs of cigarettes per day and "other non-cancer health risks are also extremely high." Exposure would result from eating fish and waterfowl from the Fox River and Green Bay. The study recommends amending the cleanup plan to allow a 25 parts per million as the maximum levels of PCBs remaining in the sediment after the cleanup. This is four times more stringent than the current cleanup plan. Several paper mills have been held responsible by the EPA for the cleanup costs. Knight Ridder Tribune Business News 12/18/01
On December 18, 2001, it was reported that a new study by researchers at the University of Southern California has concluded that exposure to airborne particulate matter can adversely affect children's rate of lung function growth. The study found that children moving into areas with more particulate pollution experienced a slowdown in lung function growth and those who moved into areas with less particulate pollution showed an increase in lung function growth. The study will be published in the American Journal of Respiratory and Critical Care Medicine. Particulates are released in auto exhaust and stack emissions from power generation. Environmental News Network 12/18/01
On December 17, 2001, it was reported that the top three homeowners insurers in Texas, State Farm, Allstate and Farmers, remain unwilling to write new homeowners polices that cover water damage claims despite recent Department of Insurance regulations regarding mold claims. Nationwide Insurance is still willing to provide coverage for water damage claims under the HO-B policy, but is inspecting homes and turning down nearly half of the applicants. Knight Ridder Tribune Business News 12/17/01
On December 17, 2001,it was reported that a Connecticut chemical company falsified wastewater discharge monitoring reports for at least the past eight years to conceal high levels of metals being released into Waterbury's sewer system. The company, MacDermid Inc., which manufacturers more than 1,000 chemicals used primarily for metal treating and plating, will pay a $2 million fine and an additional $1 million for supplemental environmental projects. Lycos Environment News 12/17/01
On December 14, 2001, it was reported that some insurers have asked insurance regulators to allow them to sublimit coverage for mold claims in California homeowners policies. Allstate Insurance has reportedly received permission to limit coverage for mold claims to $5,000 . Allstate is seeking to cap homeowners coverage for mold at $5,000 nationwide. USAA is seeking permission from the state to limit coverage for mold claims to $2,500 plus an additional $2,000 for additional living expenses. More homeowners insurers are likely to follow. Sacramento Business Journal 12/14/01
On December 17, 2001, it was reported that more than 75,000 new asbestos personal injury claims have been filed so far this year. This is more than any other year since 1989. The number of U.S. workers exposed to asbestos, thought to be 24 to 28 million in the early 1980s, is now expected to be over 100 million. To date, about 575.000 people have filed personal injury claims, however, the number may ultimately reach 2.5 million claimants. Funds established to compensate asbestos claimants have slashed their payments to five cents on the dollar, resulting in cutting payments made to the seriously ill from hundreds of thousands in the 1980s to $10,000 or less today. On December 13, 2001, a U.S. district court judge ordered the parties to the Manville Trust to "forge a new agreement that would substantially raise compensation to the seriously ill." Los Angeles Times 12/17/01
On December 17, 2001, it was reported that mold has been discovered in one third of the rooms in Chavez Elementary School in Madison, Wisconsin. Construction of the school, which was completed in August 2001, has been closed since late November after "many in the building reported upper respiratory ailments." Duluth News Tribune 12/17/01
On December 16, 2001, it was reported that high levels of ozone and carbon monoxide can cause harmful affects in fetuses. The new study by The University of California, Los Angeles' Center for Occupational and Environmental Health has concluded that women exposed to high levels of the air pollutants were three times more likely to have babies with defective heart valves and cleft lips and pallets than those not exposed to high levels. The greatest risk occurs during the second moth of pregnancy. More than a dozen studies from the United States, Europe, Brazil, Mexico, South Korea and Taiwan have associated air pollution with stillbirths, infant deaths, premature births and low birth weight. Associated Press 12/16/01
On December 14. 2001. it was reported that ExxonMobil has agreed to pay $11.2 million for illegally discharging hazardous waste into the Arthur Kill off of Staten Island, New York and then lying to regulators about it. From 1991 through 1993, the company was storing oil from barge cleaning operations in two artificial ponds and subsequently began discharging the waste directly into the Arthur Kill waterway between Staten Island and New Jersey. Oil from the barge cleaning operation contained over 20 times the allowable level of benzene. Company documents discovered by the federal government shoed that ExxonMobil figured it would save $3 million by ignoring EPA regulations. The company agreed to pay an $8.2 million fine and another $3 million for natural resource damages and for the purchase of sensitive land near the Arthur Kill. The New York Times & The Miami Herald 12/14/01
On December 14, 2001, it was reported that while three chemical companies settled a an action with 69 Tom's River, New Jersey families who alleged that contamination of groundwater caused cancer among their family members, hundreds of other residents have also filed suit. These other cases are not affected by the recent settlement. The New York Times 12/14/01
On December 14, 2001, it was reported that Citigroup Inc. has settled its liability at a Colorado Superfund action by agreeing to pay $7.2 million for the removal of some 10,000 tons of radioactive waste and contaminated soil. Citigroup was the last in a series of companies to own the Shattuck site. The Shattuck Chemical Co. processed radium, uranium, molybdenum, rhenium and other heavy metals at the site from the 1920s to 1984. The Shattuck Chemical Co. resolved its liability for the sit e by paying $26 million in cleanup costs in 1992. BNA Toxics Law Daily 12/14/01
On December 14, 2001, it was reported that mold remediation at the Lexington, South Carolina courthouse which was expected to cost $30,000 will cost $301,000. The courthouse was built 61 years ago. Mold has also been discovered in the County's solicitor's offices. The cleanup of the solicitor's offices will take longer than the courthouse cleanup because the "mold must be ground out of plaster walls." Chronicle & The Dispatch News 12/14/01
On December 14, 2001, it was reported that mold contamination was discovered in a classroom in John F. Kennedy Elementary School in Milford, Connecticut. The mold. likely caused by a leaking roof, was found between the ceiling and roof. One teacher has filed a workers' compensation claim due to exposure to the mold and at least a couple of students have complained of adverse health affects. Parents are circulating petitions voicing concerns about mold exposure. The leaking roof would cost $200,000 to repair and the school board hopes to begin work in the summer of 2002. The Connecticut Post 12/14/01
On December 13, 2001, it was reported that three companies, Ciba Specialty Chemical Corp., Union Carbide Corp., and United Water Resources Inc., have reached a settlement with 69 families who alleged that contamination emitted from Tom's River, New Jersey facilities caused their children's cancer. Each of the 69 families included children with cancer. The terms of the settlement remain confidential. PR Newswire 12/13/01
On December 12, 2001, the Pennsylvania House of Representatives passed legislation that would limits Crown Cork & Seal Co'.s Pennsylvania asbestos liabilities. The state Senate passed the same proposal a day earlier. The governor is expected to sign the bill into law over the next few days. Crown Cork & Seal has been paying about $100 million annually for asbestos personal injury claims arising from an insulation business acquired in 1963 and sold three months later. Reuters 12/12/01
On December 10, 2001, it was reported that four firms deemed responsible parties by the federal government will cleanup Boarhead Farms. The four firms, SPS Technologies Inc., Ford Motor Co., TI Group Automotive Systems Corp. and Cytec Industries Inc. (f/k/a American Cyanamid Co.), will reimburse the EPA the $7 million spent on remediation activities to date and pay to complete the cleanup of the Superfund site. The total cleanup of the 120 acre site is expected to cost $26.5 million. The EPA has already removed over 2,600 buried drums from the site which was added to the National Priorities List in 1989. Soil and groundwater are contaminated with concentrated acids, solvents, pesticides, chromium, chloride, arsenic and other metals. The site was once owned by DeRewal Chemical Co., a chemical and waste hauling firm and is now owned by Boarhead Corp.. The four PRPs generated some of the hazardous substances found at the site. BNA Toxics Law Daily 12/10/01
On December 10, 2001, it was reported that a suit has been filed against the maker of Slim Fast alleging that the firm failed to warn consumers of high lead levels contained in their diet drink (Edgerton v. Unilever). The suit alleges that "Slim Fast products contain 40 to 50 times the amount of lead needed to trigger Proposition 65 warning requirements. Unilever is the parent company of Slim Fast Foods Co. BNA Toxics Law Daily 12/10/01
On December 13, 2001, it was reported that mold remediation at the Whitaker Middle School in Portland, Oregon would cost $8 million. In light of the potential cost, officials decided to demolish the building and build a new school on the site which is expected to cost $10 million. katu.com 12/13/01
On December 13, 2001, it was reported that Farmers Insurance, which had 12 mold claims in 1999 has received 8,000 mold claims this year. Farmers reported that they were receiving 150 new mold claims per day and is losing $1.5 million per day. Caller-Times 12/13/01
On December 13, 2001, it was reported that a Florida jury ordered R.J. Reynolds Tobacco Co. to pay a 73 year old cancer victim $165,000 in compensatory damages. The jury found that the company's cigarettes were defectively designed. The victim began smoking in 1942. No punitive damages were awarded. R.J. Reynolds will appeal the award. South Florida Sun-Sentinnel 12/13/01
On December 12, 2001, it was reported that the National Academy of Sciences (NAS) has reported that global warming "could trigger 'large abrupt and unwelcome' climatic changes that could severely affect ecosystems and human society." Six months earlier the NAS reported to the White House that global warming is real and is being exacerbated by human activity and will likely cause adverse affects. Until recently, most scientists believed that any warming, if it occurred at all, would occur gradually. Now, the possibility that a large abrupt changes in the climate may occur due to global warming has been accepted by the scientific mainstream. Examples of the type of abrupt changes that may occur include the reversal of the Gulf Stream over a period of 10 to 20 years creating a far colder climate over much of Europe. Los Angeles Times 12/12/01
On December 12, 2001, it was reported that state court judge ordered a Lexington County, South Carolina courthouse closed until mold contamination is remediated. The cleanup is expected to take about a month and cost $302,000. The mold was discovered after county employees complained of allergy-like symptoms. The State 12/12/01
On December 12, 2001, it was reported that 15 former employees of Eden Medical Center in California have filed a sick building syndrome lawsuit against the hospital alleging that they suffer illnesses arising from poor indoor air quality in the office building they were transferred to in 1985. The plaintiffs are alleging injuries including cancer, respiratory ailments, allergies, chronic fatigue and asthma all resulted from the lack adequate ventilation in the building leading to high levels of carbon monoxide, carbon dioxide and formaldehyde. Two of the plaintiffs have died. San Jose Mercury News 12/12/01
On December 11, 2001, it was reported that a North Carolina superior court judge denied class certification for a proposed class action filed on behalf of all owners of private drinking water wells in the state (Maynard III v. Amerada Hess et al.). The plaintiffs are seeking to force the manufacturers of the gasoline additive MTBE to pay for the testing of some 900,000 private wells in the state. The court held that such a suit would be unmanageable and may be premature. The judge will, however, allow the plaintiffs until February 15, 2001 to modify the proposed class action to reduce the number of potential class members. mealeys.com 12/11/01
On December 10, 2001, it was reported that mold contamination discovered at the Summit Elementary School in Oconomowoc, Wisconsin will result in the permanent closure of a 3,200 square foot building and the temporary closure of three portable classrooms. The Pabst Building which is made of concrete and wood and originally built in 1911 will be permanently closed. The school district decided to test for mold after staff members complained of dizziness and headaches. Oconomowoc Focus 12/10/01
On December 10, 2001, it was reported that over the past three years approximately 40,000 new asbestos personal injury claims have been filed against paper and building products manufacturer, Georgia-Pacific, each year. In 1965, Georgia-Pacific acquired Bestwall Gypsum Corp. which produced a variety of gypsum products some of which contained asbestos, particularly joint compounds. Georgia-Pacific stopped using asbestos in manufacturing processes in 1977. About 290,000 asbestos personal injury claims have been filed against the company since the mid 1980s. Some 62,000 of these are still open. Dow Jones 12/10/01
On December 10, 2001, it was reported that three asbestos defendants settled a personal injury suit, filed in Texas, for $2,819,320 (Skinner v. Burns International Corp. f/k/a/ Borg-WarnerCo., Geargia-Pacific Corp., and Honeywell International as successor-in-trust to Bendix). The plaintiff alleged his mesothelioma was caused by contact with the defendants asbestos-containing products while working as a crane operator. The plaintiff originally sued about 30 defendants, but only three were left at the time of trial. The defendants settled during the second day of trial. The plaintiff alleged asbestos exposure through joint compounds manufactured by Georgia-Pacific, friction products (brake bands used on cranes) made by the other two defendants. NLJ.com 12/10/01
On December 7, 2001, it was reported that an Ohio jury awarded the family of a mesothelioma victim $3.5 million (Robinson v. North American Refractories Co.). The plaintiff was allegedly exposed to asbestos while using the defendants products, including Narcolite Lightweight Insulating Cables, Statz-On Insulating Cement and Unicote Finishing Cement from 1970 to 1978 when employed as a rigger for ARMCO Steel. Diagnosed with mesothelioma in 1995, the plaintiff died at age 49. The award includes $2.5 million in compensatory and $1 million in punitive damages. Harris Martin Columns One 12/7/01
In December 2001. it was reported that a Maryland jury ordered a property management firm to pay a family $219,200 for bodily injuries and property damages caused by mold contamination (Nicholson v. Metro Property Management Inc). Mold contamination allegedly occurred after the owner of an adjacent unit moved out and left the hot water running. The property manger took 11 days to respond to the complaint filed by the plaintiffs. Exposure to mold allegedly resulted in the hospitalization of the couple's four year old sun who suffered severe allergic respiratory reactions and problems with his bile duct. The jury awarded $65,000 for the boys injuries and medical expenses and $154,200 for property damage to the unit. Harris Matrin Columns One 12/01
In December 2001, it was reported that two separate proposed class action suits were filed against the property managers, building owner and the owner's insurer alleging exposure to mold in the building resulted in office workers suffering from sinus and allergy problems, debilitating headaches, skin irritations and fatigue (Rhodes v. BG Real Estate Services Inc. et al. and Watters v. Department of Social Services et al.). Also named as defendants in Rhodes v. BG Real Estate Services are: Noob I GP LLC., the owner of Plaza Tower in New Orleans, Louisiana; Baha Towers Limited Partnership; Baha Development Inc.; and surplus lines insurer, Evanston Insurance Co. The second proposed class was filed on behalf of state employees who had offices in the building. Defendants in this suit include the building owner and property management services named in the previous suit as well as the Department of Social Services; the Department of Health and Hospitals, Division of Administration and ABC Insurance Co. Mealey's Litigation Report Mold 12/01
In December 2001, it was reported that an Ohio landlord is being sued by a tenant alleging that exposure to mold caused personal injuries (Krueger v. Denton). The tenant alleges that the defendant refused to adequately repair water damage arising from multiple sources of water intrusion which resulted in injuries caused by the ensuing mold contamination. Mealey's Litigation Report Mold 12/01
On December 9, 2001, it was reported that preliminary results of a new 3,000 page EPA study conclude that the cumulative effects of organophosphate pesticides may be impairing brain development and function to between 57,000 to 1.3 million American children. Children under age two face the highest risk of exposure followed closely by children ages three to five. Organophospahtes are insecticides used on a wide variety of fruits and vegetables and also used in households and gardens. Scientists fear that exposure could lead to attention deficit-type disorders, nerve damage and Parkinson's disease. The final report is not due until next year. Los Angeles Times 12/9/01
On December 8, 2001, it was reported that shares of Haliburton, the world's largest oil field service business, plummeted due to concerns over asbestos liabilities. The company's asbestos liabilities are arising from a former subsidiary, Harbison-Walker (see the paragraph below discussing the recent Maryland award) and through its 1998 acquisition of Dresser Industries. The Maryland award was the fourth significant asbestos award against the company since late October - these four verdicts totaled $122 million. As of September 30, the company reportedly faced 146,000 open asbestos personal injury claims from its Dresser acquisition and another 182,000 asbestos claims arising from Harbison-Walker. The company had estimated its potential asbestos liabilities to be $704 million but expects to recoup $579 million from insurers, but, in light of recent large asbestos awards against the company there are fears that the total asbestos liabilities will exceed the $704 million estimate. Reuters 12/7/01, The New York Times 12/8/01 & Dow Jones 12/10/01
On December 7, 2001, it was reported that according to a mold remediation specialists estimates that between several hundred and 1,000 homeowners in Oklahoma have recently filed mold claims against their insurers. Knight Ridder Tribune Business News 12/7/01
On December 7, 2001, it was reported that residents of a Mesa, Arizona condominium complex have sued the developer of the complex, U.S. Home Corp., for construction defects and mold. About one-third of the 118 condos at Dartmouth Trace are contaminated by mold. Some of the mold discovered is Stachybotrys. The Arizona Republic 12/7/01
On December 6, 2001, it was reported that A,M. Best downgraded the financial strength rating of State Farm Lloyds from A+ to a B+. The reason for the downgrade is that "during the first nine months of 2001, State Farm Lloyds's surplus declined by approximately 91% due to the combination of weather-related losses as well as the surge in mold-related claims in Texas. Since 2000, underwriting results have been particularly poor with loss ratios during the second and third quarters of 2001 well into the triple digits." Business Wire via Dow Jones 12/6/01
On December 5, 2001, it was reported that a California cattle rancher has agreed to pay a $305,000 fine and spend an additional $700,000 on pollution control equipment to settle a suit filed by the State Water Resources Control Board alleging that rancher dumped dead cattle and manure into creeks which flow into the Sacramento River. Under the settlement, Masami Cattle Ranch will pay the fine and spend $700,000 to improve its waste management system. The rancher still faces a federal suit for violations of the Clean Water Act. The Sacramento Bee 12/5/01
On December 2, 2001, an Illinois jury awarded a mesothelioma plaintiff $16 million in damages (Crawford v. ACandS et al.). The plaintiff worked as a fork lift operator at Owens-Illinois from 1967 to the mid 1970s. Owens-Illinois and several other defendants settled prior to trial. ACandS argued that its products were not the cause of the plaintiffs asbestos exposure or mesothelioma. The jury awarded $8 million in compensatory damages, $7 million in punitive damages and $1 million in damages to the plaintiff's spouse. Harris Martin Columns 12/5/01
On December 5, 2001, a Maryland jury awarded five mesothelioma plaintiffs over $40 million in damages (Cargile et al. v. AC&S Inc. et al.). Three of the plaintiffs were deceased. Two of the plaintiffs had been employed as steam fitters at Bethlehem Steel, One was a bricklayer, one a plumber and the fifth allegedly contracted mesothelioma due to secondhand exposure to asbestos while helping her mother wash her fathers work clothes as a child. The two steamfitters were awarded $7 million and $3.2 million, respectively, and each was also awarded medical and funeral expenses. The brick layer was awarded $8 million plus medical expenses. The plumber was awarded $6.8 million. The plaintiff alleging secondhand exposure was awarded $15 million. Defendants in the case were: Armstrong Contracting & Supply (ACandS), A.P. Green Industries and Habison and Walker. The defendants argued that chrysotile asbestos could not have caused the plaintiffs' mesothelioma and also attempted to employ a state of the art defense. Mealeys.com 12/7/01
On December 5, 2001, it was reported that electric utility Niagara Mohawk is responsible for remediating some 80,000 cubic yards of coal tar residue generated by an old manufactured gas plant in Oneida, New York. Niagara Mohawk owns the former New York Power and Light facility which generated the coal tar during operations between 1896 and 1928. The cleanup is expected to cost $25 million. The Post Standard 12/5/01
On December 5, 2001, it was reported that in its summary of six month financial information, Equitas reports claims payments of 798 million pounds (US$1.34B). In the previous financial year ending in March, Equitas strengthened asbestos reserves by 1.7 billion pounds (US$2.4B) and additional reserve strengthening may be necessary at the end of the current fiscal year. Best Wire 12/5/01
On December 5, 2001, it was reported that CNA Financial Corp. announced that it will restructure its property casualty and life operations. The company has "lost $1.7 billion in the second quarter after absorbing large charges to reserves for paying old asbestos and pollution claims." The company also lost $304 million attributed to the September 11th terrorist attacks. Associated Press 12/5/01
On December 2, 2001, it was reported that an old Ohio junkyard will cost nearly $60 million to remediate. Fourteen separate areas of the Cuyahoga Valley junkyard's 234 acres are contaminated with a wide variety of hazardous substances including: PCBs, dioxins, benzene, arsenic, lead and other heavy metals. In 1986, the EPA discovered 5,000 leaking drums containing solvents, herbicides, paint wastes and industrial sludges. To date, the drums and 700 tons of contaminated soil have been removed at a cost of $30 million. The removal of additional contaminated soil is expected to cost another $27.5 million. Ford Motor Co. and General Motors Co. have been held liable for the second installment of $27.5 million. Other responsible parties that were held liable for the first $30 million of cleanup operations include: Minnesota Mining and Manufacturing has been ordered to pay nearly $24 million. Chrysler, Waste management, Kewanee Industries, Chevron USA and Federal Metals have settled their liability for $4.8 million. The cleanup is expected to take several more years. The Beacon Journal 12/2/01
On December 5, 2001, it was reported that Newark, New Jersey has filed suit against the lead paint industry seeking millions of dollars to abate lead paint in thousands of residences. About 90% of Newark's housing was built prior to 1980 and it is estimated that some 10,000 Newark children are lead poisoned. Defendants in the case include: Sherwin-Williams Co., SCM Chemicals Inc., American Cyanamid Co. (whose lead paint liabilities were assumed by Cytec Industries Inc., Atlantic Richfield Co. which is owned by BP PLC, DuPont Co., Glidden Co. a unit of Imperial Chemical Industries PLC, NL Industries Inc., O'Brien Corp., ConAgra Grocery Products Co. Newark joins a growing list of state and municipal governments that have filed similar suits against makers of lead-based paint. The Wall Street Journal 12/5/01
On December 4, 2001, the EPA issued an order to proceed with the cleanup of PCBs from the Hudson River. The agency rejected General Electric's efforts to scale back the scope of the cleanup. The dredging of some 2.65 million cubic yards of sediment will be dredged along a 40 mile stretch of the river to remove 150,000 pounds of PCBs. The cleanup is expected to cost GE between $460 million and $500 million. From 1940 to 1977, GE legally released 1.1 million pounds of PCBs into the Hudson from two facilities. The New York Times & The Wall Street Journal 12/5/01
On December 4, 2001, it was reported that a Louisiana tugboat company, McKinney Towing Inc. has been ordered to pay $480,000 in fines after being found guilty of pumping oily bilge water into the Mississippi River several times per week between 1995 and 2000 in violation of the Clean Water Act. Lycos Environment News Service 12/04/01
On December 3, 2001, it was reported that Scotts Company, a lawn and garden products manufacturer, has agreed to pay a $250,000 fine and remediate contaminated landfills, lagoons and creeks at its 173 acre plant 30 miles outside Columbus, Ohio. State regulators discovered DDT and other chemicals had leached from these landfills and lagoons into a creek which feeds Scioto River a drinking water source for Columbus. No estimations of the total cleanup costs were mentioned. Associated Press 12/3/01
On December 2, 2001, it was reported that Potomac Electric Power Co. (PEPCO) has agreed to pay $2 million settle a suit filed by property owners with properties affected by last years oil spill into the Patuxent River. The spill, caused by a pipeline rupture, spread oil along 17 miles of shoreline in Calvert County. To date, PEPCO has paid over $60 million in cleanup costs and cleanup operations are ongoing. Restoration of natural resources damaged by the spill is expected to take years. Washington Post 12/2/01
On December 1, 2001, it was reported that Indiana auto parts manufacturer, Guide Corp. and Crown Environmental Group have agreed to pay $2 million to settle a class action filed on behalf of residents living along the White River from Anderson to Indianapolis. To date, 70 percent of the 972 eligible residents have agreed to the settlement. Under the settlement, Guide Corp. will pay $1.4 million while Crown Environmental will pay $600,000. Last summer Guide Corp. agreed to pay federal and state regulators $14.2 million for the chemical spill into the White River. Indianapolis Star 12/1/01
On December 3, 2001, it was reported that about 50 insurers, providing commercial and/or homeowners coverage in Florida, initially filed mold exclusions with the state's Department of Insurance but most have since withdrew their filings while waiting for clarification of the extent of mold coverage within current policies from the DOI. According to a spokesperson for the Florida Insurance Council, homeowners policies cover mold if the mold arose from a covered peril. The article also states that in addition to mounting mold claims in Texas and California, "worrisome trends are showing up in Oklahoma and Louisiana." Best Wire 12/3/01
On December 3, 2001, it was reported that a graduate student at Baylor University has filed a toxic mold suit against the owners of Sterling University Parks Apartments in Waco, Texas alleging that exposure to toxic mold caused his bodily injuries. The plaintiff lived in the apartment for ten months and alleges that exposure to mold caused him to suffer from short term memory loss, coughing, headaches, and nausea. The mold on bathroom walls allegedly arose from a leaking pipe. The suit seeks unspecified damages. Waco Tribune-Herald 12/3/01
Rest of World
On December 31, 2001, it was reported that Austrian fireproof materials manufacturer RHI is facing thousands of asbestos personal injury claims stemming from former U.S. employees of subsidiaries Harbison Walker and A.P. Green acquired in 1999. Reuters 12/31/01
On December 24, 2001, a toxic chemical leak occurred at a British chemical facility in Northern England. Thermex gas escaped from the Wilton International site and was blown toward residential areas of Redcar, Saltburn and Markse. The gas can reportedly cause eye and skin irritation. Dow Jones International News Service 12/24/01
On December 21, 2001, a British mining company, Cape PLC settled a suit filed on behalf of some 7,500 South African miners diagnosed with asbestos-related diseases for US$30 million. The company operated asbestos mines in South Africa's northern Cape region from the late 1800's to 1979. Many of the 7,500 former employees were hired as children to work in the mines. The miners were exposed to airborne asbestos at levels 30 times the British legal standard. Another 2,500 South Africans from the area, including those living near the company's crushing mill in Prieska, South Africa facility have also been diagnosed with asbestos-related diseases. The suit was originally filed in 1997, and in 1999, the British high court held that the South Africans could sue the company in British courts. OneWorldUS 12/21/01
On December 18, 2001, it was reported that a new Australian study concluded that the reassuring smell of a new car may be loaded with toxins. The study by the Commonwealth Scientific and Industrial Research Organization, Australia's main scientific body, found toxic emissions inside of new cars including benzene, Xylene, Ethylbenzene and Acetone. The study found that elevated levels of the toxins can persist for up to six months. The group undertook the study after receiving complaints of adverse health affects from new car owners. Some of the adverse affects included drowsiness, fatigue, confusion, headaches, as well as eye, nose and throat irritation. Reuters 12/18/01
On December 15, 2001, it was reported that a Western Australian mesothelioma victim was awarded $A1,079,394 ($US553,733). The plaintiff worked for a building company in the 1970s and often used power saws to cut through asbestos without any respiratory protection. After being diagnosed with mesothelioma, the plaintiff filed suit against Amaca PTY Ltd. (formerly James Hardie) which supplied the asbestos. The suit alleged that the company failed to provide any warning along with the asbestos. The award, which is believed to be a record high award for a mesothelioma plaintiff in Australia, was handed down by the Supreme Court of Western Australia. Comtex News Network 12/15/01
On December 13, 2001, it was reported that a new European study concludes that exposure to MTBE poses only a limited threat to human health and the environment. The study was by the Commission of European Communities which determined that any risks posed by MTBE could be addressed through fuel tank management and code enforcement. PR Newswire 12/13/01
On December 11, 2001 it was reported that over 400,000 tons of oil (roughly 136 million gallons) have spilled from a ruptured pipeline at an exploratory well in Western India. The well belongs to India's state-run Oil and Natural Gas Corp (ONGC) . The pipe ruptured six days ago and ONGC employees have not been able to plug or stop the leak. They have dug several large pits to capture the spilling oil until the leak can be stopped. Reuters 12/11/01
On December 11, 2001, it was reported that the Court of Appeal, a UK intermediate level court, in a case where there was more than one defendant in an asbestos case, has held that because asbestos plaintiffs cannot prove who was responsible for exposing them to the asbestos fiber that caused their mesothelioma that their claim against all defendants must be rejected (Farichild v. Waddington and Leeds City Council). A lower court judge had earlier ruled that there was no scientific means of ascertaining the source of a single asbestos fiber, or fibers, responsible for the malignant transformation of the pleural cell. The Court of Appeal upheld this judgement. This case may have huge implications for asbestos victims, manufacturers and their insurers as it may leave thousands of UK citizens with asbestos-related diseases potentially from multiple sources without any compensation. There is a previous Court of Appeal ruling in the UK where the court awarded damages to two mesothelioma victims where it was evident that only one defendant was involved. Insurance Windows & Barlow Lyde & Gilbert 12/11/01
On December 10, 2001, it was reported that some financial analysts are concerned that asbestos reserves put up by ABB, Europe's largest industrial engineering firm, may be inadequate to address future claims. ABB 's U.S. exposure stems from defunct Combustion Engineering. At year end 2000, ABB showed $590 million in asbestos personal injury reserves with $160 million in insurance recoverables. Given recent large U.S. asbestos personal injury awards, analysts believe ABB's ultimate asbestos liabilities could be anywhere from $1.4 billion to $9 billion. Reuters 12/10/01
On December 6, 2001, it was reported that a leaking under sea hose at Lithuania's Mazeikiu Nafta's Butinge terminal released some 17,400 gallons of oil into the Baltic Sea. The facility is a combined refinery, terminal and pipeline transportation system. According to the Deputy Transport Minister damage to the environment is estimated to be about $650,000, however, local prosecutors will launch their own investigation of the spill. Oil Spill Intelligence Report 12/6/01
On December 4, 2001, it was reported that Saudi Arabia's largest cancer hospital, King Faisal Specialist Hospital, has filed suit against tobacco manufacturers and other tobacco industry entities seeking $2.9 billion in compensation for treating smoking-related illnesses over the past 25 years. The suit was filed in Saudi's Grand Islamic Court. The New York Times 12/4/01
On November 19, 2001, an underwater refinery pipeline leak released some 30,000 gallons of oil in Rio de Janeiro's Guanabara Bay. The pipeline is part of the Manginhos refinery owned by the private oil company Piexoto de Castro. Piexoto de Castro is one of Brazil's two privately owned refineries. The company initially reported that only 2,100 gallons were spilled. Subsequent investigations by state officials concluded that 30,000 gallons had been released. Oil Spill Intelligence Report 11/29/01 |
|