/raid1/www/Hosts/bankrupt/CAR_Public/100212.mbx
C L A S S A C T I O N R E P O R T E R
Friday, February 12, 2010, Vol. 12, No. 30
Headlines
AWB LTD: Shareholder Class Action Trial Begins in Sydney
APPLE: Suit Complains About iTunes Gift Card Redemption Policy
AT&T INC: Accused of Sending Unrequested Telephone Equipment
BMO NESBITT: Investment Adviser Sues for Overtime in Ontario
BRITAX CHILD: Recalls 14,900 Britax "Blink" Umbrella Strollers
CALEDONIA, ONTATIO: Superior Court Certifies Plaintiff Class
COPLEY PRESS: Sued in Calif. for Misclassifying Delivery Workers
DIRECTBUY: Lawsuit Claims $5,000 Membership Fee is a Scam
FEDERAL DEPOSIT: Still Owes Money to Universal Federal Depositors
GPC BIOTECH: S.D.N.Y. Closes Consolidated Securities Litigation
INNOVAGE LLC: Recalls 360,000 Discovery Kids(tm) Lamps
KOHLBERG CAPITAL: Glancy Binkow Files Shareholder Suit in Calif.
L'OREAL: Accused in Los Angeles of False Advertising
MANHATTAN GROUP: Recalls 2,800 Pull-A-Long Friends Toys
MIDLAND NATIONAL: 9th Cir. Again Blesses Hawaiian Seniors Class
NATURE'S SUNSHINE: D. Utah Approves Final Shareholder Settlement
NCAA: Loses Bid to Dismiss Ed O'Bannon's Class Action Lawsuit
PLAYBOY: Minority Shareholders Want Hefner to Take Buy-Out Offers
THIN CARE: Accused in Los Angeles of False Advertising
TINY LOVE: Recalls 800,000 Wind Chime Toys
UNITED HEALTH: Owes Technology Consultants $13 Mil., Suit Says
WALMART.COM: Accused of Conspiring with Rival in Calif. Suit
Asbestos Litigation
ASBESTOS ALERT: Rentech Has $210T Conditional Asset at Dec. 31
ASBESTOS UPDATE: RBS Global's Stearns Division Faces 3.5T Claims
ASBESTOS UPDATE: RBS Global's Prager Unit Faces 2 Injury Actions
ASBESTOS UPDATE: RBS Global's Falk Unit Facing 190 Injury Suits
ASBESTOS UPDATE: Zurn Facing 6,100 Exposure Lawsuits at Dec. 26
ASBESTOS UPDATE: GenCorp Facing 134 Pending Lawsuits at Nov. 30
ASBESTOS UPDATE: 571 Claims Pending v. Todd Shipyards at Dec. 27
ASBESTOS UPDATE: Union Pacific's Liability at $174Mil in Dec. 31
ASBESTOS UPDATE: ArvinMeritor Liability Still at $61M at Dec. 31
ASBESTOS UPDATE: Maremont Still Facing 26,000 Claims at Dec. 31
ASBESTOS UPDATE: ArvinMeritor Still Has $16M Rockwell Liability
ASBESTOS UPDATE: Magnetek Continues to Face Liability Lawsuits
ASBESTOS UPDATE: Generation Still Has $49Mil Reserves at Dec. 31
ASBESTOS UPDATE: Adaway Case v. Chevron Filed on Feb. 1 in Texas
ASBESTOS UPDATE: Burgess' Widow Launches Claim for Compensation
ASBESTOS UPDATE: Fontenot Claim v. Chevron Filed Feb. 1 in Texas
ASBESTOS UPDATE: 92T Open Claims Pending v. Ashland at Dec. 31
ASBESTOS UPDATE: 21T Claims Pending Against Hercules at Dec. 31
ASBESTOS UPDATE: Precision Castparts Still Named in Injury Cases
ASBESTOS UPDATE: Hartford Cites $1.892B Net Liability at Dec. 31
ASBESTOS UPDATE: CNA Financial Records $79M Reserve Development
ASBESTOS UPDATE: Rockwell Automation Party to Exposure Lawsuits
ASBESTOS UPDATE: Exposure Cases Ongoing v. BJ Services in Miss.
ASBESTOS UPDATE: Inquest Rules on Southampton Pipefitter's Death
ASBESTOS UPDATE: Ingram Family Seeks Info in Compensation Claim
ASBESTOS UPDATE: Cleanup at Lamar County Courthouse to Cost $40T
ASBESTOS UPDATE: Whatcom County Mulls $160,000 Swift Creek Study
ASBESTOS UPDATE: Cleanup at Union Springs School Slated for 2010
ASBESTOS UPDATE: Mann Payout Case Ongoing v. Crown Cork, Norfolk
ASBESTOS UPDATE: North Somerset to Spend GBP500,000 for Cleanup
ASBESTOS UPDATE: Ky. Appeal Court Upholds Ruling in Crane Action
ASBESTOS UPDATE: Del. Court Affirms Board Ruling in Rhodes Case
ASBESTOS UPDATE: Appeals Court Upholds Ruling in Linkus' Lawsuit
ASBESTOS UPDATE: Cabot Corp. Still Involved in AO Exposure Suits
ASBESTOS UPDATE: Fairmont Still Faces 22,500 Claims in 7 States
ASBESTOS UPDATE: Mueller Units Still Named in Exposure Lawsuits
ASBESTOS UPDATE: STERIS Corp. Still Involved in Exposure Actions
ASBESTOS UPDATE: Skilled Healthcare Records $5.5M ARO at Dec. 31
ASBESTOS UPDATE: Travelers Expends in 4Q2009 to Lobby for Claims
ASBESTOS UPDATE: Abatement at Harrison County Hospital Underway
ASBESTOS UPDATE: Menssen Wins $17.87M Case v. Pneumo, Honeywell
ASBESTOS UPDATE: HB 629 Shields Crown Cork From Exposure Claims
ASBESTOS UPDATE: Appeal Court Upholds Ruling in Quinn's Lawsuit
ASBESTOS UPDATE: Calif. Court Affirms Delahaye's Move to Remand
ASBESTOS UPDATE: La. Appeal Court Affirms Ruling in Brumley Case
ASBESTOS UPDATE: Appeal Court OKs Board Ruling in Straight Case
ASBESTOS UPDATE: Corning Records $682Mil Liabilities at Dec. 31
ASBESTOS UPDATE: Central Hudson Facing 1,188 Lawsuits at Dec. 31
ASBESTOS UPDATE: Allstate Has $1.180B Claims Reserves at Dec. 31
ASBESTOS UPDATE: Zenith Records 304 Exposure Actions at Dec. 31
ASBESTOS UPDATE: Giles Widow Seeking Info in Compensation Claim
ASBESTOS UPDATE: Martin Case v. 10 Firms Filed Feb. 9 in Indiana
ASBESTOS UPDATE: Court To Accept 5 Amicus Briefs in Peirce Case
ASBESTOS UPDATE: Volkswagen Calls For Hearing on Asbestos Expert
ASBESTOS UPDATE: Berengo Trial v. Hardie, CSR Slated for Feb. 16
ASBESTOS UPDATE: Aberdeen School in Miss. Scheduled for Cleanup
ASBESTOS UPDATE: Court Reverses Summary Judgment in Cashman Case
*********
AWB LTD: Shareholder Class Action Trial Begins in Sydney
--------------------------------------------------------
ABC Rural in Australia reports that lawyers have begun their case
in the latest class action against AWB in the Federal Court in
Sydney.
More than 1,000 shareholders want $100 million in compensation
for the collapse in AWB's share price, after the wheat exporter
paid kick backs to Iraq.
Lawyers for the shareholders are claiming AWB knew, or ought to
have known, that it breached trade sanctions between 1999 and
2003.
Lawyers Maurice Blackburn opened by telling the court a largely
documentary case will be used to prove AWB knew money paid to
transport company Alia was being funnelled back to the Saddam
Hussein regime, and that AWB's claims that it paid for inland
transport in good faith were false.
Lawyers also outlined the details of trade sanctions against
Iraq, and argued that if AWB had been full and frank about its
dealings in Iraq, it would not have been granted wheat export
permits.
The Class Action Reporter noted on Tues., Feb. 9, 2010, that this
is the first shareholder class action proceeding to reach a trial
in Australia because settlements between parties are the usual
outcome.
The trial is scheduled to run for five weeks.
APPLE: Suit Complains About iTunes Gift Card Redemption Policy
--------------------------------------------------------------
Courthouse News Service reports that Apple computer refuses to
redeem iTunes gift cards for cash when their balance falls below
$10, a class action claims in Los Angeles Superior Court.
AT&T INC: Accused of Sending Unrequested Telephone Equipment
------------------------------------------------------------
Tracey Dalzell Walsh at Courthouse News Service reports that
in an ultimate cramming case, a federal class action claims that
AT&T not only allows a crammer to bill them for services they
don't want, it lets Innotrac bills them for telephones that it
sent and the customers don't want either.
Richard Matthews claims UPS delivered him a package containing
phones and an answering machine.
"Plaintiff did not order or request this equipment," the
complaint states. "He called AT&T and asked them what authority
they had to send this unrequested equipment. AT&T stated that
they couldn't answer his question, but referred him to Innotrac's
telephone number," where, AT&T said, he could ask Innotrac for "a
label to use in returning the equipment."
Mr. Matthews says that AT&T told him that "if he did not return
the equipment, he would be billed through his residential
telephone service for this equipment."
Sure enough, the next month, the phones and answering machine
were charged to his telephone bill, Mr. Matthews says.
To top it off, AT&T changed his residential phone package without
asking him, adding $18 to his monthly bill.
Mr. Matthews says he "called AT&T and asked them what authority
they had to randomly change his telephone service. AT&T stated
that they were not sure why his telephone package had suddenly
increased." The telephone company added that "customer
authorization was needed" before it could do that, though.
Mr. Matthews wants an injunction and damages for racketeering,
fraud and conversion.
A copy of the Complaint in Matthews v. AT&T Inc., et al.,
Case No. 10-cv-00287 (N.D. Ala.), is available at:
http://www.courthousenews.com/2010/02/09/Innotrac.pdf
The Plaintiff is represented by:
Jere L. Beasley, Esq.
W. Daniel "Dee" Miles, III, Esq.
BEASLEY, ALLEN CROW, METHVIN, PORTIS, & MILES, P.C.
P.O. Box 4160
Montgomery, AL 36103-4160
Telephone: 334-269-2343
BMO NESBITT: Investment Adviser Sues for Overtime in Ontario
------------------------------------------------------------
Evelyn Juan, writing for Dow Jones Newswires, reports that a
former BMO Nesbitt Burns broker has filed a C$100 million claim
alleging that the Bank of Montreal retail brokerage unit failed
to pay overtime to its investment advisers in Ontario.
The claim, filed by Yegal Rosen at the Ontario Superior Court of
Justice, is seeking class-action status to cover Ontario-based
advisers, investment consultants, and financial representatives
who were employed at BMO Nesbitt Burns starting in 2002.
Mr. Rosen's lawyer:
Henry Juroviesky, Esq.
JUROVIESKY & RICCI LLP
4950 Yonge Street, Suite 904
Toronto, Ontario M2N 6K1
CANADA
Telephone: (416) 481-0718
said the claim could cover 1,800 to 2,000 BMO investment advisers
in Ontario, where the provincial labor standards act mandates
that employers pay at least 1.5 times the regular rate for
working in excess of 44 hours a week.
"The Ontario act doesn't exempt commission-based sales employees,
unlike the federal law which exempts commission-based sales
persons of financial products," Mr. Juroviesky said. Since BMO
Nesbitt Burns is an Ontario corporation, Mr. Juroviesky said the
BMO unit is mandated to follow Ontario labor standards for
employees in the province.
The BMO complaint could prompt similar claims against other
Ontario-incorporated retail brokerage houses which don't pay
overtime to brokers, Mr. Juroviesky added.
BMO Nesbitt Burns intends to defend the proposed action,
according to a company spokesman. "BMO Nesbitt Burns has a
process that deals fairly with overtime for its employees," the
spokesman said.
Mr. Rosen, based in Thornhill, Ont., worked as an investment
adviser with BMO from June 2002 to April 2006. He claims that
branch managers would provide advisers with goals and targets to
increase assets under management and commission levels, given
that branch managers are paid a percentage of their branch's
asset level.
Advisers are typically paid a percentage of the commissions and
fees that they generate annually. The higher the commissions and
fees, the higher the payout for the adviser.
"In order for the plaintiff and other employees to achieve the
goals and meet the targets . . . plaintiff and other class
members were required to work overtime to complete their job
requirements and expectations," according to the court filing.
None of the claims have been proven in court.
Similar overtime claims have been settled by major retail
brokerage houses in U.S. Some firms were compelled to rejig their
compensation structure by instituting a monthly minimum salary
(instead of a draw) for all financial advisers, and by absorbing
certain fees that were previously docked from broker's
commissions.
Morgan Stanley agreed to pay $50 million to settle an overtime
claim, UBS AG agreed to pay C$89 million; Citigroup Inc., $98
million, and Merrill Lynch, now part of Bank of America Corp.,
agreed to pay $37 million to settle claims in California.
In Canada, a similar overtime case claiming C$600 million in
damages was filed by a bank teller in June 2007 against Canadian
Imperial Bank of Commerce. Another overtime claim worth C$350
million was also lodged against CIBC Capital Markets in 2008
covering banking, capital-markets, and retail-brokerage
employees, said Mr. Juroviesky, who is working on the latter
case. Both cases are still pending.
BRITAX CHILD: Recalls 14,900 Britax "Blink" Umbrella Strollers
--------------------------------------------------------------
The U.S. Consumer Product Safety Commission and Health Canada, in
cooperation with Britax Child Safety, Inc., of Charlotte, N.C.,
announced a voluntary recall of 14,000 Britax "Blink" Umbrella
Strollers in the United States and 900 in Canda. Consumers
should stop using recalled products immediately unless otherwise
instructed.
The stroller's hinge mechanism poses a fingertip amputation and
laceration hazard to the child when the consumer is unfolding or
opening the stroller.
No incidents or injuries have been reported.
This recall involves all Britax "Blink" single umbrella
strollers. "Blink" is printed on the metal frame on both sides of
the stroller, below the hand grips. The recalled "Blink"
strollers have model numbers U261813, U261814, U261815, U261816,
U261817, U271813, U271817 and U271815 and were manufactured
between May 2009 and September 2009. The model number and
manufacturing date can be found on a white label on the stroller
frame, near the bottom of the stroller basket. A picture of the
recalled product is available at:
http://www.cpsc.gov/cpscpub/prerel/prhtml10/10137.html
The recalled strollers were manufactured in China and sold at Buy
Buy Baby and other juvenile product and mass merchandise
retailers nationwide in the U.S. and Canada and on the Web at
http://www.Amazon.com/and http://www.babiesrus.com/and
http://www.Target.com/and http://www.Diapers.com/from July 2009
through February 2010 for about $150.
Consumers should immediately stop using the recalled
strollers and contact Britax to receive free stroller hinge
covers. For additional information, contact Britax toll-free at
(888) 427-4829 between 8:00 a.m. and 5:00 p.m., Eastern Time,
Monday through Friday, or visit the firm's website at
http://www.BlinkRecall.com/
CALEDONIA, ONTATIO: Superior Court Certifies Plaintiff Class
------------------------------------------------------------
The Hamilton Spectator reports that a Superior Court judge has
given the go-ahead to a class-action lawsuit over the 2006 native
occupation in Caledonia, Ont.
The lawsuit involves four businesses and 14 Caledonia residents
and alleges police actions caused them "to suffer an economic
loss."
The suit names former Ontario Provincial Police commissioner Gwen
Boniface, the Ontario government and others.
The suit further alleges the provincial police and the province
broke laws in their response to the occupation.
The allegations have yet to be proven in court and the Crown
Attorney's office has 30 days to appeal the certification.
"This is a very unusual class-action lawsuit in Ontario," said
plaintiff lawyer John Findlay.
"It's a class-action suit that has to do with accountability of
public officials."
COPLEY PRESS: Sued in Calif. for Misclassifying Delivery Workers
----------------------------------------------------------------
Courthouse News Service reports that the Copley Press and the San
Diego Union Tribune deny delivery workers overtime by
misclassifying them as independent contractors, according to a
class action in San Diego Superior Court.
Copies of (i) the Notice of Case Assignment, (ii) the Workers'
Class and Representative Action Complaint for Damages and
Injunctive Relief for Failure to Pay Minimum Wage (Labor Code
Secs. 1194, 1194.2, 1197); Failure to Pay Overtime Compensation
(Labor Code Secs. 510, 1194 et seq.); Failure to Provide Rest
Periods or Compensation in Lieu Thereof (Labor Code Sec. 226.7;
IWC Wage Orders); Failure to Reimburse for Reasonable Business
Expenses (Labor Code Sec. 2802); Unlawful Deductions From Wages
(Labor Code Secs. 221, 223); Failure to Timely Pay Wages Due at
Termination (Labor Code Secs. 201, 202, 203); Failure to Provide
Accurate Wage Statements (Labor Code Sec. 226); Conversion;
Unfair Business Practices (Bus. & Prof. Code Sec. 17200 et seq.);
Declaratory Relief; Accounting; and Injunctive Relief, and (iii)
the Summons in Casillas, et al. v. The Copley Press, Inc.,
et al., Case No. 37-2010-00085012 (Calif. Super. Ct., San Diego
Cty.) (Hayes, J.), are available at:
http://www.courthousenews.com/2010/02/10/EmployUT.pdf
The Plaintiffs are represented by:
Raul Cadena, Esq.
Nicole R. Roysdon, Esq.
CADENA CHURCHILL, LLP
701 "B" St., Suite 1400
San Diego, CA 92101
Telephone: 619-546-0888
DIRECTBUY: Lawsuit Claims $5,000 Membership Fee is a Scam
---------------------------------------------------------
The Indianapolis law firm Cohen & Malad, LLP and New York firm
Milberg, LLP have filed a class action lawsuit against Indiana-
based DirectBuy for the fraudulent marketing of its "wholesale"
buying club. The case asserts that DirectBuy misleads customers
by promoting a $5,000 membership fee which entitles members to
purchase a wide array of goods at wholesale prices with no
markup, and that DirectBuy makes no profits other than from the
membership fees. In reality, DirectBuy makes a substantial
profit from product markups, exorbitant shipping and handling
fees, and tens of millions in annual rebates from manufacturers
that DirectBuy conceals from customers.
According to one of the Plaintiff's attorneys:
Irwin B. Levin, Esq.
COHEN & MALAD, LLP
One Indiana Square, Suite 1400
Indianapolis, IN 46204
Telephone: 317.636.6481
"This is the worst kind of consumer scam, plain and simple.
DirectBuy engages in high-pressure sales tactics to dupe people
into paying more than $5,000 for a membership. But instead of
getting true wholesale prices, customers pay marked-up prices,
and DirectBuy profits handsomely on the back end through rebates
and inflated shipping charges."
Cohen & Malad seeks class action status for this case and the
recovery of damages suffered by DirectBuy's customers. A jury
trial has been demanded.
Founded in 1968, Cohen & Malad -- http://www.cohenandmalad.com
-- represents clients from throughout the United States in a
variety of legal matters.
FEDERAL DEPOSIT: Still Owes Money to Universal Federal Depositors
-----------------------------------------------------------------
Bridget Freeland at Courthouse News Service reports that in a
federal class action, account holders at a failed bank say the
Federal Deposit Insurance Corp. has not fully compensated them
since the Universal Federal Bank was brought down by compulsive
gambler Adam Resnick, who ran a multimillion-dollar check-kiting
scheme. The depositors also demand Mr. Resnick's $2 million
share of the $20 million that the government collected in a
separate, qui tam health-care fraud case in which Mr. Resnick was
the relator.
The class claims Mr. Resnick's check kiting fraud cost the bank
more than $10 million, forcing the FDIC to take control of the
institution in June 2002. They want restitution of the deposits
they held at the time "in excess of $100,000."
The class claims that Mr. Resnick deposited money from an account
belonging to his employer, Navarro, Elisco and Associates, into
Universal's account at American National Bank and Trust. He was
able to withdraw and use the money immediately, with the help of
Universal's Chief Operating Officer, Antonette Navarro, the class
claims.
"Defendant Resnick and his eventual co-defendant (in a criminal
case) Antonette Navarro (head of Universal Federal) agreed that
Defendant Resnick would make deposits into Universal's account at
ANB and communicate the amounts of the deposit by telephone to
Navarro at Universal, and that Navarro would cause the total
amount reported by Defendant Resnick to be credited immediately
to NEA's account at Universal, and would make the total amount
reported by Defendant Resnick immediately available for the use
of Defendant Resnick and other signers on the NEA account," the
complaint states, citing Mr. Resnick's plea agreement.
"Defendant Resnick took advantage of this arrangement to engage
in a check kiting scheme between the NEA account at Universal and
Universal's account at ANB.
Defendant Resnick wrote Non-Sufficient Funds (NSF) checks on the
NEA account, deposited those NSF checks in Universal's
correspondent account at ANB, received immediate availability of
those funds in NEA's account at Universal, withdrew some or all
of the immediately available funds, and then covered the previous
NSF checks plus the withdrawn funds by depositing even larger
amounts of NSF checks drawn on NEA's Universal account into
Universal's correspondent account at ANB. This cycle continued
almost daily for more than six months.
"Defendant Resnick made approximately 138 fraudulent deposits
into the Universal account at ANB for the purpose of creating
fraudulently inflated balances in the NEA account at Universal,"
the complaint states. "These fraudulent deposits included more
than $200 million in NSF checks drawn on the NEA account at
Universal, and Defendant Resnick used the fraudulent balances in
the NEA account to write checks to third parties, and to pay for
wire transfers to online gambling businesses and casinos in
Hammond, Indiana and Las Vegas, Nevada."
In 2007, Mr. Resnick was sentenced to 42 months in prison and
ordered to pay $9.7 million in restitution.
The named plaintiffs in the class action, Joseph Pavlik and Donna
Smithey, want the amounts over $100,000 that they had on deposit
at Universal.
They say the FDIC has closed its receivership, "despite still
owing money to depositors, and ignoring the depositors' interest
in the corpus of the former Universal Federal, including the
unpaid restitution award."
The class claims that the FDIC declared on its "Universal
information page" that it has made all "dividend distributions
required by law," but also shows that it has not fully paid all
the depositors. It claims that any restitution Mr. Resnick pays
will go to the FDIC, rather than to the bank's depositors and
creditors.
The class claims that depositors are the FDIC's first priority by
law, and it demands enforcement. It sued the FDIC and
Mr. Resnick, and the estate of Universal Federal Bank as a
nominal defendant, since the bank no longer has a board of
directors.
A copy of the Depositors' Class Action and Verified Derivative
Action Complaint in Pavlik, et al. v. Federal Deposit Insurance
Company, et al., Case No. 10-cv-00816 (N.D. Ill.), is available
at:
http://www.courthousenews.com/2010/02/09/Resnick.pdf
The Plaintiffs are represented by:
Clinton A. Krislov, Esq.
Jeffrey M. Salas, Esq.
KRISLOV & ASSOCIATES, LTD.
20 North Wacker Drive, Suite 1350
Chicago, IL 60606
Telephone: 312-606-0500
GPC BIOTECH: S.D.N.Y. Closes Consolidated Securities Litigation
---------------------------------------------------------------
Agennix AG announced this week that the class action lawsuit
brought against its predecessor, GPC Biotech AG, in the United
States District Court for the Southern District of New York, is
now fully closed.
In March 2009, the Court issued an order dismissing the
consolidated class action complaint against GPC Biotech in the
action that was commenced in July 2007. Pursuant to that order,
the plaintiffs were given the opportunity to file a motion
seeking permission of the Court to file an amended consolidated
class action complaint. The plaintiffs subsequently filed this
motion with the Court and the Company opposed the request. On
December 29, 2009 the Court issued a decision denying the
plaintiff's request to file an amended complaint and ordered that
judgment be entered dismissing the complaint in accordance with
the Court's decision of March 12, 2009, with prejudice. The
period to file an appeal to that decision has now expired and the
case is fully closed.
In 2007, several class-action complaints were filed against GPC
and certain of its executive officers, on behalf of all persons
and entities who purchased or otherwise acquired GPC securities
between December 5, 2005, and July 24, 2007, inclusive (Class
Action Reporter, Aug. 9, 2007).
The consolidated securities cases are:
-- Robert Corwin, et al. v. Bernd R. Seizinger et al.,
Case No. 07-cv-06728 (S.D.N.Y.),
-- Istvan Temesfoi, et al. v. GPC Biotech AG, et al.,
Case No. 07-cv-07016 (S.D.N.Y.), and
-- Audrey Dang, et al. v. GPC Biotech AG, et al.,
Case No. 07-cv-07476 (S.D.N.Y.) (Chin, J.).
About Agennix
Agennix AG -- http://www.agennix.com/-- is a publicly traded
biopharmaceutical company that is developing novel therapies in
areas of major unmet medical need to improve the length and
quality of life of seriously ill patients. The Company's most
advanced program is talactoferrin, an oral targeted therapy that
is in Phase 3 clinical trials in non-small cell lung cancer.
Agennix also has recently reported positive results from a Phase
2 trial evaluating talactoferrin in severe sepsis. Other clinical
development programs include RGB-286638, a multi-targeted kinase
inhibitor in Phase 1 testing; the oral platinum-based compound
satraplatin; and a topical gel form of talactoferrin for diabetic
foot ulcers. Agennix's registered seat is in Heidelberg, Germany.
The Company has three sites of operation: Martinsried/Munich,
Germany; Princeton, New Jersey and Houston, Texas.
INNOVAGE LLC: Recalls 360,000 Discovery Kids(tm) Lamps
------------------------------------------------------
The U.S. Consumer Product Safety Commission, in cooperation with
Innovage LLC, of Foothill Ranch, Calif., announced a voluntary
recall of about 360,000 Discovery Kids(tm) Animated Marine and
Safari Lamps. Consumers should stop using recalled products
immediately unless otherwise instructed.
A defect in the lamp's printed circuit board can cause an
electrical short, posing a fire and burn hazard to consumers.
Innovage has received nine reports of incidents, including seven
reports of lamps catching fire, one involving smoke inhalation
injury to a child and three involving minor property damage.
This recall involves the Discovery Kids(tm) Animated Marine Lamp
with model number 1627121 or 1628626 and the Animated Safari Lamp
with model number 1627124 or 1628626.All models have batch
numbers beginning with "2". The decorative lamps are silver in
color and feature rotating films with marine or safari scenes.
"Discovery Kids" is printed on the front top left corner. The
batch number is an 11 digit number located on the bottom of each
unit. The model number can be found on the bottom of the
packaging. Pictures of the recalled products are available at
http://www.cpsc.gov/cpscpub/prerel/prhtml10/10135.html
The recalled lamp fixtures were manufactured in China and sold at
mass merchandisers, department, drug and hardware stores
nationwide, online and through direct sales from July 2009
through January 2010 for about $10.
Consumers should immediately stop using the lamps, and contact
Innovage for information on returning the product for a full
refund. For additional information, contact Innovage toll-free
at (888) 232-1535 between 9:00 a.m. and 5:00 p.m., Pacific Time,
Monday through Friday, visit the firm's Web site at
http://www.lamprecall.org/or e-mail info@lamprecall.org
KOHLBERG CAPITAL: Glancy Binkow Files Shareholder Suit in Calif.
----------------------------------------------------------------
Glancy Binkow & Goldberg LLP has filed a class action lawsuit in
the United States District Court for the Central District of
California on behalf of a class consisting of all persons or
entities who purchased the securities of Kohlberg Capital
Corporation (Nasdaq:KCAP) between March 16, 2009, and December
24, 2009, inclusive.
A copy of the Complaint in Lachman v. Kohlberg Capital Corp.,
Case No. 10-cv-00231 (S.D.N.Y.), is available at:
http://www.glancylaw.com/pdf/KCAP.pdf
The Complaint charges Kohlberg and certain of the Company's
executive officers and/or directors with violations of federal
securities laws. Kohlberg is an investment company which
originates, structures, finances and manages a portfolio of term
loans, mezzanine investments and selected equity securities in
middle market companies. The Complaint alleges that throughout
the Class Period defendants knew or recklessly disregarded that
their public statements concerning Kohlberg's operations and
financial performance were materially false and misleading.
Specifically, plaintiff alleges the Company reported inflated
earnings that violated Generally Accepted Accounting Principles
by failing to properly account for the fair value of its
investment portfolio under FASB Statement of Financial Accounting
Standards No. 157 - Fair Value Measurements.
On November 9, 2009, Kohlberg announced its auditor, Deloitte &
Touche LLP, raised questions concerning the Company's methodology
and process in valuing its loan portfolio under GAAP. As a result
of these questions, the Company stated it would not be able to
timely file with the SEC its third quarter results for the period
ended September 30, 2009. As a result, the Company's stock price
fell $0.56 per share, or more than 10%, to close at $4.96.
On December 15, 2009 Kohlberg announced that its financial
statements for the fiscal year ended December 31, 2008 and the
first two quarters of 2009 should no longer be relied upon, due
to issues regarding valuation of the Company's loan portfolio.
On December 24, 2009, Kohlberg filed with the Securities and
Exchange Commission a letter it received from Deloitte, in which
Deloitte disagreed with many of Kohlberg's contentions in its
recent disclosures. Deloitte stated, among other things: (a) that
management essentially ceased providing substantive information
about the Company's valuation of its loan portfolio to Deloitte
on December 14, 2009; (b) that significant unanswered and
unfulfilled information requests remain outstanding; (c) that
Kohlberg had previously provided Deloitte a revised valuation of
the Company's loan portfolio as of December 31, 2008, which
reflected a material reduction in the fair value of the Company's
loan portfolio investments as of that date, but that those
revisions had not been shown to certain Kohlberg board members as
of December 15, 2009; and (d) that Deloitte now believes the
information supporting the fair values reflected in the Company's
previously issued 2008 and interim financial statements was and
continues to be incomplete and inaccurate.
In response to this news, over the next two trading days, shares
of Kohlberg declined $0.44 per share or 8.5% per share, to close
at $4.72 on December 29, 2009.
Plaintiff seeks to recover damages on behalf of class members and
is represented by Glancy Binkow & Goldberg LLP, a law firm with
significant experience in prosecuting class actions, and
substantial expertise in actions involving corporate fraud.
If you are a member of the class described above, you may move
the Court, no later than March 1, 2010, to serve as lead
plaintiff, however, you must meet certain legal requirements. If
you wish to discuss this action or have any questions concerning
this Notice or your rights or interests with respect to these
matters, please contact:
Michael Goldberg, Esq.
Glancy Binkow & Goldberg LLP
1801 Avenue of the Stars, Suite 311
Los Angeles, CA 90067
Telephone: (310) 201-9150
The other lawyers representing the plaintiff are:
Marc I. Gross, Esq.
Jeremy Lieberman, Esq.
POMERANTZ HAUDEK GROSSMAN & GROSS LLP
100 Park Avenue, 26th floor
New York, NY 10017
Telephone: 212-661-1100
- and -
Patrick V. Dahlstrom, Esq.
POMERANTZ HAUDEK GROSSMAN & GROSS LLP
Ten South LaSalle Street, Suite 3505
Chicago, IL 60603
Telephone: 312-377-1181
- and -
Lionel Z. Glancy, Esq.
Glancy Binkow & Goldberg LLP
1801 Avenue of the Stars, Suite 311
Los Angeles, CA 90067
Telephone: (310) 201-9150
L'OREAL: Accused in Los Angeles of False Advertising
----------------------------------------------------
Courthouse News Service reports that L'Oreal falsely advertises
that its products can "Refill Wrinkles in Just One Hour!" and so
on, a class action claims in Los Angeles Superior Court.
MANHATTAN GROUP: Recalls 2,800 Pull-A-Long Friends Toys
-------------------------------------------------------
The U.S. Consumer Product Safety Commission and Health Canada, in
cooperation with Manhattan Group LLC, of Minneapolis, Minn.,
announced a voluntary recall of about 2,400 Pull-A-Long Friends
Toucan(tm), Pull-A-Long Friends Alligator(tm), and Pull-A-Long
Friends Sharky(tm) in the United States and 400 in Canda.
Consumers should stop using recalled products immediately unless
otherwise instructed.
The toy has wooden components that can break or come loose,
posing a choking and aspiration hazard to young children.
No incidents or injuries have been reported.
This recall involves three types of pull-toys: Pull-A-Long
Friends Toucan(tm) with lot code 210720GB, Pull-A-Long Friends
Alligator(tm) with lot code 210750GB, and Pull-A-Long Friends
Sharky(tm) with lot code 210530GB. The Toucan has a large yellow
and black beak and blue striped wings. The crocodile is green and
has a red ridge on its back and red wheels with yellow polka
dots. The shark has blue swirls painted on its wheels and an
orange wooden fish on the pull string. The lot code is printed on
the bottom of the toy. Pictures of the recalled products are
available at:
http://www.cpsc.gov/cpscpub/prerel/prhtml10/10138.html
The recalled toys were manufactured in Thailand and sold at gift
and specialty stores nationwide, online and through catalogs from
September 2009 through January 2010 for about $22.
Consumers should take the toys away from young children
immediately and return them to the store where purchased for a
refund or a replacement toy. For additional information, contact
Manhattan Group at (800) 541-1345 between 8:00 a.m. and 5:00
p.m., Central Time, Monday through Friday or visit the firm's Web
site at http://www.manhattantoy.com/
MIDLAND NATIONAL: 9th Cir. Again Blesses Hawaiian Seniors Class
---------------------------------------------------------------
Elizabeth Banicki at Courthouse News Service reports that
Hawaiian seniors who say they bought deceptively marketed life
insurance annuities that can sue Midland National Life Insurance
Co. as a class, the United States Court of Appeals for the Ninth
Circuit ruled, as "there is no reason to look at the
circumstances of each individual purchase."
Through independent brokers, Midland sold life insurance
annuities to Hawaiian seniors from 2001 through 2005. The
insurance company's brochures failed to disclose that the
annuities were too risky and thus unsuitable for seniors, the
investors claim.
The district court denied class certification under Hawaii law,
ruling that "each plaintiff would have to show subjective,
individualized reliance on deceptive practices within the
circumstances of each plaintiff's purchase of the annuity."
It said Hawaii state law requires a showing of individualized
reliance.
But the 9th Circuit panel in Honolulu found that the class
certification hinged on whether the alleged misrepresentations
would likely deceive a reasonable consumer, not the individual
damages. If the plaintiffs succeed under this standard, the
three-judge panel ruled, there might be an issue of individual
damages at a later point in litigation.
Judge Mary Schroeder said the district court's ruling was based
on a "misinterpretation of Hawaii law." "Hawaii's state courts
have made clear that Hawaii's consumer protection laws are
flexible and may be enforced through the class action mechanism,"
Judge Schroeder wrote.
"Because there are no individualized issues of subjective
reliance under Hawaii law," Judge Schroeder added, "we hold that
the district court erred when it denied class certification."
A copy of the decision in Yokoyama, et al. v. Midland National
Life Insurance Company, No. 07-16825 (9th Cir.), is available at:
http://ResearchArchives.com/t/s?519d
The Plaintiffs-Appellants are represented by:
James J. Bickerton, Esq.
BICKERTON LEE DANG & SULLIVAN
745 Fort St., Suite 801
Honolulu, HI 96813
Telephone: 808-599-3811
Midland National Life Insurance Company, the Defendant-Appellee,
is represented by:
Robert D. Phillips, Jr., Esq.
REED SMITH LLP
1999 Harrison St., Suite 2400
Oakland, CA 94612-3572
Telephone: 510-763-200
The Ninth Circuit withdrew its opinion dated Aug. 28, 2009, which
also said class certification is appropriate in Yokoyama v.
Midland National Life Ins. Co., Case No. 05-cv-00303 (D. Hawaii)
(Seabright, J.). The Class Action Reporter covered the Ninth
Circuit's earlier ruling on Sept. 4, 2009.
NATURE'S SUNSHINE: D. Utah Approves Final Shareholder Settlement
----------------------------------------------------------------
A federal judge in the United States District Court for the
District of Utah has issued an Order and Final Judgment approving
the settlement of a consolidated class action suit brought
against Nature's Sunshine Products, Inc., and various past and
present directors and officers, alleging violations of the
federal securities laws. Information regarding the proposed
settlement terms of the lawsuit, which are now final, can be
found in the Company's Form 10-Q for the quarter ended September
30, 2009, which was filed with the U.S. Securities and Exchange
Commission.
The Court's order dismisses Hyman v. Nature's Sunshine Products
et al., Case No. 06-cv-00267 (D. Utah) (Stewart, J.), with
prejudice. The settlement also includes a release of all claims
held by the class members. All payments due under the terms of
the settlement have been funded by the Company's insurer.
"We are pleased that this matter is now behind us, and that we
can focus more completely on growing our Company and enhancing
shareholder value," said Douglas Faggioli, President and CEO of
Nature's Sunshine. "Through nearly four decades, our Company has
developed into a leading provider of quality vitamins, herbs and
supplements, with a distribution force of well over 600,000
people in more than 30 countries. We are proud of our record, our
ability to serve our distributors and sales managers, as well as
their customers, and the esteem with which our Company is
regarded."
About Nature's Sunshine Products
Nature's Sunshine Products -- http://www.natr.com/--
manufactures and markets through direct sales encapsulated and
tableted herbal products, high quality natural vitamins, and
other complementary products. In addition to the United States,
the Company has operations in Japan, Mexico, Central America,
South Korea, Canada, Dominican Republic, Venezuela, Ecuador,
Peru, the United Kingdom, Columbia, Brazil, Thailand, Israel,
Singapore, Malaysia, Indonesia, the Philippines, Australia, Hong
Kong, Taiwan, Russia, Ukraine, Latvia, Lithuania, Kazakhstan,
Mongolia, Belarus, China, Poland, Germany, Austria, Norway,
Sweden, the Czech Republic and the Netherlands. The Company also
has exclusive distribution agreements with selected companies in
Argentina, Australia, Chile, New Zealand, and Norway.
NCAA: Loses Bid to Dismiss Ed O'Bannon's Class Action Lawsuit
-------------------------------------------------------------
Paula Duffy at The Examiner reports that the NCAA lost its fight
to dismiss a class action lawsuit headed by former UCLA
basketball star Ed O'Bannon. It will require the organization to
open its books and records related to certain of its commercial
enterprises, according to the Associated Press.
O'Bannon v. National Collegiate Athletic Association, Case No.
09-cv-03329 (N.D. Calif.) (Wilken, J.), was brought in July 2009
as a result of the use by the NCAA of its former student
athletes' names, faces and images for profit and gain in
merchandising and broadcast deals such as DVD's video games and
memorabilia . . . forever.
It's the part about forever that is the major issue in O'Bannon's
complaint. He is now 37 and a salesman in Nevada but 15 years
ago he starred on the UCLA basketball team that won the national
title.
Rather than try to win the right of players currently in school
to receive compensation, his suit wisely limited its case to
graduates. It demands that the NCAA either cease making money by
using graduates in its licensing deals or pay them.
It will be up to a court or an agreed upon settlement to
determine if Mr. O'Bannon's claim wins the day, but right now the
NCAA has to face the daunting task of providing massive amounts
of what it considers sensitive financial information related to
its commercial enterprises.
According to reports of the court decision, Mr. O'Bannon saw a
friend playing a video game that featured the 1995 championship
team and he was faced with the question about why he wasn't
getting a cut of the considerable revenue that the NCAA earns
from that
The NCAA claims it has permission based on the agreement of the
athletes when they accept scholarship money to attend college.
Guess who's advice was sought by Mr. O'Bannon, Ms. Duffy asks?
That thorn in the side of the NCAA, one Sonny Vaccaro. Ms.
Duffy explains that Mr. Vaccaro was helpful to the family of
Brandon Jennings when the high school grad skipped college in the
U.S. and found work in Italy for a year prior to entering the NBA
draft.
Mr. Vaccaro, who hates the NBA's age restriction, also detests
the profit made off the use of student athletes in the NCAA's
billion dollar commercial ventures. According to the AP, it was
Mr. Vaccaro who got Mr. O'Bannon to the law firm that is the lead
on the case.
Talk about being humbled, well the NCAA just got a dose of that
and in a big way, Ms. Duffy says.
PLAYBOY: Minority Shareholders Want Hefner to Take Buy-Out Offers
-----------------------------------------------------------------
Robert Kahn at Courthouse News Service reports that a man who
owns 177,000 shares of Playboy stock filed a class action
accusing Hugh Hefner of rejecting two good offers for the company
because of "Hefner's insistence of maintaining the lifestyle to
which he has grown accustomed." Mr. Hefner is majority
shareholder in Playboy, and rebuffed the offers though they were
made "at a significant premium as Playboy's stock price continues
to deteriorate," according to the complaint in Los Angeles
Superior Court.
Lead plaintiff David Brown says he owns 47,000 shares of Playboy
Class A stock and 130,000 share of Class B stock. Mr. Hefner
owns nearly 70 percent of the Class A shares, which are the only
ones with voting rights, and nearly 30 percent of the Class B
shares, Brown says. He claims Mr. Hefner breached his "duties of
care, loyalty and good faith to Playboy's minority shareholders .
. . by placing his personal interests above and ahead of the
interests of the other shareholders and to their detriment."
The class claims that "within the last six months Hefner has
scuttled two attempts by potential suitors, Iconix Brand
Management and Golden Gate Capital to acquire all or parts of
Playboy at a significant premium as Playboy's stock price
continues to deteriorate."
Then follows a sentence that, ironically or not, quotes a common
statement used in divorce and alimony proceedings: "According to
published reports, one of the main reasons why these deals failed
was Hefner's insistence on maintaining the lifestyle to which he
has grown accustomed."
Playboy shares sold as high as $36 "in its 1999 heyday," but have
fallen from around $10 in early 2008 to "as low as $1.06,"
according to the complaint. It adds that Playboy lost $156
million in 2008, and another $23.5 million in the first 9 months
of 2009.
Mr. Brown claims that suitors, so to speak, have offered more
than $300 million -- "three times the company's market
capitalization" at its "beaten down" stock price -- but Mr.
Hefner, 81, rejected them.
Citing a panoply of media reports, the complaint claims, among
other things, that Mr. Hefner complicated the negotiations by
insisting that he can live at the Playboy Mansion until he dies,
and that he continue to play some role in the company.
Mr. Brown demands punitive damages.
The Plaintiff is represented by:
Jordan Lurie, Esq.
WEISS & LURIE
The Fred French Building
551 Fifth Ave., Suite 1600
New York, NY 10176
Telephone: 212-682-3025
THIN CARE: Accused in Los Angeles of False Advertising
------------------------------------------------------
Courthouse News Service reports that a Superior Court class
action in Los Angeles claims that fitness instructor Jillian
Michaels "decided to squander her fame by lending her name to a
worthless dietary supplement called 'Jillian Michaels Maximum
Strength Calorie Control.'" The class claims Ms. Michaels, of
"The Biggest Loser" TV show fame, "sadly . . . decided to exploit
her fame and goodwill by collaborating with" co-defendants Thin
Care International and Basic Research.
Named plaintiff Christie Christensen accuses the three defendants
of false advertising, unfair competition and consumer law
violations.
"Defendant Jillian Michaels developed a reputation as a credible
fitness instructor by emphasizing that weight loss requires hard
work and discipline," the complaint states.
"Regrettably, however, she has decided to squander her fame by
lending her name to a worthless dietary supplement called
'Jillian Michaels Maximum Strength Calorie Control.' Contrary to
everything that Ms. Michaels has ever instructed, she and the
companies peddling this product suggest it makes weight loss
effortless, falsely claiming, 'Take Two Capsules Before Main
Meals And You Lose Weight. That's It.'
"Ms. Michaels knows better -- taking two pills before eating does
not miraculously cause weight loss. Plaintiff brings this
lawsuit to enjoin these ongoing deceptions."
Thin Care and Basic Research are both based in Utah.
Ms. Christensen says Ms. Michaels "has been most prominently
associated with the 'Biggest Loser' reality TV show, which
features morbidly obese contestants and depicts their efforts,
under Michaels's supervision, to lost substantial amounts of
weight."
"Sadly, Michaels has decided to exploit her fame and goodwill by
collaborating with Thin Care and Basic Research," the complaint
states.
The class seeks an injunction and more than $5 million in
damages.
The Plaintiff is represented by:
Melissa Harnett, Esq.
WASSERMAN, COMDEN & CASSELMAN LLP
5567 Reseda Blvd., Suite 330
P.O. Box 7033
Tarzana, CA 91357
Telephone: 818-705-6800
TINY LOVE: Recalls 800,000 Wind Chime Toys
------------------------------------------
The U.S. Consumer Product Safety Commission and Health Canada, in
cooperation with Tiny Love Inc., of New York, N.Y. and the Maya
Group Inc., of Huntington Beach, Calif., announced a voluntary
recall of approximately 600,000 Wind Chime Toys in the United
States and 200,000 in Canada. Consumers should stop using
recalled products immediately unless otherwise instructed.
The wind chime toy can be pulled apart exposing sharp metal rods,
posing puncture and laceration hazards to the baby.
The firm has received five reports of babies pulling apart the
wind chimes exposing the sharp metal rods, including a report of
a minor injury to a 24-month-old baby who punctured his cheek
with the rods.
This recall involves wind chime toys sold separately, with the
Gymini Kick & Play Activity Gym and Tiny Smarts Gift Sets. The
toy produces the sound of a wind chime. "Tiny Love" is printed on
a tag on the toy. These product names and item numbers are
included in this recall:
Name / Item Number
Baby Wind Chime / # 493
Baby Wind Chime - Ocean / # 593
Tiny Smarts - Baby Bunny / # 512
Wind Chime - Duck (*The Wind Chime - Duck is sold with the Gymini
Kick and Play Activity Gym. Only the Wind Chime is affected by
this Recall.) / # 811
Wind Chime - Louie / # 516
Wind Chime - Ella / # 517
Tiny Smarts Gift Set (*Bunny Wind Chime is the only product
affected by this Recall.) / # 539
Pictures of the recalled products are available at:
http://www.cpsc.gov/cpscpub/prerel/prhtml10/10136.html
Wind chimes sold with other Tiny Love Activity Gyms are not
included in this recall.
The recalled products were manufactured in China and sold at Toys
R Us, Walmart, Target, Buy Buy Baby and TJ Maxx stores nationwide
from February 2002 through February 2010 for about $8 separately,
$22 for the Tiny Smarts Gift Sets and $70 with the Gymini Kick &
Play Activity Gym.
Consumers should immediately take the recalled wind chimes from
babies and contact Tiny Love to receive a free replacement toy.
For additional information, contact Tiny Love toll-free at (888)
791-8166 between 8:00 a.m. and 5:00 p.m., Eastern Time, Monday
through Friday, or visit the firm's Web site at
http://www.tinylove.com/
UNITED HEALTH: Owes Technology Consultants $13 Mil., Suit Says
--------------------------------------------------------------
Courthouse News Service reports that United Health Care Services
owes technology consultants $13 million, according to a class
action in Hennepin County Court, Minneapolis.
A copy of the Complaint in New Millennium Consulting Inc., et al.
v. United Healthcare Services, Inc., Case No. ________ (Minn.
Dist. Ct., Hennepin Cty.), is available at:
http://www.courthousenews.com/2010/02/09/Contracts.pdf
The Plaintiffs are represented by:
Wood R. Foster, Jr., Esq.
Brian E. Weisberg, Esq.
Steven J. Weintraut, Esq.
SIEGEL, BRILL, GREUPNER, DUFFY & FOSTER, P.A.
1300 Washington Square
100 Washington Ave. S
Minneapolis, MN 55401
Telephone: 612-337-6100
WALMART.COM: Accused of Conspiring with Rival in Calif. Suit
------------------------------------------------------------
Courthouse News Service reports that Walmart.com and Netflix
conspired to divvy up the market and fix prices for online movie
DVD rentals and sales, according to an antitrust class action in
San Francisco Federal Court.
A copy of the Complaint in Nobles v. Walmart.com USA LLC, et al.,
Case No. 10-cv-00529 (N.D. Calif.), is available at:
http://www.courthousenews.com/2010/02/10/Antitrust.pdf
The Plaintiff is represented by:
Reginald Terrell, Esq.
THE TERRELL LAW GROUP
P.O. Box 13315
Oakland, CA 94661
Telephone: 510-237-9700
- and -
Donald Amamgbo, Esq.
AMAMGBO & ASSOCIATES
7901 Oakport St., Suite 4900
Oakland, CA 94621
Telephone: 510-615-6000
Asbestos Litigation
ASBESTOS ALERT: Rentech Has $210T Conditional Asset at Dec. 31
--------------------------------------------------------------
Rentech, Inc. recorded US$210,000 as a conditional asset for
asbestos removal on property plant and equipment as of both Dec.
31, 2009 and Sept. 30, 2009.
The Company recorded US$27,000 as a conditional asset for
asbestos removal on construction in progress as of both Dec. 31,
2009 and Sept. 30, 2009.
The Company has a legal obligation to handle and dispose of
asbestos at its plant at East Dubuque, Ill., and at its proposed
project near Natchez, Miss., in a special manner when undergoing
major or minor renovations or when buildings at these locations
are demolished, even though the timing and method of settlement
are conditional on future events that may or may not be in its
control. As a result, the Company has a conditional obligation
for this disposal.
In addition, the Company through its normal repair and
maintenance program may encounter situations where it is required
to remove asbestos in order to complete other work. The Company
applied the expected present value technique to calculate the
fair value of the asset retirement obligation for each property
and, accordingly, the asset and related obligation for each
property has been recorded.
In accordance with the applicable guidance, the liability is
increased over time and such increase is recorded as accretion
expense. At Dec. 31, 2009, the liability was US$245,000 and
accretion expense was US$8,000.
COMPANY PROFILE:
Rentech, Inc.
10877 Wilshire Boulevard
Suite 710
Los Angeles 90024
Tel. No.: (310) 571-9800
Description:
Rentech, Inc. provides clean energy solutions. The Company was
incorporated in 1981.
ASBESTOS UPDATE: RBS Global's Stearns Division Faces 3.5T Claims
----------------------------------------------------------------
Multiple lawsuits (with about 3,500 claimants) are pending in
state or federal court in numerous jurisdictions relating to
alleged personal injuries due to the alleged presence of asbestos
in certain brakes and clutches previously manufactured by RBS
Global, Inc.'s Stearns division and/or its predecessor owners.
Invensys plc and FMC, prior owners of the Stearns business, have
paid 100 percent of the costs to date related to the Stearns
lawsuits, according to the Company's quarterly report filed on
Feb. 4, 2010 with the U.S. Securities and Exchange Commission.
Headquartered in Milwaukee, Wis., RBS Global, Inc. is a
diversified, multi-platform industrial company comprised of two
key segments, Power Transmission and Water Management.
ASBESTOS UPDATE: RBS Global's Prager Unit Faces 2 Injury Actions
----------------------------------------------------------------
RBS Global, Inc.'s Prager subsidiary is a defendant in two
pending multi-defendant lawsuits relating to alleged personal
injuries due to the alleged presence of asbestos in a product
allegedly manufactured by Prager.
Additionally, there are about 3,700 individuals who have filed
asbestos related claims against Prager. However, these claims are
currently on the Texas Multi-district Litigation inactive docket.
To date, the Company's insurance providers have paid 100 percent
of the costs related to the Prager asbestos matters, according to
the Company's quarterly report filed on Feb. 4, 2010 with the
U.S. Securities and Exchange Commission.
Headquartered in Milwaukee, Wis., RBS Global, Inc. is a
diversified, multi-platform industrial company comprised of two
key segments, Power Transmission and Water Management.
ASBESTOS UPDATE: RBS Global's Falk Unit Facing 190 Injury Suits
---------------------------------------------------------------
RBS Global, Inc.'s subsidiary, Falk (through its successor
entity) is a defendant in about 190 lawsuits pending in state or
federal courts in numerous jurisdictions relating to alleged
personal injuries due to the alleged presence of asbestos in
certain clutches and drives previously manufactured by Falk.
There are about 700 claimants in these suits, according to the
Company's quarterly report filed on Feb. 4, 2010 with the U.S.
Securities and Exchange Commission.
Hamilton Sundstrand is defending the Company in these lawsuits
under its indemnity obligations and has paid 100 percent of the
costs to date.
Headquartered in Milwaukee, Wis., RBS Global, Inc. is a
diversified, multi-platform industrial company comprised of two
key segments, Power Transmission and Water Management.
ASBESTOS UPDATE: Zurn Facing 6,100 Exposure Lawsuits at Dec. 26
---------------------------------------------------------------
RBS Global, Inc.'s Zurn division and an average of about 100
other unrelated companies, as of Dec. 26, 2009, were defendants
in about 6,100 asbestos related lawsuits representing about
28,400 claims.
The suits allege damages in an aggregate amount of US$14.7
billion against all defendants, according to the Company's
quarterly report filed on Feb. 4, 2010 with the U.S. Securities
and Exchange Commission.
Plaintiffs' claims allege personal injuries caused by exposure to
asbestos used primarily in industrial boilers formerly
manufactured by a segment of Zurn. Zurn did not manufacture
asbestos or asbestos components. Instead, Zurn purchased them
from suppliers. These claims are being handled under a defense
strategy funded by insurers.
As of Dec. 26, 2009, the Company estimates the potential
liability for asbestos-related claims pending against Zurn as
well as the claims expected to be filed in the next 10 years to
be about US$90 million of which Zurn expects to pay US$79 million
in the next 10 years on such claims, with the balance of the
estimated liability being paid in subsequent years.
Management estimates that its available insurance to cover its
potential asbestos liability as of Dec. 26, 2009, is about US$270
million, and believes that all current claims are covered by this
insurance.
However, principally as a result of the past insolvency of
certain of the Company's insurance carriers, certain coverage
gaps will exist if and after the Company's other carriers have
paid the first US$194 million of aggregate liabilities.
In order for the next US$51 million of insurance coverage from
solvent carriers to apply, management estimates that it would
need to satisfy US$14 million of asbestos claims. Layered within
the final US$25 million of the total US$270 million of coverage,
management estimates that it would need to satisfy an additional
US$80 million of asbestos claims.
As of Dec. 26, 2009, the Company recorded a receivable from its
insurance carriers of US$90 million, which corresponds to the
amount of its potential asbestos liability that is covered by
available insurance and is currently determined to be probable of
recovery.
However, there is no assurance that US$270 million of insurance
coverage will ultimately be available or that Zurn's asbestos
liabilities will not ultimately exceed US$270 million.
Headquartered in Milwaukee, Wis., RBS Global, Inc. is a
diversified, multi-platform industrial company comprised of two
key segments, Power Transmission and Water Management.
ASBESTOS UPDATE: GenCorp Facing 134 Pending Lawsuits at Nov. 30
---------------------------------------------------------------
GenCorp Inc., as of Nov. 30, 2009, faced 134 asbestos cases
pending (157 cases as of 2008), according to the Company's annual
report filed on Feb. 4, 2010 with the U.S. Securities and
Exchange Commission.
The Company has been, and continues to be, named as a defendant
in lawsuits alleging personal injury or death due to exposure to
asbestos in building materials, products, or in manufacturing
operations. Most of the cases have been filed in Madison County,
Ill., and San Francisco.
During the year ended 2009, the Company recorded 27 claims filed,
23 claims consolidated, 25 claims dismissed, and two claims
settled. The aggregate settlement costs were US$35,000 and the
average settlement costs were US$17,000.
During the year ended 2008, the Company recorded 33 claims filed,
31 claims dismissed, and five claims settled. The aggregate
settlement costs were US$246,000 and the average settlement costs
were US$49,000.
Legal and administrative fees for the asbestos cases were
US$400,000 for fiscal year 2009 and US$500,000 for fiscal year
2008.
Headquartered in Rancho Cordova, Calif., GenCorp Inc. is a
manufacturer of aerospace and defense systems with a real estate
segment that includes activities related to the entitlement,
sale, and leasing of its excess real estate assets. The Company's
continuing operations are organized into two segments: Aerospace
and Defense and Real Estate.
ASBESTOS UPDATE: 571 Claims Pending v. Todd Shipyards at Dec. 27
----------------------------------------------------------------
Todd Shipyards is currently defending against 571 asbestos
claims, of which 10 are "malignant" claims and 561 are "non-
malignant" claims, according to the Company's quarterly report
filed on Feb. 4, 2010 with the U.S. Securities and Exchange
Commission.
The Company is named as a defendant in civil actions by parties
alleging damages from past exposure to toxic substances,
generally asbestos, at closed former facilities.
The cases generally include as defendants, in addition to the
Company, other ship builders and repairers, ship owners, asbestos
manufacturers, distributors and installers, and equipment
manufacturers and arise from injuries or illnesses allegedly
caused by exposure to asbestos or other toxic substances.
As of Dec. 27, 2009, the Company has recorded a bodily injury
liability reserve of US$4.9 million and a bodily injury insurance
receivable of US$3.7 million. This compares to a previously
recorded bodily injury reserve and insurance receivable of US$5
million and US$3.8 million, respectively, at March 29, 2009.
Headquartered in Seattle, Todd Shipyards Corporation, through
subsidiary Todd Pacific Shipyards, repairs, maintains, overhauls,
and builds government-owned and commercial vessels. Services
range from minor repairs to major overhauls in dry dock at the
Company's Seattle-area shipyard.
ASBESTOS UPDATE: Union Pacific's Liability at $174Mil in Dec. 31
----------------------------------------------------------------
Union Pacific Corporation's total asbestos liability amounted to
US$174 million at Dec. 31, 2009, compared with US$213 million at
Dec. 31, 2008, according to the Company's annual report filed on
Feb. 5, 2010 with the U.S. Securities and Exchange Commission.
The Company's asbestos liability was US$205 million during the
nine months ended Sept. 30, 2009, compared with US$256 million
during the nine months ended Sept. 30, 2008. (Class Action
Reporter, Oct. 30, 2009)
The current portion of the Company's asbestos liability was US$13
million at Dec. 31, 2009, compared with US$12 million at Dec. 31,
2008.
During the year ended Dec. 31, 2009, the Company recorded
asbestos credits of US$25 million and asbestos payments of US$14
million. During the year ended Dec. 31, 2008, the Company
recorded asbestos credits of US$42 million and asbestos payments
of US$10 million.
About 21 percent of the recorded liability related to asserted
claims and about 79 percent related to unasserted claims at Dec.
31, 2009.
It is reasonably possible that future costs to settle these
claims may range from about US$174 million to US$189 million. In
conjunction with the liability update performed in 2009, the
Company also reassessed estimated insurance recoveries. It has
recognized an asset for estimated insurance recoveries at Dec.
31, 2009 and Dec. 31, 2008.
During the year ended Dec. 31, 2009, the Company recorded 249 new
claims, 446 settled or dismissed claims, and 1,670 open claims.
During the year ended Dec. 31, 2008, the Company recorded 256 new
claims, 475 settled or dismissed claims, and 1,867 open claims.
Headquartered in Omaha, Nebr., Union Pacific Corporation's
subsidiary, Union Pacific Railroad Company, connects 23 states in
the western two-thirds of the United States. Union Pacific
Railroad Company's business mix includes Agricultural Products,
Automotive, Chemicals, Energy, Industrial Products and
Intermodal.
ASBESTOS UPDATE: ArvinMeritor Liability Still at $61M at Dec. 31
----------------------------------------------------------------
ArvinMeritor, Inc.'s long-term asbestos liabilities amounted to
US$61 million as of both Dec. 31, 2009 and Sept. 30, 2009,
according to the Company's quarterly report filed on Feb. 5, 2010
with the U.S. Securities and Exchange Commission.
The Company's current asbestos-related liabilities amounted to
US$16 million as of both Dec. 31, 2009 and Sept. 30, 2009.
Long-term asbestos-related recoveries were US$47 million as of
both Dec. 31, 2009 and Sept. 30, 2009. Current asbestos-related
recoveries amounted to US$8 million as of both Dec. 31, 2009 and
Sept. 30, 2009.
Headquartered in Troy, Mich., ArvinMeritor, Inc. supplies
integrated systems, modules and components to original equipment
manufacturers (OEMs) and the aftermarket for the commercial
vehicle, transportation and industrial sectors. The Company
serves commercial truck, trailer, off-highway, military, bus and
coach and other industrial OEMs and certain aftermarkets, and
light vehicle OEMs.
ASBESTOS UPDATE: Maremont Still Facing 26,000 Claims at Dec. 31
---------------------------------------------------------------
ArvinMeritor, Inc.'s subsidiary, Maremont Corporation, faced
about 26,000 pending asbestos-related claims as of both Dec. 31,
2009 and Sept. 30, 2009, according to the Company's quarterly
report filed on Feb. 5, 2010 with the U.S. Securities and
Exchange Commission.
Maremont manufactured friction products containing asbestos from
1953 through 1977, when it sold its friction product business.
Arvin Industries, Inc., a predecessor of the Company, acquired
Maremont in 1986.
Maremont and many other companies are defendants in suits brought
by individuals claiming personal injuries as a result of exposure
to asbestos-containing products. Although Maremont has been named
in these cases, in the cases where actual injury has been
alleged, very few claimants have established that a Maremont
product caused their injuries.
Maremont's asbestos-related reserves for pending and future
claims amounted to US$61 million as of both Dec. 31, 2009 and
Sept. 30, 2009. Maremont's asbestos-related insurance recoveries
amounted to US$43 million as of both Dec. 31, 2009 and Sept. 30,
2009.
Headquartered in Troy, Mich., ArvinMeritor, Inc. supplies
integrated systems, modules and components to original equipment
manufacturers (OEMs) and the aftermarket for the commercial
vehicle, transportation and industrial sectors. The Company
serves commercial truck, trailer, off-highway, military, bus and
coach and other industrial OEMs and certain aftermarkets, and
light vehicle OEMs.
ASBESTOS UPDATE: ArvinMeritor Still Has $16M Rockwell Liability
---------------------------------------------------------------
ArvinMeritor, Inc. recorded a US$16 million liability for defense
and indemnity costs associated with Rockwell Automation, Inc.
asbestos claims at both Dec. 31, 2009 and Sept. 30, 2009,
according to the Company's quarterly report filed on Feb. 5, 2010
with the U.S. Securities and Exchange Commission.
The Company, along with many other companies, has been named as a
defendant in lawsuits alleging personal injury as a result of
exposure to asbestos used in certain components of Rockwell
products many years ago. Liability for these claims was
transferred to the Company at the time of the spin-off of the
automotive business to Meritor from Rockwell in 1997.
Currently there are thousands of claimants in lawsuits that name
the Company, together with many other companies, as defendants.
The Company has recorded an insurance receivable related to
Rockwell legacy asbestos-related liabilities of US$12 million at
both Dec. 31 2009 and Sept. 30, 2009.
Headquartered in Troy, Mich., ArvinMeritor, Inc. supplies
integrated systems, modules and components to original equipment
manufacturers (OEMs) and the aftermarket for the commercial
vehicle, transportation and industrial sectors. The Company
serves commercial truck, trailer, off-highway, military, bus and
coach and other industrial OEMs and certain aftermarkets, and
light vehicle OEMs.
ASBESTOS UPDATE: Magnetek Continues to Face Liability Lawsuits
--------------------------------------------------------------
Magnetek, Inc. continues to be named, along with multiple other
defendants, in asbestos-related lawsuits associated with business
operations previously acquired by the Company, but which are no
longer owned, according to the Company's quarterly report filed
on Feb. 5, 2010 with the U.S. Securities and Exchange Commission.
During the Company's ownership, none of the businesses produced
or sold asbestos-containing products. With respect to these
claims, the Company is either contractually indemnified against
liability for asbestos-related claims or believes that it has no
liability for such claims.
The Company seeks dismissal from these proceedings, and has also
tendered the defense of these cases to the insurers for the
companies from which the Company acquired the businesses.
Headquartered in Menomonee Falls, Wis., Magnetek, Inc. provides
digital power control systems that are used to control motion and
power primarily in material handling, elevator and energy
delivery applications. Its products consist of programmable
motion control and power conditioning systems used on the
following applications: overhead cranes and hoists; elevators;
coal mining equipment; and renewable energy.
ASBESTOS UPDATE: Generation Still Has $49Mil Reserves at Dec. 31
----------------------------------------------------------------
Exelon Corporation's subsidiary, Exelon Generation Company, LLC,
at both Dec. 31, 2009 and Sept. 30, 2009, reserved about US$49
million in total for asbestos-related bodily injury claims,
according to the Company's annual report filed on Feb. 5, 2010
with the U.S. Securities and Exchange Commission.
At Dec. 31, 2008, Generation had reserved about US$52 million in
total for asbestos-related bodily injury claims.
As of Dec. 31, 2009, about US$13 million of this amount related
to 147 open claims presented to Generation, while the remaining
US$36 million of the reserve is for estimated future asbestos-
related bodily injury claims anticipated to arise through 2050
based on actuarial assumptions and analysis, which are updated on
an annual basis.
Headquartered in Chicago, Exelon Corporation is a utility
services holding company that operates through its principal
subsidiaries: Exelon Generation Company, LLC, Commonwealth Edison
Company, and PECO Energy Company.
ASBESTOS UPDATE: Adaway Case v. Chevron Filed on Feb. 1 in Texas
----------------------------------------------------------------
An asbestos lawsuit was filed, on behalf of Eugene Adaway, on
Feb. 1, 2010 against Chevron Corporation in Jefferson County
District Court, Tex., The Southeast Texas Record reports.
Mr. Adaway's widow, Shirley Adaway, and their children, Shirley
Corbello and Gene Adaway, claim Mr. Adaway worked for Gulf Oil
Corp. as a pipefitter helper, insulator trainee and instrument
mechanic at its Port Arthur, Tex., facility where he was
allegedly exposed to asbestos dust and fibers.
As a result of his inhalation of the fibers, Mr. Adaway died "a
painful and terrible death" from lung cancer on Oct. 1, 2009,
according to according to the complaint.
The Adaway family seeks exemplary and punitive damages, plus
interest, costs and other relief the court deems just.
J. Keith Hyde, Esq., of Provost and Umphrey Law Firm in Beaumont,
Tex., will represent the Adaway family.
Case No. A185-843 has been assigned to Judge Bob Wortham, 58th
District Court.
ASBESTOS UPDATE: Burgess' Widow Launches Claim for Compensation
---------------------------------------------------------------
Roger Burgess' widow, Jackie Burgess, launched a search for her
late husband's former work colleagues as a first step in her
fight for asbestos compensation, the Express & Star reports.
The 54-year-old Mrs. Burgess believes these colleagues may be
able to shed more light on how Mr. Burgess came into contact with
asbestos.
An inquest last August 2009 recorded a verdict of industrial
disease.
Mr. Burgess is believed to have been exposed to asbestos at the
former Round Oak Steelworks in Brierley Hill, England, from 1968
to 1981. Hundreds of workers lost their jobs after the site was
shut down and has now been transformed into the Merry Hill
shopping center.
Mr Burgess was diagnosed with mesothelioma in September 2008. He
died at the age of 58 on Jan. 22, 2009.
Iain Shoolbred, from the Birmingham office of law firm Irwin
Mitchell, represents the family in their claim.
ASBESTOS UPDATE: Fontenot Claim v. Chevron Filed Feb. 1 in Texas
----------------------------------------------------------------
An asbestos lawsuit, on behalf of Shelton J. Fontenot, was filed
on Feb. 1, 2010 in Jefferson County District Court, Tex., against
Chevron Corporation, The Southeast Texas Record reports.
The suit was filed by Mr. Fontenot's wife, Julia Fontenot, and
their children: Adam Fontenot, Elbert Fontenot, Shelton Fontenot
Jr., Kenneth Fontenot, Deborah Reed and Regineld Fontenot.
The Fontenots claim Mr. Fontenot worked for Gulf Oil Corporation
as a pipefitter helper, insulator trainee and instrument mechanic
at its Port Arthur, Tex., facility where he was exposed to
asbestos dust and fibers.
As a result of his inhalation of the fibers, Mr. Fontenot died "a
painful and terrible death" from pulmonary asbestosis and lung
cancer on June 29, 2009, according to the complaint.
The Fontenots seek exemplary and punitive damages, plus interest,
costs and other relief the court deems just. J. Keith Hyde, Esq.,
of Provost and Umphrey Law Firm in Beaumont, Tex., will be
representing them.
Case No. E185-842 has been assigned to Judge Donald Floyd, 172nd
District Court.
ASBESTOS UPDATE: 92T Open Claims Pending v. Ashland at Dec. 31
--------------------------------------------------------------
About 92,000 open asbestos claims were pending against Ashland
Inc. during the three months ended Dec. 31, 2009, compared with
109,000 open claims during the three months ended Dec. 31, 2008,
according to the Company's quarterly report filed on Feb. 5, 2010
with the U.S. Securities and Exchange Commission.
The claims, which allege personal injury caused by exposure to
asbestos asserted against the Company, result primarily from
indemnification obligations undertaken in 1990 in connection with
the sale of Riley, a former subsidiary.
During the three months ended Dec. 31, 2009, the Company recorded
1,000 new claims filed, 1,000 claims settled, and 8,000 claims
dismissed. During the three months ended Dec. 31, 2008, the
Company recorded 1,000 new claims filed, 1,000 claims settled,
and 6,000 claims dismissed.
During the year ended Sept. 30, 2009, the Company recorded 2,000
new claims filed, 1,000 claims settled, 16,000 claims dismissed,
and 100,000 open claims.
The Company's asbestos reserve amounted to US$531 million during
the three months ended Dec. 31, 2009, compared with US$560
million during the three months ended Dec. 31, 2008. The
Company's asbestos reserve during the year ended Sept. 30, 2009
amounted to US$543 million.
At Dec. 31, 2009, the Company's receivable for recoveries of
litigation defense and claim settlement costs from insurers
amounted to US$418 million (excluding the Hercules receivable for
asbestos claims), of which US$58 million relates to costs
previously paid.
Receivables from insurers amounted to US$422 million at Sept. 30,
2009 and US$442 million at Dec. 31, 2008.
Headquartered in Covington, Ky., Ashland Inc. provides specialty
chemical products, services and solutions for many of the world's
most essential industries. It operates through five commercial
units: Ashland Aqualon Functional Ingredients, Ashland Hercules
Water Technologies, Ashland Performance Materials, Ashland
Consumer Markets (Valvoline) and Ashland Distribution.
ASBESTOS UPDATE: 21T Claims Pending Against Hercules at Dec. 31
---------------------------------------------------------------
Ashland Inc.'s Hercules subsidiary faced 21,000 open asbestos-
related claims during the three months ended Dec. 31, 2009 and
year ended Sept. 30, 2009, according to the Company's quarterly
report filed on Feb. 5, 2010 with the U.S. Securities and
Exchange Commission.
Hercules has liabilities from claims alleging personal injury
caused by exposure to asbestos. Those claims typically arise from
alleged exposure to asbestos fibers from resin encapsulated pipe
and tank products which were sold by one of Hercules' former
subsidiaries to a limited industrial market.
During the year ended Sept. 30, 2009, Hercules noted 1,000 new
claims and 7,000 claims dismissed.
Hercules' asbestos reserve amounted to US$447 million during the
three months ended Dec. 31, 2009, compared with US$335 million
during the three months ended Dec. 31, 2008. Hercules' asbestos
reserve amounted to US$484 million during the year ended Sept.
30, 2009.
In November 2008, the Company completed its acquisition of
Hercules Incorporated. At that time, Hercules' recorded reserve
for asbestos claims was US$233 million for indemnity costs.
Headquartered in Covington, Ky., Ashland Inc. provides specialty
chemical products, services and solutions for many of the world's
most essential industries. It operates through five commercial
units: Ashland Aqualon Functional Ingredients, Ashland Hercules
Water Technologies, Ashland Performance Materials, Ashland
Consumer Markets (Valvoline) and Ashland Distribution.
ASBESTOS UPDATE: Precision Castparts Still Named in Injury Cases
----------------------------------------------------------------
Precision Castparts Corp. continues to be a defendant in lawsuits
alleging personal injury as a result of exposure to chemicals and
substances in the workplace, including asbestos.
To date, the Company has been dismissed from a number of these
suits and has settled a number of others, according to the
Company's quarterly report filed on Feb. 5, 2010 with the U.S.
Securities and Exchange Commission.
Headquartered in Portland, Ore., Precision Castparts Corp.
manufactures complex metal components and products, provides
high-quality investment castings, forgings and fasteners/fastener
systems for critical aerospace and industrial gas turbine (IGT)
applications.
ASBESTOS UPDATE: Hartford Cites $1.892B Net Liability at Dec. 31
----------------------------------------------------------------
The Hartford Financial Group, Inc.'s net asbestos-related
liability amounted to US$1.892 billion for three months and year
ended Dec. 31, 2009, according to a Company report, on Form 8-K,
filed on Feb. 8, 2010 with the U.S. Securities and Exchange
Commission.
The Company's net asbestos liability was US$1.940 billion for the
three and nine months ended Sept. 30, 2009. (Class Action
Reporter, Nov. 20, 2009)
Paid losses and loss adjustment expenses were US$48 million for
the three months ended Dec. 31, 2009. Paid losses and LAE were
US$181 million and incurred losses and LAE were US$189 million
for the year ended Dec. 31, 2009.
Headquartered in Hartford, Conn., The Hartford Financial Services
Group, Inc. offers personal and commercial insurance products,
including homeowners, auto, and workers' compensation. Through
its Hartford Life subsidiary, the Company offers individual and
group life insurance, annuities, asset management, retirement
plans, and mutual funds (managed both in-house and by other
groups including Wellington Management).
ASBESTOS UPDATE: CNA Financial Records $79M Reserve Development
---------------------------------------------------------------
CNA Financial Corporation recorded unfavorable net claim and
claim adjustment expense reserve development of US$79 million
related to asbestos exposures in the fourth quarter of 2009,
according to a Company press release dated Feb. 8, 2010.
The Company recorded unfavorable net claim and claim adjustment
expense reserve development of US$89 million related to asbestos
exposures in the fourth quarter of 2008.
Headquartered in Chicago, CNA Financial Corporation is a
commercial insurance writer and property and casualty company.
The Company's insurance products include standard commercial
lines, specialty lines, surety, marine and other property and
casualty coverages. Its services include risk management,
information services, underwriting, risk control and claims
administration.
ASBESTOS UPDATE: Rockwell Automation Party to Exposure Lawsuits
---------------------------------------------------------------
Rockwell Automation, Inc. and its subsidiaries continue to be
defendants in lawsuits alleging personal injury as a result of
exposure to asbestos that was used in certain components of its
products many years ago.
Currently there are thousands of claimants in lawsuits that name
the Company as a defendant, together with hundreds of other
companies, according to the Company's quarterly report filed on
Feb. 8, 2010 with the U.S. Securities and Exchange Commission.
In some cases, the claims involve products from divested
businesses, and the Company is indemnified for most of the costs.
However, the Company has agreed to defend and indemnify asbestos
claims associated with products manufactured or sold by its
former Dodge mechanical and Reliance Electric motors and motor
repair services businesses prior to their divestiture by the
Company, which occurred on Jan. 31, 2007.
The Company is also responsible for half of the costs and
liabilities associated with asbestos cases against the former
Rockwell International Corporation's (RIC) divested measurement
and flow control business. Historically, the Company has been
dismissed from the vast majority of these claims with no payment
to claimants.
The Company has maintained insurance coverage that it said it
believes covers indemnity and defense costs, over and above self-
insured retentions, for claims arising from its former Allen-
Bradley subsidiary.
Following litigation against Nationwide Indemnity Company and
Kemper Insurance, the insurance carriers that provided liability
insurance coverage to Allen-Bradley, the Company entered into
separate agreements on April 1, 2008 with both insurance carriers
to further resolve responsibility for ongoing and future coverage
of Allen-Bradley asbestos claims.
In exchange for a lump sum payment, Kemper bought out its
remaining liability and has been released from further insurance
obligations to Allen-Bradley.
Nationwide administers the Kemper buy-out funds and has entered
into a cost share agreement to pay the substantial majority of
future defense and indemnity costs for Allen-Bradley asbestos
claims once the Kemper buy-out funds are depleted.
The Company said it believes that these arrangements will
continue to provide coverage for Allen-Bradley asbestos claims
throughout the remaining life of the asbestos liability.
Headquartered in Milwaukee, Rockwell Automation, Inc. is an
industrial automation company. Its Control Products & Solutions
unit makes industrial automation products like motor starters and
contactors, relays, timers, signaling devices, and variable-speed
drives.
ASBESTOS UPDATE: Exposure Cases Ongoing v. BJ Services in Miss.
---------------------------------------------------------------
Certain predecessors of BJ Services Company, along with numerous
other defendants, are still named in lawsuits filed in the
Circuit Courts of Jones and Smith Counties, Miss.
In August 2004, these four lawsuits were filed and included 118
individual plaintiffs alleging that they suffer various illnesses
from exposure to asbestos and seeking damages. The lawsuits
assert claims of unseaworthiness, negligence, and strict
liability, all based upon the status of the Company's
predecessors as Jones Act employers.
The plaintiffs were required to complete data sheets specifying
the companies they were employed by and the asbestos-containing
products to which they were allegedly exposed. Through this
process, about 25 plaintiffs have identified the Company or its
predecessors as their employer. Amended lawsuits were filed by
four individuals against the Company and the remainder of the
original claims (114) was dismissed.
Of these four lawsuits, three failed to name the Company as an
employer or manufacturer of asbestos-containing products so it
was thereby dismissed. Subsequently an individual from one of
these lawsuits brought his own action against the Company. As a
result, the Company is currently named as a Jones Act employer in
two of the Mississippi lawsuits.
It is possible that as many as 21 other claimants who identified
the Company or its predecessors as their employer could file suit
against it, but they have not done so at this time. Minimal
medical information regarding the alleged asbestos-related
disease suffered by the plaintiffs in the two lawsuits has been
provided.
The Company and its predecessors in the past maintained insurance
which may be available to respond to these claims.
In addition to the Jones Act cases, the Company has been named in
a small number of additional asbestos cases. The allegations in
these cases vary, but generally include claims that the Company
provided some unspecified product or service which contained or
utilized asbestos or that an employee was exposed to asbestos at
one of the Company's facilities or customer job sites. Some of
the allegations involve claims that the Company is the successor
to the Byron Jackson Company.
To date, the Company has been successful in obtaining dismissals
of such successor cases without any payment in settlements or
judgments, although some remain pending at the present time.
Headquartered in Houston, BJ Services Company provides pressure
pumping services and other oilfield services to the oil and
natural gas industry worldwide. Services are provided through
four business segments: U.S./Mexico Pressure Pumping, Canada
Pressure Pumping, International Pressure Pumping and the Oilfield
Services Group.
ASBESTOS UPDATE: Inquest Rules on Southampton Pipefitter's Death
----------------------------------------------------------------
An inquest at Southampton Coroner's Court heard that the death of
Anthony Fry, a former pipefitter's mate from Bassett Green
Village, Southampton, England, was linked to workplace exposure
to asbestos, the Hampshire Chronicle reports.
Mr. Fry had regularly come into contact with asbestos while he
was working at the British Rail depot at Eastleigh. The court
heard that Mr. Fry died at the age of 73 of mesothelioma on Oct.
26, 2009.
Coroner Keith Wiseman recorded a verdict of death by industrial
disease.
ASBESTOS UPDATE: Ingram Family Seeks Info in Compensation Claim
---------------------------------------------------------------
The family of Stanley Ingram, an ex-Gloucester Rugby player who
died of mesothelioma in June 2009 at the age of 73, appeals for
information about his possible asbestos exposure, this is
Gloucestershire.co.uk reports.
The Ingram family hopes that Mr. Ingram's former workmates will
step forward in a bid to help their compensation battle. A post-
mortem examination revealed the 73-year-old, from Granley Fields,
died from mesothelioma, a fatal and aggressive cancer of the
chest lining caused by exposure to asbestos.
Mr Ingram, of Granley Fields, England, and who worked on the
refurbishment of various buildings in Cheltenham and Gloucester,
is believed to have been exposed to asbestos during some of his
work. His job included work as a French polisher with WG Nicholls
Ltd during the late 1950s and early 1960s, and building work for
Barnwood Builders, now Barnwood Construction Ltd, from 1964 to
1980.
In his youth, Mr. Ingram played for Gloucester Rugby Club. He was
also part of the England under-16 and under-19 squads.
Kim Barrett, a workplace illness expert, said, "Stan's family are
still trying to come to terms with his death, particularly the
shock of finding the illness which cut short his life was due to
asbestos exposure."
A spokesman for Barnwood Construction said, "We believe Mr.
Ingram was not employed by Barnwood Builders. He was engaged as a
self-employed French polisher. To our knowledge he did not work
in an environment where he would have been exposed to asbestos."
ASBESTOS UPDATE: Cleanup at Lamar County Courthouse to Cost $40T
----------------------------------------------------------------
The asbestos remediation project at the historic Lamar County
Courthouse near Hattiesburg, Miss., is budgeted at about
US$40,000, Hattiesburg American reports.
Once a bid is accepted, the asbestos removal will take from one
to three months to complete.
The courthouse, built in 1905, is slated for a makeover, but not
until contractors and architects, led by Robert Parker Adams
determine how much asbestos are present, and how much licensed
asbestos remediation contractors will charge the county to remove
it.
In February 2009, according to Lamar County Administrator Chuck
Bennett, county work crews will finish removing the equipment
associated with the courthouse's previous life as a municipal law
center. This includes the tape recorders, telephones, fax
machines, law books, tables and chairs.
A study of the courthouse has already determined where the
asbestos is located, so bidders will be asked to read the report,
evaluate the scope of the work required, and present their
estimates.
As Mr. Bennett notes, the asbestos identified so far is not a
large amount, but its removal could be a "delicate" process. The
cost of asbestos removal, however, is well within the US$275,000
the county has budgeted for courthouse work for fiscal year 2009-
2010.
The asbestos removal is not the most expensive step in the
renovation, but it is certainly the most important step, at least
in terms of county worker health.
ASBESTOS UPDATE: Whatcom County Mulls $160,000 Swift Creek Study
----------------------------------------------------------------
The council of Whatcom County, Wash., is considering paying
US$160,000 to Bellingham, Wash.-based Pacific Surveying &
Engineering, Inc. to study the asbestos-laden Swift Creek and
suggest options on how to prevent more of the runoff from
entering the creek, which drains into the Sumas River, The
Bellingham Herald reports.
For several years, officials have been trying to figure out ways
to pay for more than US$100 million in work to Swift Creek to
ensure that the naturally occurring asbestos there is better
contained.
The material is known to cause cancer, and levels of asbestos in
the air around the area are above what the state and federal
government consider safe, according to a 2008 state Department of
Health report. However, the report also shows that people who
live around the creek near Sumas Mountain appear to have the same
rates of cancer and other health issues as the rest of
Washington.
During the 2009 legislative session, county officials worked with
the state Department of Ecology to secure US$1 million for basic
work in the area.
ASBESTOS UPDATE: Cleanup at Union Springs School Slated for 2010
----------------------------------------------------------------
The Union Springs Middle/High School in Union Springs, N.Y., will
undergo asbestos abatement over the course of 2010,
Mesothelioma.com reports.
The project will include the removal of about 10,000 square feet
of plaster ceilings that contain encapsulated asbestos. These
types of ceilings are present in both the middle and high school
hallways. The work will take place over the summer when students
are not in the building.
The Union Springs Central School District's proposed capital
improvement project passed. The project will be paid for by state
aid, as well as money from the district, meaning that locals will
see no tax increase.
ASBESTOS UPDATE: Mann Payout Case Ongoing v. Crown Cork, Norfolk
----------------------------------------------------------------
An asbestos claim filed by Georgia native, Theresa Mann Adams, on
behalf of her father Samuel Mann, is ongoing against Crown Cork
and Seal and Norfolk Southern Railroad, Asbestos.Net reports.
Mr. Mann was a U.S. Army veteran who died of mesothelioma. He
worked as a mechanic while serving in the Army from 1959 to 1961.
After his military service had ended, he went to work as a
mechanic at Crown Cork and Seal from 1965 until the early 1970s.
For the next several years, Mr. Mann did construction work, and
then from 1976 to 1983 was employed as a welder, mechanic and
shop foreman for Norfolk Southern Railroad.
Mrs. Adams is suing these companies to hold them accountable for
Mr. Mann's asbestos exposure which led to his mesothelioma.
ASBESTOS UPDATE: North Somerset to Spend GBP500,000 for Cleanup
----------------------------------------------------------------
The district council of North Somerset, England, is set to spend
GBP500,000 to remove asbestos from its properties, The Weston &
Somerset Mercury reports.
The council is likely to sign a contract with Caswell
Environmental Services to safely remove the building material.
The contract is likely to be for three years.
The contract follows a year-long report by a consultancy firm
which revealed the extent of the asbestos in council property.
ASBESTOS UPDATE: Ky. Appeal Court Upholds Ruling in Crane Action
----------------------------------------------------------------
The Court of Appeals of Kentucky affirmed the ruling of the
McCracken Circuit Court, which denied Patsy J. Crane's motion for
leave to file a second amended asbestos complaint and the
granting of Illinois Central Railroad Co.'s motion to dismiss for
failure to prosecute.
The case is styled Patsy J. Crane, Administratrix of the Estate
of Bobby Crane, Deceased, Appellant v. Illinois Central Railroad
Co., Appellee.
Judges Sara Combs, Kelly hompson, and Senior Judge David C.
Buckingham entered judgment in Case No. 2008-CA-000890-MR on Jan.
29, 2010.
Mrs. Crane, Administratrix of the Estate of Bobby Crane, appealed
from the trial court's orders denying her motion to amend the
complaint and dismissing with prejudice the original complaint
against ICRR, alleging exposure to asbestos and asbestos
containing products during the course of Mr. Crane's employment
with ICRR.
John O. Hollon, Esq., Alva A. Hollon, Jr., Esq., in Jacksonville,
Fla., James W. Owens, Esq., in Paducah, Ky., represented
appellant.
L. Miller Grumley, Esq., Jonathan Freed, Esq., in Paducah, Ky.,
Thomas R. Peters, Esq., Mark R. Kurz, Esq., David B.
Schneidewind, Esq., in Belleville, Ill., represented appellee.
ASBESTOS UPDATE: Del. Court Affirms Board Ruling in Rhodes Case
---------------------------------------------------------------
The Superior Court of Delaware, New Castle County, affirmed the
ruling of the Industrial Accident Board, which entered judgment
in favor of Diamond State Port Corporation, in an asbestos suit
filed by William Rhodes.
The case is styled William Rhodes, Appellant, Claimant v. Diamond
State Port Corporation, Appellee, Employer.
Judge Richard R. Cooch entered judgment in Civil Action No. 09A-
04-005 RRC on Jan. 22, 2010.
Mr. Rhodes worked as a forklift operator at the Port of
Wilmington from 1987 until Oct. 19, 2006. In December 2006, he
was diagnosed with lung cancer, and he ultimately died of that
cancer on Dec. 21, 2006.
On Oct. 1, 2007, a Petition to Determine Compensation Due was
filed against Diamond State Port Corporation by Mr. Rhodes'
representative. This petition sought to relate his lung cancer to
his possible exposure to asbestos while working at the Port of
Wilmington.
On Sept. 8, 2008, a hearing was held before the Board to
determine whether Mr. Rhodes' lung cancer was related to his
alleged exposure to asbestos. At the hearing, his representative
called several witnesses to testify about his work conditions.
On March 19, 2009, the Board denied Mr. Rhodes' petition. His
representative now filed an appeal with this Court.
Richard T. Wilson, Esq., Law Offices of Peter G. Angelos, in
Wilmington, Del., represented William Rhodes.
Francis X. Nardo, Esq., Tybout, Redfearn & Pell, in Wilmington,
Del., represented Diamond State Port Corporation.
ASBESTOS UPDATE: Appeals Court Upholds Ruling in Linkus' Lawsuit
----------------------------------------------------------------
The Court of Special Appeals of Maryland upheld the ruling of the
Circuit Court for Baltimore City, which entered judgment in favor
of John Linkus in the asbestos case styled John Crane, Inc. v.
John Linkus, Personal Representative of the Estate of George J.
Linkus, Sr.
Judges James R. Eyler, Timothy E. Meredith, and Charles E.
Moylan, Jr. entered judgment in Case No. No. 959, Sept. Term,
2008 on Feb. 1, 2010.
John Crane, Inc. appealed from a judgment entered in the Circuit
Court for Baltimore City in this asbestos related disease case,
in favor of George J. Linkus, Sr.
On May 7, 2009, during the pendency of this appeal, Mr. Linkus
died, and John Linkus, personal representative of the estate of
George J. Linkus, Sr., appellee, had been substituted as a party.
John Crane contended the court erred in:
-- Denying its motion for judgment and judgment notwithstanding
the verdict on the ground that expert testimony that its
products released asbestos fibers was required to establish
causation;
-- Denying its motion for new trial and not ordering a
remittitur on the ground that the verdict was excessive; and
-- Granting Mr. Linkus' motion to enter judgment without
crediting settlement amounts received from several bankrupt
defendants.
George J. Linkus, Sr. was a shipyard worker. In 1988, counsel for
numerous shipyard workers filed a master complaint in circuit
court, to be followed by a short form complaint by each
plaintiff. On April 4, 2005, George J. Linkus, Sr. was diagnosed
with pleural mesothelioma. On April 29, 2005, he filed a short
form complaint, naming John Crane and 63 other entities as
defendants.
The short form complaint contained counts in strict liability,
breach of warranty, negligence, fraud, conspiracy, and market
share liability. In the short form complaint, George J. Linkus,
Jr. alleged that he was employed at the Key Highway shipyard as a
machinist and that he was exposed to asbestos containing products
from 1952 through the 1970s.
ASBESTOS UPDATE: Cabot Corp. Still Involved in AO Exposure Suits
----------------------------------------------------------------
Cabot Corporation continues to be party to cases, including
asbestos-related, in connection with a safety respiratory
products business that a subsidiary acquired from American
Optical Corporation (AO) in an April 1990 asset purchase
transaction.
The subsidiary manufactured respirators under the AO brand and
disposed of that business in July 1995. In connection with its
acquisition of the business, the subsidiary agreed, in certain
circumstances, to assume a portion of AO's liabilities, including
costs of legal fees together with amounts paid in settlements and
judgments, allocable to AO respiratory products used prior to the
1990 purchase by the Cabot subsidiary.
The Company's respirator liabilities involve claims for personal
injury, including asbestosis, silicosis and coal worker's
pneumoconiosis, allegedly resulting from the use of AO
respirators that are alleged to have been negligently designed or
labeled.
There were about 51,000 claimants as of Dec. 31, 2009 and 52,000
claimants as of Sept. 30, 2009 in pending cases asserting claims
against AO in connection with respiratory products. The Company
has a reserve to cover its expected share of liability for
existing and future respirator liability claims.
The book value of the reserve is being accreted up to the
undiscounted liability through interest expense over the expected
cash flow period, which is through 2052.
At Dec. 31, 2009 the reserve was US$13 million on a discounted
basis (US$23 million on an undiscounted basis). Cash payments
related to this liability were less than US$1 million in the
first three months of both fiscal 2010 and fiscal 2009.
Headquartered in Boston, Cabot Corporation produces carbon black,
a reinforcing and pigmenting agent used in tires, inks, cables,
and coatings. It has about 25 percent of the world market for the
product. Products also include fumed metal oxides like fumed
silica and fumed alumina (used as anti-caking, thickening, and
reinforcing agents in adhesives and coatings), tantalum and
specialty fluids for gas and oil drilling.
ASBESTOS UPDATE: Fairmont Still Faces 22,500 Claims in 7 States
---------------------------------------------------------------
A CONSOL Energy, Inc. subsidiary, Fairmont Supply Company (a
distributor of industrial supplies) still faces about 22,500
asbestos claims in state courts in Pennsylvania, Ohio, West
Virginia, Maryland, Mississippi, New Jersey and Illinois.
Because a very small percentage of products manufactured by third
parties and supplied by Fairmont in the past may have contained
asbestos and many of the pending claims are part of mass
complaints filed by hundreds of plaintiffs against a hundred or
more defendants, it has been difficult for Fairmont to determine
how many of the cases actually involve valid claims or plaintiffs
who were actually exposed to asbestos-containing products
supplied by Fairmont.
In addition, while Fairmont may be entitled to indemnity or
contribution in certain jurisdictions from manufacturers of
identified products, the availability of such indemnity or
contribution is unclear at this time, and in recent years, some
of the manufacturers named as defendants in these actions have
sought protection from these claims under bankruptcy laws.
Fairmont has no insurance coverage with respect to these asbestos
cases. Past payments by Fairmont with respect to asbestos cases
have not been material.
Headquartered in Canonsburg, Pa., CONSOL Energy Inc. is a multi-
fuel energy producer and energy services provider primarily
serving the electric power generation industry in the United
States. During the year ended Dec. 31, 2009, the Company produced
high-British thermal unit (Btu) bituminous coal from 16 mining
complexes in the United States.
ASBESTOS UPDATE: Mueller Units Still Named in Exposure Lawsuits
---------------------------------------------------------------
Some of Mueller Water Products, Inc.'s subsidiaries are still
named as defendants in asbestos-related lawsuits.
No further asbestos-related matters were disclosed in the
Company's quarterly report filed on Feb. 9, 2010 with the U.S.
Securities and Exchange Commission.
Headquartered in Atlanta, Mueller Water Products, Inc. operates
in three business segments: Mueller Co., U.S. Pipe and Anvil.
Mueller Co. manufactures valves for water and gas systems. U.S.
Pipe manufactures ductile iron pipe, joint restraint products,
fittings and other ductile iron products. Anvil produces and
sources fittings, couplings, hangers, nipples and related pipe
products.
ASBESTOS UPDATE: STERIS Corp. Still Involved in Exposure Actions
----------------------------------------------------------------
STERIS Corporation is and will likely be involved in legal
proceedings and claims related to asbestos-related product
exposure.
No further asbestos-related matters were disclosed in the
Company's quarterly report filed on Feb. 9, 2010 with the U.S.
Securities and Exchange Commission.
Headquartered in Mentor, Ohio, STERIS Corporation develops,
manufactures and markets infection prevention, contamination
control, microbial reduction, and surgical and critical care
support products and services for healthcare, pharmaceutical,
scientific, research, industrial, and governmental Customers
throughout the world.
ASBESTOS UPDATE: Skilled Healthcare Records $5.5M ARO at Dec. 31
----------------------------------------------------------------
Skilled Healthcare Group, Inc. recorded asbestos-related asset
retirement obligations of US$5.5 million as of Dec. 31, 2009,
compared with US$5.4 million as of Dec. 31, 2008, according to
the Company's annual report filed on Feb. 9, 2010 with the U.S.
Securities and Exchange Commission.
The Company's long-term asbestos abatement liability was
US$5,462,000 as of Sept. 30, 2009. (Class Action Reporter, Nov.
20, 2009)
The Company determined that a conditional asset retirement
obligation exists for asbestos remediation. The removal of
asbestos-containing materials includes primarily floor and
ceiling tiles from the Company's pre-1980 constructed facilities.
Headquartered in Foothill Ranch, Calif., Skilled Healthcare
Group, Inc. is a holding company that owns subsidiaries that
operate skilled nursing facilities, assisted living facilities,
hospices, and a rehabilitation therapy business.
ASBESTOS UPDATE: Travelers Expends in 4Q2009 to Lobby for Claims
----------------------------------------------------------------
During the fourth quarter of 2009, The Travelers Companies, Inc.
lobbied on issues including the National Insurance Consumer
Protection Act, coastal wind zone proposals, bankruptcy issues
and asbestos-related legislation.
The Company spent a total of US$1.66 million for the period to
lobby the U.S. federal government on global warming matters,
workers' compensation, consumer protection rights and other
issues, according to a recent disclosure report.
That's up from the US$1.43 million the Company spent in the year-
ago period and the US$790,000 it spent in the 2009 third quarter.
The Company continues to seek customers at a time when employers
have fewer workers and less valuable property to insure.
ASBESTOS UPDATE: Abatement at Harrison County Hospital Underway
---------------------------------------------------------------
The removal of asbestos at the old Harrison County Hospital in
Corydon, Ind., is underway, Mesothelioma.com reports.
Midwest Service Group placed the low bid for the contract at
US$434,895.
This task is the initial step of a larger US$13 million project.
The firm of James L. Shireman Inc. was hired in 2009 as
construction manager to oversee conversion of the former hospital
complex into a new county government complex.
The subcontractor responsible for asbestos removal at the site is
Midwest Service Group of Schererville, Ind.
Most of the asbestos removal at the site is occurring in the
oldest section of the former hospital, which dates to the 1950s.
ASBESTOS UPDATE: Menssen Wins $17.87M Case v. Pneumo, Honeywell
---------------------------------------------------------------
On Feb. 8, 2010, Jayne Manssen won an asbestos award of US$17.87
million for her exposure to asbestos at a Bloomington, Ill.,
factory in the 1960s, Pantagraph.com reports.
Ms. Menssen contracted mesothelioma after being exposed to
asbestos when she worked as a secretary at Union Asbestos and
Rubber Co., later called Unacro Industries Inc., from 1967 to
1969, according to a statement issued by her attorney, Lisa
Corwin, Esq.
Ms. Menssen argued the defendants, Pneumo Abex LLC and Honeywell
International Inc., and their corporate predecessors knew of but
failed to warn employees and customers of the hazards of
asbestos.
A McLean County jury reached the verdict after deliberating one
day at the end of a four-week trial. The jury assessed
compensatory damages of US$3.5 million against both defendants.
Also assessed were punitive damages of US$4.37 million against
Pneumo Abex and US$10 against Honeywell.
ASBESTOS UPDATE: HB 629 Shields Crown Cork From Exposure Claims
---------------------------------------------------------------
On Feb. 8, 2010, the House of Delegates voted to shield Crown
Cork & Seal Company from liability to asbestos-related health
claims, The Virginian-Pilot reports.
Terry Kilgore's bill does not mention any company by name. The
bill applies to Crown Cork & Seal, a Philadelphia-based maker of
cans and bottle caps. It has plants in Suffolk, Va., and
Winchester, Va.
Crown Cork & Seal has never made any products with asbestos.
However, in 1963, it bought the stock of Mundet Cork Co., which
had an insulation division that it sold 90 days later. Under
existing law, Crown is liable to lawsuits resulting from the
presence of asbestos in Mundet's insulation products.
Mr. Kilgore's bill, which won preliminary House approval, limits
Crown's asbestos-related liability to the value of Mundet's
assets at the time it was purchased.
Mr. Kilgore, R-Lee County, characterized the measure as a "jobs
bill," saying it would protect a Virginia employer from
potentially crippling litigation. Dozens of asbestos companies
have been driven into bankruptcy by billions of dollars in suits
brought by workers who contracted deadly lung diseases from
handling the material.
Opponents argued that the bill gives special treatment to a
single company, allowing it to escape responsibility for its
actions.
Crown has given US$101,033 in campaign contributions to Virginia
lawmakers since 2008, according to the nonprofit Virginia Public
Access Project. Mr. Kilgore, the bill's sponsor, received
US$3,000.
ASBESTOS UPDATE: Appeal Court Upholds Ruling in Quinn's Lawsuit
---------------------------------------------------------------
The Court of Appeal, First District, Division 4, California,
affirmed the ruling of the San Francisco County Superior Court,
regarding allocation of the settlement funds in the underlying
asbestos litigation Betty Quinn's deceased husband, James Quinn.
The case is styled Adrienne Hankins, as Co-administrator, etc.,
Plaintiff and Appellant v. Asbestos Defendants (BHC), Defendants;
Juanita Reid, Real Party in Interest and Respondent.
Judges Maria P. Rivera, Timothy A. Reardon, and Patricia K.
Sepulveda entered judgment in Case No. A123687 on Jan. 29, 2010.
Adrienne Hankins, as the co-administrator of the estate of Betty
Quinn and as the personal representative of Mrs. Quinn's son,
Anthony Hellums, appealed from the order. She contended that the
trial court should have allocated 50 percent of the settlement
proceeds to the estate of Mrs. Quinn on behalf of Mr. Hellums,
the stepson of James, rather than allocating 80 percent of the
settlement proceeds to James' daughter and wrongful death heir,
Juanita Reid.
Mr. Quinn died Aug. 1, 1998, of mesothelioma. Mrs. Quinn filed a
wrongful death lawsuit against various asbestos defendants. She
had five children from a prior relationship who were raised in
the Quinn household. She died on Oct. 7, 2003.
Mr. Hellums is mentally incompetent, and lived with and was
dependent on the Quinns before their deaths. The Quinns died
intestate.
On May 13, 1999, Mrs. Quinn commenced the underlying wrongful
death action against the asbestos defendants. On Aug. 15, 2008,
counsel for plaintiffs in that action, moved for an order
determining the respective rights of Mr. Quinn's heirs to the
settlement funds in the action and for an order distributing the
funds and any future net settlement funds from bankrupt
defendants that had not yet settled, and those defendants that
had not yet paid the agreed settlement sums.
The court ordered that Mr. Quinn's heirs were entitled to share
in the distribution of the settlement funds, with 20 percent
allocated to Mrs. Quinn's estate for loss of consortium and as a
wrongful death heir and 80 percent allocated to Ms. Reid as a
wrongful death heir.
This appeal followed and the trial court's order was affirmed.
ASBESTOS UPDATE: Calif. Court Affirms Delahaye's Move to Remand
---------------------------------------------------------------
The U.S. District Court, Northern District of California,
affirmed Frank Delahaye's motion to remand, in an asbestos
lawsuit styled Frank Delahaye, Plaintiff v. Asbestos Defendants,
et al., Defendant.
District Judge Jeffrey S. White entered judgment in Case No. C
09-05504 JSW on Jan. 25, 2010.
Mr. Delahaye filed this case in San Francisco Superior Court
against several defendants, including Metalclad Insulation
Corporation, alleging that defendants' actions caused Mr.
Delahaye to be stricken with asbestosis and asbestos related
pleural disease.
Mr. Delahaye brought claims for negligence, strict liability,
false representation, loss of consortium, premises
owner/contractor liability, unseaworthiness, and maintenance and
cure. He alleged that Metalclad was liable because in December
1968, Metalclad brokered a shipment of asbestos-containing
Unibestos thermal insulation from Pittsburg Corning for use in
the nuclear reactor compartments of the USS Drum, the USS
Guitarro, the USS Hawkbill and the USS Pintado, four nuclear
submarines.
Mr. Delahaye worked as a machinist, nuclear inspector and tester
on board these submarines and alleged that he was exposed to
asbestos fibers from this Unibestos shipment.
Metalclad filed a Notice of Removal with this Court on Nov. 29,
2009, claiming federal officer jurisdiction. Mr. Delahaye now
moved to remand this case back to San Francisco Superior Court.
The case was remanded to the Superior Court of California for the
County of San Francisco.
Richard Martin Grant, Esq., David R. Donadio, Esq., of Brayton
Purcell LLP in Novato, Calif., represented Frank Delahaye.
Felicia Yi-Wen Feng, Esq., Lisa Lurline Oberg, Esq., of McKenna
Long & Aldridge LLP in San Francisco, represented the Defendants.
ASBESTOS UPDATE: La. Appeal Court Affirms Ruling in Brumley Case
----------------------------------------------------------------
The Court of Appeal of Louisiana, Fourth Circuit, upheld the
ruling of the Civil District Court, Orleans Parish, which denied
Curtis Brumley's petition for a new asbestos trial.
The case is styled Jimmy Brumley v. Akzona, Inc. f/k/a American
Enka Corporation, et al.
Judges Terri F. Love, David S. Gorbaty and Roland L. Belsome
entered judgment in Case No. 2009-CA-0861 on Jan. 13, 2010. Judge
Belsome dissented.
This litigation involved the survival and wrongful death claims
filed by Curtis Brumley, the child of decedent Jimmy Brumley. It
is alleged that Jimmy Brumley contracted, and subsequently died
from, malignant mesothelioma resulting from asbestos exposure.
Curtis Brumley alleged that Jimmy Brumley sustained significant
occupational exposure to asbestos from 1952 to 1985 as an
insulator at various worksites primarily in Texas and Louisiana.
Curtis Brumley is a Texas resident, as was Jimmy Brumley. Suit
was filed in Orleans Parish against numerous defendants,
including American Cyanamid, a premises defendant. The petition
pleaded generally that venue is proper in Orleans Parish because
the wrongful conduct allegedly occurred in Orleans Parish, and
each of the defendants was jointly and solidarity liable for the
alleged injuries.
American Cyanamid filed an Exception of Improper Venue and Motion
to Dismiss for Forum Non Conveniens, asserting that Texas was a
more appropriate forum. Other defendants pleaded exceptions to
venue and joined in American Cyanamid's motion.
After a hearing, the trial court granted the forum non conveniens
motion and dismissed the action without prejudice, reserving to
Curtis Brumley the right to re-file the action in a Texas court
within 60 days. The trial court did not rule on the exception of
improper venue.
Curtis Brumley filed a Motion for New Trial and/or Clarification.
The trial court denied the motions, finding that "[t]he
overwhelming evidence is that this matter should be tried in
Texas." Curtis Brumley filed this appeal.
Mickey P. Landry, Esq., Frank J. Swan, Esq., David R. Cannella,
Esq., Philip C. Hoffman, Esq., of Landry & Swarr, L.L.C. in New
Orleans, La., and Waters & Kraus, LLP in Dallas, represented
Curtis Brumley.
ASBESTOS UPDATE: Appeal Court OKs Board Ruling in Straight Case
---------------------------------------------------------------
The U.S. Court of Appeals for Veterans Claims affirmed the June
15, 2007 ruling of the Board of Veterans' Appeals, which denied
Joann Straight's claim for entitlement to an effective date
earlier than March 8, 2004, for her deceased husband's service-
connected coronary artery disease (CAD), for the purpose of
accrued benefits.
The case is styled Joann Straight, Appellant v. Eric K. Shinseki,
Secretary of Veterans Affairs, Appellee.
Judge Alan G. Lance, Sr. entered judgment in Case No. No. 08-0400
on Feb. 5, 2010.
Mr. Straight served in the U.S. Navy from May 1943 until December
1945. In June 1986, he filed an application for non-service-
connected pension for the residuals of a "triple bypass surgery"
at a Cleveland clinic in 1985. In October 1986, VA awarded Mr.
Straight a non-service-connected pension for status post-coronary
artery bypass surgery and assigned a 30 percent disability
rating.
On Feb. 25, 2002, Mr. Straight submitted an informal claim to the
Huntington, W.Va., regional office (RO). This claim requested
"permanent disability for exposure to asbestos." In support of
the claim, the letter explained that Mr. Straight was exposed to
"lots of asbestos" while his ship was under attack and that an
enclosed medical record showed his diagnosis of asbestosis.
On Aug. 20, 2003, Mr. Straight submitted an application to the RO
seeking total disability based on individual unemployability
(TDIU). On March 8, 2004, he submitted a letter in support of his
TDIU claim, which stated that the veteran was submitting medical
records related to the treatment of his heart condition and that
he had done research indicating that heart failure is consistent
with asbestosis.
Shortly thereafter, Mrs. Straight filed a Notice of Disagreement
(NOD) on behalf of Mr. Straight. On Aug. 31, 2004, Mr. Straight
died.
In October 2004, Mrs. Straight filed an application for accrued
benefits, dependancy and indemnity compensation, and death
pension. In a separate filing, she contended that it was Mr.
Straight's lung problems that caused his heart to fail.
In December 2004, the RO awarded Mrs. Straight service connection
for CAD as secondary to service-connected asbestosis, effective
March 8, 2004, with a 60 percent disability rating for the
purpose of accrued benefits.
In January 2005, Mrs. Straight filed an NOD seeking an effective
date of Feb. 25, 2002. In March 2007, the Board held a hearing on
Mrs. Straight's claim. Three months later, the Board issued a
decision denying Mrs. Straight an effective date earlier than
March 8, 2004, on the grounds that there was no document dated
earlier than March 8, 2004, on record that could be construed as
a claim for service connection for heart disease.
Mrs. Straight appealed.
ASBESTOS UPDATE: Corning Records $682Mil Liabilities at Dec. 31
---------------------------------------------------------------
Corning Incorporated recorded US$682 million as non-current
liabilities for asbestos litigation at Dec. 31, 2009, compared
with US$662 million at Dec. 31, 2008, according to the Company's
annual report filed on Feb. 10, 2010 with the U.S. Securities and
Exchange Commission.
At Dec. 31, 2009, the Company's liability for asbestos litigation
reflected the components of a proposed resolution that requires
the Company to contribute its equity interest in Pittsburgh
Corning Corporation (PCC) and Pittsburgh Corning Europe N.V.
(PCE) and to contribute a fixed series of cash payments, recorded
at present value on Dec. 31, 2009.
The Company and PPG Industries, Inc. each own 50 percent of the
capital stock of PCC. Over a period of more than two decades, PCC
and several other defendants have been named in numerous lawsuits
involving claims alleging personal injury from exposure to
asbestos.
On April 16, 2000, PCC filed for Chapter 11 reorganization in the
U.S. Bankruptcy Court for the Western District of Pennsylvania.
At the time PCC filed for bankruptcy protection, there were about
11,800 claims pending against the Company in state court lawsuits
alleging various theories of liability based on exposure to PCC's
asbestos products and typically requesting monetary damages in
excess of US$1 million per claim.
The Company is also currently involved in about 10,400 other
cases (about 38,800 claims) alleging injuries from asbestos and
similar amounts of monetary damages per case.
Headquartered in Corning, N.Y., Corning Incorporated produces
specialty glass and ceramics. The Company creates and makes
keystone components that enable high-technology systems for
consumer electronics, mobile emissions control,
telecommunications and life sciences.
ASBESTOS UPDATE: Central Hudson Facing 1,188 Lawsuits at Dec. 31
----------------------------------------------------------------
CH Energy Group, Inc. says that, as of Dec. 31, 2009, of the
3,319 asbestos cases brought against its subsidiary, Central
Hudson Gas & Electric Corporation, about 1,188 remain pending,
according to the Company's annual report filed on Feb. 10, 2010
with the U.S. Securities and Exchange Commission.
Of the 3,317 asbestos cases brought against Central Hudson, about
1,187 remain pending as of Sept. 30, 2009. (Class Action
Reporter, Nov. 27, 2009)
Since 1987, Central Hudson, along with many other parties, has
been joined as a defendant or third-party defendant in 3,319
asbestos lawsuits commenced in New York State and federal courts.
The plaintiffs in these lawsuits have each sought millions of
dollars in compensatory and punitive damages from all defendants.
The cases were brought by or on behalf of individuals who have
allegedly suffered injury from exposure to asbestos, including
exposure which allegedly occurred at two formerly owned electric
generating plants; the Roseton Electric Generating Plant and the
Danskammer Point Steam Electric Generating Station.
Of the cases no longer pending against Central Hudson, about
1,979 have been dismissed or discontinued without payment by
Central Hudson, and Central Hudson has settled 152 cases.
Headquartered in Poughkeepsie, N.Y., CH Energy Group, Inc.'s
subsidiary, Central Hudson Gas & Electric, provides electricity
to about 300,000 electric and 74,000 natural gas customers in
eight counties of New York State's Mid-Hudson River Valley, and
delivers natural gas and electricity in a 2,600-square-mile
service territory that extends from New York City to Albany.
ASBESTOS UPDATE: Allstate Has $1.180B Claims Reserves at Dec. 31
----------------------------------------------------------------
The Allstate Corporation's reserves for asbestos claims amounted
to US$1.180 billion during the year ended Dec. 31, 2009, compared
with US$1.228 billion during the twelve months ended Dec. 31,
2008.
The Company's reserves for asbestos claims amounted to US$1.161
billion during the three months ended Sept. 30, 2009, according
to a Company report, on Form 8-K, filed on Feb. 10, 2010 with the
U.S. Securities and Exchange Commission.
Headquartered in Northbrook, Ill., The Allstate Corporation is a
publicly held personal lines insurer. Consumers access Allstate
insurance products and services through Allstate agencies,
independent agencies, and Allstate exclusive financial
representatives in the U.S. and Canada, as well as via
www.allstate.com and 1-800 Allstate.
ASBESTOS UPDATE: Zenith Records 304 Exposure Actions at Dec. 31
---------------------------------------------------------------
Zenith National Insurance Corp., at Dec. 31, 2009, had 304
asbestos such claims open with loss reserves of US$3.4 million
compared to its total workers' compensation loss reserves, net or
reinsurance, of US$915.0 million.
The Company has exposure to asbestos losses in its workers'
compensation segment which have not been material to results of
operations or financial condition.
In its history, the Company has paid and closed 4,340 such
asbestos-related workers' compensation claims for a total of
US$13.4 million or 0.2 percent of ultimate loss estimates,
according to the Company's annual report filed on Feb. 10, 2010
with the U.S. Securities and Exchange Commission.
Headquartered in Woodland Hills, Calif., Zenith National
Insurance Corp. is a holding company engaged, through its wholly-
owned subsidiaries, Zenith Insurance Company and ZNAT Insurance
Company, in the workers' compensation insurance business,
nationally.
ASBESTOS UPDATE: Giles Widow Seeking Info in Compensation Claim
---------------------------------------------------------------
Janet Giles, the widow of Kenneth Giles who died of mesothelioma
from workplace exposure to asbestos, is seeking the help of his
former workmates in her claim for compensation, The Bath
Chronicle reports.
Mr. Giles was diagnosed with mesothelioma in October 2008 at the
age of 80.
Mrs. Giles's legal team believes Mr. Giles may have been exposed
to asbestos dust and fibers when he was working for The Bath Box
Company. He worked for the firm, which at various times made
wooden boxes and buildings, for a total of 20 years. He was at
the Locksbrook Road firm for two spells, from 1942 to 1960 and
from 1976 to 1978, working as a woodcutter.
It is understood the firm closed in the 1970s.
ASBESTOS UPDATE: Martin Case v. 10 Firms Filed Feb. 9 in Indiana
----------------------------------------------------------------
Roy Martin, on Feb. 9, 2010, filed an asbestos-related lawsuit
against 10 defendant corporations in the U.S. District Court in
Hammond, Ind., the Post-Tribune reports.
The lawsuit says that Mr. Martin, from Griffith, Ind., worked as
pipefitter for various companies, mostly in Indiana and Illinois,
from 1974 until 2007, when he was diagnosed with asbestosis.
Eight of the companies -- CBS Corp., Foster Wheeler Corp.,
Garlock Sealing Technologies LLC, General Electric Co., Georgia
Pacific LLC, Lincoln Electric Co., Rapid American Corp. and Union
Carbide Corp. -- provided products with asbestos that Mr. Martin
worked with, the lawsuit said.
Mr. Martin said that two of the companies, Commonwealth Edison
Company and International Business Machines Corp., owned
properties where he worked when he came in contact with asbestos.
According to the lawsuit, Commonwealth Edison and International
Business Machines owned the property Mr. Martin worked on where
he was exposed to asbestos, which he listed as 27 companies he
has worked for since 1974.
It is unclear, though, whether he is claiming that Mr. Martin
faced asbestos exposure at all the companies, which include U.S.
Steel Gary Works, then-Inland Steel and the BP refinery in
Whiting.
ASBESTOS UPDATE: Court To Accept 5 Amicus Briefs in Peirce Case
---------------------------------------------------------------
On Feb. 9, 2010, the U.S. Court of Appeals for the Fourth Circuit
decided to accept five amicus briefs in an asbestos case
involving the law firm of Peirce, Raimond & Coulter, The West
Virginia Record reports.
Peirce, Raimond & Coulter of Pittsburgh is accused by CSX
Transportation of conspiring to fabricate an asbestos exposure
claim. Several organizations, including the West Virginia Chamber
of Commerce and the American Tort Reform Foundation, are
supporting the appeal of CSX.
The Peirce firm said three of the briefs served as a "conduit"
for CSX to introduce more arguments than allowed by page limits,
and the other two were irrelevant.
Ray Harron, a former radiologist from Bridgeport, W.Va., was
accused of diagnosing lung disease in patients who did not have
it. CSX says Peirce, Raimond & Coulter then hid those plaintiffs
with thousands of others, preventing it from being able to
adequately investigate each complaint.
In 2005, federal court judge Janis Graham Jack made national
headlines when she uncovered duplicate and fraudulent silica
diagnoses in her Texas courtroom. Many of those diagnoses were
made by Mr. Harron and were made on plaintiffs who had already
brought asbestos claims.
U.S. District Judge Frederick Stamp ruled for the Peirce firm,
deciding that CSX missed the statute of limitations when filing
its claim.
ASBESTOS UPDATE: Volkswagen Calls For Hearing on Asbestos Expert
----------------------------------------------------------------
Volkswagen Group of America, Inc. urged U.S. Multi District Judge
Eduardo Robreno for a hearing on the influence of asbestos expert
Arthur Frank on public statements of the National Cancer
Institute, The Madison St. Clair Record reports.
On Feb. 3, 2010, Alice Johnston of Pittsburgh wrote for VW, "Dr.
Frank's lobbying efforts go to the central issue in all asbestos
litigation against friction defendants, the issue of general
causation."
Auto makers and other friction defendants face claims from
mechanics who allege they inhaled asbestos while repairing
brakes. In July 2009, in a deposition for litigation in Madison
County, Dr. Frank shared credit with lawyer Christian Harley for
shaping statements on the institute's website.
Auto makers in multi district litigation before Judge Robreno
served a subpoena on Dr. Frank to find out more about the
changes. Dr. Frank moved in August 2009 to quash the subpoena,
but he did not request a hearing. After negotiations failed, VW
asked for a hearing.
On Feb. 4, 2010, Allied-Signal moved to join VW in asking for a
hearing.
Dr. Frank, chairman of environmental and occupational health at
Drexel University in Philadelphia, charges US$400 an hour as an
expert. In his deposition in 2009, he said he billed about
US$380,000 in 2008.
Judge Robreno presides over asbestos suits from federal courts
around the nation by appointment of the U.S. Judicial Panel on
Multi District Litigation.
After he enforced a previous judge's order requiring a separate
suit for each plaintiff against each defendant, Judge Robreno's
docket carried more than three million cases. The mass keeps
shrinking as he and a platoon of magistrates push lawyers to
settle and dismiss suits in batches.
On Feb. 3, 2010, Kip Harbison of Norfolk, Va., dismissed all
claims of 42 clients. He dismissed claims of 74 others against
Owens-Illinois, Inc.
ASBESTOS UPDATE: Berengo Trial v. Hardie, CSR Slated for Feb. 16
----------------------------------------------------------------
Trial in an asbestos case filed by Robert Berengo against James
Hardie Industries N.V. and CSR Limited begins on Feb. 16, 2010 in
the Victorian Supreme Court, The Sydney Morning Herald reports.
The Supreme Court declined late changes to an asbestos damages
case in which Mr. Berengo, who is dying from mesothelioma,
planned to accuse Hardie and CSR of joining forces to disguise
the dangers of asbestos.
Justice Terry Forrest said the proposed amendments in their
present form would not be allowed.
Although Justice Forrest said the proposed pleadings in the case
of Mr. Berengo were deficient, he also made it clear that
litigants in the future might well be able to allege joint
liability if they properly set out the material facts and the
case that is to be answered.
Mr. Berengo wanted to allege that the Australian asbestos
manufacturers deliberately did not put their brand names on their
asbestos-related products during the 1960s and 1970s, making it
harder to identify which of the two should bear liability in
cases of injury and disease.
Mr. Berengo also wanted to allege that the companies had agreed
to cooperate to dissuade regulators from restricting the use of
asbestos and to influence public opinion about the dangers of
their product.
ASBESTOS UPDATE: Aberdeen School in Miss. Scheduled for Cleanup
---------------------------------------------------------------
Asbestos from the Aberdeen Middle School on West Commerce Street
in Aberdeen, Miss., is set to be removed, The Dispatch reports.
The students will be redirected to alternate schools beginning
while the district decides what to do about asbestos in the old
building.
Aberdeen schools Superintendent Chester Leigh says a routine
inspection by the Mississippi Department of Environmental Quality
in January 2010 discovered asbestos in the former Aberdeen High
School.
The DEQ did not order the building be closed or deem it unsafe,
but the district plans to make some repairs to the school and the
substance could become a hazard once disturbed, Mr. Leigh said.
ASBESTOS UPDATE: Court Reverses Summary Judgment in Cashman Case
----------------------------------------------------------------
The Court of Appeals of Washington, Division 1, reversed the
ruling of the King County Superior Court, which granted summary
judgment in favor of Pacific Scientific Company, in an asbestos
case filed by Darlyne Cashman on behalf of Robert Cashman.
The case is styled Darlyne Cashman, for herself and as Personal
Representative of the Estate of Robert Cashman, Deceased,
Appellant v. Pacific Scientific Company, Respondent.
Judges Linda Lau, Stephen Dwyer, and Ronald Cox entered judgment
in Case No. 61913-6-I on Feb. 8, 2010.
From about 1967 until 1975, Mr. Cashman worked at Puget Sound
Heat Treating (PSHT) in Tacoma as a heat-treating helper and
later as a shop foreman. He also worked as a heat treater at the
Naval Underseas Warfare Center in Keyport from about 1975 until
he retired in 1997. His job duties included repairing and
maintaining the heat-treating furnaces and endothermic gas
generators.
In May 2005, Mr. Cashman was diagnosed with mesothelioma. In
August 2005, the estate sued numerous defendants, including
Pacific. The estate alleged that Pacific manufactured and sold
asbestos-containing furnaces and generators, Pacific failed to
warn Mr. Cashman of the dangers of asbestos exposure, and he
contracted mesothelioma as a result. He died on Nov. 20, 2005.
On Aug. 31, 2007, Pacific moved for summary judgment dismissal.
On Nov. 27, 2007, the trial court granted Pacific's motion for
summary judgment dismissal, concluding that the estate failed to
produce sufficient evidence to raise a genuine issue of material
fact that Mr. Cashman had been exposed to respirable asbestos
fibers from a product manufactured or sold by Pacific.
The estate appealed.
William Joel Rutzick, Esq., of Schroeter Goldmark & Bender in
Seattle and Siegel, Waters & Kraus LLP in Dallas, represented
Darlyne Cashman.
Randy Jarl Aliment, Esq., Christopher S. Marks, Esq., David
Albert Shaw, Esq., Daniel W. Ferm, Esq., of Williams Kastner &
Gibbs PLLC in Seattle, represented Pacific Scientific Company.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Class Action Reporter is a daily newsletter, co-published by
Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland
USA. Gracele D. Canilao, Leah Felisilda and Peter A. Chapman,
Editors.
Copyright 2010. All rights reserved. ISSN 1525-2272.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.
Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.
The CAR subscription rate is $575 for six months delivered via
e-mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance thereof
are $25 each. For subscription information, contact Christopher
Beard at 240/629-3300.
* * * End of Transmission * * *