/raid1/www/Hosts/bankrupt/CAR_Public/100319.mbx
C L A S S A C T I O N R E P O R T E R
Friday, March 19, 2010, Vol. 12, No. 55
Headlines
AMERICAN AIRLINES: Ill. App. Ct. Blesses Baggage Fee Class Action
APPLE INC: iPod Shuffle Owner Sues Over Alleged Sweat Damage
CBS CORP: Wins Dismissal of Goodwill Accounting Class Action Suit
EBAY INC: Accused of Violating Americans with Disabilities Act
FINRA & NASD: Brokerages Appeal Ruling Dismissing Merger Lawsuit
GAMMON GOLD: Ontario Court Certifies Investor Class
GLOBAL CASH: Settles Securities Class Action for $5.85 Million
MDL 2036: Overdraft Fees Suit Stays Alive in S.D. Fla.
NEW YORK: N.Y. App. Ct. to Review Public Defender Case Next Week
PFIZER INC: Three Canadian Women Sue Over Champix Side Effects
PULTE HOMES: Agrees to Backpay for 10 Construction Workers
REDBOX AUTOMATED: S.D. Ill. Remands Class Suit to St. Clair Cty.
* Portfolio Recovery Assoc. Acquires Claims Compensation Bureau
Asbestos Litigation
ASBESTOS UPDATE: Coca-Cola Co. Still Disputing Aqua-Chem Demands
ASBESTOS UPDATE: ACE Ltd. Records 1,023 Open Claims at Dec. 31
ASBESTOS UPDATE: ACE Records $2.293Bil Gross Reserve at Dec. 31
ASBESTOS UPDATE: American Fin'l. Has $378MM Dec. 31 Net Reserves
ASBESTOS UPDATE: Exposure Lawsuits Still Ongoing v. Phelps Dodge
ASBESTOS UPDATE: Product Liability Cases Ongoing v. Mine Safety
ASBESTOS UPDATE: Gardner Denver Still Involved in Injury Actions
ASBESTOS UPDATE: Eaton Corporation Subject to Exposure Lawsuits
ASBESTOS UPDATE: Navigators Records $16.76M Dec. 31 Net Reserves
ASBESTOS UPDATE: OneBeacon Insurance Has 482 Accounts at Dec. 31
ASBESTOS UPDATE: OneBeacon Records $985.6Mil Reserve at Dec. 31
ASBESTOS UPDATE: Chubb Has $689Mil Net Claims Reserve at Dec. 31
ASBESTOS UPDATE: M & F Incurs No Amounts for Asbestos at Dec. 31
ASBESTOS UPDATE: ITW, Subsidiaries Face Welding-Related Lawsuits
ASBESTOS UPDATE: AIHL Cites $15.1M for Losses and LAE at Dec. 31
ASBESTOS UPDATE: 19 of Douglas Emmett's Properties Have Asbestos
ASBESTOS UPDATE: IPALCO Unit Still Involved in Exposure Lawsuits
ASBESTOS UPDATE: W. R. Berkley Reserves $36.52Mil for A&E Claims
ASBESTOS UPDATE: Duke Energy Corp. Reserves $980M for Carolinas
ASBESTOS UPDATE: Entergy, Units Still Face 500 Exposure Actions
ASBESTOS UPDATE: Digital Realty Accrues $1.3Mil ARO at Dec. 31
ASBESTOS UPDATE: Belden Inc. Facing 91 Injury Actions at Feb. 4
ASBESTOS UPDATE: Midwest Generation Facing 217 Cases at Dec. 31
ASBESTOS UPDATE: Vector Group Party to Smokers' Lawsuits in Md.
ASBESTOS UPDATE: Parsons Case Still Stayed in Kanawha Co. Court
ASBESTOS UPDATE: Exposure Claims Still Ongoing v. Reading Int'l.
ASBESTOS UPDATE: Exposure Actions Ongoing v. CenterPoint Energy
ASBESTOS UPDATE: Exposure Lawsuits Still Ongoing v. Tenneco Inc.
ASBESTOS UPDATE: Pepco Still Facing 180 Cases in Md. at Dec. 31
ASBESTOS UPDATE: Manitowoc Co. Still Involved in Exposure Cases
ASBESTOS UPDATE: PartnerRe Net A&E Reserves at $232MM at Dec. 31
ASBESTOS UPDATE: Western Auto Still Subject to Exposure Lawsuits
ASBESTOS UPDATE: Regal Beloit Still Subject to Exposure Lawsuits
ASBESTOS UPDATE: Exposure Cases Ongoing Against California Water
ASBESTOS UPDATE: United Fire Still Has $3.8M Reserves at Dec. 31
ASBESTOS UPDATE: A. O. Smith Still Involved in Exposure Lawsuits
ASBESTOS UPDATE: Target Still Subject to Probe on NESHAP Breach
ASBESTOS UPDATE: Sears Holdings Corp. Subject to Exposure Cases
ASBESTOS UPDATE: Chemtura Corp. Still Party to Liability Actions
ASBESTOS UPDATE: Albany Int'l. Party to 7,809 Claims at Feb. 16
ASBESTOS UPDATE: Brandon Drying Has 7,905 Open Claims at Feb. 16
ASBESTOS UPDATE: Mt. Vernon Suits Pending Against Albany Int'l.
ASBESTOS UPDATE: Ladish Facing 14 Claims in 3 States at Dec. 31
ASBESTOS UPDATE: Joy Global Still Involved in Liability Lawsuits
ASBESTOS UPDATE: Worcester Contractor Indicted on Cleanup Charge
ASBESTOS UPDATE: IRS Envt'l. Fined $8,100 for Abatement Breaches
ASBESTOS UPDATE: Fellin Claim v. 36 Firms Filed March 3 in W.Va.
ASBESTOS UPDATE: DEQ Penalizes Skiles, Smith for Safety Breaches
ASBESTOS UPDATE: Jury Rules v. 2 Miss. Lawyers in Fraud Lawsuit
ASBESTOS UPDATE: Ill. Court Favors Ford Motor in Williams Action
*********
AMERICAN AIRLINES: Ill. App. Ct. Blesses Baggage Fee Class Action
-----------------------------------------------------------------
Lynne Stiefel at pioneerlocal.com reports that a Northbrook,
Ill., woman who didn't immediately get a $40 baggage charge
refund can proceed with her class-action lawsuit against American
Airlines, a three-member Illinois Appellate Court panel ruled.
But the Appellate Court panel snuffed out three suburban
residents' class-action claims that ComEd should pay for doing a
lousy job restoring electric power after massive storms in August
2007.
All passengers who failed to get baggage check refunds could be
impacted by Andrea Barber's case against American Airlines.
After her flight from Chicago O'Hare to White Plains, N.Y. was
canceled in August 2008, the Northbrook woman received a refund
for the ticket but not for the two suitcases she had checked. A
ticket agent told her the luggage fee isn't returned when a
flight is canceled but the passenger doesn't accept another
flight.
Four days later, she sued, alleging breach of contract.
American issued a $40 refund to Barber's credit card a month
later, and acknowledged that a written policy provides for a full
and automatic refund for a ticket and baggage check in case of a
canceled flight.
The airline then asked Cook County Circuit Court Judge Rita Novak
to dismiss the case because it was now moot. Novak did so in
March 2009.
But Appellate Justices Robert Gordon and Joseph Gordon, ruling
Feb. 11 on Barber's appeal, agreed that the refund was a "pick-
off attempt" by the airline, meaning that she was paid to avoid a
class-action lawsuit.
"Based on the facts and circumstances of this case," the
airline's "act of unilaterally posting a credit to (Barber's)
credit card did not make (her) claims moot," Robert Gordon wrote.
Justice Robert Cahill dissented. "There is no prohibition against
settlements with class members as long as the rights of
nonsettling class members are not affected," he wrote.
Howard Goode, Barber's Northbrook attorney, and Barber did not
return calls seeking comment.
The 630,000 ComEd customers who lost power for five days after
severe storms in August 2007 won't get any satisfaction from the
class-action lawsuit pursued by Frances Sheffler of Glenview,
Mark Resnik of Wilmette and Debra Sloan, and her son, Jason, of
Des Plaines.
Along with spoiled food, repairs, basement flooding and other
damage from the "sudden and dangerous power outage," their
lawsuit said the Sloans had to leave their residence in order to
find power for Jason's life-support ventilator.
They alleged ComEd's level of service and restoration efforts
following the power outage were substandard.
Justices Robert Gordon, Robert Cahill and Margaret Stanton
McBride ruled Feb. 26 it was proper for Judge Novak to have
dismissed the case in December 2008. Any relief sought for
systemic defects in electrical service or repair, the Appellate
Court agreed, was a matter for the Illinois Commerce Commission.
The residents' request for monetary damages "is predicated on
allegations that ComEd is not providing adequate service under
the (Public Utility) Act," Gordon wrote.
"If allowed to proceed in the trial court, these claims would
place the trial court in the position of assessing what
constitutes adequate service, and whether ComEd has fulfilled its
responsibility of providing adequate service. That type of
determination is the core of the Commission's regulatory function
and is within its jurisdiction pertaining to 'rates.'"
Highland Park attorney Larry Drury, who represented Sheffler,
Resnik and Sloan, could not be reached for comment.
APPLE INC: iPod Shuffle Owner Sues Over Alleged Sweat Damage
------------------------------------------------------------
In a class-action lawsuit filed last week, MacDailyNews.com
reports, a Manhattan Beach, California man claims that his iPod
shuffle is defective because while working out, his perspiration
traveled down the earphone cord, shutting it down, citing a
report by Josh Dickey at The Wrap.
"This injustice was addressed by Stephen Vale, whose filings call
Apple out for advertising wild claims about the clip-on MP3
player's uses," Dickey reports. "These include -- but are not
limited to -- its ability to function while "Working out,"
"Running," "On the Road" (with a picture of a woman on a bicycle)
and "On the Go" (with a picture of a woman pushing a shopping
cart)."
Mr. Dickey reports, "Vale is leveling five breach-of-warranty
counts, one count of false advertising, and one count of unfair
competition. He seeks unspecified damages for himself and any
California resident who chooses to join the class."
Mr. Dickey's complete report is available at:
http://www.thewrap.com/blog-entry/sweaty-ipod-user-sues-apple-15192
CBS CORP: Wins Dismissal of Goodwill Accounting Class Action Suit
-----------------------------------------------------------------
David Glovin at Bloomberg News reports that CBS Corp. and its top
officers won dismissal of a class-action lawsuit claiming the
broadcaster inflated the value of its shares by not taking a
timely impairment charge to its goodwill in 2008.
The Honorable Kevin Castel dismissed City of Omaha, et al. v. CBS
Corp., Case No. 08-cv-10816 (S.D.N.Y.), earlier this week.
The investors claimed in the 2008 complaint that CBS took the
impairment charge in October 2008, instead of the first quarter,
for the personal benefit of Chairman Sumner Redstone. The
investors said Redstone no longer had a need to inflate the price
of CBS stock amid the stock market collapse of late 2008, when it
took the charge.
Judge Castel said in his ruling that the complaint failed to
adequately allege knowledge by the defendants in the first
quarter of 2008 that placed them "on notice of likely impairment
of goodwill."
Samuel Rudman, a lawyer for the investors, declined to comment.
EBAY INC: Accused of Violating Americans with Disabilities Act
--------------------------------------------------------------
A class action lawsuit filed against eBay (NASDAQ:EBAY) this week
claims a deaf woman in Missouri tried multiple times to register
to sell items on the auction site but couldn't because the
company requires sellers to verify their identities via
telephone.
Because she is deaf and does not use a phone, Melissa J. Earll of
Nevada (nuh-VAY-duh), Mo., is not able to complete the
registration process and not able to sell items on eBay. Her
lawsuit is being filed on behalf of all deaf or hard of hearing
persons who have been prevented from registering as sellers with
eBay because of the company's discriminatory telephone
registration system.
eBay requires those registering to sell items to be called over
the phone, listen to auditory PINs, and then enter those PINs
online to verify their identities. Despite Ms. Earll's numerous
attempts to explain her hearing issue to the company over email
and online chat support asking for an alternate method to
authorize her account, eBay refused to accommodate her.
"At one point, eBay even suggested that she just find someone who
can hear normally to answer her phone for her," says Earll's
attorney, Jay Edelson of Edelson McGuire in Chicago who
previously won a $30-million settlement over the Thomas the Tank
lead paint toy and is currently pursuing action against JPMorgan
Chase and other big banks that received federal bailout money for
fraudulently and randomly freezing home equity lines of credit.
"This is a travesty for all deaf or hard of hearing persons who
should be able to sell items on eBay just as anyone else does."
A copy of the Complaint in Earll v. eBay, Inc., Case No. 10-3089
(W.D. Mo.), is available at:
http://www.prnewschannel.com/pdf/Earll_Edelson_eBay_Complaint.pdf
The Plaintiff is represented by:
Williams G. Crowe, Esq.
LAW OFFICES OF BILL CROWE, MBA, JD, LC
3259 East Sunshine, Suite I
Springfield, MO 65804-2143
Telephone: 417-883-8000
E-mail: Wcrowe1415@gmail.com
- and -
Jay Edelson, Esq.
Michael J. Aschenbrener, Esq.
Christopher L. Dore, Esq.
EDELSON MCGUIRE, LLC
350 N. LaSalle St., Suite 1300
Chicago, IL 60654
Telephone: 312-589-6370
E-mail: jedelson@edelson.com
maschenbrener@edelson.com
cdore@edelson.com
FINRA & NASD: Brokerages Appeal Ruling Dismissing Merger Lawsuit
----------------------------------------------------------------
Suzanne Barlyn, writing for Dow Jones Newswires, reports that
brokerages in a class action suit that alleged they were misled
about the terms of a merger creating the Financial Industry
Regulatory Authority are appealing a U.S. federal judge's
decision to throw out the case.
Lawyers for Standard Investment Chartered Inc., a California
based brokerage that is leading the class action suit, notified a
U.S. District Court in New York on Tuesday that the brokerage is
appealing a March 1 decision in which U.S. District Judge Jed
Rakoff dismissed the case, according to court documents. The
plaintiffs are appealing the case to the U.S. Court of Appeals
for the Second Circuit.
The 2007 case alleged that Mary Schapiro, now chairman of the
Securities and Exchange Commission, misled brokers about the
merger between Finra's predecessors, the National Association of
Securities Dealers and the regulatory arm of the New York Stock
Exchange. Schapiro had previously served as NASD's chairman and
chief executive.
Judge Rakoff also dismissed a second class action suit on March 1
filed by Benchmark Financial Services Inc. of Ocean Ridge, Fla.,
which made similar allegations, according to the order. Benchmark
withdrew as a broker dealer in 2009, according to regulatory
findings.
Judge Rakoff wrote in the March 1 order that the defendants in
the cases, which included Finra and NASD, were entitled to
"absolute immunity" from damages because they were acting within
the scope of their regulatory functions.
A key issue in the cases was the adequacy of a $35,000 payout
NASD made to its individual members when it merged with the
regulatory arm of NYSE to form Finra. In proxy material in
December 2006, the NASD claimed that the Internal Revenue Service
had precluded it from paying members more than $35,000 each. The
lawsuits challenged that claim and said the NASD had plenty of
money for a bigger payout.
A Finra spokeswoman declined to immediately comment, Ms. Barlyn
says.
GAMMON GOLD: Ontario Court Certifies Investor Class
---------------------------------------------------
Gammon Gold Inc. (TSX:GAM and NYSE:GRS) disclosed that the
Ontario Superior Court of Justice released its decision on March
16, 2010, in respect of the proposed class action commenced by Ed
J. McKenna in 2008.
The Company notes that while the class action was certified in
respect of investors who purchased securities through
underwriters in Canada under its April 2007 prospectus, the
Court, contrary to other recent Ontario judgments, did not
certify the claim in respect of secondary market purchases.
Additionally, the Court did not certify the claim in respect of
persons who purchased securities outside Canada.
Rene Marion, the President and Chief Executive Officer of Gammon
commented, "We believe the Court's decision not to certify the
claim in respect of secondary market purchases and in respect of
those purchasers who acquired securities outside Canada,
significantly reduces the scale of any potential claim."
Certification is a procedural step in the litigation and no
determination has been made of the merits of the claim. Gammon
will continue to vigorously defend the matter, although no
assurances can be given with respect to the outcome of any
proceedings.
About Gammon Gold
Gammon Gold Inc. is a Nova Scotia based mid-tier gold and silver
producer with properties in Mexico. The Company's flagship Ocampo
Project in Chihuahua State achieved commercial production in
January 2007. Gammon Gold also operates its El Cubo operation in
Guanajuato State and has the promising Guadalupe y Calvo
development property in Chihuahua State.
GLOBAL CASH: Settles Securities Class Action for $5.85 Million
--------------------------------------------------------------
Global Cash Access Holdings, Inc., the gaming industry's payments
leader, today announced that it has reached a settlement with the
plaintiffs of all issues raised in the federal securities class
action lawsuit originally filed on April 11, 2008. The
securities class action was commenced by a stockholder against
certain of the Company's current and former directors, the
Company's former chief executive officer, former chief financial
officer and certain other defendants.
The parties have executed a Stipulation of Settlement that
provides for the establishment of a $5.85 million settlement fund
in exchange for the dismissal with prejudice of all claims
against all defendants in the litigation. The Company does not
expect the consummation of this settlement to have a material
adverse impact on the Company's operating results in 2010.
Scott Betts, the Company's President and Chief Executive Officer
said "We are very pleased to have this matter fully resolved.
This was the last of several legacy issues that we have had to
deal with over the past few years. The Company has now reached a
successful resolution of all of such pending issues and we can
now fully focus on our business of providing leading cash access
services without the further expenditure of any significant
resources or funds in connection with defending this action."
The settlement is subject to preliminary approval, final
documentation and final approval by the U.S. District Court for
the District of Nevada.
Las Vegas-based Global Cash Access, Inc. --
http://www.gcainc.com/-- a wholly owned subsidiary of Global
Cash Access Holdings, Inc., is a leading provider of cash access
products and related services to over 1,100 casinos and other
gaming properties in the United States, Europe, Canada, the
Caribbean, Central America and Asia. GCA's products and services
provide gaming patrons access to cash through a variety of
methods, including ATM cash withdrawals, point-of-sale debit card
transactions, credit card cash advances, check verification and
warranty services, and Western Union money transfers. GCA
provides products and services that improve credit decision-
making, automate cashier operations and enhance patron marketing
activities for gaming establishments. With its proprietary
database of gaming patron credit history and transaction data on
millions of gaming patrons worldwide, GCA is recognized for
successfully developing and deploying technological innovations
that increase client profitability, operational efficiency and
customer loyalty.
MDL 2036: Overdraft Fees Suit Stays Alive in S.D. Fla.
------------------------------------------------------
Julie Kay at the Daily Business Review reports that a Miami
federal judge has denied requests by the nation's biggest banks
to dismiss a class action suit by checking account customers who
claim they are being charged abusive overdraft fees on debit
cards.
Senior U.S. District Judge James Lawrence King's 50-page ruling
in In Re: Checking Account Overdraft Litigation, MDL No. 2036;
Master DOcket No. 09-md-02036 (S.D. Fla.), on Thurs., Mar. 11,
2010, keeps alive a closely watched consumer lawsuit that could
be worth hundreds of millions of dollars and is shining a
national spotlight on what plaintiffs lawyers say are egregious
bank practices.
"It's a really important decision because these banks fought long
and hard to get this knocked out at the dismissal stage," said
Bobby Gilbert, a partner at Alters Boldt Brown Rash Culmo in
Miami and co-lead counsel on the case with Bruce Rogow, "The
entire order is a major step forward for us . . . allowing us to
proceed to the discovery stage."
Miami attorney Barry Davidson of Hunton & Williams, who
represents Wachovia, declined comment, as did Aaron Schur of
Aaron & Porter in San Francisco, who represents Bank of America.
King's order granted some of the banks' motions to dismiss in
some cases, such as claims brought under consumer protection laws
in Massachusetts, New Mexico, California, Oregon, Montana, Ohio,
Texas and Wisconsin. But some of the rulings were without
prejudice, allowing customers to re-file their claims.
"The few areas where the court granted their motion without
prejudice, they pale in comparison to the overall tenor of the
order," Gilbert said.
Five class action suits alleging excessive overdraft fees were
transferred last June to King. The multidistrict litigation has
grown to include cases in nearly every state involving most of
the nation's largest banks, Gilbert said.
Defendants including Bank of America, Citibank, Wells Fargo,
Wachovia, JPMorgan Chase and SunTrust are accused of deliberately
manipulating the order of transactions on debit cards through
special computer software -- and in some cases sitting on
transactions for days -- to maximize overdraft fees.
A similar suit against BankAtlantic is pending in Broward Circuit
Court before Judge Jeffrey Streitfeld. That bank was sued in
state court because all its customers are in Florida, Gilbert
said.
If the suits are successful, he said damages could run into the
hundreds of millions of dollars, pointing to a recent report by
the Center for Responsible Lending indicating U.S. banks
generated $24 billion in overdraft fees in 2008. Studies have
shown the amount of a transaction that causes an overdraft is
typically lower than the bank's fee for permitting the
transaction when customers have insufficient funds in their
accounts. The typical fee has been running $35, but some banks
have lowered the fee in recent years as more attention was paid
to their practices.
The controversy over overdraft fees has already produced some
changes. Bank of America announced last week that it would stop
charging overdraft fees on debit cards this summer. Instead,
customers will be able to use the cards only if they have enough
money in their accounts. It's unclear if other institutions will
follow the banking giant's lead.
The banks filed a 100-page omnibus motion to dismiss last
December, arguing private citizens don't have standing to bring
such claims and federal pre-emption bars consumers from suing
banks based on federal banking regulations, among other
arguments.
Oral arguments were held two weeks ago. King set aside most of
the banks' arguments, ruling federal law does not pre-empt state
law in overdraft cases.
"Plaintiffs do not ask the court to tell the banks how to order
transactions but simply that the ordering must be carried out as
contemplated by the covenant of good faith and fair dealing,"
King stated in his order. "There are a number of cases supporting
the proposition that when one party is given discretion to act
under a contract, said discretion must be exercised in good
faith."
King also disregarded defense arguments that customers
voluntarily entered into a contract with banks and agreed to
overdraft protection terms, including the fees. He sided with
plaintiffs in their view that the disparity in sophistication and
bargaining power between customers and their banks "is obvious,"
and customers did not know they had the option to decline the
overdraft protection service.
If the litigation is successful, it would accomplish for consumer
groups what Congress could not. A House bill that died in 2007
would have increased regulation of overdraft programs.
The Plaintiff Class is represented by:
Elizabeth A. Alexander, Esq.
LIEFF CABRASER HEIMANN & BERNSTEIN LLP
150 Fourth Avenue North, Suite 1650
Nashville, TN 37219-2415
Telephone: 615-313-9000
E-mail: ealexander@lchb.com
- and -
Mikaela Bernstein, Esq.
Jordan Elias, Esq.
Roger Norton Heller, Esq.
Barry R. Himmelstein, Esq.
Michael W. Sobol, Esq.
LIEFF CABRASER HEIMANN & BERNSTEIN
Embarcadero Center West
275 Battery Street, 29th Floor
San Francisco, CA 94111-3339
Telephone: 415-956-1000
E-mail: mbernstein@lchb.com
jelias@lchb.com
rheller@lchb.com
bhimmelstein@lchb.com
msobol@lchb.com
- and -
Jeremy William Alters, Esq.
ALTERS, BOLDT, BROWN, RASH & CULMO
4141 Northeast 2nd Avenue, Suite 201
Miami, FL 33137
Telephone: 305-571-8550
E-mail: Jeremy@abbrclaw.com
Other plaintiffs are represented by:
Eugene J. Benick, Esq.
Burton H. Finkelstein, Esq.
Tracy D. Rezvani, Esq.
FINKELSTEIN THOMPSON LLP
1050 30th Street NW
Washington, DC 20007
Telephone: 202-337-8000
E-mail: ebenick@finkelsteinthompson.com
bfinkelstein@finkelsteinthompson.com
trezvani@finkelsteinthompson.com
- and -
Rosemary M. Rivas, Esq.
FINKELSTEIN THOMPSON LLP
100 Bush Street, Suite 1450
San Francisco, CA 94104
Telephone: 415-398-8700
- and -
Steve W. Berman, Esq.
HAGENS BERMAN SOBOL SHAPIRO LLP
1301 5th Avenue, Suite 2900
Seattle, WA 98101
Telephone: 206-623-7292
E-mail: steve@hbsslaw.com
- and -
Ari Y. Brown, Esq.
Genessa A. Stout, Esq.
HAGENS BERMAN SOBOL SHPIRO LLP
1918 Eighth Avenue, Suite 3300
Seattle, WA 98101
Telephone: 206-623-7292
E-mail: ari@hbsslaw.com
genessa@hbsslaw.com
- and -
Kimberly Lynn Boldt, Esq.
ALTERS, BOLDT, BROWN, RASH & CULMO, P.A.
4141 NE 2nd Avenue
Miami, FL 33137
Telephone: 305-878-8550
E-mail: kimberly@abbrclaw.com
- and -
Marcus J. Bradley, Esq.
MARLIN & SALTZMAN
29229 Canwood Street, Suite 208
Agoura Hills, CA 91301
Telephone: 818-991-8080
- and -
R. Scott Erlewine, Esq.
Nicholas A. Carlin, Esq.
David M. Given, Esq.
PHILLIPS & ERLEWINE & GIVEN LLP
50 California Street, 35th Floor
San Francisco, CA 94111
Telephone: 415-398-0900
E-mail: rse@phillaw.com
nac@phillaw.com
dmg@phillaw.com
- and -
Todd David Carpenter, Esq.
BONNETT FAIRBOURN FRIEDMAN & BALINT
600 West Broadway, Suite 900
San Diego, CA 92101
Telephone: 602-274-1100
- and -
Denyse Clancy, Esq.
BARON BUDD LLP
3102 Oak Lawn Avenue, Suite 1100
Dallas, TX 75219
Telephone: 214-521-3605
- and -
Michael R. Comeau, Esq.
COMEAU, MALDEGEN, TEMPLEMAN & INDALL, LLP
P. O. Box 669
Santa Fe, NM 87504-0669
- and -
Charles M. Delbaum, Esq.
Stuart T. Rossman, Esq.
NATIONAL CONSUMER LAW CENTER
7 Winthrop Square, 4th Floor
Boston, MA 02110
Telephone: 617-542-8010
E-mail: cdelbaum@nclc.org
srossman@nclc.org
- and -
Jeff D. Friedman, Esq.
HAGENS BERMAN SOBOL SHAPIRO LLP
715 Hearst Avenue, Suite 202
Berkeley, CA 94710
Telephone: 510-725-3000
- and -
Jeffrey James Geraci, Esq.
James Jason Hill, Esq.
COHELAN KHOURY & SINGER
605 C Street, Suite 200
San Diego, CA 92101
Telephone: 619-595-3001
- and -
John Matthew Geyman, Esq.
PHILLIPS LAW GROUP PLLC
315 5th Avenue South, Suite 1000
Seattle, WA 98104
Telephone: 206-382-1168
E-mail: mgeyman@jphillipslaw.com
- and -
Robert Cecil Gilbert, Esq.
4141 NE 2nd Avenue, Suite 201
Miami, FL 33137
Telephone: 305-571-8550
E-mail: bobby@abbrclaw.com
- and -
Norah Hart, Esq.
TREUHAFT & ZAKARIN, LLP
1011 Avenue of the America, 4th Floor
New York, NY 10000
Telephone: 212-725-6418
- and -
William Charles Hearon, Esq.
1 SE 3rd Avenue
Miami, FL 33131
Telephone: 305-579-9813
E-mail: wchearon@stfblaw.com
- and -
Benjamin F. Johns, Esq.
Joseph G. Sauder, Esq.
Matthew D. Schelkopf, Esq.
CHIMICLES & TIKELLIS LLP
One Haverford Centre
361 W Lancaster Avenue
Haverford, PA 19041
Telephone: 610-642-8500
E-mail: bfj@chimicles.com
jgs@chimicles.com
mds@chimicles.com
- and -
Jae Kook Kim, Esq.
Richard D. McCune, Jr., Esq.
MCCUNE WRIGHT LLP
2068 Orange Tree Lane, Suite 216
Redlands, CA 92374
Telephone: 909-557-1250
E-mail: jkk@mccunewright.com
rdm@mccunewright.com
- and -
Steve D. Larson, Esq.
Joshua L. Ross, Esq.
STOLL STOLL BERNE LOKTING & SHLACHTER
209 SW Oak Street, 5th Floor
Portland, OR 97204
Telephone: 503-227-1600
- and -
G. Franklin Lemond, Jr., Esq.
Edward Adam Webb, Esq.
WEBB LAW GROUP LLC
1900 The Exchange SE, Suite 480
Atlanta, GA 30339
Telephone: 770-444-9325
- and -
Alan M. Mansfield, Esq.
THE CONSUMER LAW GROUP
9466 Black Mountain Rd, Suite 225
San Diego, CA 92126
Telephone: 619-308-5034
- and -
Alisha A. Martin, Esq.
HARRISON PATTERSON & O'CONNOR
402 West Broadway, 29th Floor
San Diego, CA 92101
Telephone: 619-756-6991
- and -
James R. Patterson, Esq.
HARRISON PATTERSON & O'CONNOR
402 West Broadway, 29th Floor
San Diego, CA 920101
Telephone: 619-756-6990
- and -
John Wentworth Phillips, Esq.
PHILLIPS LAW GROUP PLLC
315 Fifth Avenue South, Suite 1000
Seattle, WA 98104-2682
Telephone: 206-382-6163
- and -
Bruce S. Rogow, Esq.
BRUCE S. ROGOW PA
500 East Broward Boulevard, Suite 1930
Fort Lauderdale, FL 33394
Telephone: 954-767-8909
E-mail: guntherc@rogowlaw.com
- and -
Marian S. Rosen, Esq.
MARIAN S. ROSEN & ASSOCIATES
5065 Westheimer, Suite 840
Houston, TX 77056
Telephone: 713-222-6464
E-mail: marian@marianrosen.com
- and -
Howard Weil Rubinstein, Esq.
914 Waters Avenue, Suite 20
Aspen, CO 81611
Telephone: 832-715-2788
- and -
Chaim S. Setareh, Esq.
LAW OFFICE OF SHAUN SETAREH APC
Penthouse Suite 3
9454 Wilshire Boulevard
Beverly Hills, CA 90212
Telephone: 310-888-7771
- and -
Bonny E. Sweeney, Esq.
LERACH COUGHLIN STOIA GELLER RUDMAN & ROBBINS
655 W. Broadway, Suite 1900
San Diego, CA 92101
Telephone: 619-231-1058
E-mail: bonnys@csgrr.com
- and -
Patricia Nicole Syverson, Esq.
BONNETT FAIRBOURN FRIEDMAN & BALINT
600 West Broadway, Suite 900
San Diego, CA 92101
Telephone: 602-274-1100
- and -
Stephen P. Willison, Esq.
WILLISON & HELLMAN PC
44 Grandville Avenue SW, Suite 200
Grand Rapids, MI 49503
Telephone: 616-855-0050
- and -
Miriam Zakarin, Esq.
TEVA NORTH AMERICA
1090 Horsham Road
P.O. Box 1090
North Wales, PA 19450-1989
Telephone: 212-725-6418
- and -
Damien Zillas, Esq.
GOLOMB & HONIK PC
1515 Market Street, Suite 1100
Philadelphia, PA 19102
Telephone: 215-985-9177
E-mail: dzillas@golombhonik.com
Wells Fargo & Company and Wells Fargo Bank, N.A., are represented
by:
Tracy L. Ashmore, Esq.
HOLME ROBERTS & OWEN LLP
1700 Lincoln Street, Suite 4100
Denver, CO 80203-4541
Telephone: 303-861-7000
- and -
Ronald E. Beard, Esq.
Rudy Albert Englund, Esq.
Tara N. Gillespie, Esq.
Brian J. Meenaghan, Esq.
LANE POWELL PC
1420 Fifth Avenue, Suite 4100
Seattle, WA 98101-2338
Telephone: 206-223-7000
- and -
Barbara J. Dawson, Esq.
Robert Matthew Kort, Esq.
SNELL & WILMER
One Arizona Center
400 E. Van Buren
Phoenix, AZ 85004-2202
Telephone: 602-382-6000
- and -
Emily Johnson Henn, Esq.
COVINGTON & BURLING
1201 Pennsylvania Avenue, NW
Washington, DC 20004-2401
Telephone: 202-662-5217
E-mail: ehenn@cov.com
- and -
David M. Jolley, Esq.
Margaret G. May, Esq.
Steven Duane Sassaman, Esq.
Bryanne J. Schmitt, Esq.
Sonya Diane Winner, Esq.
COVINGTON & BURLING LLP
One Front Street, Suite 3500
San Francisco, CA 94111
Telephone: 415-591-6000
E-mail: djolley@cov.com
mmay@cov.com
ssassaman@cov.com
bschmitt@cov.com
swinner@cov.com
- and -
Jay Earl Smith, Esq.
SMITH LARSEN & WIXOM
1935 Village Center Circle
Las Vegas, NV 89134
Telephone: 702-252-5002
- and -
Dori Katrine Stibolt, Esq.
FOX ROTHSCHILD LLP
222 Lakeview Avenue, Suite 700
West Palm Beach, FL 33401
Telephone: 561-835-9600
E-mail: dstibolt@foxrothschild.com
Union Bank, N.A., and Unionbancal Corporation are represented by:
Peter H. Bales, Esq.
Jan T. Chilton, Esq.
Mark Douglas Lonergan, Esq.
John B. Sullivan, Esq.
SEVERSON & WERSON
One Embarcadero Center, Suite 2600
San Francisco, CA 94111
Telephone: 415-398-3344
E-mail: phb@severson.com
jtc@severson.com
mdl@severson.com
jbs@severson.com
Branch Banking and Trust Company is represented by:
Nancy H. Baughan, Esq.
David B. Darden, Esq.
William J. Holley, II, Esq.
Constance Melissa Ewing, Esq.
Eric Jon Taylor, Esq.
PARKER HUDSON RAINER & DOBBS
Marquis II Tower, Suite 1500
285 Peachtree Center Avenue NE
Atlanta, GA 30303
Telephone: 404-523-5300
E-mail: nbaughan@phrd.com
ddarden@phrd.com
wholley@phrd.com
etaylor@phrd.com
Wachovia Bank, N.A., is represented by:
Lawrence J. Bracken, II, Esq.
Jason M. Beach, Esq.
Ashley F. Cummings, Esq.
HUNTON & WILLIAMS
600 Peachtree Street NE, Suite 4100
Atlanta, GA 30308-2216
Telephone: 404-888-4000
- and -
Tracy Thomas Cottingham, III, Esq.
HUNTON & WILLIAMS
Bank of America Plaza
101 South Tryon Street, Suite 3500
Charlotte, NC 28280
Telephone: 704-378-4700
- and -
Barry Rodney Davidson, Esq.
HUNTON & WILLIAMS
1111 Brickell Avenue, Suite 2500
Miami, FL 33131
Telephone: 305-810-2539
E-mail: bdavidson@hunton.com
- and -
Ann Marie Mortimer, Esq.
HUNTON & WILLIAMS
550 S. Hope Street, Suite 2000
Los Angeles, CA 90071
Telephone: 213-532-2103
- and -
Leda Dunn Wettre, Esq.
ROBINSON WETTRE & MILLER LLC
One Newark Center, 19th Floor
Newark, NJ 07102
Telephone: 973-690-5400
J.P. Morgan Chase Bank, N.A., is represented by:
Matthew D. Benedetto, Esq.
Andrew Benjamin Grossman, Esq.
WILMER CUTLER PICKERING HALE & DORR LLP
350 S. Grand Avenue, Suite 2100
Los Angeles, CA 90071
Telephone: 213-443-5323
- and -
Mark D. Flanagan, Esq.
WILMER CUTLER PICKERING HALE & DORR LLP
1117 S. California Avenue
Palo Alto, CA 94304
Telephone: 650-858-6047
- and -
A. Stephen Hut, Jr., Esq.
Michelle Ognibene, Esq.
WILMER CUTLER PICKERING HALE & DORR LLP
1875 Pennsylvania Avenue NW
Washington, DC 20006
Telephone: 202-663-6000
E-mail: steve.hut@wilmerhale.com
michelle.ognibene@wilmerhale.com
- and -
David Sapir Lesser, Esq.
Christopher R. Lipsett, Esq.
Alan E. Schoenfeld, Esq.
WILMER CUTLER PICKERING HALE & DORR
399 Park Avenue
New York, NY 10022
Telephone: 212-230-8800
E-mail: david.lesser@wilmerhale.com
chris.lipsett@wilmerhale.com
alan.schoenfeld@wilmerhale.com
SunTrust Banks, Inc., is represented by:
Lindsey Elisa Bowen, Esq.
Lynette Eaddy Smith, Esq.
William N. Withrow, Jr., Esq.
TROUTMAN SANDERS LLP
600 Peachtree Street NE, Suite 5200
Atlanta, GA 30308-2216
Telephone: 404-885-2743
E-mail: lindsey.bowen@troutmansanders.com
lynette.smith@troutmansanders.com
william.withrow@troutmansanders.com
Huntington Bancshares, Inc., and Huntington National Bank
are represented by:
Martin C. Bryce, Jr., Esq.
Alan S. Kaplinsky, Esq.
BALLARD SPAHR ANDREWS & INGERSOLL
1735 Market Street, 51st Floor
Philadelphia, PA 19103-7599
Telephone: 215-665-8500
E-mail: bryce@ballardspahr.com
kaplinsky@ballardspahr.com
- and -
John M. Lichtenberg, Esq.
Paul A. McCarthy, Esq.
Bruce W. Neckers, Esq.
RHOADES MCKEE PC
161 Ottawa Avenue NW, Suite 600
Grand Rapids, MI 49503
Telephone: 616-235-3500
U.S. Bank, NA, is represented by:
Cody J. Elliott, Esq.
C. Marie Eckert, Esq.
MILLER NASH LLP
111 SW 5th Avenue, Suite 3400
Portland, OR 97204-3699
Telephone: 503-205-2477
- and -
Rita Lin, Esq.
MORRISON & FOERSTER
425 Market Street
San Francisco, CA 94105-2482
Telephone: 415-268-7000
- and -
James R. McGuire, Esq.
MORRISON & FOERSTER
425 Market Street
San Francisco, CA 94105-2482
Telephone: 415-268-7000
E-mail: jmcguire@mofo.com
- and -
Sylvia Rivera, Esq.
MORRISON & FOERSTER
555 W. 5th Street, Suite 3500
Los Angeles, CA 90013-1024
Telephone: 213-892-5200
E-mail: srivera@mofo.com
Bank of America Bank, N.A., Bank of America, California, and Bank
of America Corporation are represented by:
Laurence J. Hutt, Esq.
Christopher Scott Tarbell, Esq.
ARNOLD & PORTER LLP
777 S Figueroa Street, 44th Floor
Los Angeles, CA 90017-5844
Telephone: 213-243-4000
E-mail: laurence.hutt@aporter.com
christopher.tarbell@aporter.com
- and -
Sharon D. Mayo, Esq.
Aaron Schur, Esq.
ARNOLD & PORTER LLP
275 Battery Street, Suite 2700
San Francisco, CA 94111
Telephone: 415-356-3000
- and -
James Randolph Liebler, Esq.
Barbara Viniegra, Esq.
LIEBLER GONZALEZ & PORTUONDO PA
44 W. Flagler Street, 25th Floor
Miami, FL 33130-4329
Telephone: 305-379-0400
E-mail: jrl@lgplaw.com
bv@lgplaw.com
Citibank (West), FSB, Citibank FSB, Citibank Inc., and Citibank,
N.A., are represented by:
Alexandria Rose Kachadoorian, Esq.
Lisa M. Simonetti, Esq.
Julia B. Strickland, Esq.
STROOCK & STROOCK & LAVAN
2029 Century Park East, Suite 1800
Los Angeles, CA 90067-3086
Telephone: 310-556-5811
E-mail: akachadoorian@stroock.com
lsimonetti@stroock.com
jstrickland@stroock.com
NEW YORK: N.Y. App. Ct. to Review Public Defender Case Next Week
----------------------------------------------------------------
William Glaberson at The New York Times reports that a class-
action suit to be argued next week in New York's highest court
has become a test of a national strategy by civil liberties
groups to challenge what they say are failed public defender
programs in many states.
Because an estimated 80 percent of felony defendants in large
states are too poor to hire their own lawyers, and because the
case is being watched around the nation, the case has the
potential to alter the shape of the criminal justice system.
Filed by the New York Civil Liberties Union, the lawsuit is a
broad challenge to a patchwork system that has been described by
decades of studies and commissions as dysfunctional,
underfinanced and "in crisis," with often poorly trained and
poorly supervised lawyers handling huge caseloads. It says
indigent clients have been failed by their appointed lawyers all
around the state.
"The eyes of the nation will be on New York as it decides this
crucial issue," a brief filed by the National Association of
Criminal Defense Lawyers argues.
As the system works now, defendants who are unhappy with their
appointed lawyers can generally make those claims only after they
are convicted. The court then reviews each appeal case by case.
But the civil liberties lawyers argue that a broad review is
necessary because the arrangement has not addressed systemic
failings that unconstitutionally leave tens of thousands of
defendants without meaningful representation in every part of the
state.
The state has fought hard against the suit, which was first filed
in 2007, arguing that if New York's highest court, the Court of
Appeals, allows it to proceed -- and a court later uses the case
to order the state to upgrade the public defender system -- it
would be a judicial invasion of the authority of the Legislature
and the governor. Such improvements, some lawyers say, could cost
hundreds of millions of dollars.
In one filing, the state argues that by appointing lawyers it
fulfills its constitutional obligations. "It cannot be seriously
contended that plaintiffs have been denied the right to counsel,"
the state says. The state's defender system includes Legal Aid
Societies, private lawyers who are appointed by the courts, and
local public defender offices.
Next Tuesday, the Court of Appeals is to consider whether the
suit can proceed. A half-dozen friend-of-the-court briefs portray
the scheduled argument as a critical step in defining the meaning
of a landmark decision of the United States Supreme Court in
1963. The decision, Gideon v. Wainwright, declared that the
Constitution required states to provide lawyers for indigent
defendants.
In recent years, there have been cases similar to the New York
one in states like Connecticut, Indiana, Minnesota, Montana and
Washington, with settlements, lower court decisions and
inconsistent rulings. The Michigan Supreme Court is to hear a
challenge to its public defender program next month.
The New York class-action suit was filed in the name of a
Rochester woman, Kimberly Hurell-Harring, and 19 other people who
were facing criminal charges in five counties: Onondaga, Ontario,
Schuyler, Suffolk and Washington. The question before the Court
of Appeals is whether the class action presents an issue that the
courts can consider.
Ms. Hurell-Harring claimed that an upstate public defender did
little for her but pressure her to plead guilty after a felony
arrest for trying to sneak marijuana to her husband, who was in
prison. Others among the named plaintiffs said that lawyers
provided for them were overwhelmed with cases and failed to
investigate or make basic legal arguments.
"I was just a number, a docket number," said Edward Kaminski, a
retired auto mechanic who faced larceny charges in 2007 and dealt
with a series of lawyers from the Legal Aid Society in Suffolk
County on Long Island.
Louis E. Mazzola, a senior lawyer at the Suffolk Legal Aid
Society, said lawyers there disagreed with the way their work was
described in the suit. But he said budget pressures "drive
everything we do."
"From a client's point of view," Mr. Mazzola added, "it's not a
great system."
The civil liberties case has placed New York officials in the
awkward position of defending a $400 million locally financed
system that a 2006 commission said did not provide effective
representation to "a large portion of those entitled to it."
Law enforcement officials are divided over the case, with
arguments on each side filed by groups of former and current New
York prosecutors. Some prosecutors say the case overstates the
problems with public defender programs. In some areas, the system
is "working well and protecting every right," said Kathleen B.
Hogan, the president of the State District Attorneys Association.
Ms. Hogan, the Warren County district attorney, said that
allowing a sweeping challenge would bring chaos by encouraging
thousands of defendants to claim their lawyers were inadequate
and their convictions should be overturned.
But Corey Stoughton of the Civil Liberties Union, the lead lawyer
in the case, said defense programs were chronically starved of
money for decades because officials in every branch of government
never made the adequate representation of indigents a political
priority.
Because of the poor quality of representation, innocent people
are convicted and defendants routinely face pressure to plead
guilty, Ms. Stoughton said.
"The case-by-case method fails," she said. "The political method
fails. For decades, the State of New York has been on notice that
the public defense system is in crisis and fails to meet basic
constitutional responsibilities."
She said the case was a priority of the state's Civil Liberties
Union that could go on for years.
Gov. David A. Paterson has recognized there are problems in the
current system and has proposed legislation that would create an
Office of Indigent Defense to evaluate the system. The bill would
also provide a modest $7 million increase in state subsidies.
Last year, the Legislature passed a law intended to limit
defenders' caseloads in New York City, where on average Legal Aid
lawyers each handle more than 700 cases a year. But it is not
clear that adequate financing will be provided.
The society's attorney in chief, Steven Banks, said the suit
could be important in the city in providing a meaningful way to
force the government to meet what he said were the requirements
of the Gideon v. Wainwright decision.
Mr. Banks said the Hurell-Harring case raised a clear question
for the courts -- "whether Gideon and the right to counsel has
meaning or not."
Around the country, some lawyers have said they detect a
concerted strategy by civil liberties lawyers to challenge public
defender systems. If so, that may be due largely to the efforts
of Robin L. Dahlberg, a senior staff attorney at the American
Civil Liberties Union in New York. Ms. Dahlberg has been working
on the issue since the mid-1990s, developing what she described
as a model for such cases.
"There is a recognition among national groups," she said in an
interview, "that where all other efforts to reform a system have
failed, litigation may be the only alternative."
PFIZER INC: Three Canadian Women Sue Over Champix Side Effects
--------------------------------------------------------------
Tracy Sherlock at the Vancouver Sun reports that three B.C. women
have filed a class action lawsuit against Pfizer over a stop
smoking drug they say causes suicidal tendencies as an unintended
byproduct.
One of the women, Patricia Clow, from Victoria, is the mother of
Heidi Clow, 22, who committed suicide on Oct. 4, 2009, while
taking Champix, according to the writ of summons filed in the
Supreme Court of British Columbia on Feb. 10, 2010.
The second plaintiff is Alicia Pickering, of Sechelt, who alleges
in the writ that she became depressed and catatonic after taking
Champix for just three weeks. She took a leave of absence from
work, contemplated suicide and was ultimately hospitalized, all
of which she attributes to the drug.
"If it saves even one soul from suffering the way I have, it'll
be worth it. I am outraged that this drug remains on the market,"
Alicia said in a press release.
David Klein, one of two lawyers representing the class-action
suit said in an interview that Pickering had no history of
depression or any mental health problems.
"I can tell you that she was only on Champix for a few weeks. In
fact, after just a few days she started to feel the effects.
That's a fairly typical response. It doesn't take that long for
people to be severely impacted," Klein said.
Nicole McIvor, from Princeton, is the third plaintiff. She says
that while on Champix she attempted suicide by trying to smash
her car into an oncoming logging truck.
Champix is the brand name for the drug varenicline tartrate, and
is sold in the United States under the brand name Chantix.
Pfizer Canada said in a statement that it stands behind Champix
and that the drug that has helped many people quit smoking.
"Pfizer acted responsibly and appropriately at all times in
connection with the development, approval, and marketing of
Champix," Pfizer Canada said. "The health and safety of Canadians
is a priority for Pfizer, and we work closely with Health Canada
to disseminate information about our products to patients and the
medical community."
According to Health Canada, the drug stimulates nicotine
receptors in the brain like a weaker version of nicotine, while
simultaneously preventing nicotine from binding. Sales of the
drug started in Canada in April 2007, and within a year there had
been 226 Canadian cases of neuropsychiatric adverse events
reported to Health Canada, of a total of 708,534 prescriptions
filled.
A warning was added to the drug cautioning family members to
monitor people taking Champix for depression and suicidal
behaviour. But for Klein, this warning does not go far enough.
"Champix was sold in Europe and the United States for about a
year before it was put on sale in Canada, and in that year there
were reports of psychiatric side effects and suicide, and yet the
warnings are very mild on the Canadian product," Klein said.
"The [U.S. Food and Drug Administration] required a stronger
warning in the United States last year - what's referred to as a
black box warning - and Pfizer hasn't put it on the Canadian
label. The warnings on stronger in the United States, on the same
product, by the same company."
Klein hopes to either see Champix withdrawn from the market, or
to have the warnings significantly strengthened on the drug.
Pfizer has not yet filed a statement of defence in the class
action suit.
PULTE HOMES: Agrees to Backpay for 10 Construction Workers
----------------------------------------------------------
LIUNA reports that Pulte Homes, Inc. -- the largest corporate
homebuilder in America -- has agreed to back pay for ten
construction workers whom LIUNA charged were illegally fired and
whose dismissal drew support from thousands of construction
workers across the nation.
The workers -- six from Tucson, Arizona and four from Mesquite,
Nevada -- were fired by Pulte in September 2009. Charges
alleging Pulte violated labor laws were filed with the National
Labor Relations Board and the company agreed back pay after the
board found sufficient reason to believe a labor law violation
had occurred.
The charges alleged that Pulte spied on workers as they discussed
coming together in a union, threatened workers with job loss and
other reprisals for supporting the union, and fired workers for
wearing LIUNA orange t-shirts and asking to be paid for all hours
worked.
"I worked very hard for Pulte Homes and was never paid fairly for
my work. For that reason, my co-workers and I tried to join a
union. When Pulte found out, we were threatened with job loss and
eventually fired," said Romeo Santos, a construction worker from
Mesquite, Nevada.
After the firings, LIUNA members jumped to the aid of their
fellow construction workers with thousands of calls and emails to
Pulte demanding the company rehire the fired workers. Pulte sued
LIUNA and asked a U.S. District Court to block workers from
contacting the company. The court denied that attempt by Pulte to
silence the voices of LIUNA members. After the outpouring of
support, Pulte rehired some of the workers.
"These settlements are a solid dose of justice and a victory for
the workers fired in Nevada and Arizona, but we will not stop
until all Pulte construction workers are treated fairly, paid for
the hours they work and have the right to improve their lives by
coming together in a union," said LIUNA General President Terry
O'Sullivan.
The terms of the settlement require Pulte to pay more than
$20,000 in back-pay and benefits to the fired workers, rehire all
of the workers and post a notice in their workplaces notifying
employees of their right to join a union without interference.
LIUNA has reported that cheating construction workers out of
wages is systematic and pervasive in the corporate homebuilding
industry. Interviews with residential construction workers
revealed that, in order to increase profits, many corporate
homebuilders and their subcontractors routinely fail to pay
overtime wages, falsify workers' timesheets and keep workers off
the clock while traveling between jobsites and waiting for
materials to be delivered. In October 2009, SelectBuild -- once
the largest residential subcontractor doing work for Pulte and
other corporate builders - settled a class action wage fraud
lawsuit, paying more than $241,000 in unpaid wages to 86 workers
from Arizona, California and Nevada.
The half-million members of LIUNA -- the Laborers' International
Union of North America -- are on the forefront of the
construction industry, a powerhouse of workers who are proud to
build America.
REDBOX AUTOMATED: S.D. Ill. Remands Class Suit to St. Clair Cty.
----------------------------------------------------------------
Amelia Flood at The St. Clair Record reports that a class action
suit against Redbox DVD rental kiosks has been remanded to St.
Clair County.
Defendant Redbox Automated Retail had removed the October 2009
case brought by lead plaintiff Laurie Piechur to federal court
under the Class Action Fairness Act.
Ms. Piechur and the proposed class are represented by Thomas
Maag, James Kelly and Jeffrey Millar.
In an order dated Feb. 24, U.S. District Judge J. Phil Gilbert of
the Southern District of Illinois rejected Redbox's arguments.
Judge Gilbert cited the company's own "Terms of Use" agreement
that states that it and the customer renting a DVD will submit to
the local courts' authority.
"In the case at bar, Redbox has not suggested that enforcement of
the forum selection clause contained in the Terms of Use is
unreasonable or that the clause is invalid," Judge Gilbert wrote.
"Furthermore, the exclusive jurisdiction specified in Redbox's
forum selection clause is the Illinois state court system, which
does not include the United States District Court for the
Southern District of Illinois. This Court, while it may sit in
the state of Illinois, is not a court of the state of Illinois."
(emphasis omitted.)
Redbox filed a motion March 5 asking that the proceedings in the
suit be stayed until its appeal of the federal remand order is
resolved in April. It filed for review of the federal order on
March 3.
Circuit Judge Patrick Young signed an order March 5 setting a
hearing on the stay motion for March 24 at 9:30 a.m.
Ms. Piechur, who asks to lead a nationwide class action against
Redbox, claims that the company has reaped more than $100 million
in improper late fees and non-returned movie charges from January
2002 to the present. The suit claims that Redbox boasts that it
does not charge late fees.
Ms. Piechur wants the action split into two. The first class
would include people who were charged $1 late fees for DVDs while
the other would consist of those charged $25 for DVDs that were
never returned to the company's kiosks.
The suit seeks at least $350,000 in damages, fees and other
relief.
According to the stay motion, the federal order's appeal will be
resolved on or by April 26.
Redbox is represented by Eric Brandfonbrener and Thomas Boeder.
The case is St. Clair case number 09-L-562.
* Portfolio Recovery Assoc. Acquires Claims Compensation Bureau
---------------------------------------------------------------
insideARM.com reports that accounts receivable management firm
Portfolio Recovery Associates, Inc. (Nasdaq: PRAA) announced late
Monday that it had acquired a controlling interest in a
Pennsylvania firm that specializes in recovering funds and
processing payments due under class action claims settlements.
The Norfolk, Va.-based debt buyer said that it has acquired a 62
percent stake in Claims Compensation Bureau, LLC (CCB), based in
Conshohocken, Pa. Portfolio Recovery Associates (PRA) has also
reserved the right to purchase the additional 38 percent interest
in CCB. Terms of the deal were not disclosed.
PRA said that the transaction will open a new business line for
the company and that CCB's earnings will be accretive.
PRA said that it expects that class action activity will continue
to represent a large market with billions of dollars in
settlements per year in both the securities market and the anti-
trust market, a significant percentage of which is not claimed by
eligible companies.
"This transaction represents another important diversification
for Portfolio Recovery Associates into an exciting, related
field," said Steven D. Fredrickson, Chairman, President and CEO
of Portfolio Recovery Associates, in a press release. "CCB
pioneered the field of class action settlement recoveries and
payment processing, and its founder, Brad Heffler, is the
industry's leading expert. CCB counts many household names on its
client roster and has expanded even beyond securities class
action settlements and payment processing into antitrust class
action settlements."
Founded in 1996, CCB says that it is a leading provider of class
action claims settlement recovery services and related payment
processing with over 300 clients, including Fortune 500 companies
and large privately held companies. Its process allows clients to
maximize settlement recoveries, in many cases participating in
settlements they would otherwise not know existed. CCB charges
fees for its services and works with clients to identify, prepare
and submit claims to class action administrators charged with
dispersing class action settlement funds.
Heffler together with Norman Jung, the company's Head of
Operations, will retain their leadership positions, having
entered into long-term employment agreements in connection with
the transaction.
"We are very excited to be joining Portfolio Recovery Associates,
an industry leader that is well-positioned to help us continue to
grow and develop new service offerings to roll out to the
marketplace," Heffler said in a statement. "Our company
literally created the class action settlement recovery industry,
and we intend to remain at its forefront. Like Portfolio Recovery
Associates, CCB has been managed from inception by its founders.
Both companies share similar cultures and similar management
philosophies. We simply could not be a better fit."
Asbestos Litigation
ASBESTOS UPDATE: Coca-Cola Co. Still Disputing Aqua-Chem Demands
----------------------------------------------------------------
The Coca-Cola Company is still disputing former subsidiary Aqua-
Chem, Inc.'s (n/k/a Cleaver-Brooks, Inc.) claims over Aqua-Chem's
demands for about US$10 million for out-of-pocket asbestos
litigation-related expenses.
From 1970 to 1981, the Company owned Aqua-Chem. A division of
Aqua-Chem made certain boilers that contained gaskets that Aqua-
Chem bought from outside suppliers. Several years after the
Company sold this entity, Aqua-Chem received its first lawsuit
relating to asbestos, a component of some of the gaskets.
In September 2002, Aqua-Chem notified the Company that it
believed the Company was obligated for certain costs and expenses
associated with its asbestos litigations. Aqua-Chem demanded that
the Company reimburse it for about US$10 million for out-of-
pocket litigation-related expenses.
Aqua-Chem also demanded that the Company acknowledge a continuing
obligation to Aqua-Chem for any future liabilities and expenses
that are excluded from coverage under the applicable insurance or
for which there is no insurance.
The parties entered into litigation in Georgia to resolve this
dispute, which was stayed by agreement of the parties pending the
outcome of litigation filed in Wisconsin by certain insurers of
Aqua-Chem.
In that case, five plaintiff insurance companies filed a
declaratory judgment action against Aqua-Chem, the Company and 16
defendant insurance companies seeking a determination of the
parties' rights and liabilities under policies issued by the
insurers and reimbursement for amounts paid by plaintiffs in
excess of their obligations.
During the course of the Wisconsin coverage litigation, Aqua-Chem
and the Company reached settlements with several of the insurers,
including plaintiffs, who have or will pay funds into an escrow
account for payment of costs arising from the asbestos claims
against Aqua-Chem.
On July 24, 2007, the Wisconsin trial court entered a final
declaratory judgment regarding the rights and obligations of the
parties under the insurance policies issued by the remaining
defendant insurers, which judgment was not appealed. The judgment
directs that each insurer whose policy is triggered is jointly
and severally liable for 100 percent of Aqua-Chem's losses up to
policy limits.
The Georgia litigation remains subject to the stay agreement.
Headquartered in Atlanta, The Coca-Cola Company owns and markets
nonalcoholic beverage brands and is a manufacturer, distributor
and marketer of concentrates and syrups used to produce
nonalcoholic beverages.
ASBESTOS UPDATE: ACE Ltd. Records 1,023 Open Claims at Dec. 31
--------------------------------------------------------------
ACE Limited recorded 1,023 open asbestos-related claims for the
year ended Dec. 31, 2009, compared with 1,198 open claims for the
year ended Dec. 31, 2008, according to the Company's annual
report filed on Feb. 25, 2010 with the U.S. Securities and
Exchange Commission.
During the year ended Dec. 31, 2009, the Company recorded 54
newly reported claims and 229 claims closed or otherwise
disposed. During the year ended Dec. 31, 2008, the Company
recorded 75 newly reported claims and 46 claims closed or
otherwise disposed.
For asbestos, the Company faces claims relating to policies
issued to manufacturers, distributors, installers, and other
parties in the chain of commerce for asbestos and products
containing asbestos.
Claims can be filed by individual claimants or groups of
claimants with the potential for hundreds of individual claimants
at one time.
Claimants will generally allege damages across an extended time
period which may coincide with multiple policies for a single
insured.
Headquartered in Zurich, Switzerland, ACE Limited is a global
insurance and reinsurance organization, serving the needs of
commercial and individual customers in more than 140 countries
and jurisdictions. The Company also provides specialized
insurance products like personal accident, supplemental health,
and life insurance to individuals in select countries.
ASBESTOS UPDATE: ACE Records $2.293Bil Gross Reserve at Dec. 31
---------------------------------------------------------------
ACE Limited's gross reserves for asbestos-related losses amounted
to US$2.293 billion at Dec. 31, 2009, compared with US$2.629
billion at Dec. 31, 2008.
The Company's net reserves for asbestos-related losses amounted
to US$1.175 billion at Dec. 31, 2009, compared with US$1.365
billion at Dec. 31, 2008.
Included in the Company's liabilities for losses and loss
expenses are amounts for asbestos and environmental liabilities
(A&E liabilities). The A&E liabilities principally relate to
claims arising from bodily-injury claims related to asbestos
products and remediation costs associated with hazardous waste
sites.
The Company's exposure to A&E claims principally arises out of
liabilities acquired when it purchased Westchester Specialty in
1998 and the P&C business of CIGNA in 1999, with the larger
exposure contained within the liabilities acquired in the CIGNA
transaction.
Headquartered in Zurich, Switzerland, ACE Limited is a global
insurance and reinsurance organization, serving the needs of
commercial and individual customers in more than 140 countries
and jurisdictions. The Company also provides specialized
insurance products like personal accident, supplemental health,
and life insurance to individuals in select countries.
ASBESTOS UPDATE: American Fin'l. Has $378MM Dec. 31 Net Reserves
----------------------------------------------------------------
American Financial Group, Inc.'s asbestos and environmental
reserves, net of insurance receivables, were US$378 million
during the year ended Dec. 31, 2009, compared with US$399 million
during the year ended Dec. 31, 2008.
The Company's gross A&E reserves were US$457 million during the
year ended Dec. 31, 2009, compared with US$466 million during the
year ended Dec. 31, 2008.
At Dec. 31, 2009, the Company's three year survival ratio was
10.6 times average paid losses for the asbestos reserves and 9.3
times average paid losses for the total A&E reserves.
In 2009, the Company had 71 asbestos policyholders with no
payments and 110 asbestos policyholders with payments. In 2008,
the Company had 108 asbestos policyholders with no payments and
83 asbestos policyholders with payments.
Amounts paid (net of amounts received from reinsurers) for
asbestos claims, including loss adjustment expenses, were US$11
million in 2009 and US$26 million in 2008.
Headquartered in Cincinnati, Ohio, American Financial Group, Inc.
is a holding company that, through subsidiaries, is engaged in
property and casualty insurance, focusing on specialized
commercial products for businesses, and in the sale of
traditional fixed, indexed and variable annuities and a variety
of supplemental insurance products.
ASBESTOS UPDATE: Exposure Lawsuits Still Ongoing v. Phelps Dodge
----------------------------------------------------------------
Freeport-McMoran Copper & Gold Inc.'s subsidiary Phelps Dodge
Corporation and other units, since 1990, face product liability
or premises lawsuits claiming injury from exposure to asbestos.
The asbestos was contained in electrical wire products produced
or marketed many years ago, or from asbestos at certain Phelps
Dodge properties, according to the Company's annual report filed
on Feb. 26, 2010 with the U.S. Securities and Exchange
Commission.
Headquartered in Phoenix, Freeport-McMoRan Copper & Gold Inc. is
a copper, gold and molybdenum mining company. Its portfolio of
assets includes the Grasberg minerals district in Indonesia;
significant mining operations in North and South America; and the
Tenke Fungurume minerals district in the Democratic Republic of
Congo (DRC).
ASBESTOS UPDATE: Product Liability Cases Ongoing v. Mine Safety
---------------------------------------------------------------
Various product liability lawsuits and claims (including
asbestos-related) continue to be pending against Mine Safety
Appliances Company.
The Company is presently named as a defendant in about 2,500
lawsuits, primarily involving respiratory protection products
allegedly manufactured and sold by the Company. Collectively,
these lawsuits represent a total of about 11,800 plaintiffs.
About 90 percent of these lawsuits involve plaintiffs alleging
they suffer from silicosis, with the remainder alleging they
suffer from other or combined injuries, including asbestosis.
These lawsuits typically allege that these conditions resulted in
part from respirators that were negligently designed or
manufactured by the Company.
Headquartered in Pittsburgh, Mine Safety Appliances Company
develops, manufactures and supplies products that protect
people's health and safety. Its comprehensive line of safety
products is used by workers around the world in the fire service,
homeland security, construction, and other industries, as well as
the military.
ASBESTOS UPDATE: Gardner Denver Still Involved in Injury Actions
----------------------------------------------------------------
Due to the bankruptcies of several asbestos manufacturers and
other primary defendants, Gardner Denver, Inc. has been named as
a defendant in a number of asbestos personal injury lawsuits.
The plaintiffs in these suits allege exposure to asbestos from
multiple sources and typically the Company is one of about 25 or
more named defendants. In the Company's experience to date, the
majority of the plaintiffs have not suffered an injury for which
the Company bears responsibility.
Predecessors to the Company sometimes manufactured, distributed
and/or sold products allegedly at issue in the pending asbestos
litigation lawsuits (Products).
However, neither the Company nor its predecessors ever mined,
manufactured, mixed, produced or distributed asbestos fiber, the
materials that allegedly caused the injury underlying the
lawsuits. Moreover, the asbestos-containing components of the
Products, if any, were enclosed within the subject Products.
The Company has entered into a series of cost-sharing agreements
with multiple insurance companies to secure coverage for asbestos
lawsuits.
The Company said it also believes some of the potential
liabilities regarding these lawsuits are covered by indemnity
agreements with other parties.
Headquartered in Quincy, Ill., Gardner Denver, Inc. designs,
manufactures and markets engineered industrial machinery and
related parts and services. The Company also supplies pumps and
compressors for original equipment manufacturer applications like
medical equipment, vapor recovery, printing, packaging and
laboratory equipment.
ASBESTOS UPDATE: Eaton Corporation Subject to Exposure Lawsuits
---------------------------------------------------------------
Eaton Corporation is subject to claims, administrative
proceedings, and legal proceedings, such as lawsuits that relate
to contractual allegations, patent infringement, personal
injuries (including asbestos claims) antitrust matters and
employment-related matters.
No further asbestos-related matters were disclosed in the
Company's annual report filed on Feb. 26, 2010 with the U.S.
Securities and Exchange Commission.
Headquartered in Cleveland, Ohio, Eaton Corporation is a
diversified power management company with 2009 sales of US$11.9
billion. The Company has about 70,000 employees in over 50
countries.
ASBESTOS UPDATE: Navigators Records $16.76M Dec. 31 Net Reserves
----------------------------------------------------------------
The Navigators Group, Inc.'s net loss and loss adjustment expense
(LAE) reserves for its asbestos exposure were US$16,763,000
during the year ended Dec. 31, 2009, compared with US$16,683,000
during the year ended Dec. 31, 2008.
The Company's net loss and LAE reserves for its asbestos
exposures were US$16,720,000 during the nine months ended Sept.
30, 2009. (Class Action Reporter, Nov. 27, 2009)
The Company's gross loss and LAE reserves for its asbestos
exposure were US$22,147,000 during the year ended Dec. 31, 2009,
compared with US$21,774,000 during the year ended Dec. 31, 2008.
The Company's exposure to asbestos liability principally stems
from marine liability insurance written on an occurrence basis
during the mid-1980s.
The reserves for asbestos exposures at Dec. 31, 2009 are for:
-- One large settled claim for excess insurance policy limits
exposed to a class action suit against an insured involved in
the manufacturing or distribution of asbestos products being
paid over several years (two other large settled claims were
fully paid in 2007);
-- Other insureds not directly involved in the manufacturing or
distribution of asbestos products, but that have more than
incidental asbestos exposure for their purchase or use of
products that contained asbestos; and
-- Attritional asbestos claims that could be expected to occur
over time.
Substantially all of the Company's asbestos liability reserves
are included in its marine loss reserves.
The ceded asbestos paid and unpaid recoverables were US$8.9
million at Dec. 31, 2009 and Dec. 31, 2008, respectively.
Headquartered in Rye Brook, N.Y., The Navigators Group, Inc. is
an international insurance company focusing on specialty products
within the overall property/casualty insurance market. Its
largest product line and most long-standing area of
specialization is ocean marine insurance.
ASBESTOS UPDATE: OneBeacon Insurance Has 482 Accounts at Dec. 31
----------------------------------------------------------------
OneBeacon Insurance Group, Ltd. recorded 482 accounts with
asbestos claims at Dec. 31, 2009, compared with 474 accounts with
asbestos claims at Dec. 31, 2008.
During the year ended Dec. 31, 2009, the Company recorded 93
accounts reporting asbestos claims during the year and 85
accounts on which asbestos claims were closed during the year.
During the year ended Dec. 31, 2008, the Company recorded 80
accounts reporting asbestos claims during the year and 97
accounts on which asbestos claims were closed during the year.
Headquartered in Minnetonka, OneBeacon Insurance Group, Ltd. is a
property and casualty insurance writer that provides insurance
products and services. The Company has historically offered
specialty, commercial and personal products and services sold
primarily through select independent agents and brokers.
ASBESTOS UPDATE: OneBeacon Records $985.6Mil Reserve at Dec. 31
---------------------------------------------------------------
OneBeacon Insurance Group, Ltd.'s gross asbestos loss and loss
adjustment expenses reserve was US$985.6 million during the year
ended Dec. 31, 2009, compared with US$1.098 billion during the
year ended Dec. 31, 2008.
The Company's net asbestos loss and LAE reserve was US$6.5
million during the years ended Dec. 31, 2009 and Dec. 31, 2008.
Headquartered in Minnetonka, OneBeacon Insurance Group, Ltd. is a
property and casualty insurance writer that provides insurance
products and services. The Company has historically offered
specialty, commercial and personal products and services sold
primarily through select independent agents and brokers.
ASBESTOS UPDATE: Chubb Has $689Mil Net Claims Reserve at Dec. 31
----------------------------------------------------------------
The Chubb Corporation's net loss reserves related to asbestos
claims amounted to US$689 million during the year ended Dec. 31,
2009, compared with US$747 million during the year ended Dec. 31,
2008.
The Company's gross loss reserves related to asbestos claims
amounted to US$728 million during the year ended Dec. 31, 2009,
compared with US$794 million during the year ended Dec. 31, 2008.
At Dec. 31, 2009, the Company recorded 22 traditional defendants
and 374 peripheral defendants.
Headquartered in Warren, N.J., The Chubb Corporation is a holding
company for a family of property and casualty insurance companies
known informally as the Chubb Group of Insurance Companies (the
P&C Group). Since 1882, the P&C Group has provided property and
casualty insurance to businesses and individuals around the
world.
ASBESTOS UPDATE: M & F Incurs No Amounts for Asbestos at Dec. 31
----------------------------------------------------------------
M & F Worldwide Corp., as of Dec. 31, 2009, has not incurred and
does not expect to incur material amounts related to asbestos-
related claims not subject to certain arrangements (Remaining
Claims).
The Company's non-operating contingent claims are generally
associated with its indirect, wholly owned, non-operating
subsidiary, Pneumo Abex LLC. Substantially all of these
contingent claims are the financial responsibility of third
parties and include various environmental and asbestos-related
claims. As a result, the Company has not since 1995 paid and does
not expect to pay on its own behalf material amounts related to
these matters.
In 1988, a predecessor of PepsiAmericas, Inc. (Original
Indemnitor) sold to Pneumo Abex various operating businesses, all
of which Pneumo Abex re-sold by 1996. Prior to the 1988 sale,
those businesses had manufactured certain asbestos-containing
friction products.
Pneumo Abex has been named, typically along with 10 to as many as
100 or more other companies, as a defendant in various personal
injury lawsuits claiming damages relating to exposure to
asbestos. Under indemnification agreements, the Original
Indemnitor has ultimate responsibility for all the remaining
asbestos-related claims asserted against Pneumo Abex through
August 1998 and for certain asbestos-related claims asserted
thereafter.
In connection with the sale by Pneumo Abex in December 1994 of
its Friction Products Division, a subsidiary (Friction Buyer) of
Cooper Industries, Inc. (now Cooper Industries, LLC, the Friction
Guarantor) assumed all liability for substantially all asbestos-
related claims asserted against Pneumo Abex after August 1998 and
not indemnified by the Original Indemnitor. After the Friction
Products sale, Pneumo Abex treated the Division as a discontinued
operation and stopped including the Division's assets and
liabilities in its financial statements.
In 1995, MCG Intermediate Holdings Inc. (MCGI), the Company and
two of its subsidiaries entered into a transfer agreement. The
Transfer Agreement requires MCGI, which currently is an indirect
subsidiary of Holdings, to undertake certain administrative and
funding obligations with respect to certain categories of
asbestos-related claims and other liabilities, including
environmental claims that Pneumo Abex did not transfer.
Headquartered in New York, M & F Worldwide Corp. is a holding
company that conducts its operations through its indirect wholly
owned subsidiaries, Harland Clarke Holdings and Mafco Worldwide.
The Company's businesses are organized along four business
segments: Harland Clarke, Harland Financial Solutions, Scantron
and Licorice Products.
ASBESTOS UPDATE: ITW, Subsidiaries Face Welding-Related Lawsuits
----------------------------------------------------------------
Illinois Tool Works Inc. and its subsidiaries, Hobart Brothers
Company and Miller Electric Mfg. Co., are defendants in asbestos-
related lawsuits alleging injury from exposure to welding
consumables.
The plaintiffs in these suits claim unspecified damages for
injuries resulting from the plaintiffs' alleged exposure to
asbestos, manganese and toxic fumes in connection with the
welding process.
Headquartered in Glenview, Ill., Illinois Tool Works Inc. is a
multinational manufacturer of a diversified range of industrial
products and equipment with about 840 operations in 57 countries.
These 840 businesses are internally reported as 60 operating
segments to senior management.
ASBESTOS UPDATE: AIHL Cites $15.1M for Losses and LAE at Dec. 31
----------------------------------------------------------------
Alleghany Corporation's subsidiary, Alleghany Insurance Holdings
LLC (AIHL), recorded asbestos claims reserves for losses and loss
adjustment expense (LAE) of US$15.1 million as of Dec. 31, 2009,
compared with US$14.9 million as of Dec. 31, 2008.
AIHL's reserves for losses and LAE include amounts for various
liability coverages related to asbestos and environmental
impairment claims that arose from reinsurance of certain general
liability and commercial multiple peril coverages assumed by
Capitol Indemnity between 1969 and 1976.
Capitol Indemnity exited this business in 1976.
Headquartered in New York, Alleghany Corporation is engaged in
the property and casualty and surety insurance business.
Subsidiaries and affiliates include Alleghany Insurance Holdings
LLC (AIHL), RSUI Group, Inc. (RSUI), Capitol Transamerica
Corporation (CATA) and Employers Direct Corporation (EDC).
ASBESTOS UPDATE: 19 of Douglas Emmett's Properties Have Asbestos
----------------------------------------------------------------
Environmental site assessments and investigations have identified
19 properties in Douglas Emmett, Inc.'s consolidated portfolio
containing asbestos, according to the Company's annual report
filed on Feb. 26, 2010 with the U.S. Securities and Exchange
Commission.
Environmental site assessments and investigations had identified
23 properties in the Company's portfolio containing asbestos.
(Class Action Reporter, Nov. 13, 2009)
The asbestos would have to be removed in compliance with
applicable environmental regulations if these properties undergo
major renovations or are demolished.
As of Dec. 31, 2009, the obligations to remove the asbestos from
these properties have indeterminable settlement dates, and
therefore, the Company is unable to reasonably estimate the fair
value of the associated conditional asset retirement obligation.
Headquartered in Santa Monica, Calif., Douglas Emmett, Inc. is a
fully integrated, self-administered and self-managed Real Estate
Investment Trust (REIT) and is an operator of high-quality office
and multifamily properties located in premier submarkets in
California and Hawaii.
ASBESTOS UPDATE: IPALCO Unit Still Involved in Exposure Lawsuits
----------------------------------------------------------------
IPALCO Enterprises, Inc.'s subsidiary, Indianapolis Power & Light
Company (IPL), is a defendant in a little more than one hundred
pending lawsuits alleging personal injury or wrongful death
stemming from exposure to asbestos and asbestos containing
products formerly located in IPL power plants.
IPALCO was a defendant in 104 pending asbestos lawsuits as of
Sept. 30, 2009, compared with 114 lawsuits as of Dec. 31, 2008.
(Class Action Reporter, Nov. 27, 2009)
IPL has been named as a "premises defendant" in that IPL did not
mine, manufacture, distribute or install asbestos or asbestos
containing products. These suits have been brought on behalf of
persons who worked for contractors or subcontractors hired by
IPL.
IPL has insurance, which may cover some portions of these claims.
Currently, these cases are being defended by counsel retained by
various insurers who wrote policies applicable to the period of
time during which much of the exposure has been alleged.
IPL has settled a number of asbestos related lawsuits for amounts
which, individually and in the aggregate, were not material to
IPL or the Company's results of operations, financial condition,
or cash flows.
Historically, settlements paid on IPL's behalf have been
comprised of proceeds from one or more insurers along with
comparatively smaller contributions by IPL.
Headquartered in Indianapolis, Ind., IPALCO Enterprises, Inc.'s
business consists of the generation, transmission, distribution
and sale of electric energy conducted through subsidiary
Indianapolis Power & Light Company (IPL).
ASBESTOS UPDATE: W. R. Berkley Reserves $36.52Mil for A&E Claims
----------------------------------------------------------------
W. R. Berkley Corporation's net reserves for losses and loss
adjustment expenses relating to asbestos and environmental claims
were US$36,525,000 at Dec. 31, 2009 and US$39,646,000 at Dec. 31,
2008.
The Company's gross reserves for losses and LAE relating to
asbestos and environmental claims were US$53,986,000 at Dec. 31,
2009 and US$56,957,000 at Dec. 31, 2008.
Net incurred losses and loss expenses for reported asbestos and
environmental claims were about US$(614,000) in 2009, US$440,000
in 2008 and US$7,029,000 in 2007.
Net paid losses and loss expenses for reported asbestos and
environmental claims were about US$2,508,000 in 2009,
US$2,384,000 in 2008 and US$2,912,000 in 2007.
Headquartered in Greenwich, Conn., W. R. Berkley Corporation is
an insurance holding company that writes commercial lines and
operates in five segments of the property casualty insurance
business: Specialty lines of insurance, Regional commercial
property casualty insurance, Alternative markets, Reinsurance,
and International.
ASBESTOS UPDATE: Duke Energy Corp. Reserves $980M for Carolinas
---------------------------------------------------------------
Amounts recognized as asbestos-related reserves related to Duke
Energy Corporation subsidiary Duke Energy Carolinas, LLC in the
Consolidated Balance Sheets totaled about US$980 million as of
Dec. 31, 2009 and US$1.031 billion as of Dec. 31, 2008.
The Company reserved US$992 million as of Sept. 30, 2009 for
asbestos matters of its Duke Energy Carolinas subsidiary. (Class
Action Reporter, Nov. 27, 2009)
The Company has experienced numerous claims for indemnification
and medical cost reimbursement relating to damages for bodily
injuries alleged to have arisen from the exposure to or use of
asbestos in connection with construction and maintenance
activities conducted by Duke Energy Carolinas on its electric
generation plants prior to 1985.
The Company has a third-party insurance policy to cover certain
losses related to Duke Energy Carolinas' asbestos-related
injuries and damages above an aggregate self insured retention of
US$476 million. Duke Energy Carolinas' cumulative payments began
to exceed the self insurance retention on its insurance policy
during the second quarter of 2008. Future payments up to the
policy limit will be reimbursed by the Company's third party
insurance carrier.
The insurance policy limit for potential future insurance
recoveries for indemnification and medical cost claim payments is
US$1.051 billion in excess of the self insured retention.
Insurance recoveries of about US$984 million as of Dec. 31, 2009
and US$1.032 billion as of Dec. 31, 2008 related to this policy
are classified in the Consolidated Balance Sheets in Other within
Investments and Other Assets and Receivables.
Duke Energy Indiana, Inc. and Duke Energy Ohio, Inc. have also
been named as defendants or co-defendants in lawsuits related to
asbestos at their electric generating stations.
The Company and its subsidiaries are involved in other legal, tax
and regulatory proceedings arising in the ordinary course of
business, some of which involve substantial amounts.
The Company has exposure to certain legal matters. The Company
has recorded reserves, including reserves related to the
aforementioned asbestos-related injuries and damages claims, of
about US$1 billion as of Dec. 31, 2009 and US$1.1 billion as of
Dec. 31, 2008 for these proceedings and exposures.
The Company recognized about US$984 million as of Dec. 31, 2009
and US$1.032 billion as of Dec. 31, 2008 of probable insurance
recoveries related to these losses. The Company expenses legal
costs related to the defense of loss contingencies as incurred.
Headquartered in Charlotte, N.C., Duke Energy Corporation has
four million electric customers and about 520,000 gas customers
in the U.S. South and Midwest. Its U.S. Franchised Electric and
Gas unit operates primarily through its Duke Energy Carolinas,
Duke Energy Ohio, Duke Energy Indiana and Duke Energy Kentucky
regional businesses.
ASBESTOS UPDATE: Entergy, Units Still Face 500 Exposure Actions
---------------------------------------------------------------
Entergy Corporation and its subsidiaries faced about 500
asbestos-related lawsuits involving about 5,000 claimants,
according to the Company's annual report filed on Feb. 26, 2010
with the U.S. Securities and Exchange Commission.
The Company and certain of its subsidiaries faced about 500
asbestos exposure lawsuits involving about 6,000 claimants.
(Class Action Reporter, March 27, 2009)
Numerous lawsuits have been filed in federal and state courts
primarily in Texas and Louisiana, primarily by contractor
employees who worked in the 1940-1980s timeframe, against Company
subsidiaries Entergy Gulf States Louisiana, L.L.C. and Entergy
Texas, Inc. and to a lesser extent the other Utility operating
companies, as premises owners of power plants, for damages caused
by alleged exposure to asbestos.
Many other defendants are named in these lawsuits as well.
Management said it believes that adequate provisions have been
established to cover any exposure. Additionally, negotiations
continue with insurers to recover reimbursements.
Headquartered in New Orleans, La., Entergy Corporation is an
integrated energy company engaged primarily in electric power
production and retail electric distribution operations. The
Company owns and operates power plants with about 30,000 MW of
aggregate electric generating capacity, and the Company is the
second-largest nuclear power generator in the United States.
ASBESTOS UPDATE: Digital Realty Accrues $1.3Mil ARO at Dec. 31
--------------------------------------------------------------
Digital Realty Trust, Inc. says the amount included in accounts
payable and other accrued liabilities on its consolidated balance
sheets was about US$1.3 million as of Dec. 31, 2009 and US$1.5
million as of Dec. 31, 2008.
The equivalent asset is recorded at US$1.2 million at Dec. 31,
2009 and US$1.3 million at Dec. 31, 2008.
The Company records accruals for estimated retirement obligations
as required by current accounting guidance. The amount of asset
retirement obligations relates primarily to estimated asbestos
removal costs at the end of the economic life of properties that
were built before 1984.
Headquartered in San Francisco, Digital Realty Trust, Inc. is a
real estate investment trust that targets high-quality,
strategically located properties containing applications and
operations critical to the day-to-day operations of technology
industry tenants and corporate enterprise datacenter users,
including the information technology departments of Fortune 100
and financial services companies.
ASBESTOS UPDATE: Belden Inc. Facing 91 Injury Actions at Feb. 4
---------------------------------------------------------------
Belden Inc., as of Feb. 4, 2010, faced 91 asbestos-related injury
cases, according to the Company's quarterly report filed on Feb.
26, 2010 with the U.S. Securities and Exchange Commission.
As of Oct. 15, 2009, the Company faced 97 asbestos-related injury
cases. (Class Action Reporter, Nov. 13, 2009)
Electricians have filed most of these cases, primarily in
Pennsylvania and Illinois, generally seeking compensatory,
special, and punitive damages. Typically in these cases, the
claimant alleges injury from alleged exposure to a heat-resistant
asbestos fiber.
The Company's alleged predecessors had a small number of products
that contained the fiber, but ceased production of those products
more than 20 years ago.
Through Feb. 4, 2010, the Company has been dismissed, or reached
agreement to be dismissed, in more than 300 similar cases without
any going to trial, and with a small number of these involving
any payment to the claimant.
Headquartered in St. Louis, Belden Inc. designs, manufactures,
and markets cable, connectivity, and networking products in
markets including industrial automation, enterprise,
transportation, infrastructure, and consumer electronics.
ASBESTOS UPDATE: Midwest Generation Facing 217 Cases at Dec. 31
---------------------------------------------------------------
Midwest Generation, LLC says there were about 217 asbestos cases
for it was potentially liable and that had not been settled and
dismissed at Dec. 31, 2009, according to the Company's annual
report filed on March 1, 2010 with the U.S. Securities and
Exchange Commission.
The Company said that there were 203 asbestos cases for which it
was potentially liable and that had not been settled and
dismissed at Sept. 30, 2009. (Class Action Reporter, Nov. 20,
2009)
The Company had recorded liabilities of US$50 million at Dec. 31,
2009 and US$52 million at Dec. 31, 2008 related to this matter.
The Company entered into a supplemental agreement with
Commonwealth Edison and Exelon Generation Company LLC on Feb. 20,
2003 to resolve a dispute regarding interpretation of its
reimbursement obligation for asbestos claims under the
environmental indemnities set forth in the Asset Sale Agreement.
Under this supplemental agreement, the Company agreed to
reimburse Commonwealth Edison Company and Exelon Generation
Company, LLC for 50 percent of specific asbestos claims pending
as of February 2003 and related expenses less recovery of
insurance costs, and agreed to a sharing arrangement for
liabilities and expenses associated with future asbestos-related
claims as specified in the agreement.
As a general matter, Commonwealth Edison and the Company
apportion responsibility for future asbestos-related claims based
upon the number of exposure sites that are Commonwealth Edison
locations or Company locations. The obligations under this
agreement are not subject to a maximum liability.
The supplemental agreement had an initial five-year term with an
automatic renewal provision for subsequent one-year terms
(subject to the right of either party to terminate); under the
automatic renewal provision, it has been extended until February
2011.
The Company recorded an undiscounted liability for its indemnity
for future asbestos claims through 2045. During the fourth
quarter of 2007, the liability was reduced by US$9 million based
on updated estimated losses.
Headquartered in Bolingbrook, Ill., Midwest Generation, LLC sells
wholesale electricity to markets in the Midwest. The independent
power producer has a generating capacity of more than 5,470 MW
from its six coal-fired power plants in Illinois. It also
oversees the operation of the Fisk and Waukegan on-site
generating plants which have 305 MW of capacity.
ASBESTOS UPDATE: Vector Group Party to Smokers' Lawsuits in Md.
---------------------------------------------------------------
Vector Group, Ltd. is involved in various asbestos-related
individual smokers' lawsuits filed in various Maryland courts.
These cases are:
-- Carder, et al. v. John Crane-Houdaille, Inc., et al., Case
No. 24-X-09-000139, Circuit Court, Md., Baltimore City (case
filed Sept. 4, 2009). Plaintiff is suing individually and as
personal representative of the estate of a deceased smoker.
Plaintiff seeks damages allegedly caused to decedent by
exposure to asbestos and cigarettes, with claims against
certain asbestos manufacturer defendants and certain tobacco
company defendants, including Company unit Liggett Group LLC.
Liggett filed a motion to dismiss on Oct. 28, 2009.
-- Harper, et al. v. John-Crane Houdaille, Inc. et al., Case No.
24-X-07-000326, Circuit Court, Md., Baltimore City (case
filed July 14, 2009). Plaintiff is suing individually and as
personal representative of the estate of a deceased smoker.
Plaintiff seeks damages allegedly caused to decedent by
exposure to asbestos and cigarettes, with claims against
certain asbestos manufacturer defendants and certain tobacco
company defendants, including Liggett. Liggett filed a motion
to dismiss on Aug. 26, 2009.
-- Lee, et ux. v. John-Crane Houdaille, Inc. et al., Case No.
24-X-07-000550, Circuit Court, Md., Baltimore City (case
filed June 30, 2009). Plaintiffs are husband and wife. They
seek damages allegedly caused to decedent by exposure to
asbestos and cigarettes, with claims against certain asbestos
manufacturer defendants and certain tobacco company
defendants, including Liggett. Liggett filed a motion to
dismiss on Aug. 24, 2009.
-- McComas-Doiron, et al. v. John-Crane Houdaille,Inc. et al.,
Case No. 24-X-09-000043, Circuit Court, Md., Baltimore City
(case filed July 1, 2009). Plaintiff is suing individually
and as personal representative of the estate of a deceased
smoker. Plaintiff seeks damages allegedly caused to decedent
by exposure to asbestos and cigarettes, with claims against
certain asbestos manufacturer defendants and certain tobacco
company defendants, including Liggett. Liggett filed a motion
to dismiss on Aug. 24, 2009.
-- McCullough v. John-Crane Houdaille, Inc. et al., Case No. 24-
X-07-000340, Circuit Court, Md., Baltimore City (case filed
July 14, 2009). Plaintiff is suing individually. Plaintiff
seeks damages allegedly caused to decedent by exposure to
asbestos and cigarettes, with claims against certain asbestos
manufacturer defendants and certain tobacco company
defendants, including Liggett. Liggett filed a motion to
dismiss on Aug. 26, 2009.
-- Power, et al. v. John-Crane Houdaille, Inc. et al., Case No.
24-X-07-000311, Circuit Court, Md., Baltimore City (case
filed June 30, 2009). Plaintiff is suing individually and as
personal representative of the estate of a deceased smoker.
Plaintiff seeks damages allegedly caused to decedent by
exposure to asbestos and cigarettes, with claims against
certain asbestos manufacturer defendants and certain tobacco
company defendants, including Liggett. Liggett filed a motion
to dismiss on Aug. 24, 2009.
-- Sherman v. John-Crane Houdaille, Inc. et al., Case No. 24-X-
08-000441, Circuit Court, Md., Baltimore City (case filed
July 1, 2009). Plaintiff is suing individually. Plaintiff
seeks damages allegedly caused to decedent by exposure to
asbestos and cigarettes, with claims against certain asbestos
manufacturer defendants and certain tobacco company
defendants, including Liggett. Liggett filed a motion to
dismiss on Aug. 24, 2009.
-- Slaughter, et al., v. John Crane-Houdaille, Inc., et al.,
Case No. 24-X-06-000394, Circuit Court, Md., Baltimore City
(case filed Feb. 10, 2009). Plaintiff is suing individually
and as personal representative of the estate of a deceased
smoker. Plaintiff seeks damages allegedly caused to decedent
by exposure to asbestos and cigarettes, with claims against
certain asbestos manufacturer defendants and certain tobacco
company defendants, including Liggett. Liggett filed a motion
to dismiss on Jan. 8, 2010.
Headquartered in Miami, Vector Group Ltd. is a holding company
that is principally engaged in the manufacture and sale of
cigarettes in the United States through its Liggett Group LLC and
Vector Tobacco Inc. subsidiaries.
ASBESTOS UPDATE: Parsons Case Still Stayed in Kanawha Co. Court
---------------------------------------------------------------
Vector Group, Ltd. says that an asbestos-related action styled
Parsons, et al. v. A C & S Inc., et al., Case No. 98-C-388 is
stayed in Circuit Court, W.Va., Kanawha County, according to the
Company's annual report filed on March 1, 2010 with the U.S.
Securities and Exchange Commission.
The case was filed on April 9, 1998. This personal injury class
action is brought on behalf of plaintiff's decedent and all West
Virginia residents who allegedly have personal injury claims
arising from their exposure to cigarette smoke and asbestos
fibers.
The case is stayed as a result of the December 2000 bankruptcy
petitions filed by three defendants in the U.S. Bankruptcy Court
for the District of Delaware.
Headquartered in Miami, Vector Group Ltd. is a holding company
that is principally engaged in the manufacture and sale of
cigarettes in the United States through its Liggett Group LLC and
Vector Tobacco Inc. subsidiaries.
ASBESTOS UPDATE: Exposure Claims Still Ongoing v. Reading Int'l.
----------------------------------------------------------------
Reading International, Inc., from time to time, faces claims
brought against it relating to the exposure of former employees
of the Company's railroad operations to asbestos and coal dust,
according to the Company's annual report filed on March 12, 2010
with the U.S. Securities and Exchange Commission.
These are generally covered by an insurance settlement reached in
September 1990 with the Company's insurance carriers. However,
this insurance settlement does not cover litigation by people who
were not the Company's employees and who may claim second hand
exposure to asbestos, coal dust and other chemicals or elements
now recognized as potentially causing cancer in humans.
The Company is in the process of remediating certain
environmental issues with respect to its 50-acre Burwood site in
Melbourne, Australia. That property was at one time used as a
brickworks and the Company has discovered petroleum and asbestos
at the site.
During 2007, the Company developed a plan for the remediation of
these materials, in some cases through removal and in other cases
through encapsulation. As of Dec. 31, 2009, the Company estimates
that the total site preparation costs associated with the removal
of this contaminated soil will be US$8.6 million (AUD9.6 million)
and as of that date the Company had incurred a total of US$6.6
million (AUD$7.4 million) of these costs.
Headquartered in Commerce, Calif., Reading International, Inc. is
an internationally diversified company principally focused on the
development, ownership and operation of entertainment and real
property assets in the United States, Australia, and New Zealand.
The Company operates in two business segments: Cinema Exhibition
and Real Estate.
ASBESTOS UPDATE: Exposure Actions Ongoing v. CenterPoint Energy
---------------------------------------------------------------
CenterPoint Energy, Inc. or its subsidiaries have been named,
along with numerous others, as a defendant in lawsuits filed by a
number of individuals who claim injury due to exposure to
asbestos.
Some facilities owned by the Company contain or have contained
asbestos insulation and other asbestos-containing materials.
Some of the claimants have worked at locations owned by the
Company, but most existing claims relate to facilities previously
owned by the Company's subsidiaries. The Company anticipates that
additional claims like those received may be asserted in the
future.
In 2004, the Company sold its generating business, to which most
of these claims relate, to Texas Genco LLC, which is now known as
NRG Texas LP.
Under the terms of the arrangements regarding separation of the
generating business from the Company and its sale to NRG Texas
LP, ultimate financial responsibility for uninsured losses from
claims relating to the generating business has been assumed by
NRG Texas LP, but the Company has agreed to continue to defend
those claims to the extent they are covered by insurance
maintained by the Company, subject to reimbursement of the costs
of such defense from NRG Texas LP.
Headquartered in Houston, CenterPoint Energy, Inc.'s regulated
utilities distribute natural gas to 3.2 million customers in six
U.S. states and electricity to two million customers on the Texas
Gulf Coast.
ASBESTOS UPDATE: Exposure Lawsuits Still Ongoing v. Tenneco Inc.
----------------------------------------------------------------
Tenneco Inc. continues to be subject to a number of lawsuits
initiated by claimants alleging health problems as a result of
exposure to asbestos.
In the early 2000s, the Company was named in nearly 20,000
complaints, most of which were filed in Mississippi state court
and the vast majority of which made no allegations of exposure to
asbestos from the Company's product categories. Most of these
claims have been dismissed and the Company's current docket of
active and inactive cases is less than 500 cases nationwide.
A small number of claims have been asserted by railroad workers
alleging exposure to asbestos products in railroad cars
manufactured by The Pullman Company, one of the Company's
subsidiaries.
The balance of the claims is related to alleged exposure to
asbestos in the Company's automotive emission control products. A
small percentage of the claimants allege that they were
automobile mechanics and a significant number appear to involve
workers in other industries or otherwise do not include
sufficient information to determine whether there is any basis
for a claim against the Company.
Many of these cases involve numerous defendants, with the number
of each in some cases exceeding 100 defendants from a variety of
industries.
Headquartered in Lake Forest, Ill., Tenneco Inc. produces
automotive emission control and ride control products and
systems. The Company serves both original equipment vehicle
manufacturers (OEMs) and the repair and replacement markets, or
aftermarket, worldwide.
ASBESTOS UPDATE: Pepco Still Facing 180 Cases in Md. at Dec. 31
---------------------------------------------------------------
Pepco Holdings, Inc. says that, as of Dec. 31, 2009, there were
about 180 cases still pending against its subsidiary Potomac
Electric Power Company (Pepco) in the State Courts of Maryland.
Of the 180 cases pending as of Dec. 31, 2009, about 90 cases were
filed after Dec. 19, 2000, and were tendered to Mirant
Corporation for defense and indemnification under the terms of
the Asset Purchase and Sale Agreement between Pepco and Mirant
under which Pepco sold its generation assets to Mirant in 2000.
In 1993, Pepco was served with Amended Complaints filed in the
state Circuit Courts of Prince George's County, Baltimore City
and Baltimore County, Md., in separate ongoing, consolidated
proceedings known as "In re: Personal Injury Asbestos Case."
Pepco and other corporate entities were brought into these cases
on a theory of premises liability.
Under this theory, the plaintiffs argued that Pepco was negligent
in not providing a safe work environment for employees or its
contractors, who allegedly were exposed to asbestos while working
on Pepco's property. Initially, a total of about 448 individual
plaintiffs added Pepco to their complaints.
While the pleadings are not entirely clear, it appears that each
plaintiff sought US$2 million in compensatory damages and US$4
million in punitive damages from each defendant.
Since the initial filings in 1993, additional individual suits
have been filed against Pepco, and significant numbers of cases
have been dismissed. As a result of two motions to dismiss,
numerous hearings and meetings and one motion for summary
judgment, Pepco has had about 400 of these cases successfully
dismissed with prejudice, either voluntarily by the plaintiff or
by the court.
While the aggregate amount of monetary damages sought in the
remaining suits (excluding those tendered to Mirant) is about
US$360 million, the Company and Pepco believe the amounts claimed
by the remaining plaintiffs are greatly exaggerated.
Headquartered in Washington, D.C., Pepco Holdings, Inc.
distributes electricity and natural gas through its Potomac
Electric Power, Delmarva Power & Light, and Atlantic City
Electric utilities to more than 1.9 million customers in
Delaware, Maryland, New Jersey, and Washington, D.C.
ASBESTOS UPDATE: Manitowoc Co. Still Involved in Exposure Cases
---------------------------------------------------------------
The Manitowoc Company, Inc. continues to be involved in numerous
lawsuits involving asbestos-related claims in which the Company
is one of numerous defendants, according to the Company's annual
report filed on March 1, 2010 with the U.S. Securities and
Exchange Commission.
Headquartered in Manitowoc, Wis., The Manitowoc Company, Inc. is
a multi-industry, capital goods manufacturer operating in two
principal markets: Cranes and Related Products and Foodservice
Equipment.
ASBESTOS UPDATE: PartnerRe Net A&E Reserves at $232MM at Dec. 31
----------------------------------------------------------------
PartnerRe Ltd.'s net reserves for unpaid losses and loss expenses
included US$232 million at Dec. 31, 2009 and US$82 million at
Dec. 31, 2008 that represent estimates of its net ultimate
liability for asbestos and environmental claims.
The gross liability for those claims was US$239 million at Dec.
31, 2009 and US$92 million at Dec. 31, 2008.
The increase in asbestos and environmental claims reserves is due
to the acquisition of PARIS RE Holdings Limited (Paris Re).
The Company's gross liability for Paris Re's claims at Dec. 31,
2009 of US$159 million relates to pre-2006 accident years and any
favorable or adverse development is subject to a Reserve
Agreement.
Of the remaining US$80 million in gross reserves, most of the
reserves relate to U.S. casualty exposures arising from business
written by PartnerRe SA and PartnerRe U.S.
Headquartered in Pembroke, Bermuda, PartnerRe Ltd. provides
reinsurance through its wholly owned subsidiaries, including
Partner Reinsurance Company Ltd., Partner Reinsurance Europe
Limited, Partner Reinsurance Company of the U.S., PARIS RE SA and
PARIS RE Switzerland AG.
ASBESTOS UPDATE: Western Auto Still Subject to Exposure Lawsuits
----------------------------------------------------------------
Advance Auto Parts, Inc.'s Western Auto subsidiary, together with
other defendants including automobile manufacturers, automotive
parts manufacturers and other retailers, has been named as a
defendant in lawsuits alleging injury as a result of exposure to
asbestos-containing products.
The Company and some of its subsidiaries also have been named as
defendants in many of these lawsuits. The plaintiffs have alleged
that these products were manufactured, distributed and sold by
the various defendants. To date, these products have included
brake and clutch parts and roofing materials.
Many of the cases pending against the Company or its subsidiaries
are in the early stages of litigation. The damages claimed
against the defendants in some of these proceedings are
substantial.
Additionally, some of the automotive parts manufacturers named as
defendants in these lawsuits have declared bankruptcy, which will
limit plaintiffs' ability to recover monetary damages from those
defendants.
Headquartered in Roanoke, Va., Advance Auto Parts, Inc. is a
specialty retailer of automotive aftermarket parts, accessories,
batteries and maintenance items primarily operating within the
United States. Its stores carry a product line for cars, vans,
sport utility vehicles and light trucks.
ASBESTOS UPDATE: Regal Beloit Still Subject to Exposure Lawsuits
----------------------------------------------------------------
Regal Beloit Corporation, from time to time, is party to
litigation that arises in the normal course of its business
operations, including product warranty and liability claims,
contract disputes and environmental, asbestos, employment and
other litigation matters.
The Company's products are used in industrial, commercial and
residential applications that subject the Company to claims that
the use of its products is alleged to have resulted in injury or
other damage.
Headquartered in Beloit, Wis., Regal Beloit Corporation
manufactures commercial, industrial, and heating, ventilation,
and air conditioning (HVAC) electric motors, electric generators
and controls, and mechanical motion control products.
ASBESTOS UPDATE: Exposure Cases Ongoing Against California Water
----------------------------------------------------------------
California Water Service Group, from time to time, has been named
as a co-defendant in several asbestos related lawsuits, according
to the Company's annual report filed on March 1, 2010 with the
U.S. Securities and Exchange Commission.
The Company has been dismissed without prejudice in several of
these cases. In other cases, the Company's contractors and its
insurance policy carriers have settled the cases with no effect
on the Company's financial statements.
Headquartered in San Jose, Calif., California Water Service
Group's business is conducted through its operating subsidiaries.
The bulk of the business consists of the production, purchase,
storage, treatment, testing, distribution and sale of water for
domestic, industrial, public and irrigation uses, and for fire
protection.
ASBESTOS UPDATE: United Fire Still Has $3.8M Reserves at Dec. 31
----------------------------------------------------------------
United Fire & Casualty Company had US$3.8 million in direct and
assumed asbestos and environmental loss reserves at Dec. 31, 2009
and Dec. 31, 2008, according to the Company's annual report filed
on March 1, 2010 with the U.S. Securities and Exchange
Commission.
Included in the other liability and assumed reinsurance lines of
business are gross reserves for asbestos and other environmental
losses and loss settlement expenses.
In addition, the Company had ceded asbestos and environmental
loss reserves of US$500,000 at Dec. 31, 2009 and US$600,000 at
Dec. 31, 2008.
Headquartered in Cedar Rapids, Iowa, United Fire & Casualty
Company and its subsidiaries offer property/casualty and life
insurance products. The group's property/casualty offerings
include fidelity and surety bonds and fire, auto, employee
liability, homeowners, and workers' compensation lines.
ASBESTOS UPDATE: A. O. Smith Still Involved in Exposure Lawsuits
----------------------------------------------------------------
A. O. Smith Corporation is party to various unresolved legal
actions involving exposure to asbestos and other substances.
No further asbestos-related matters were disclosed in the
Company's annual report filed on Feb. 26, 2010 with the U.S.
Securities and Exchange Commission.
Headquartered in Milwaukee, A. O. Smith Corporation manufactures
water heating equipment and electric motors, serving a diverse
mix of residential, commercial and industrial end markets
principally in the United States with a growing international
presence. The Company is comprised of two reporting segments:
Water Products and Electrical Products.
ASBESTOS UPDATE: Target Still Subject to Probe on NESHAP Breach
---------------------------------------------------------------
Target Corporation is the subject of an ongoing U.S.
Environmental Protection Agency investigation for alleged
violations of the Clean Air Act.
In March 2009, the EPA issued a Finding of Violation (FOV)
related to alleged violations of the CAA, specifically the
National Emission Standards for Hazardous Air Pollutants (NESHAP)
promulgated by the EPA for asbestos.
The FOV pertains to the remodeling of 36 Target stores that
occurred between Jan. 1, 2003 and Oct. 28, 2007. The EPA FOV
process is ongoing and no specific relief has been sought to date
by the EPA.
The Company anticipates that any resolution of this matter will
be in the form of monetary penalties that are likely to exceed
US$100,000.
Headquartered in Minneapolis, Target Corporation operates about
1,745 Target and SuperTarget stores in 49 states, as well as an
online business called Target.com.
ASBESTOS UPDATE: Sears Holdings Corp. Subject to Exposure Cases
---------------------------------------------------------------
Sears Holdings Corporation is still subject to legal proceedings
involving asbestos exposure allegations, according to the
Company's annual report filed on March 12, 2010 with the U.S.
Securities and Exchange Commission.
Headquartered in Hoffman Estates, Ill., Sears Holdings
Corporation is the parent company of Kmart Holding Corporation
and Sears, Roebuck and Co. The Company is a broadline retailer
with 2,235 full-line and 1,284 specialty retail stores in the
United States operating through Kmart and Sears and 402 full-line
and specialty retail stores in Canada operating through Sears
Canada Inc., a 73 percent-owned subsidiary.
ASBESTOS UPDATE: Chemtura Corp. Still Party to Liability Actions
----------------------------------------------------------------
Chemtura Corporation continues to be subject to asbestos-related
claims concerning premises and historic products of its corporate
affiliates and predecessors, according to the Company's annual
report filed on March 12, 2010 with the U.S. Securities and
Exchange Commission.
Headquartered in Philadelphia, Chemtura Corporation delivers
innovative, application-focused specialty chemical and consumer
products offerings. The Company operates in end-use industries,
including automotive, transportation, construction, packaging,
agriculture, lubricants, plastics for durable and non-durable
goods, electronics, and pool and spa chemicals.
ASBESTOS UPDATE: Albany Int'l. Party to 7,809 Claims at Feb. 16
---------------------------------------------------------------
Albany International Corp. was defending against 7,809 asbestos
claims as of Feb. 16, 2010; 8,945 claims as of Oct. 30, 2009;
16,060 claims as of July 23, 2009; 16,818 claims as of May 1,
2009; and 17,854 claims as of Feb. 6, 2009.
The Company is a defendant in suits brought in various courts in
the United States by plaintiffs who allege that they have
suffered personal injury as a result of exposure to asbestos-
containing products previously manufactured by the Company.
The Company produced asbestos-containing paper machine clothing
synthetic dryer fabrics marketed during the period from 1967 to
1976 and used in certain paper mills. Those fabrics generally had
a useful life of three to 12 months.
These suits allege a variety of lung and other diseases based on
alleged exposure to products previously manufactured by the
Company.
The significant increase in the number of dismissed claims during
2009 and early 2010 is in large part the result of changes in the
administration of claims assigned to the multidistrict litigation
panel of the federal district courts (MDL).
Since May 31, 2007 the MDL has issued a series of administrative
orders to expedite the resolution of pending cases. As of Feb.
16, 2010, 3,375 claims were pending against the Company in the
MDL. Of these MDL claims, 2,993 were originally filed in state
courts in Mississippi.
As of Feb. 16, 2010, the remaining 4,434 claims pending against
the Company were pending in a number of jurisdictions other than
the MDL.
The Company's insurer, Liberty Mutual, has defended each case and
funded settlements under a standard reservation of rights. As of
Feb. 16, 2010, the Company had resolved, by means of settlement
or dismissal, 32,823 claims.
The total cost of resolving all claims was US$6,846,000. Of this
amount, US$6,801,000, or 99 percent, was paid by the Company's
insurance carrier.
The Company has about US$130 million in confirmed insurance
coverage that should be available with respect to current and
future asbestos claims, as well as additional insurance coverage
that it should be able to access.
Headquartered in Albany, N.Y., Albany International Corp. makes
paper machine clothing (PMC, custom-made fabrics and belts that
move paper stock through each phase of production). The Company
produces about 45 percent of the monofilament yarn used in its
paper machine clothing and relies on independent suppliers for
the remainder.
ASBESTOS UPDATE: Brandon Drying Has 7,905 Open Claims at Feb. 16
----------------------------------------------------------------
Albany International Corp.'s affiliate, Brandon Drying Fabrics,
Inc., was defending against 7,905 asbestos claims as of Feb. 16,
2010; 7,907 claims as of Oct. 30, 2009; 8,139 claims as of July
23, 2009; 8,604 claims as of May 1, 2009; and 8,607 claims as of
Feb. 6, 2009.
Brandon, a subsidiary of Geschmay Corp., which is a subsidiary of
the Company, is also a separate defendant in many of the asbestos
cases in which the Company is named as a defendant.
The Company acquired Geschmay, formerly known as Wangner Systems
Corporation, in 1999. In 1978, Brandon acquired certain assets
from Abney Mills, a South Carolina textile manufacturer.
Among the assets acquired by Brandon from Abney were assets of
Abney's wholly owned subsidiary, Brandon Sales, Inc. which had
sold dryer fabrics containing asbestos made by its parent, Abney.
It is believed that Abney ceased production of asbestos-
containing fabrics prior to the 1978 transaction.
As of Feb. 16, 2010, Brandon has resolved, by means of settlement
or dismissal, 9,676 claims for a total of US$152,499. Brandon's
insurance carriers initially agreed to pay 88.2 percent of the
total indemnification and defense costs related to these
proceedings, subject to the standard reservation of rights. The
remaining 11.8 percent of the costs had been borne directly by
Brandon.
During 2004, Brandon's insurance carriers agreed to cover 100
percent of indemnification and defense costs, subject to policy
limits and the standard reservation of rights, and to reimburse
Brandon for all indemnity and defense costs paid directly by
Brandon related to these proceedings.
As of Feb. 16, 2010, 6,821 (or about 86 percent) of the claims
pending against Brandon were pending in Mississippi.
Headquartered in Albany, N.Y., Albany International Corp. makes
paper machine clothing (PMC, custom-made fabrics and belts that
move paper stock through each phase of production). The Company
produces about 45 percent of the monofilament yarn used in its
paper machine clothing and relies on independent suppliers for
the remainder.
ASBESTOS UPDATE: Mt. Vernon Suits Pending Against Albany Int'l.
---------------------------------------------------------------
Albany International Corp., in some asbestos cases, is named both
as a direct defendant and as the "successor in interest" to Mount
Vernon Mills.
The Company acquired certain assets from Mount Vernon in 1993.
Certain plaintiffs allege injury caused by asbestos-containing
products alleged to have been sold by Mount Vernon many years
prior to this acquisition.
Mount Vernon is contractually obligated to indemnify the Company
against any liability arising out of such products. The Company
denies any liability for products sold by Mount Vernon prior to
the acquisition of the Mount Vernon assets.
Under its contractual indemnification obligations, Mount Vernon
has assumed the defense of these claims. On this basis, the
Company has successfully moved for dismissal in a number of
actions.
Headquartered in Albany, N.Y., Albany International Corp. makes
paper machine clothing (PMC, custom-made fabrics and belts that
move paper stock through each phase of production). The Company
produces about 45 percent of the monofilament yarn used in its
paper machine clothing and relies on independent suppliers for
the remainder.
ASBESTOS UPDATE: Ladish Facing 14 Claims in 3 States at Dec. 31
---------------------------------------------------------------
Ladish Co. Inc., as of Dec. 31, 2009, faced 11 asbestos claims in
Mississippi, two claims remaining in Illinois and one in
Wisconsin.
As of Nov. 3, 2009, the Company faced 15 individual asbestos
claims in three states: 12 individual claims pending in
Mississippi, two individual claims pending in Illinois and one
individual claim pending in Wisconsin. (Class Action Reporter,
Nov. 13, 2009)
The Company has been named as a defendant in a number of asbestos
cases in Mississippi, six cases in Illinois, one case in
Wisconsin and one case in California. As of Dec. 31, 2009, the
Company has been dismissed from the case in California.
The Company has notified its insurance carriers of these claims.
The Company has never manufactured or processed asbestos. The
Company's exposure to asbestos involves products the Company
purchased from third parties.
The Company has not made any provision in its financial
statements for the asbestos litigation.
Headquartered in Cudahy, Wis., Ladish Co., Inc. designs, produces
and markets forged and cast metal components for load-bearing and
fatigue-resisting applications in the jet engine, aerospace and
industrial markets.
ASBESTOS UPDATE: Joy Global Still Involved in Liability Lawsuits
----------------------------------------------------------------
Joy Global Inc. and its subsidiaries are still involved in
various unresolved legal matters that arise in the normal course
of operations, the most prevalent of which relate to product
liability (including over 1,000 asbestos and silica-related
cases), employment, and commercial matters.
No further asbestos-related matters were disclosed in the
Company's quarterly report filed on March 5, 2010 with the U.S.
Securities and Exchange Commission.
Headquartered in Milwaukee, Joy Global Inc. manufactures and
services high productivity mining equipment for the extraction of
coal and other minerals and ores. Its equipment is used in mining
regions to mine coal, copper, iron ore, oil sands and other
minerals.
ASBESTOS UPDATE: Worcester Contractor Indicted on Cleanup Charge
----------------------------------------------------------------
A Worcester County Grand Jury, on March 11, 2010, returned
indictments against a 45-year-old Jonathan Gabriel, a Worcester,
Mass.-based contractor, and the property management firm that
hired him for their alleged involvement in the illegal removal of
asbestos from a building in downtown Worcester, according to a
Massachusetts Attorney General press release dated March 11,
2010.
Mr. Gabriel, of Hammertime Construction, and 240 Main Street
Properties, Inc., the manager of the property at 240 Main Street,
Worcester, were indicted on charges of violating the Clean Air
Act by failing to file notices of asbestos removal with the
Massachusetts Department of Environmental Protection (MassDEP),
and improper disposal of asbestos waste.
The indictments stem from an investigation by the Massachusetts
Environmental Crimes Strike Force (ECSF), an interagency unit
that includes prosecutors from the Attorney General's Office,
Environmental Police Officers assigned to the Attorney General's
Office, and investigators and engineers from the MassDEP.
Authorities allege that 240 Main Street Properties, Inc. hired
Mr. Gabriel to gut the interior of its building, which is located
across the street from Worcester Superior Court. Authorities
allege that the work began in the fall of 2007 and during
construction asbestos was illegally removed from the building.
Investigators also allege that the windows of the building were
left open during construction, risking a release to the public of
asbestos fibers.
MassDEP inspected the property in August 2008, immediately after
being informed of the demolition work there, and issued a stop
work order shortly after those inspections were conducted. 240
Main Street Properties, Inc. thereafter retained licensed
asbestos contractors to remove the asbestos found in the
property.
Authorities further allege that Mr. Gabriel, the contractor hired
to perform the work, and 240 Main Street Properties, Inc., the
property manager, violated the Massachusetts Clean Air Act by
failing to notify MassDEP of asbestos demolition, and by failing
to follow mandated asbestos removal procedures during the
demolition and renovation, such as containment of the removal
site, wetting down of materials removed, and testing the air
after the removal.
Under the Clean Air Act, owners and operators of demolition and
renovations projects involving asbestos containing material are
required to provide MassDEP with 10 days notice of the work to be
performed and a description of the proposed operation that
includes the estimated amount of asbestos involved, the name of
the environmental company hired to properly remove the asbestos,
and the name of the disposal facility they intend to use.
Authorities allege that no such notification was made.
This case was investigated by the Massachusetts Environmental
Crimes Strike Force (ECSF), which is overseen by Attorney General
Martha Coakley, MassDEP Commissioner Laurie Burt and Energy and
Environmental Affairs Secretary Ian A. Bowles.
The indictments were returned on March 11, 2010. The defendants
will be summonsed for arraignment in Worcester Superior Court at
a later date.
Assistant Attorney General Andrew Rainer, Chief of Attorney
General Coakley's Environmental Crimes Strike Force, is
prosecuting the case.
Investigators Greg Levins and Don Heeley of MassDEP's Central
Regional Office in Worcester joined with the Massachusetts
Environmental Police to conduct the investigation into this case.
ASBESTOS UPDATE: IRS Envt'l. Fined $8,100 for Abatement Breaches
----------------------------------------------------------------
The Oregon Department of Environmental Quality has issued
US$8,100 in penalties to IRS Environmental of Portland Inc. for
environmental law violations associated with an asbestos
abatement project that took place last fall at Reed Lodge, a
student residence hall on the Oregon State University campus in
Corvallis, Ore., according to an Oregon DEQ press release dated
March 15, 2010.
The violations stem from an October 2009 project to remove about
2,750 square feet of cement asbestos board roofing from Reed
Lodge, at 2950 SW Jefferson Way. The asbestos-containing roofing
material was weathered and brittle and was therefore considered
friable, or capable of breaking off into fibers that can become
airborne.
Upon further DEQ investigation of the project, the agency found
several violations, committed by the asbestos abatement
contractor for the project, IRS Environmental of Portland Inc.:
-- Failing to notify DEQ of a friable asbestos project at least
10 days before beginning the project, as required (US$1,500
penalty)
-- Failing to adequately wet the friable cement asbestos board
roofing during removal (US$2,400 penalty)
-- Failing to keep the removed asbestos-containing waste
material adequately wet after it was removed and before it
was delivered to an authorized landfill (US$4,200 penalty)
-- Failing to package the removed asbestos-containing material
in leak-tight plastic bags, as required (DEQ did not issue a
penalty for this violation)
As a licensed asbestos abatement contractor, IRS Environmental is
required to strictly comply with Oregon's asbestos abatement
laws. The Company did not follow the most basic work practice
requirements, which are intended to minimize the release of
asbestos fibers.
In assessing the penalty, DEQ recognized IRS Environmental's
later efforts to correct the violations by wetting the asbestos-
containing waste and properly repackaging it, and by submitting a
friable asbestos project notification.
IRS Environmental of Portland Inc. appealed the penalty last Feb.
11, 2010.
ASBESTOS UPDATE: Fellin Claim v. 36 Firms Filed March 3 in W.Va.
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An asbestos lawsuit styled James J. Fellin and Rose Marie Fellin,
his wife vs. Allied Glove Corporation; Atlas Industries, Inc.;
Caterpillar, Inc., et al. was filed on March 3, 2010 in Kanawha
County Circuit Court, W.Va., The West Virginia Record reports.
The Fellins claim the 36 defendants exposed Mr. Fellin to dust
and asbestos fibers, which caused his mesothelioma. They seek
compensatory and punitive damages.
Brian A. Prim, Esq., represents the Fellins.
Case No. 10-C-403 is assigned to a visiting judge.
ASBESTOS UPDATE: DEQ Penalizes Skiles, Smith for Safety Breaches
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The Wyoming Department of Environmental Quality, in February
2010, cited Mason Skiles and Dan Smith for allegedly failing to
comply with state air quality standards and regulations.
The DEQ cited the two men, both of Laramie, Wyo., who bought five
small buildings that were the source of asbestos contamination at
the University of Wyoming in Laramie in 2009.
The buildings next to the Bureau of Mines Building were removed
to make way for a new building under construction that will house
university botany and zoology collections.
Department and university officials say debris containing
asbestos was left behind after the buildings were removed.
ASBESTOS UPDATE: Jury Rules v. 2 Miss. Lawyers in Fraud Lawsuit
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A federal jury, on March 8, 2010, decided that two Mississippi
lawyers, William Guy, Esq., and Thomas Brock, Esq., committed
fraud against Illinois Central Railroad, a company they sued in a
pair of asbestos lawsuits, The West Virginia Record reports.
The jury ruled that Mr. Guy and Mr. Brock submitted false
information in a pair of questionnaires submitted by Illinois
Central Railroad while settling with two of their clients. The
jury found the attorneys failed to disclose their clients'
previous involvements in another case, an asbestos mass action
filed in Jefferson County, Miss.
Warren Turner received a US$120,000 settlement from Illinois
Central, and Willie Harried received US$90,000. The jury ruled
for the settlement funds to be returned, plus another US$210,000
in punitive damages.
Mark Behrens, Esq., a Washington, D.C., attorney with Shook,
Hardy & Bacon, said, "This case is significant because it is the
first time I am aware of that a jury has found that asbestos
plaintiffs' lawyers committed fraud."
The complaints allege the Company would not have been obligated
to pay the settlements had it known that Mr. Harried joined the
mass action, titled Cosey, in 1995 and Mr. Turner in 1996.
Mr. Harried and Mr. Turner both filed suit against Illinois
Central in 2001. The complaints say the attorneys knew of the
previous lawsuits.
ASBESTOS UPDATE: Ill. Court Favors Ford Motor in Williams Action
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Jurors in an asbestos lawsuit filed by Larry and Meta Williams
handed a victory to the defendant, Ford Motor Company, after an
hour and a half of deliberations on March 12, 2010 in Madison
County Circuit Court, Ill., The Madison St. Clair Record reports.
Attorneys for the plaintiffs had asked for more than US$14
million in damages.
Ford was sued along with a number of other brake manufacturers
for allegedly selling products that caused Mr. Williams'
mesothelioma. Ford was the only defendant that did not settle its
case with the Williamses.
Lead defense counsel Manuel Sanchez, Esq., of Sanchez Daniels &
Hoffman of Chicago praised both the jury and Madison County
Circuit Judge Barbara Crowder for the verdict.
Plaintiff's attorney Jonathan Ruckdeschel, Esq., of the
Ruckdeschel Law Firm of Maryland expressed his disappointment
with the verdict.
The Williams case is the first asbestos trial of 2010. It is also
the first helmed by Crowder.
The 57-year-old Mr. Williams had alleged that asbestos in brake
dust caused him to develop mesothelioma. Ford denied that it
acted negligently and that its products had caused the disease.
The trial opened March 3, 2010.
Jurors rendered their verdict after several hours of closing
arguments on March 12, 2010.
T. Barton French, Esq., of St. Louis and Nathaniel Mudd, Esq., of
Edwardsville, Ill., also represented the Williamses.
Darrell Grams, Esq., of Addison, Tex., Eric Bergstrom, Esq., of
Redwood City, Calif., Ryan McQueeney, Esq., of Chicago and others
also represented Ford.
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