/raid1/www/Hosts/bankrupt/CAR

/raid1/www/Hosts/bankrupt/CAR_Public/130607.mbx C L A S S A C T I O N R E P O R T E R Friday, June 7, 2013, Vol. 15, No. 112 Headlines BLESSINGS INC: Recalls Domestic 16-20 EZ Peel Shrimp BMW OF NORTH AMERICA: Faces Class Action Over Water Damage Risk BURGER KING: BKC Faces "Jay Clogg" Class Suit in Maryland CANADA VOLUMES: Recalls Almond Powders Due to Undeclared Milk CHEMED CORP: Sales Reps' Claims in "Santos" Suit Dismissed CHEMED CORP: Still Awaits Rulings on Bid to Junk Securities Suit CHEMED CORP: Unit Remains a Defendant in "Morangelli" Suit CORELOGIC INC: CVS Continues to Defend RESPA Violations Suit CORELOGIC INC: Teletrack Inked Tentative Deal to Settle FCRA Suit DUTCHESS COUNTY, NY: BoE Settles College Voters' Class Action FANNIE MAE: Obtains Favorable Ruling in Real Estate Tax Suit FINGER LAKES: Recalls 12 Wheels of Gouda Cheese Over Health Risk FIRST AMERICAN: Continues to Defend Suits Over Business Practices GRUPO AVAL: Continues to Defend Pension and Severance Funds Suits INT'L DESSERTS: Recalls Uncle Eddies Vegan Oatmeal Choco Cookies NEW NEWSCORP: Defends Ebook Antitrust Suits vs. HarperCollins NEW NEWSCORP: Still Awaits Ruling on Bid to Dismiss "Wilder" Suit NEW YORK, NY: Class Action Challenges "Operation Lucky Bag" RICHMOND SCHOOL OF HEALTH: To Settle Former Students' Class Action SALMOLUX: Clarifies Cold Smoked Salmon Products Recall SEI INVESTMENTS: Appeal From ETF-Related Suit Dismissal Pending SEI INVESTMENTS: Awaits Ruling in Stanford-Related Class Suit SIBANYE GOLD: To Oppose Suits Over Silicosis and Lung Diseases STORM FINANCIAL: Premium May Prompt Self-Funded Class Actions TNUVA FOOD: Admits Abusive Practices at Bet She'an Slaughterhouse UNITED STATES: Tea Party Group File Class Action v. IRS * Customers in Waikato to Join NZ Bank Fee Class Action * Number of Class Actions Increasing for Businesses, Survey Says Asbestos Litigation ASBESTOS UPDATE: Precision Castparts Had 65 Pending PI Lawsuits ASBESTOS UPDATE: Joy Global Continues to Defend Liability Suits ASBESTOS UPDATE: Dust-Up Overcooked as Pollies Turn Up Heat ASBESTOS UPDATE: Appeals Court Sharpens Schmidheiny Sentence ASBESTOS UPDATE: Welsh Treatment Cost Recovery Bill is Postponed ASBESTOS UPDATE: Toxic Fibro Found at 3 Queensland NBN Sites ASBESTOS UPDATE: Fibro Management Task Force Set Up ASBESTOS UPDATE: Asbestos Bill Invades Privacy of Victims ASBESTOS UPDATE: Register for Asbestos Very Important ASBESTOS UPDATE: Pittsburgh Corning's Legal Woes Grinding On ASBESTOS UPDATE: Telstra Faces Giant Asbestos Liability ASBESTOS UPDATE: Sick Driver Appeals to Bradford Ex-Workmates ASBESTOS UPDATE: Researcher Named West Australian of the Year ASBESTOS UPDATE: Horsham Family Angered at Asbestos Discovery ASBESTOS UPDATE: Syracuse Grand Jury Investigating Projects ASBESTOS UPDATE: Free School in Wembley Hit with Asbestos Claims ASBESTOS UPDATE: $600,000 Roof Job to Change Ash Street Jail ASBESTOS UPDATE: The Block Sky Criticised by Law Firm Over Fibro ASBESTOS UPDATE: Asbestos Compensation Fund Gets AUD185MM Payment ASBESTOS UPDATE: Chrysotile Variety, An Ideal Roofing Option ASBESTOS UPDATE: Fly-tipper Fined for Dumping in Medway ASBESTOS UPDATE: No Answers for Gosforth Mum Exposed to Asbestos ASBESTOS UPDATE: QEII Track Reopened After Asbestos Scare ASBESTOS UPDATE: Homes Evacuated as Fire Sparks Fibro Scare ASBESTOS UPDATE: Fibro Link Ruled Out in Ex-Dockyard Worker Death ASBESTOS UPDATE: Riverside Residents Living on "Death Row" ASBESTOS UPDATE: Toxic Dust Taken and Found from Newport Market ASBESTOS UPDATE: Daughter of Exposure Victim Appeals for Info ASBESTOS UPDATE: Man in Court on School Asbestos Charges ASBESTOS UPDATE: Mesothelioma Experts Present New Findings ASBESTOS UPDATE: Asbestos Bill Ignores Justice for Vets, Citizens ASBESTOS UPDATE: US Calls on High Court to Snub Pfizer Case ASBESTOS UPDATE: Asbestos Trustees Need to Open the Books ASBESTOS UPDATE: Winchburg Asbestos Disposal Fears are Baseless ASBESTOS UPDATE: Pittsburgh Corning Plan Order Revised ASBESTOS UPDATE: Horror Movie Right in the CBD ASBESTOS UPDATE: Jarrow MP Claims Mesothelioma Bill Denies Justice ASBESTOS UPDATE: Christchurch Call for Tighter Rules on Asbestos ASBESTOS UPDATE: Fibro Contamination Hinders Buffalo Redevelopment ASBESTOS UPDATE: New Bill Will Help Asbestos Cancer Victims ASBESTOS UPDATE: NZ Gov't. Says Onus on Employers to Detect Fibro ASBESTOS UPDATE: Lack of Training Possible in Asbestos Incidents ASBESTOS UPDATE: School Board Considers Asbestos Issues in Schools ASBESTOS UPDATE: Greens Want Answers on ASIO HQ ASBESTOS UPDATE: Portsmouth Schools to Use Up Rest of Surplus Fund ASBESTOS UPDATE: NEIC Appeal from Allocation Decision Denied ********* BLESSINGS INC: Recalls Domestic 16-20 EZ Peel Shrimp ---------------------------------------------------- Blessings Inc. of Tucson, Arizona, is voluntarily recalling its domestic 16-20 EZ Peel Shrimp because it contains the undeclared allergen sulfite above the levels required for products labeled "sulfite-free." People who have an allergy or severe sensitivity to sulfite run the risk of allergic reaction if they consume these products. The 16-20 EZ Peel Shrimp was distributed by Perishable Distributors of Iowa (PDI) and sold from February 12, to May 23, 2013, at the seafood display counters in the retail markets seafood section of Hy-Vee stores located in eight states: Iowa, Nebraska, Kansas, Illinois, Missouri, South Dakota, Minnesota, and Wisconsin, and at Cedar Valley Fish Market in Waterloo, Iowa. This precautionary action was prompted when three lots of domestic 16-20 EZ Peel Shrimp were found to have exceeded the sulfite levels required for products labeled as "sulfite-free." Sulfite is a commonly used preservative. The product in question can be identified by lot numbers 13047-1, 13038-3 and 13037-1. Consumers who have purchased 16-20 EZ Peel Shrimp are urged to contact and return the product to the store from which it was purchased for a full refund. Consumers with questions may contact Blessings at 1-800-492-1621. BMW OF NORTH AMERICA: Faces Class Action Over Water Damage Risk --------------------------------------------------------------- Megan Stride, writing for Law360, reports that BMW of North America LLC was hit with a putative class action in California federal court on May 17 asserting that it concealed design defects in its X5, X3 and 5 series vehicles that allegedly cause trunk leaks and make electrical components highly susceptible to water damage, creating safety risks. Plaintiffs Monita Sharma and Eric Anderson allege that the BMW vehicles at issue were designed so that certain vital electrical components are located in the lowest part of the cars' trunk and are therefore prone to water damage. BURGER KING: BKC Faces "Jay Clogg" Class Suit in Maryland --------------------------------------------------------- Burger King Worldwide, Inc., is facing a class action lawsuit initiated by Jay Clogg Realty Group, Inc., in Maryland, according to the Company's April 26, 2013, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended March 31, 2013. On March 1, 2013, a putative class action lawsuit, captioned Jay Clogg Realty Group, Inc. v. Burger King Corporation, Civ. Action No. 8:13-CV-00662 (U.S. District Court for the District of Maryland), was filed against BKC in the U.S. District Court of Maryland. The complaint alleges that BKC and/or its agents sent unsolicited advertisements by fax to thousands of consumers in Maryland and elsewhere in the United States to promote its home delivery program in violation of the Telephone Consumers Protection Act. It is not possible at this time to determine the likelihood of class certification in this case or reasonably estimate the probability or amount of liability for monetary damages on a class wide basis. Based in Miami, Florida, Burger King Worldwide, Inc. is a Delaware corporation formed in 2012 and is the indirect parent of Burger King Corporation. BKC is a Florida corporation that franchises and operates fast food hamburger restaurants, principally under the Burger King(R) brand. CANADA VOLUMES: Recalls Almond Powders Due to Undeclared Milk ------------------------------------------------------------- Starting date: May 31, 2013 Type of communication: Recall Alert sub-type: Allergy Alert Subcategory: Allergen - Milk, Allergen - Tree Nut Hazard classification: Class 2 Source of recall: Canadian Food Inspection Agency Recalling firm: Canada Volumes Import/Export Inc. Distribution: Alberta, British Columbia Extent of the product distribution: Retail CFIA reference number: 8036 Affected products: Brand name Common name Size Code(s) on product ---- ----------- ---- ------------------ None Almond Powder 500 g BB 2014 SE 20, BB 2015 MR 26 (no sugar added) UPC: 4 716809 01107 4 None Almond Powder 500 g BB 2014 SE 20 UPC: 4 716809 01007 7 CHEMED CORP: Sales Reps' Claims in "Santos" Suit Dismissed ---------------------------------------------------------- The Superior Court of California for the Los Angeles County dismissed in March 2013 the sales representatives' claims in the class action lawsuit commenced by Bernadette Santos, et al., according to Chemed Corporation's April 26, 2013, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended March 31, 2013. Vitas Healthcare Corporation is party to a class action lawsuit filed in the Superior Court of California, Los Angeles County in September 2006 -- Bernadette Santos, Keith Knoche and Joyce White, Bernadette Santos, et al. v. Vitas Healthcare Corporation of California, BC359356. This case alleges failure to pay overtime and failure to provide meal and rest periods to a purported class of California admissions nurses, chaplains and sales representatives. The case seeks payment of penalties, interest and Plaintiffs' attorney fees. The Company contests these allegations. In December 2009, the trial court denied the Plaintiffs' motion for class certification. In July 2011, the Court of Appeals affirmed denial of class certification on the travel time, meal and rest period claims, and reversed the trial court's denial on the off-the-clock and sales representation exemption claims. The Plaintiffs filed an appeal of this decision. In September 2012, in response to an order of reconsideration, the Court of Appeals reiterated its previous rulings. In March 2013, the Court granted summary judgment dismissing the sales representatives' claims as they are exempt employees. Cincinnati, Ohio-based Chemed Corporation -- http://www.chemed.com/-- was incorporated in Delaware in 1970 as a subsidiary of W.R. Grace & Co. and succeeded to the business of W.R. Grace & Co.'s Special Products Group as of April 30, 1971, and remained a subsidiary of W.R. Grace until March 10, 1982. Chemed purchases, operates and divests subsidiaries engaged in diverse business activities for the purposes of maximizing shareholder value. CHEMED CORP: Still Awaits Rulings on Bid to Junk Securities Suit ---------------------------------------------------------------- Chemed Corporation is still awaiting court decisions on its and other defendants' motion to dismiss a securities class action lawsuit pending in Ohio, according to the Company's April 26, 2013, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended March 31, 2013. On January 12, 2012, the Greater Pennsylvania Carpenters Pension Fund filed a putative class action lawsuit in the U.S. District Court for the Southern District of Ohio against the Company, Kevin McNamara, David Williams, and Timothy O'Toole. On April 9, 2012, the Court issued orders (a) renaming the lawsuit as In re Chemed Corp. Securities Litigation, Civil Action No. 1:12-cv-28 (S.D. Ohio); (b) appointing the Greater Pennsylvania Carpenters Pension Fund and the Electrical Workers Pension Fund, Local 103, I.B.E.W. as Lead Plaintiffs; and (c) approving Lead Plaintiffs' selection of Labaton Sucharow LLP and Robbins Geller Rudman & Dowd LLP as Co-Lead Counsel. On June 18, 2012, the Lead Plaintiffs filed an amended complaint alleging violation of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 against all Defendants, and violation of Section 20(a) of the Securities Exchange Act of 1934 against Messrs. McNamara, Williams, and O'Toole. The lawsuit's allegations concern the VITAS hospice segment of the Company's business. The Lead Plaintiffs seek, on behalf of a putative class of purchasers of Chemed Capital Stock between February 15, 2010, and November 16, 2011, compensatory damages in an unspecified amount and attorneys' fees and expenses, arising from the Defendants' failure to disclose an alleged fraudulent scheme to enroll ineligible hospice patients and to fraudulently obtain payments from the federal government. The Defendants filed motions to dismiss the amended complaint on August 17, 2012. The Defendants believe the claims are without merit, and intend to defend vigorously against them. Cincinnati, Ohio-based Chemed Corporation -- http://www.chemed.com/-- was incorporated in Delaware in 1970 as a subsidiary of W.R. Grace & Co. and succeeded to the business of W.R. Grace & Co.'s Special Products Group as of April 30, 1971, and remained a subsidiary of W.R. Grace until March 10, 1982. Chemed purchases, operates and divests subsidiaries engaged in diverse business activities for the purposes of maximizing shareholder value. CHEMED CORP: Unit Remains a Defendant in "Morangelli" Suit ---------------------------------------------------------- Chemed Corporation's subsidiary remains a defendant in the class action lawsuit filed by Anthony Morangelli, et al., according to the Company's April 26, 2013, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended March 31, 2013. In February 2010, Chemed and Roto-Rooter Corporation, a subsidiary, were named as defendants in a lawsuit filed in the United States District Court for the Eastern District of New York, entitled Anthony Morangelli, et al., v. Chemed Corp. and Roto- Rooter Services Co., No. 10 CV-00876 (BMC). The named plaintiffs in this lawsuit, who are current and former technicians employed by Roto-Rooter who were paid on a commission basis, asserted against Chemed and Roto-Rooter claims for violation of the Fair Labor Standards Act ("FLSA") and claims for violations of the labor laws of multiple states. The Plaintiffs alleged that Chemed and Roto-Rooter failed to reimburse them for all business expenses incurred in connection with their employment, failed to compensate for all hours worked and made illegal deductions from pay. The Plaintiffs seek an unspecified amount of compensatory damages, liquidated damages, other penalties, fees and costs. In June 2010, the Court conditionally certified a collective action under the FLSA and, in June 2011, it certified fourteen separate state law class actions. On February 4, 2013, the Court dismissed all claims asserted against Chemed, dismissed plaintiffs' illegal deduction claims and decertified from the class and collective actions significant portions plaintiffs' business expense and uncompensated hours claims. Roto-Rooter continues to contest the Plaintiffs' claims. Cincinnati, Ohio-based Chemed Corporation -- http://www.chemed.com/-- was incorporated in Delaware in 1970 as a subsidiary of W.R. Grace & Co. and succeeded to the business of W.R. Grace & Co.'s Special Products Group as of April 30, 1971, and remained a subsidiary of W.R. Grace until March 10, 1982. Chemed purchases, operates and divests subsidiaries engaged in diverse business activities for the purposes of maximizing shareholder value. CORELOGIC INC: CVS Continues to Defend RESPA Violations Suit ------------------------------------------------------------ On February 8, 2008, a purported class action was filed in the United States District Court for the Northern District of California, San Jose Division, against Washington Mutual Bank ("WaMu") and eAppraiseIT, LLC ("eAppraiseIT") alleging breach of contract, unjust enrichment, and violations of the Real Estate Settlement Procedures Act ("RESPA"), the California Unfair Competition Law and the California Consumers Legal Remedies Act. CoreLogic Valuation Services, LLC ("CVS"), a CoreLogic, Inc. subsidiary, is the successor to eAppraiseIT. The complaint alleged a conspiracy between WaMu and eAppraiseIT to allow WaMu to direct appraisers to artificially inflate appraisals in order to qualify higher value loans that WaMu could then sell in the secondary market. The Plaintiffs subsequently voluntarily dismissed WaMu on March 9, 2009. On August 30, 2009, the court dismissed all claims against eAppraiseIT except the RESPA claim. On July 2, 2010, the court denied the plaintiff's first motion for class certification. On November 19, 2010, the plaintiffs filed a renewed motion for class certification. On April 25, 2012, the court granted the plaintiffs' renewed motion and certified a nationwide class of all persons who, on or after June 1, 2006, received home loans from WaMu in connection with appraisals that were obtained through eAppraiseIT. On July 12, 2012, the Ninth Circuit Court of Appeals declined to review the class certification order. CVS, as the successor to eAppraiseIT, intends to defend against this claim vigorously; however, it may not be successful. At this time the Company cannot predict the ultimate outcome of this claim or the potential range of damages, if any. No further updates were reported in the Company's April 26, 2013, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended March 31, 2013. Based in Irvine, California, CoreLogic, Inc. -- http://www.corelogic.com/-- is a property information, analytics and services provider in the United States of America and Australia. The Company was originally incorporated in California in 1894, and was reincorporated in Delaware on June 1, 2010. Before June 1, 2010, the Company operated as The First American Corporation. Through a separation transaction, the Company spun off its financial services businesses on June 1, 2010, changed its name to CoreLogic, Inc. CORELOGIC INC: Teletrack Inked Tentative Deal to Settle FCRA Suit ----------------------------------------------------------------- CoreLogic, Inc.'s subsidiary reached a settlement in principle to resolve a class action lawsuit pending in Illinois, according to the Company's April 26, 2013, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended March 31, 2013. On June 30, 2011, a purported class action was filed in the United States District Court for the Northern District of Illinois against the Company's subsidiary Teletrack, Inc. ("Teletrack"). The complaint alleges that Teletrack has been furnishing consumer reports to third parties, who did not have a permissible purpose to obtain them in violation of the Fair Credit Reporting Act, 15 U.S.C. Section 1681 et seq., and seeks to recover actual, punitive and statutory damages, as well as attorney's fees, litigation expenses and costs of lawsuit. On September 20, 2011, Teletrack filed a motion to dismiss the complaint on grounds that the plaintiffs lacked standing. That motion was denied on March 7, 2012. Teletrack denied the allegations and has been defending against this claim vigorously. On March 27, 2013, the parties reached settlement in principle that would dismiss all claims. Based in Irvine, California, CoreLogic, Inc. -- http://www.corelogic.com/-- is a property information, analytics and services provider in the United States of America and Australia. The Company was originally incorporated in California in 1894, and was reincorporated in Delaware on June 1, 2010. Before June 1, 2010, the Company operated as The First American Corporation. Through a separation transaction, the Company spun off its financial services businesses on June 1, 2010, changed its name to CoreLogic, Inc. DUTCHESS COUNTY, NY: BoE Settles College Voters' Class Action ------------------------------------------------------------- Sarah Bradshaw, writing for The Poughkeepsie Journal, reports that Dutchess County Board of Elections officials have settled a class action lawsuit filed against them last year, in which four students said their right to vote was denied. Last October, Republican Commissioner Erik Haight deemed the voting applications of four students incomplete because they didn't provide their dormitory building names or room numbers. About 100 college students were affected. Under the terms of the settlement, college students do not have to register to vote with a physical address. A college box office number is enough. The students, who attend the Culinary Institute of America, Marist College and Bard College, were represented by the New York Civil Liberties Union and the law firm of Lowenstein Sandler PC. Democratic Commissioner Fran Knapp said the settlement cost the county taxpayers $58,000, which she said was "shameful." FANNIE MAE: Obtains Favorable Ruling in Real Estate Tax Suit ------------------------------------------------------------ David Shepardson, writing for The Detroit News, reports that the state of Michigan and counties can't collect real estate taxes from home sales made by Fannie Mae and Freddie Mac, a federal appeals court ruled on May 20. In 2011, Oakland County and Genesee County filed class-action suits against the firms that won nearly $200 billion in U.S. bailouts to collect real estate transfer taxes. Oakland County said it was owed millions of dollars in transfer taxes, largely from the sale of foreclosed property by the two government-sponsored enterprises. U.S. District Judge Victoria Roberts wrote a March 2012 opinion ordering the firms to pay the taxes. Her ruling was reversed. The county said the two firms may have recorded thousands of deeds without paying any transfer taxes. In a unanimous decision by a three-judge panel, Appeals Judge David McKeague reversed a lower court ruling that had upheld the right of the counties and state to collect the taxes. Congress expressly said government-sponsored housing corporations the Federal National Mortgage Association, known as Fannie Mae, and the Federal Home Loan Mortgage Corp., Freddie Mac, along with the Federal Housing and Finance Agency, were exempt from all taxes. The counties -- joined by the state of Michigan -- argued that when Congress exempted them from "all taxation," it didn't mean to include state and local transfer taxes. "Because the statutes are clear, we are not in a position to second-guess Congress and create a new exception in the statute for state and county real estate transfer taxes," said the opinion written by McKeague, who was a federal judge in Grand Rapids before being appointed to the federal appeals court bench by President George W. Bush in 2005. Michigan imposes a $7.50 fee per $1,000 in value on the property sold; counties impose a $1.10 per $1,000 in value of the property fee. They are paid at the time a deed is recorded, when ownership of a property is transferred. Fannie Mae and Freddie Mac step in when a property is foreclosed as the purchaser or entity that guarantees 65 percent of the nation's new mortgages. After the housing market collapsed in 2008, Congress seized the two publicly traded firms as part of bailouts nearing $200 billion and placed them in conservatorship. In July 2008, Congress created the Federal Housing Finance Agency to oversee Fannie Mae, Freddie Mac, and the Federal Home Loan Banks. As of September 2010, the combined debt and obligations of these government-sponsored enterprises totaled $6.7 trillion The opinion was joined by Judge Boyce Martin Jr., an appointee of President Jimmy Carter, and Ralph Guy, a former lawyer for the city of Dearborn named to the appeals court by President Ronald Reagan. FINGER LAKES: Recalls 12 Wheels of Gouda Cheese Over Health Risk ---------------------------------------------------------------- Finger Lakes Farmstead Cheese Company LLC of Trumansburg, New York, is recalling 12 wheels of GOUDA cheese manufactured on December 20, 2012. The results of U.S. Food and Drug Administration product sampling revealed the presence of GOUDA Cheese contaminated with Listeria monocytogenes Type 1. Listeria monocytogenes is an organism that can cause serious and sometimes fatal infections in young children, frail or elderly people, pregnant women and others with weakened immune systems. Healthy persons may experience fever, diarrhea, nausea, vomiting and abdominal pain as a result. For more information on Listeria monocytogenes, please visit the Centers for Disease Control and Prevention's Web site at http://www.cdc.gov/. This production batch of GOUDA (may be called "SCHUYLER" OR "BIER MECK" GOUDA) was distributed in New York State, predominantly in the Albany region, and was distributed to retail stores and restaurants. The label on the product will clearly state the product name and the company name. These products were sold to the distributor Adventure in Food Trading on March 26, 2013. Pictures of the recalled products' labels are available at: http://www.fda.gov/Safety/Recalls/ucm355055.htm No illnesses have been reported to date. Consumers who have purchased Finger Lakes Farmstead Cheese Company's Schuyler Gouda or Bier Meck Gouda with a production date of 12-20-12 are urged to return the product for a full refund. Questions may be directed to Nancy Richards, (607) 387-3108 Monday thru Friday, 8:00 a.m. to 4:00 p.m. Eastern Standard Time. FIRST AMERICAN: Continues to Defend Suits Over Business Practices ----------------------------------------------------------------- First American Financial Corporation continues to defend itself and its subsidiaries from lawsuits challenging practices in its title insurance business, according to the Company's April 26, 2013, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended March 31, 2013. The Company and its subsidiaries are parties to a number of non- ordinary course lawsuits. Frequently, these lawsuits are similar in nature to other lawsuits pending against the Company's competitors. For those non-ordinary course lawsuits where the Company has determined that a loss is both probable and reasonably estimable, a liability representing the best estimate of the Company's financial exposure based on known facts has been recorded. Actual losses may materially differ from the amounts recorded. For a substantial majority of these lawsuits, however, it is not possible to assess the probability of loss. Most of these lawsuits are putative class actions which require a plaintiff to satisfy a number of procedural requirements before proceeding to trial. These requirements include, among others, demonstration to a court that the law proscribes in some manner the Company's activities, the making of factual allegations sufficient to suggest that the Company's activities exceeded the limits of the law and a determination by the court -- known as class certification -- that the law permits a group of individuals to pursue the case together as a class. In certain instances the Company may also be able to compel the plaintiff to arbitrate its claim on an individual basis. If these procedural requirements are not met, either the lawsuit cannot proceed or, as is the case with class certification or compelled arbitration, the plaintiffs lose the financial incentive to proceed with the case (or the amount at issue effectively becomes de minimus). Frequently, a court's determination as to these procedural requirements is subject to appeal to a higher court. As a result of, among other factors, ambiguities and inconsistencies in the myriad laws applicable to the Company's business and the uniqueness of the factual issues presented in any given lawsuit, the Company often cannot determine the probability of loss until a court has finally determined that a plaintiff has satisfied applicable procedural requirements. Furthermore, because most of these lawsuits are putative class actions, it is often impossible to estimate the possible loss or a range of loss amounts, even where the Company has determined that a loss is reasonably possible. Generally class actions involve a large number of people and the effort to determine which people satisfy the requirements to become plaintiffs -- or class members -- is often time consuming and burdensome. Moreover, these lawsuits raise complex factual issues which result in uncertainty as to their outcome and, ultimately, make it difficult for the Company to estimate the amount of damages which a plaintiff might successfully prove. In addition, many of the Company's businesses are regulated by various federal, state, local and foreign governmental agencies and are subject to numerous statutory guidelines. These regulations and statutory guidelines often are complex, inconsistent or ambiguous, which results in additional uncertainty as to the outcome of a given lawsuit -- including the amount of damages a plaintiff might be afforded -- or makes it difficult to analogize experience in one case or jurisdiction to another case or jurisdiction. Most of the non-ordinary course lawsuits to which the Company and its subsidiaries are parties challenge practices in the Company's title insurance business, though a limited number of cases also pertain to the Company's other businesses. These lawsuits include, among others, cases alleging, among other assertions, that the Company, one of its subsidiaries and/or one of its agents: -- charged an improper rate for title insurance in a refinance transaction, including: * Hamilton v. First American Title Insurance Company, et al., filed on August 25, 2008, and pending in the Superior Court of the State of North Carolina, Wake County, * Haskins v. First American Title Insurance Company, filed on September 29, 2010, and pending in the United States District Court of New Jersey, * Lang v. First American Title Insurance Company of New York, filed on March 9, 2012, and pending in the United States District Court of New York, * Levine v. First American Title Insurance Company, filed on February 26, 2009, and pending in the United States District Court of Pennsylvania, * Lewis v. First American Title Insurance Company, filed on November 28, 2006, and pending in the United States District Court for the District of Idaho, * Mitchell-Tracey v. First American Title Insurance Company, et al., filed on April 30, 2012, and pending in the United States District Court for the Northern District of Maryland, * Raffone v. First American Title Insurance Company, filed on February 14, 2004, and pending in the Circuit Court, Nassau County, Florida, and * Slapikas v. First American Title Insurance Company, filed on December 19, 2005, and pending in the United States District Court for the Western District of Pennsylvania. All of these lawsuits are putative class actions. A court has only granted class certification in Hamilton, Lewis, Raffone and Slapikas. For the stated reasons, the Company has been unable to assess the probability of loss or estimate the possible loss or the range of loss or, where the Company has been able to make an estimate, the Company believes the amount is immaterial to the financial statements as a whole. -- purchased minority interests in title insurance agents as an inducement to refer title insurance underwriting business to the Company or gave items of value to title insurance agents and others for referrals of business, in each case in violation of the Real Estate Settlement Procedures Act, including: * Edwards v. First American Financial Corporation, filed on June 12, 2007, and pending in the United States District Court for the Central District of California. In Edwards a narrow class has been certified. For the stated reasons, the Company has been unable to assess the probability of loss or estimate the possible loss or the range of loss. -- conspired with its competitors to fix prices or otherwise engaged in anticompetitive behavior, including: * Klein v. First American Title Insurance Company, et al., filed on July 10, 2012, and pending in the United States District Court for the District of Columbia. Klein is a putative class action for which a class has not been certified. For the stated reasons, the Company has not yet been able to assess the probability of loss or estimate the possible loss or the range of loss. -- engaged in the unauthorized practice of law, including: * Gale v. First American Title Insurance Company, et al., filed on October 16, 2006, and pending in the United States District Court of Connecticut, and * Katin v. First American Signature Services, Inc., et al., filed on May 9, 2007, and pending in the United States District Court of Massachusetts. Katin is a putative class action for which a class has not been certified. The class originally certified in Gale was subsequently decertified. For the stated reasons, the Company has not yet been able to assess the probability of loss or estimate the possible loss or the range of loss. -- failed to pay required compensation and provide required rest periods, including: * Bartko v. First American Title Insurance Company, filed on November 8, 2011, and pending in the Superior Court of the State of California, Los Angeles. Bartko is a putative class action for which a class has not been certified. For the stated reasons, the Company has not yet been able to assess the probability of loss or estimate the possible loss or the range of loss. -- overcharged or improperly charged fees for products and services provided in connection with the closing of real estate transactions, denied home warranty claims, recorded telephone calls, acted as an unauthorized trustee and gave items of value to developers, builders and others as inducements to refer business in violation of certain other laws, such as consumer protection laws and laws generally prohibiting unfair business practices, and certain obligations, including: * Carrera v. First American Home Buyers Protection Corporation, filed on September 23, 2009, and pending in the Superior Court of the State of California, County of Los Angeles, * Chassen v. First American Financial Corporation, et al., filed on January 22, 2009, and pending in the United States District Court of New Jersey, * Coleman v. First American Home Buyers Protection Corporation, et al., filed on August 24, 2009, and pending in the Superior Court of the State of California, County of Los Angeles, * Deceuster v. First American Title Insurance Company, filed on February 13, 2013, and pending in the Court of Common Pleas of Ohio, * Eide v. First American Title Company, filed on February 26, 2010, and pending in the Superior Court of the State of California, County of Kern, * Gunning v. First American Title Insurance Company, filed on July 14, 2008, and pending in the United States District Court for the Eastern District of Kentucky, * Kaufman v. First American Financial Corporation, et al., filed on December 21, 2007, and pending in the Superior Court of the State of California, County of Los Angeles, * Kirk v. First American Financial Corporation, filed on June 15, 2006, and pending in the Superior Court of the State of California, County of Los Angeles, * Muehling v. First American Title Company, filed on December 11, 2012, and pending in the Superior Court of the State of California, County of Alameda, * Sjobring v. First American Financial Corporation, et al., filed on February 25, 2005, and pending in the Superior Court of the State of California, County of Los Angeles, * Smith v. First American Title Insurance Company, filed on November 23, 2011, and pending in the United States District Court for the Western District of Washington, * Tavenner v. Talon Group, filed on August 18, 2009, and pending in the United States District Court for the Western District of Washington, * Todd v. First American Title Insurance Company, et al., filed on January 15, 2013, and pending in the United States District Court for the District of Colorado, and * Wilmot v. First American Financial Corporation, et al., filed on April 20, 2007, and pending in the Superior Court of the State of California, County of Los Angeles. All of these lawsuits, except Kirk, Sjobring, and Tavenner, are putative class actions for which a class has not been certified. In Sjobring a class was certified but that certification was subsequently vacated. For the stated reasons, the Company has not yet been able to assess the probability of loss or estimate the possible loss or the range of loss. While some of the lawsuits may be material to the Company's operating results in any particular period if an unfavorable outcome results, the Company does not believe that any of these lawsuits will have a material adverse effect on the Company's overall financial condition or liquidity. Headquartered in Santa Ana, California, First American Financial Corporation became a publicly traded company following its spin- off from its prior parent, The First American Corporation, in June 2010. After TFAC distributed all of the Company's outstanding shares, the Company owned TFAC's financial services businesses and TFAC, which reincorporated and assumed the name CoreLogic, Inc., continued to own its information solutions businesses. GRUPO AVAL: Continues to Defend Pension and Severance Funds Suits ----------------------------------------------------------------- Grupo Aval Acciones y Valores S.A. continues to defend itself and its subsidiaries from class action lawsuits brought against pension and severance fund administrators in Colombia, according to the Company's April 26, 2013, Form 20-F filing with the U.S. Securities and Exchange Commission for the year ended December 31, 2012. The Company, its banking subsidiaries, Sociedad Administradora de Fondos de Pensiones y Cesantias Porvenir S.A. ("Porvenir") and Corporacion Financiera Colombiana S.A. ("Corficolombiana") are party to collective or class actions ("acciones populares" or "acciones de grupo," respectively). Collective actions are court actions where an individual seeks to protect collective rights and prevent contingent damages, obtain injunctions and damages caused by an infringement of collective rights of which the following are the most significant. All pension and severance fund administrators in Colombia, including Porvenir, are subject to at least two class actions in which certain individuals are alleging that the pension and severance funds administrators have caused damages to their customers by (1) paying returns earned by the severance and pension funds below the minimum profitability certified by the Superintendency of Finance, and (2) making payments to its customers -- under the scheduled retirement system -- below the established standards. Additionally, Porvenir and four of the largest pension and severance funds are subject to a constitutional action relating to charging commissions above the legally established limits for contributions to mandatory pension funds. These constitutional actions are seeking the payment of the alleged damages caused to fund managers' customers. No provisions have been established in connection with these three constitutional actions because the amount is unquantifiable, and the Company considers the probability of loss to be remote. Grupo Aval Acciones y Valores S.A. -- http://www.grupoaval.com/-- is an issuer in Colombia of securities registered with the National Registry of Shares and Issuers (Registro Nacional de Valores y Emisores). Grupo Aval, which is headquartered in Bogota D.C., is a not a financial institution and is not supervised or regulated as a financial institution in Colombia. INT'L DESSERTS: Recalls Uncle Eddies Vegan Oatmeal Choco Cookies ---------------------------------------------------------------- International Desserts of Glendale, California, is recalling Uncle Eddies Vegan Oatmeal Chocolate Cookies in 12 oz bags, because it may contain undeclared walnuts. People who have an allergy or severe sensitivity to treenuts {chestnuts, brazil nuts, walnuts, hazelnuts, pecans, pine nuts, cashews}, run the risk of serious or life-threatening allergic reaction if they consume these products. Uncle Eddies Vegan Oatmeal Chocolate Cookies was distributed nationwide to retail grocers. The Vegan Oatmeal Chocolate Chip cookies are in a 12 oz brown paper bag and can be identified by the following lot numbers #110813, and #58513. Pictures of the recalled products' labels are available at: http://www.fda.gov/Safety/Recalls/ucm354878.htm No illness has been reported to date. The recall was initiated after it was discovered that the product labeled Oatmeal Chocolate Chip Cookies contained walnuts, and was distributed in packaging that did not reveal the presence of walnuts. Subsequent investigation indicates the problem was caused by a temporary breakdown in the Company's production and packaging processes. Consumers who have purchased the product are urged to return it to the place of purchase for a full refund. Consumers with questions may contact the Company at 1-818-549-0056. NEW NEWSCORP: Defends Ebook Antitrust Suits vs. HarperCollins ------------------------------------------------------------- New Newscorp LLC continues to defend a subsidiary against antitrust lawsuits and investigations related to ebooks, according to the Company's April 26, 2013, Form 10-12B/A filing with the U.S. Securities and Exchange Commission. Commencing on August 9, 2011, twenty-nine purported consumer class actions have been filed in the U.S. District Courts for the Southern District of New York and for the Northern District of California, which relate to the decisions by certain publishers, including HarperCollins Publishers L.L.C. ("HarperCollins"), to begin selling their eBooks pursuant to an agency relationship. The Judicial Panel on Multidistrict Litigation has transferred the various class actions to the Honorable Denise L. Cote in the Southern District of New York. On January 20, 2012, the plaintiffs filed a consolidated amended complaint, again alleging that certain named defendants, including HarperCollins, violated the antitrust and unfair competition laws by virtue of the switch to the agency model for eBooks. The actions seek as relief treble damages, injunctive relief and attorneys' fees. On June 25, 2012, Judge Cote issued a scheduling order for the multi- district litigation going forward. Additional information about In re MDL Electronic Books Antitrust Litigation, Civil Action No. 11- md-02293 (DLC), can be found on Public Access to Court Electronic Records (PACER). While it is not possible to predict with any degree of certainty the ultimate outcome of these class actions, HarperCollins believes it was compliant with applicable antitrust and competition laws. Following an investigation, on April 11, 2012, the Department of Justice (the "DOJ") filed an action in the U.S. District Court for the Southern District of New York against certain publishers, including HarperCollins, and Apple, Inc. The DOJ's complaint alleges antitrust violations relating to defendants' decisions to begin selling eBooks pursuant to an agency relationship. This case was assigned to Judge Cote. Simultaneously, the DOJ announced that it had reached a proposed settlement with three publishers, including HarperCollins, and filed a Proposed Final Judgment and related materials detailing that agreement. Among other things, the Proposed Final Judgment requires that HarperCollins terminate its agreements with certain eBook retailers and places certain restrictions on any agreements subsequently entered into with such retailers. On September 5, 2012, Judge Cote entered the Final Judgment. A third party has filed a motion to intervene in the case for the purpose of appealing Judge Cote's decision entering the Final Judgment to the U.S. Court of Appeals for the Second Circuit. Additional information about the Final Judgment can be found on the DOJ's Web site. Following an investigation, on April 11, 2012, 16 state Attorneys General led by Texas and Connecticut (the "AGs") filed a similar action against certain publishers and Apple, Inc. in the Western District of Texas. On April 26, 2012, the AGs' action was transferred to Judge Cote. On May 17, 2012, 33 AGs filed a second amended complaint. As a result of a memorandum of understanding agreed upon with the AGs for Texas and Connecticut, HarperCollins was not named as a defendant in this action. Pursuant to the terms of the memorandum of understanding, HarperCollins entered into a settlement agreement with the AGs for Texas, Connecticut and Ohio on June 11, 2012. By August 28, 2012, forty-nine states (all but Minnesota) and five U.S. territories had signed on to that settlement agreement. On August 29, 2012, the AGs simultaneously filed a complaint against HarperCollins and two other publishers, a motion for preliminary approval of that settlement agreement and a proposed distribution plan. On September 14, 2012, Judge Cote granted the AGs' motion for preliminary approval of the settlement agreement and approved the AGs' proposed distribution plan. Notice was subsequently sent to potential class members, and a fairness hearing scheduled for February 8, 2013. If the settlement agreement receives final approval, it would resolve all damage claims of individual citizens from those states and territories, including those represented in the purported class actions. While the settlement agreement with the AGs is still subject to final approval by the court, the Company believes that the proposed settlement, as currently drafted, will not have a material impact on its results of operations or financial position. However, the Company can make no assurances that the proposed settlement will receive final approval. On October 12, 2012, HarperCollins received a Civil Investigative Demand from the Attorney General from the State of Minnesota. HarperCollins complied with the Demand on November 16, 2012, and is cooperating with that investigation. While it is not possible to predict with any degree of certainty the ultimate outcome of the inquiry, HarperCollins believes it was compliant with applicable antitrust laws. The European Commission conducted an investigation into whether certain companies in the book publishing and distribution industry, including HarperCollins, violated the antitrust laws by virtue of the switch to the agency model for eBooks. HarperCollins settled the matter with the European Commission on terms substantially similar to the settlement with the DOJ. On December 13, 2012, the European Commission formally adopted the settlement. Commencing on February 24, 2012, five purported consumer class actions were filed in the Canadian provinces of British Columbia, Quebec and Ontario, which relate to the decisions by certain publishers, including HarperCollins, to begin selling their eBooks in Canada pursuant to an agency relationship. The actions seek as relief special, general and punitive damages, injunctive relief and the costs of the litigations. While it is not possible to predict with any degree of certainty the ultimate outcome of these class actions, especially given their early stages, HarperCollins believes it was compliant with applicable antitrust and competition laws and intends to defend itself vigorously. In early July 2012, HarperCollins Canada, a wholly-owned subsidiary of HarperCollins, learned that the Canadian Competition Bureau ("CCB") had commenced an inquiry regarding the sale of eBooks in Canada. HarperCollins currently is cooperating with the CCB with respect to its inquiry. While it is not possible to predict with any degree of certainty the ultimate outcome of the inquiry, HarperCollins believes it was compliant with applicable antitrust and competition laws. The Company is not able to predict the ultimate outcome or cost of the HarperCollins matters. During the year ended June 30, 2012, the legal and professional fees and settlement costs incurred in connection with these matters was approximately $30 million. These costs are included in Selling, general and administrative expenses in the Company's combined statement of operations. As of June 30, 2012, the Company has provided for its best estimate of the liability for these matters and has accrued approximately $25 million. New York-based New Newscorp LLC is a Delaware limited liability company and a wholly-owned subsidiary of News Corporation. The Company will hold these Parent's businesses: newspapers, information services and integrated marketing services, digital real estate services, book publishing, digital education and sports programming and pay-TV distribution in Australia. NEW NEWSCORP: Still Awaits Ruling on Bid to Dismiss "Wilder" Suit ----------------------------------------------------------------- New Newscorp LLC is still awaiting a court decision on its motion to dismiss a securities class action lawsuit pending in New York, according to the Company's April 26, 2013, Form 10-12B/A filing with the U.S. Securities and Exchange Commission. On July 19, 2011, a purported class action lawsuit captioned Wilder v. News Corp., et al. was filed on behalf of all purchasers of News Corporation's ("Parent's") common stock between March 3, 2011, and July 11, 2011, in the U.S. District Court for the Southern District of New York. The plaintiff brought claims under Section 10(b) and Section 20(a) of the Securities Exchange Act, alleging that false and misleading statements were issued regarding alleged acts of voicemail interception at The News of the World. The lawsuit names as defendants Parent, Rupert Murdoch, James Murdoch and Rebekah Brooks, and seeks compensatory damages, rescission for damages sustained, and costs. This litigation and certain other Parent stockholder lawsuits are all now before the same judge. On June 5, 2012, the court issued an order appointing the Avon Pension Fund ("Avon") as lead plaintiff in the litigation and Robbins Geller Rudman & Dowd as lead counsel. Thereafter, on July 3, 2012, the court issued an order providing that an amended consolidated complaint was to be filed by July 31, 2012. Avon filed an amended consolidated complaint on July 31, 2012, which among other things, added as defendants the Company's subsidiary, NI Group Limited, and Les Hinton, and expanded the class period to include February 15, 2011, to July 18, 2011. The Defendants filed their motion to dismiss on September 25, 2012, and the parties have completed briefing on the motion. The court has not yet set a date for oral argument. Parent and the Company's management believe these Parent stockholder claims are entirely without merit, and the Company intends to vigorously defend this action. New York-based New Newscorp LLC is a Delaware limited liability company and a wholly-owned subsidiary of News Corporation. The Company will hold these Parent's businesses: newspapers, information services and integrated marketing services, digital real estate services, book publishing, digital education and sports programming and pay-TV distribution in Australia. NEW YORK, NY: Class Action Challenges "Operation Lucky Bag" ----------------------------------------------------------- Associated Press reports that the New York Police Department's practice of leaving wallets, cash and bags in plain sight to tempt thieves was challenged on May 20 in a lawsuit that claims the anti-crime tactic is unconstitutional. Lawyers who filed the lawsuit in Brooklyn federal court said they'll seek class-action status so they can represent innocent individuals swept up in a practice meant to entice thieves. Dubbed "Operation Lucky Bag," the police department places the items in high-theft areas such as subway platforms, park benches and cars, hoping to attract the attention of thieves interested in cash or cellphones. The lawsuit seeks to have the tactic declared in conflict with existing law. The city law department said it was waiting to receive a copy of the lawsuit before commenting. "Though the policy and practice is purportedly intended to catch thieves and deter crime, it is overbroad and treats honest individuals acting as good Samaritans as criminals," the lawsuit said. The lawsuit was brought on behalf of Spiridon Argyros, a Queens resident. It said Mr. Argyros saw an unattended backpack on a sidewalk and picked up the bag, which had a wallet sticking out of one pocket. According to the lawsuit, Mr. Argyros planned to bring the items to his apartment and identify the owner, but he was arrested and charged with petit larceny instead. RICHMOND SCHOOL OF HEALTH: To Settle Former Students' Class Action ------------------------------------------------------------------ Michael Schwartz, writing for Richmond BizSense, reports that a local for-profit college might be close to ending a two-year legal battle against its former students. A settlement has been proposed in the class action lawsuit between the Richmond School of Health and Technology Inc. and students who claim the school used deceptive practices to lure them in while allegedly not providing adequate education. The case, filed in federal court in 2011, claimed Richmond School of Health and Technology carried out a scheme that targeted African American people in low-income areas of Richmond in an attempt to profit from federal financial aid dollars. The school advertised classes for careers for surgical technicians, medical assistants, massage therapists and others. "RSHT is a sham," the initial suit claimed in 2011. "It exists to make money without any regard for the education its students receive in exchange." According to the terms of the proposed settlement, which received initial approval last month in federal court, RSHT would pay $5 million to a pool of potentially any students who were enrolled at the school between July 1, 2004, and Feb. 28, 2013. That could be as many as 4,000 students, depending on how many make a claim. The Washington law firm that is representing the students has been running ads and attempting to contact the students for participation in the settlement. "We're trying to inform people through the ad and also by sending out mail notices to all the individuals based on the school's records we believe are members of the class," said Glenn Schlactus, an attorney with Relman, Dane & Colfax. There is a three-month notice period in order to give class members a chance to respond, and a hearing will then be held in July for final approval. The $5 million mark was agreed upon during a mediation process last fall that included the school, the plaintiffs' attorneys and the school's insurer, Mr. Schlactus said. The proposed settlement allows the school to put an end to the suit without admitting any wrongdoing. And the school has continued to deny the allegations. RSHT is now known as Chester Career College. The school rebranded this year, according to an employee at the school. It is under new management but has the same owner. It is down to one classroom building at 751 West Hundred Road. It previously also had a large office at Willow Lawn. A message left at the school for Margaret Knight, who founded it originally in 1997, was not returned by press time. Ted Brenner, the school's attorney with Richmond firm Brenner, Evans & Millman, declined to comment beyond what's in the court filings. The suit against the school claims breach of contract, fraudulent inducement and violations of the Equal Credit Opportunity Act and the Virginia Consumer Protection Act. According to the suit: "Among other failings, RSHT does not prepare its students to take and pass certification tests that they must pass to be licensed; does not provide adequate externships to students who require externships for licensing; does not provide adequate equipment to train students properly; and does not always provide teachers for its classes." The school charged students $10,000 to $20,000 for tuition, which was often paid for with financial aid. That aid totaled more than $5 million a year, or 86 percent of the school's revenue, the suit claimed. "RSHT treats the Department of Education as its source for cash, with the students serving unwittingly as the means by which RSHT enriches itself at the expense of both the students and the public." Other for-profit colleges and vocational schools across the country have been caught up in lawsuits in recent years. Allegations range from deceptive recruiting practices to fraud against U.S. taxpayers. SALMOLUX: Clarifies Cold Smoked Salmon Products Recall ------------------------------------------------------ Salmolux issued a clarification update to its press release announcing its voluntary recall of certain cold smoked salmon products. This update does not add to the total pounds recalled, but merely adds clarifications on description of products and one more UPC code only. On May 25th, 2013, Salmolux of Federal Way, Washington, voluntarily recalled certain of its cold smoked salmon products because of the potential to be contaminated with Listeria monocytogenes, an organism which can cause serious and sometimes fatal infections in young children, frail or elderly people, and others with weakened immune systems. Although healthy individuals may suffer only short-term symptoms such as high fever, severe headache, stiffness, nausea, abdominal pain and diarrhea, Listeria infection can cause miscarriages and stillbirths among pregnant women. No confirmed illnesses have been reported. Products affected by this recall are: Size Product Description Lot No Brands ---- ------------------- ------ ------ 4 oz Sockeye Nova Lox 10803 Jensen's Old Fashion Smokehouse UPC: 6 33243 24684 5 Form: Frozen 500 g Smoked Wild Sockeye 10803 No brand - Food Service Salmon (Nova Lox) UPC: No UPC Form: Frozen 4 oz Nova Lox 10803 Raley's UPC: 0 46567 50029 4 Form: Fresh 1 lb Alaskan Smoked Salmon 10803 Sea Passion (Nova Lox) UPC: 0 16468 44294 8 Form: Frozen 2 lb Wild Keta Smoked 10803 Sea Passion Salmon (Nova Lox) Trim UPC: No UPC Form: Frozen 2 lb Lox Trim 10803 Sea Passion UPC: No UPC Form: Frozen 2 lb Sockeye Smoked 10803 Sea Passion Salmon Trim UPC: No UPC Form: Frozen 3 oz Wild Alaskan Smoked 10803 Sea Passion Salmon UPC: 0 16468 44543 7 Form: Frozen 3 lb Smoked Salmon Nova 10803 Sea Passion Lox (pre-sliced) UPC: 0 16468 42072 4 Form: Frozen 4 oz Smoked Salmon 10803 Sea Passion (Nova Lox) UPC: 0 16468 44305 1 Form: Frozen 8 oz Norwegian Smoked 10803 Sea Passion Salmon (Nova Lox) UPC: 0 16468 44328 0 Form: Frozen 4 oz Smoked Sockeye 10803 Sea Passion Salmon (Nova Lox) UPC: 0 16468 44900 8 Form: Frozen A total of approximately 4,930 lb of the products were distributed in AZ, CA, ID, MI, NV, NY, OH, TX, WA states through retail stores. The product distributed in Texas was limited to Sea Passion brand, Wild Alaskan Smoked Salmon, 3 oz. Salmolux has completed its recall protocol. The product is packed in vacuum bags and lot number information is on the back of the pack. Pictures of the recalled products' labels are available at: http://www.fda.gov/Safety/Recalls/ucm354855.htm The recall was the result of a routine sampling program by FDA which revealed that the finished products contained the bacteria. Salmolux has voluntarily initiated the recall and is continuing its investigation. The Company is currently contacting its customers who are affected by this recall. Consumers who have purchased the products are urged to return it to the place of purchase for a full refund. Consumers with questions may contact the Company at 253.874.2026 (Business hours: Monday - Friday, 7:30 - 4:30 Pacific Standard Time). SEI INVESTMENTS: Appeal From ETF-Related Suit Dismissal Pending --------------------------------------------------------------- An appeal from the dismissal of a class action lawsuit related to leveraged exchange traded funds remains pending, according to SEI Investments Company's April 26, 2013, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended March 31, 2013. One of SEI's principal subsidiaries, SEI Investments Distribution Co., or SIDCO, has been named as a defendant in certain putative class action complaints (the Complaints) related to leveraged exchange traded funds (ETFs) advised by ProShares Advisors, LLC. The first complaint was filed on August 5, 2009, and the subsequent cases were all consolidated in the Southern District of New York. The Complaints are purportedly made on behalf of all persons that purchased or otherwise acquired shares in various ProShares leveraged ETFs pursuant or traceable to allegedly false and misleading registration statements, prospectuses and statements of additional information. The Complaints name as defendants ProShares Advisors, LLC; ProShares Trust; ProShares Trust II, SIDCO, and various officers and trustees to ProShares Advisors, LLC; ProShares Trust and ProShares Trust II. The Complaints allege that SIDCO was the distributor and principal underwriter for the various ProShares leveraged ETFs that were distributed to authorized participants and ultimately shareholders. The Complaints allege that the registration statements for the ProShares ETFs were materially false and misleading because they failed adequately to describe the nature and risks of the investments and claim that SIDCO is liable for these purportedly material misstatements and omissions under Section 11 of the Securities Act of 1933. The Defendants moved to dismiss the amended complaint filed by the plaintiffs, and on September 7, 2012, the District Court for the Southern District of New York issued an opinion dismissing with prejudice the plaintiffs' amended complaint. The Plaintiffs filed with the Second Circuit Court of Appeals a notice of appeal of the District Court's decision. The Plaintiffs-appellants filed their brief on December 17, 2012, and later filed a corrected brief on January 3, 2013. The brief of defendants-appellees was filed on February 1, 2013. While the outcome of this litigation is uncertain given its early phase, SEI believes that it has valid defenses to plaintiffs' claims and intends to defend the lawsuits vigorously. Based in Oaks, Pennsylvania and founded in 1968, SEI Investments Co. -- http://www.seic.com/-- is a publicly owned investment manager. The firm provides wealth management and investment advisory services to its clients through its subsidiaries. SEI INVESTMENTS: Awaits Ruling in Stanford-Related Class Suit ------------------------------------------------------------- SEI Investments Company is awaiting a court decision on a motion to vacate a conditional transfer order in the class action lawsuit related to the role of its subsidiary in providing back-office services to Stanford Trust Company, according to the Company's April 26, 2013, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended March 31, 2013. SEI has been named in six lawsuits filed in Louisiana. Five lawsuits were filed in the 19th Judicial District Court for the Parish of East Baton Rouge, State of Louisiana. One of the five actions purports to set forth claims on behalf of a class and also names SEI Private Trust Company, or SPTC, as a defendant and was certified as a class in December 2012. Two of the other actions also name SPTC as a defendant. All five actions name various defendants in addition to SEI, and, in all five actions, the plaintiffs purport to bring a cause of action against SEI and SPTC under the Louisiana Securities Act. The putative class action originally included a claim against SEI and SPTC for an alleged violation of the Louisiana Unfair Trade Practices Act. Two of the other five actions include claims for violations of the Louisiana Racketeering Act and possibly conspiracy. In addition, another group of plaintiffs have filed a lawsuit in the 23rd Judicial District Court for the Parish of Ascension, State of Louisiana, against SEI and SPTC and other defendants asserting claims of negligence, breach of contract, breach of fiduciary duty, violations of the uniform fiduciaries law, negligent misrepresentation, detrimental reliance, violations of the Louisiana Securities Act and Louisiana Racketeering Act and conspiracy. The underlying allegations in all the actions are purportedly related to the role of SPTC in providing back-office services to Stanford Trust Company. The petitions allege that SEI and SPTC aided and abetted or otherwise participated in the sale of "certificates of deposit" issued by Stanford International Bank. Two of the five actions filed in East Baton Rouge were removed to federal court and transferred by the Judicial Panel on Multidistrict Litigation to United States District Court for the Northern District of Texas. On August 31, 2011, the United States District Court for the Northern District of Texas issued an order and judgment that the causes of action alleged against SEI in the two removed actions were preempted by federal law and the court dismissed these cases with prejudice. The Plaintiffs appealed this ruling, and on March 19, 2012, a panel of the Court of Appeals for the Fifth Circuit reversed the decision of the United States District Court and remanded the actions for further proceedings. On July 18, 2012, SEI filed a petition for certiorari in the United States Supreme Court, seeking review of the decision by the United States Court of Appeals in the Eleventh Circuit to permit the claims against SEI to proceed. SEI believes that the trial correctly concluded that the claims against SEI were barred by the federal Securities Litigation Uniform Standards Act and is requesting that the Supreme Court reinstate that dismissal. On January 18, 2013, the Supreme Court granted the petition for certiorari, and the court will consider the case in the fall of this year. The case filed in Ascension was also removed to federal court and transferred by the Judicial Panel on Multidistrict Litigation to the Northern District of Texas. The schedule for responding to that complaint has not yet been established. The plaintiffs in the remaining two cases in East Baton Rouge have granted SEI and SPTC an extension to respond to the filings. SEI and SPTC filed exceptions in the class action pending in East Baton Rouge, which the Court granted in part and dismissed the claims under the Louisiana Unfair Trade Practices Act and denied in part as to the other exceptions. SEI and SPTC filed an answer to the East Baton Rouge class action, plaintiffs filed a motion for class certification; and SEI and SPTC also filed a motion for summary judgment against certain named plaintiffs which the Court stated will not be set for hearing until after the hearing on the class certification motion. The Court in the East Baton Rouge action held a hearing on class certification on September 20, 2012. By oral decision on December 5, 2012, and later entered in a judgment signed on December 17, 2012, that was subsequently amended, the Court in East Baton Rouge certified a class to be composed of persons who purchased any Stanford International Bank certificates of deposit (SIB CDs) in Louisiana between January 1, 2007, and February 13, 2009; persons who renewed any SIB CD in Louisiana between January 1, 2007, and February 13, 2009; or any person for whom the Stanford Trust Company purchased SIB CDs in Louisiana between January 1, 2007, and February 13, 2009. On January 30, 2013, SEI and SPTC filed motions for appeal from the judgments that stated SEI's and SPTC's intention to move to stay the litigation. On February 1, 2013, the plaintiffs filed a motion for Leave to File First Amended and Restated Class Action Petition in which they ask the Court to allow them the petition in this case to add additional facts that were developed during discovery and adding claims against certain of SEI's insurance carriers. On February 5, 2013, the Court granted two of the motions for appeal and the motion for leave to amend. On February 15, 2013, SEI filed a motion for new trial, or, in the alternative, for reconsideration of the Court's order allowing amendment. On February 22, 2013, SEI filed a motion to stay proceedings in view of the pending Supreme Court case. On February 28, 2013, SEI responded to the First Amended and Restated Class Action Petition by filing an exception. On March 11, 2013, the insurance carrier defendants filed a notice of removal removing the case to the Middle District of Louisiana and on March 18, 2013, the insurance carrier defendants filed answers. On March 13, 2013, SEI notified the Judicial Panel on Multidistrict Litigation (MDL) of this case as a potential tag- along action. On March 18, 2013, the insurance carrier defendants filed answers. On March 19, 2013, the plaintiffs filed a motion to remand, a motion for expedited briefing schedule, expedited status conference and expedited consideration of their motion to remand, a motion for leave to file under seal and a motion for order pursuant to 28 U.S.C. 1447(b) requiring removing defendants to supplement federal court record with certified copy of state court record. These motions are now fully briefed. On March 25, 2013, SEI filed a motion that the court decline to adopt the state court's order regarding class certification, which the court dismissed without prejudice to renew upon a determination of removal jurisdiction in an April 12, 2013 order that also dismissed without prejudice a motion to dismiss for lack of jurisdiction and improper venue filed on April 9, 2013, by one of the insurers. On April 1, 2013, the Louisiana Office of Financial Institutions (OFI) filed a motion to remand and sever claims and a response to that motion by the insurers and opposition to that motion by the plaintiffs were filed on April 22, 2013. Along with the briefing in the Middle District of Louisiana, on March 13, 2013, SEI notified the Judicial Panel on Multidistrict Litigation (MDL) of this case as a potential tag-along action. On March 19, 2013, the plaintiffs notified the MDL that they had filed a motion to remand and asking the panel to decline to issue a conditional transfer order. On March 29, 2013, the MDL issued a conditional transfer order (CTO), which both plaintiffs and OFI oppose. On April 18, 2013, OFI filed a motion to vacate the CTO or, in the alternative, stay any ruling to transfer the matter until after the Middle District of Louisiana rules on OFI's motion to remand and sever. The Plaintiffs filed a motion to vacate the CTO on April 19, 2013. SEI's response to those motions was due on May 9, 2013, and May 10, 2013, respectively. While the outcome of this litigation is uncertain given its early phase, SEI and SPTC believe that they have valid defenses to the plaintiffs' claims and intend to defend the lawsuits vigorously. Because of the uncertainty of the make-up of the classes, the outcome of the proceeding in the United States Supreme Court, the specific theories of liability that may survive a motion for summary judgment or other dispositive motion, the lack of discovery regarding damages, causation, mitigation and other aspects that may ultimately bear upon loss, the Company is not reasonably able to provide an estimate of loss, if any, with respect to the lawsuits. Based in Oaks, Pennsylvania and founded in 1968, SEI Investments Co. -- http://www.seic.com/-- is a publicly owned investment manager. The firm provides wealth management and investment advisory services to its clients through its subsidiaries. SIBANYE GOLD: To Oppose Suits Over Silicosis and Lung Diseases -------------------------------------------------------------- Sibanye Gold Limited said in its April 26, 2013, Form 20-F filing with the U.S. Securities and Exchange Commission for the year ended December 31, 2012, that it will oppose the class action lawsuits filed against it related to the contraction of silicosis and other occupational lung diseases. On August 21, 2012, a court application was served on a group of respondents that included Sibanye Gold (the "August Respondents"). On December 21, 2012, a further court application was issued and was formally served on a number of respondents, including Sibanye Gold, (the "December Respondents" and, together with the August Respondents, the "Respondents") on January 10, 2013, on behalf of classes of mine workers, former mine workers and their dependents who were previously employed by, or who are currently employed by, amongst others, Sibanye Gold and who allegedly contracted silicosis and/or other occupational lung diseases (the "Classes"). The court application of August 21, 2012, and the court application of December 21, 2012, are together referred to as the "Applications". These Applications request that the court certify a class action to be instituted by the applicants on behalf of the Classes. These Applications are the first and preliminary steps in a process where, if the court were to certify the class action, the applicants may, in a second stage, bring an action wherein they will attempt to hold the Respondents liable for silicosis and other occupational lung diseases and resultant consequences. In the second stage, the Applications contemplate addressing what the applicants describe as common legal and factual issues regarding the claim arising from the allegations of the entire Classes. If the applicants are successful in the second stage, they envisage that individual members of the Classes could later submit individual claims for damages against the respective Respondents. The Applications do not identify the number of claims that may be instituted against the Respondents or the quantum of damages the applicants may seek. With respect to the Applications, Sibanye Gold has filed notice of its intention to oppose both the Applications and has instructed its attorneys to defend the claims. Sibanye Gold and its attorneys are engaging with the applicants' attorneys in both Applications to try to establish a court-sanctioned process to agree the timelines, (including the date by which Sibanye Gold must file its papers opposing the Applications) and the possible consolidation of the separate applications. At this stage, Sibanye Gold cannot quantify its potential liability from this action. Sibanye Gold Limited -- http://www.sibanyegold.co.za/-- formerly GFI Mining South Africa (Pty) Limited, is a producer of gold in South Africa. Westonaria, South Africa-based Sibanye Gold is primarily engaged in underground and surface gold mining and related activities, such as gold extraction and processing. STORM FINANCIAL: Premium May Prompt Self-Funded Class Actions ------------------------------------------------------------- Leanne Mezrani, writing for Lawyers Weekly, reports that the award of a premium to Storm Financial victims who bankrolled part of a class action against Macquarie Bank could encourage self-funded group litigation, a Brisbane silk has claimed. Douglas Campbell SC was briefed by Queensland-based firm Levitt Robinson, which represented 315 investors who paid AUD5.5 million towards the cost of legal proceedings. These group members will recover 42% of their lost investments, taking into account a 'funder's premium' of 35%. Plaintiffs who did not finance the class action will receive a 17.6% return. Mr. Campbell told Lawyers Weekly that the premium could prompt a rise in self-funded class actions. He admitted, however, that regularly requesting money from a client "puts lawyers in a difficult situation". So, too, does making a proposal that favors some clients over others, he added. "[The plaintiffs] were constantly asked for more money . . . and the result was that not all group members wanted to give money," he said. "Then the challenge of how to compensate those who contributed and those who didn't." Mr. Campbell claimed the settlement terms were necessary to ensure a fair outcome for all group members. But the Australian Securities and Investments Commission (ASIC) argued that the 35 per cent premium was "arbitrary". Mr. Campbell said he was not surprised by ASIC's objections, which were rejected by Federal Court judge John Logan. "It was proper action for ASIC to take . . . [the regulator] was not unduly aggressive," said Mr. Campbell. "I think ASIC took a view that their duty as a public authority was to ensure the best interests of the group members." In the decision, Judge Logan said the AUD82.5 million settlement was "fair and reasonable" and would avoid an appeals process that could have dragged on until 2016. Levitt Robinson claimed the decision was a blow to litigation funders. However, Mr. Campbell said it could encourage litigation funders to back an open class action and claim a larger slice of the compensation awarded. "Currently, litigation funders only represent people who agree to pay their costs and it becomes a closed class," he said. "This decision might open the way for litigation funders to fund action that is open and claim fees from people who didn't sign up with them." The decision affects a total of 1050 Storm clients who had taken out about AUD275 million worth of high-risk margin loans. Macquarie Bank has not admitted liability under the terms of the settlement. Levitt Robinson launched the class action in late 2010, accusing the bank of alleged breach of contract, unconscionable conduct and liabilities as a linked credit provider. TNUVA FOOD: Admits Abusive Practices at Bet She'an Slaughterhouse ----------------------------------------------------------------- Ilan Lior, writing for Haaretz Daily Newspaper, reports that in its response to two requests to file class action suits against the company, heard on May 20 in Jerusalem District Court, Tnuva Food Industries was surprisingly upfront about the practices at its Bet She'an slaughterhouse. The suit applications follow a televised investigation on Israeli television several months ago with disturbing images from the slaughterhouse. "Whereas the purchasers of other consumer goods could believe their production does not entail causing suffering and harm to the workers who participate in it," Tnuva said in its statement to the court, "the consumer of meat products cannot make a similar assumption about the animals from whose flesh they are produced, since slaughtering by its very nature causes the animals great suffering." On May 20, the court was scheduled to debate the merit of the actions ahead of deciding whether one or both may go forward. In separate applications, Ruth Kolian and Perach Amzaleg argue that Tnuva has deceived consumers by creating a false impression of strict regulations and fair treatment of the animals, while in reality the production of meat at the slaughterhouse, which is sold under the Adom Adom label, involves great suffering for them. The claims are based on an investigative report broadcast in December 2012 on Israel Channel 2 television's Kolbotek. The segment was produced by Ronen Bar, a journalist and animal rights activist who worked at the slaughterhouse for a month and a half while secretly documenting its practices. In the broadcasted scenes, workers are seen hitting calves and lambs with sticks and electric shockers, holding animals by one leg and dragging them with a forklift, throwing lambs into the air and hanging the animals upside down, still alive and conscious, after slaughter. Both lawsuit applications cite consumer deception as the legal basis for the action. Ms. Kolian and Ms. Amzaleg say Tnuva has profited illegally from many consumers who would not have bought its products had they been aware of the practices at the slaughterhouse. Ms. Amzaleg is requesting damages of NIS200 million for the plaintiffs she plans to represent, which she says includes anyone who purchased Adom Adom brand products and suffered emotional distress after seeing the Kolbotek segment. Ms. Kolian seeks NIS100 million in damages -- NIS500 for each of the estimated 200,000 consumers who were affected. Both Ms. Amazaleg and Ms. Kolian say they would donate any compensation awarded in the suit to an animal welfare organization. Attorney Aviad Amzaleg, who is representing his wife, Perach, in the suit, said Tnuva "did not act in good faith when it depicted itself as abiding by hygiene and quality regulations. The investigative report proved that Tnuva's advertisements are blatantly untrue. Not only is the slaughter process at the plant not of high quality, it is also not under the supervision of inspection agencies and is in violation of regulations." Aviad Amzaleg told Haaretz that his wife, Perach, decided to file a class action after being horrified by what she saw on Kolbotek and after realizing, from comments on social network sites, that many other Israelis were also horrified. "It is important to stress that the damage was the result of what was exposed in the investigative report, and not of the report itself," Aviad Amzaleg said. Kolian, who is an ultra-Orthodox Jew, took the additional step of obtaining from Shlomo Yosef Mahfoud, a Sephardi rabbi, and the Ashkenazi Eda Haredit slaughter board, rabbinical rulings declaring that unnecessary cruelty to animals would render any meat so produced unkosher. "We have a holy Torah," says Ms. Kolian, "and it explicitly prohibits animal cruelty." In its response to the court Tnuva said that all slaughter involves cruelty that would horrify any viewer. "There is no reason to assume the claimed damage of 'profound shock, anger, repugnance and sadness' would not have been caused to consumers even if what had been documented and broadcast had been the usual, violent procedure in accordance with the regulations concerning the animals at the time of their slaughter, the legality of which is not in dispute." The document Tnuva submitted to the court describes in detail the banality of the slaughter process: "It suffices to mention that in order to slaughter the animals, when they are fully conscious and sometimes die of fright, they are put into a facility called the holding chamber, in which arms that seize them press hard on their heads and bodies. Then, together with the chamber they are turned 180 degrees and as they are held their neck are slit and they bleed until they lose consciousness. It is indisputable that broadcast of a film documenting these actions 'proper under the regulations' would horrify most meat-eating consumers, even though this is absolutely legal behavior." Tnuva rejected arguments that it has a duty to inform consumers about how its products are made, saying customers would not want to be exposed to this information. "Is information provided to consumers, for example, about the processes involved in manufacturing sneakers, or breakfast cereals, or toilet paper? How much more so in the case of meat products: This is exactly the sort of information consumers want to be concealed from them, so as to enable them to enjoy the product while repressing the thought that their enjoyment entails causing suffering to a living creature," Tnuva's response to the court said. To exemplify this, the document mentions the popular Internet video "Fresh Pork Sausage prank," which "documents the reactions of supermarket shoppers who happily sample fresh pork sausages" until, when supplies run out, a live piglet is brought out as if it is intended to provide them with more sausages, at which point shoppers "react with horror, disgust and even aggression." Tnuva argued that the prank "proves it suffices to expose consumers of meat products to an entirely 'clean' fictional process (without blood, bleats or the images of slaughter) of transforming an animal into sausage to cause them profound horror, anger and disgust. The usual and regulated process animals undergo when they are slaughtered at a slaughterhouse is much more violent and shocking than putting an animal into a closed box and turning the crank on its side," as in the video. In its response Tnuva also admitted that kosher slaughter practices do not conform to international animal welfare standards: "All the instructions of the OIE-World Organization for Animal Health concerning the stun methods that can be used on animals prior to slaughter to reduce their suffering in the slaughter process . . . are incompatible with the Jewish kashrut laws requiring the animal to be fully conscious at the time of slaughter and which Tnuva observes so that the factory's products can be sold as kosher," the response said. Kolian argues that the harm to the animals at Tnuva's slaughterhouse should horrify every observant Jew. Officials in Israel's Chief Rabbinate, after watching the video from the Kolbotek segments and discussing its implications for animal welfare and kashrut issue, decided not to withdraw the plant's kashrut certification on the basis of the images. In a response to Haaretz, Tnuva said: "The incident occurred a number of months ago. Adom Adom condemned the actions and took immediate and significant steps in full coordination with the regulators in Israel and . . . regrets the incident and is acting to ensure the quality of its products." UNITED STATES: Tea Party Group File Class Action v. IRS ------------------------------------------------------- Nate Raymond, writing for Reuters, reports that a California-based Tea Party group sued the U.S. Internal Revenue Service on May 20 in what marked the first lawsuit to stem from an investigation finding the agency singled-out conservative organizations. In a lawsuit filed in U.S. District Court in Cincinnati, the NorCal Tea Party Patriots accused the IRS of violating its constitutional rights due to the "intensive and intrusive scrutiny" it received while seeking tax-exempt status. The lawsuit sought class action status on behalf of all conservative and libertarian groups -- such as those associated with the Tea Party movement -- that were targeted by the IRS for extra scrutiny from March 2010 through the middle of May. Tea Party groups call for reduced federal spending and taxation. The lawsuit has the backing of a group calling itself Citizens for Self-Governance, a group launched by the co-founder of the Tea Party Patriots, Mark Meckler. "We stand shoulder to shoulder with all those known and unknown who have been abused by a federal government run amok," Mr. Meckler said in a statement. Representatives of the IRS did not respond to a request for comment on May 20 after normal business hours. The lawsuit came as the Senate Finance Committee and House of Representatives Oversight and Government Reform Committees prepared to hold hearings on the IRS scandal, which cost acting IRS commissioner Steven Miller his job. Lois Lerner, chief of the IRS tax-exempt unit, was set to testify on May 15 before an investigative committee of the House of Representatives, along with other officials. A White House spokesman told reporters May 20 that two senior aides to President Barack Obama knew weeks ago about a report by the U.S. Department of Treasury's Inspector General for Tax Administration about the IRS's targeting of conservative groups. The lawsuit was filed in Cincinnati, home to the field office at the center of the storm, by the NorCal Tea Party Patriots, a group based in Colfax, California. On its website, NorCal says its volunteers "simply love their country and want to save it from a tyrannical takeover." In the lawsuit, NorCal said it had first sought tax-exempt status in March 2010. The group said due to an "unjustifiable delay," it did not receive approval for tax-exempt status until August 2, 2012. "The IRS engaged in a tactic of suffocating NorCal Tea Party Patriots and other similarly situated groups with requests that were so searching and extensive that they would have presented a serious challenge even for sophisticated businesses," the complaint said. The lawsuit seeks unspecified monetary damages for the IRS's alleged violation of the Privacy Act of 1974 and the First and Fifth Amendments of the U.S. Constitution. Exactly how many groups could qualify to be members of the class if a federal judge certified it is unclear. The inspector general's report reviewed 296 applications. * Customers in Waikato to Join NZ Bank Fee Class Action ------------------------------------------------------- Jenna Lynch, writing for Fairfax NZ News, reports that bank customers in the Waikato have had enough and they're taking their case to court. Since March more than 1660 people in the Waikato region have signed up with 22,000 other Kiwis to participate in the class- action suit against unfair bank fees. The battle could be the largest group litigation in New Zealand's history, according to Fair Play on Fees, the law consortium leading the charge. Kiwis are often stung with fees twice as much as Australians, sometimes more, with the average charge of NZD15 for overdrafts, bouncing checks or late credit card payments. Hamilton nursing student Stephane Steele signed up for the class- action suit after an experience with Westpac left her $1500 in debt and struggling to pay it back. Ms. Steele had a NZD100 direct debit set up on her account with Westpac, but when she wound up in hospital and her student allowance stopped, the direct debit did not. And neither did the NZD15 overdraft fees. "I thought it would just default if there was no money in the account," she said. But Ms. Steele was wrong. She received a phone call from Westpac three months later demanding a NZD1500 payment within seven days for an unarranged overdraft. Ms. Steele had to secure a personal loan from a finance company to keep her credit rating intact. "I believe I was unfairly treated," she said. "They blamed me and said I needed to be more responsible with my money." The Fair Play on Fees campaign was kicked off in March by Auckland lawyer Andrew Hooker, Australian legal heavyweight Slater & Gordon and litigation funder Litigation Lending Services. The lawsuit will operate on a no-win, no-fee basis and will extend back the maximum six years that claims can be made under the statute of limitations. The litigation funder will take a 25% cut of the proceeds if the case is successful. The group says Kiwis have been charged at least $1 billion of unfair default fees from the major banks. In a press release, Mr. Hooker said default fees shouldn't be a source of profit for the banks. "They must be in line with what the cost is to facilitate the transaction. The millions of dollars that the banks make every year from these fees is wrong and it's not just us who says so, the law does too," he said in the release. Mr. Hooker says the class action will be an opportunity for Kiwis to force banks into a position where they cannot take advantage of their customers. "Until now, banks have been sitting in a privileged position. Customers have had minimal opportunity to challenge the fees and banks have open access to their accounts. This class action will change things." * Number of Class Actions Increasing for Businesses, Survey Says ---------------------------------------------------------------- Jane Meinhardt, writing for Tampa Bay Business Journal, reports that the number of class action lawsuits is increasing for businesses, but the cost per suit is decreasing. The 2013 Carlton Fields Class Action survey of more than 360 general counsel and chief legal officers found that determining potential financial exposure through case assessment and modeling reduces costs. Businesses using this strategy spend 38% less per class action and 42% less on outside counsel than companies that fail to do risk assessment. Respondents in the law firm's survey reported class actions are increasing by 16 percent, while costs per lawsuit are down about 14 percent, from 2011 to 2012. Carlton Fields is the largest law firm in Tampa. Asbestos Litigation ASBESTOS UPDATE: Precision Castparts Had 65 Pending PI Lawsuits --------------------------------------------------------------- There were approximately 65 lawsuits pending against Precision Castparts Corp. alleging personal injury as the result of exposure to particulates, including asbestos, according to the Company's Form 10-K filing with the U.S. Securities and Exchange Commission for the fiscal year ended March 31, 2013. As of March 31, 2013, there were approximately 65 lawsuits pending against the Company alleging personal injury as the result of exposure to particulates, including asbestos, integrated into our premises or processes or into certain historical products. It is frequently not possible at the outset of a case to determine which of the plaintiffs actually will pursue a claim against the Company. Typically, that can only be determined through discovery after a case has been filed. Thus, in a case involving multiple plaintiffs, unless otherwise expressed in the pleadings, the Company accounts for the lawsuit as one claim against it. For the Fiscal Year ended 2013, there were 22 new claims filed, 21 claims disposed of, and no settlement payment for these claims. The Company considers that all such claims are tort claims while noting that some claims, such as those filed in West Virginia, were historically common law "employer liability" cases and are now based on a statutory definition of requisite intent. The particulates in question are no longer incorporated into our products, and we have implemented safety protocols to reduce exposure to remaining particulates in the workplace. Based on the information available to us at the date of filing of this report, we believe, based on our review of the facts and law, that the potential exposure from the resolution of any or all of these matters will not have a material adverse effect on our consolidated financial position, results of operations, cash flows or business. Precision Castparts Corp. (PCC) is a manufacturer of metal components and products, provides investment castings, forgings and fasteners/fastener systems for critical aerospace and industrial gas turbine (IGT) applications. It also provides aero- structures for the aerospace industry, and investment castings and forgings for general industrial, armament, medical and other applications. It manufactures metal components and products in three principal business segments: Investment Cast Products, Forged Products and Fastener Products. On July 22, 2011, it acquired the assets of the Rollmet business (Rollmet) from Rockwell Collins. On August 9, 2011, the Company acquired Primus International (Primus). In August 2012, the Company acquired the Aerostructure and Industrial Products operations of Heroux-Devtek Inc. In January 2013, PCC acquired Titanium Metals Corp. ASBESTOS UPDATE: Joy Global Continues to Defend Liability Suits --------------------------------------------------------------- Joy Global, Inc., continues to defend lawsuits alleging asbestos- related product liability, according to the Company's Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarterly period ended April 26, 2013. The Company states: "We and our subsidiaries are involved in various unresolved legal matters that arise in the normal course of operations, the most prevalent of which relate to product liability (including approximately 2,800 asbestos and silica- related cases), employment, and commercial matters. Also, as a normal part of operations, our subsidiaries undertake contractual obligations, warranties, and guarantees in connection with the sale of products or services. Although the outcome of these matters cannot be predicted with certainty and favorable or unfavorable resolutions may affect the results of operations on a quarter-to-quarter basis, we believe that the outcome of such legal and other matters will not have a materially adverse effect on our consolidated financial position, results of operations, or liquidity. On April 26, 2013, we were contingently liable to banks, financial institutions, and others for approximately $342.8 million for outstanding standby letters of credit, bank guarantees, and surety bonds securing performance of sales contracts and other guarantees in the ordinary course of business. Of the $342.8 million, approximately $14.5 million relates to surety bonds and $7.5 million relates to outstanding letters of credit or other guarantees issued by non-U.S. banks for non-U.S. subsidiaries under locally provided credit facilities. From time to time we and our subsidiaries become involved in proceedings relating to environmental matters. We believe that the resolution of such environmental matters will not have a materially adverse effect on our consolidated financial position, results of operations or liquidity." Joy Global Inc. is a manufacturer and servicer of high productivity mining equipment for the extraction of coal and other minerals and ores. The Company's equipment is used in mining regions throughout the world to mine coal, copper, iron ore, oil sands, and other minerals. The Company's underground mining machinery segment (Joy Mining Machinery) is a manufacturer of underground mining equipment for the extraction of coal and other bedded minerals and offers service locations near mining regions worldwide. The Company's surface mining equipment segment (P&H Mining Equipment) is a producer of surface mining equipment for the extraction of ores and minerals and provides operational support for many types of equipment used in surface mining. During the fiscal year ended October 28, 2011, the Company completed the acquisition of LeTourneau. On December 30, 2011, it acquired approximately 41.1% of Int'l Mining Machinery Holdings Limited's common stock to 69.2%. ASBESTOS UPDATE: Dust-Up Overcooked as Pollies Turn Up Heat ----------------------------------------------------------- Tony Wright, writing for The Age, reported that there was a time when asbestos was much prized for its fireproofing ability. It has, of course, fallen drastically out of favour, and its ability to reduce the scorching of politicians has plummeted, too, the report said. The report added that Prime Minister Julia Gillard and the Minister for Workplace Relations, Bill Shorten, took much fevered umbrage at the opposition trying to put them to the flame over the national broadband network and Telstra's difficulties in digging up asbestos while trying to lay cables. Opposition Leader Tony Abbott set the furnace glowing by demanding of Ms. Gillard whether the millions spent advertising the benefits of the NBN wouldn't have been better directed towards keeping citizens and workers safe from asbestos. Ms. Gillard fired up. No one, she opined, should be surprised at Mr. Abbott politicising such a serious subject when he had insulted asbestos victim and campaigner Bernie Banton while he was on his deathbed. Mr. Abbott, you may recall, found himself required to apologise after he said of the dying Mr. Banton that "just because a person is sick doesn't necessarily mean that he is pure of heart in all things". Mr. Abbott's colleagues were unabashed by Ms. Gillard's reminder of Mr. Abbott's lack of tact, and led by Malcolm Turnbull, turned the heat on Mr. Shorten, who fairly sizzled at the idea asbestos should be politicised. Asked whether he had ever met Telstra to discuss asbestos problems in NBN pits and ducts, Mr. Shorten said he'd written to the company in 2009 and had been told Telstra had it under control. "What is it about asbestos that you want to pollute with your political palaver?" demanded Mr. Shorten. It wasn't long before he was claiming only Labor and the trade union movement had been serious about asbestos, which sounded suspiciously as if he was not above a spot of red-hot politicising himself. The opposition dropped the subject like a baked potato when Mr. Shorten and his ministerial colleague Greg Combet began frying deputy Liberal leader Julie Bishop for having represented CSR in its dealings with victims of asbestosis when she was a lawyer many years ago. ASBESTOS UPDATE: Appeals Court Sharpens Schmidheiny Sentence ------------------------------------------------------------ SwissInfo.ch reported that an Italian appeals court has handed down a longer prison sentence to Swiss industrialist Stephan Schmidheiny for his role in factory deaths caused by asbestos exposure. He has indicated plans to take the decision to Italy's highest court. According to the report, the appeals court in Turin convicted Schmidheiny, aged 65, to 18 years in prison. The court also dropped charges against his business partner Jean-Louis Marie Ghislain de Cartier because the Belgian baron died May 21 at the age of 92. Schmidheiny was not present in the courtroom when the sentence was read, and his Zurich-based spokesperson said at a press conference that he intends to appeal the decision and take it to Italy's top court in Rome, the report related. The Swiss billionaire and de Cartier used to be the majority shareholders in Eternit Genova, a firm that owned four asbestos factories in Italy, the report recalled. They were held responsible for the deaths of almost 3,000 people because they had allowed toxic asbestos dust from the production of roofing materials and pipes to circulate on the factory floor. In February 2012, the court in Turin had sentenced Schmidheiny and de Cartier to 16 years in prison and fined them millions of euros in punitive damages for involuntary manslaughter, the report said. The courts accused the managers of knowing about the dangers of asbestos but not taking the necessary measures to protect those who were either employed by Eternit or living in the vicinity of the factories. The men appealed the original court decision, saying that the ruling was incomprehensible, the report added. They had argued that they were not directly responsible for the management of Eternit Italy, which went bankrupt in 1986, six years before asbestos was banned. Although it is known today that exposure to asbestos causes cancer, victims and their families have faced hurdles in bringing proceedings against companies or their former owners because it can take as long as 40 years for the disease to develop, the report further related. The Swiss Federal Court threw out charges of manslaughter, murder and bodily harm against the former Eternit owners in 2008, arguing that the statute of limitations of ten years had passed, the report said. The Italian court, however, last year convicted the businessmen and sentenced them to pay significant punitive damages to towns in the Piedmont region as well as to Italy's national accident insurer, other organisations and the victims themselves. Hundreds of people gathered in Turin on Monday for the appeals court verdict, many of them from Casale Monferrato, a village in the Piedmont where one of the affected factories was located. While the Turin appeals court verdict ends another chapter in finding those responsible for the asbestos deaths, it is unlikely to end the Eternit legal saga as Schmidheiny is expected to further appeal the decision. ASBESTOS UPDATE: Welsh Treatment Cost Recovery Bill is Postponed ---------------------------------------------------------------- Toby Mason, writing for BBC Wales, reported that the bill which would recover the costs of treating Welsh asbestos patients from insurers has been withdrawn two days before it was due to be voted into law. According to the report, AMs were due to vote on June 5 on whether the legislation, which could raise up to GBP1m a year for the Welsh NHS, should be passed. The vote has now been postponed until the middle of next month. The AM behind the bill, Labour's Mick Antoniw, has cited "technical reasons" for the last minute postponement, the report related. Had a majority of AMs voted for it on June 5, it would have become law following Royal Assent. The bill would have meant that insurers for those suffering asbestos-related diseases would have been liable to pay compensation towards their treatment by the NHS. But there have been repeated questions about whether the bill is within the assembly's powers. Presiding Officer Rosemary Butler certified in December that it was, but admitted it was a "finely balanced" decision on some aspects of the bill. The Association of British Insurers (ABI) has written to her and the secretary of state for Wales with a number of what it calls "serious concerns" about the bill's lawfulness. The association says that clause 15, which relates to financial services and insurance, is clearly outside the scope of the assembly's current powers. Sensitive The ABI also warns that, in its view, the bill would give Welsh ministers "a general tax raising power" which is outside the current devolution settlement. This is because the legislation does not specify that the money raised must be spent on the NHS. It is understood that the Wales Office has also asked for further information about the operation of the bill within the last couple of weeks. Mr Antoniw's office said the Bill would now proceed to its final stages on 10 July. The issue of whether an assembly bill is within the scope of its powers is a highly sensitive one after the first law passed after further powers were granted to Wales in 2011 was referred to the Supreme Court by the UK government. The Supreme Court judges found after a two day hearing that the Local Government Byelaws Bill did come within the devolution settlement. ASBESTOS UPDATE: Toxic Fibro Found at 3 Queensland NBN Sites ------------------------------------------------------------ The Australian Associated Press reported that asbestos has been discovered at three national broadband network (NBN) work sites in Queensland. According to the report, the hazardous material was water-blasted on to the faces of workers at an underground Telstra pit in Brisbane, and asbestos dust at a Mackay site was left unattended for five days, the Queensland government says. State Attorney-General Jarrod Bleijie says federal Workplace Relations Minister Bill Shorten needs to take responsibility, following the discoveries by Queensland's Workplace Health and Safety agency, the report said. "This is an absolute botched debacle again by a federal government," Mr. Bleijie told reporters in Brisbane. "We saw it with the home insulation debacle we had a few years ago. I'm concerned about the workers in Queensland who may be unprotected and may not have the necessary training to deal with asbestos issues." Mr. Bleijie said a class action could be launched against the NBN Co or the commonwealth as a national asbestos register is established, the report related. Mr. Bleijie has written to Mr Shorten pointing out the workplace safety breaches. "I've asked for an immediate update with respect to what the federal government are doing," he said. "My major concern is for the workers." In a breach discovered in early March, asbestos was water-blasted onto the faces of two workers at Carseldine in Brisbane's north. In Mackay, in central Queensland, asbestos dust was left for five days after a concrete pipe was cut in April. Asbestos was also left on a nearby footpath, and workers wore the wrong masks. Two weeks ago, two workers were found to have used respirators wrongly at a Banyo site, in northern Brisbane. The breaches occurred as underground Telstra pits were widened to install NBN cables, but Mr. Bleijie was unable to say if work had been suspended at the sites by contractor Silcar. "We have no option now but to look at all the sites of the NBN across Queensland." ASBESTOS UPDATE: Fibro Management Task Force Set Up --------------------------------------------------- The Australian Associated Press reported that a taskforce will be set up to monitor the prevention of exposure, training and supervision of contractors working on the national broadband network rollout, the federal government says. According to the report, Workplace Minister Bill Shorten says the taskforce will include senior Telstra representatives and officials from commonwealth regulators. "We will invite state regulators to be party to this important group," he told reporters in Canberra. The report said the announcement of the taskforce comes after Mr. Shorten and Communications Minister Stephen Conroy met with Telstra executive David Thodey and members of his management team, representatives from network building NBN Co and others. The meeting, which follows the discovery of asbestos during construction work for the NBN, also supported government moves to set up a national asbestos register for anyone wanting to advise about possible exposure to asbestos, the report related. Mr. Shorten said Telstra had accepted it had "ultimate responsibility" for the condition of its pits and ducts and had undertaken to be more transparent. While some of those at the meeting wanted to discuss the establishment of a fund for people exposed to asbestos during the work, others didn't and there was no final proposition. "We have a sad corporate history in Australia where too many corporations -- of course James Hardie comes to mind, but not just them -- have tried to play a legal approach saying you have to prove that it was our bit of asbestos-containing material that has killed you," the minister said. "So there is a legitimate concern by asbestos victims groups and unions that they don't want companies walking away from their responsibility." He said Mr. Thodey had said words to the effect 'we accept responsibility here'. "They are chastened," Mr. Shorten added. But asbestos was not just a Telstra issue. The hazardous material will kill nearly 700 people in Australia this year. "This is not acceptable," Mr. Shorten said. Mr. Shorten also said Mr. Thodey had expressed "disappointment" over the way Telstra had handled matters. "What I do know is, this is frustrating," he said. "People in streets, in the suburbs in Australia are feeling an anxiety which they shouldn't have to feel. "The training standards which were promised have not been delivered in all cases; the protocols which were promised around safety do not appear to have been honoured in all cases. "Promises that have been made have not been kept." Mr. Shorten said the government would work with all parties to make sure asbestos exposure "does not occur". Asked about NBN Co, Senator Conroy said the network builder had not sought to dodge responsibility. "They take asbestos issues very seriously," he said. Asked where Telstra's responsibilities end and NBN Co's begin, Senator Conroy said it was when Telstra handed its pits over to NBN Co. He said Telstra had agreed to remediate the infrastructure before NBN Co takes possession. ASBESTOS UPDATE: Asbestos Bill Invades Privacy of Victims --------------------------------------------------------- Susan Vento, writing a commentary on the proposed asbestos bill, related to Roll Call: "My husband was the late Congressman Bruce F. Vento, who served for more than 24 years in the House of Representatives representing our home state of Minnesota. Bruce died from pleural mesothelioma, a cancer of the lining of the lung caused by exposure to asbestos, on Oct. 10, 2000, just eight months after being diagnosed and despite receiving excellent medical care at the Mayo Clinic. He would be very disappointed that his colleagues on the House Judiciary Committee voted to send HR 982, the Furthering Asbestos Claim Transparency Act, to the floor. Since at least the early 1900s, the lethal risks of asbestos exposure have been known -- and intentionally hidden from -- American workers and their families by companies of all sorts whose bottom lines were more important than the well-being and very lives of their workers. For many years, asbestos companies have lobbied at the state and federal levels to erode the constitutional and legal rights of those workers diagnosed with mesothelioma, asbestosis and cancers caused by asbestos. Now they are lobbying Congress once again to delay and deny medical bill payments to those who are sick and dying. The FACT Act is not about transparency at all. It requires the unbelievable disclosure on a public website of asbestos victims' personal information, including the last four digits of their Social Security numbers, information about their finances, their children and other sensitive material that could subject them to identity theft and possible criminal mischief. The bill is completely one-sided -- asbestos companies have no such "transparency" requirements. The House Judiciary Committee voted 17-14 to pass this bill, despite bipartisan opposition, without ever hearing from the victims affected by it. Subcommittee Chairman Spencer Bachus, R-Ala., postponed the subcommittee vote to hear testimony from asbestos victims and their families, but unfortunately that did not occur. Instead we were offered a closed-door meeting with staff only and were told we could offer written comments away from the press and the public open hearing we were promised. The asbestos companies got their day on the Hill. How can the asbestos victims be denied the same transparency in a bill that supposedly is about transparency? The U.S. Chamber of Commerce, American Legislative Exchange Council and Georgia Pacific -- a company owned by the Koch Brothers, who are pushing this bill -- claim it is needed to prevent fraud by asbestos victims when filing claims to company trusts. The asbestos company trusts were structured to enable the companies responsible for poisoning their workers to use bankruptcy reorganization to continue operating. But notably the Government Accountability Office analyzed many company trusts and found no evidence of fraud. A recent newspaper investigation of claims found 0.35 percent of "anomalies" that included clerical errors by the claims administrators of the company trust. Yet somehow asbestos victims have ripped off the system. Some rip-off. The Rand Institute found that median payments to asbestos victims are 25 cents on the dollar, and some are as low as 1.1 percent of the claim filed. Hardly a windfall, and hardly a reason to victimize the sick and dying once again. Many of those who would see their last four digits of their Social Security numbers revealed are veterans who served our country honorably. Surely Congress will understand the FACT Act is a violation of privacy for those who have already been victimized." ASBESTOS UPDATE: Register for Asbestos Very Important ----------------------------------------------------- The Australian Associated Press reported that Telstra boss David Thodey says anyone concerned about being exposed to asbestos following work on the company's communications pits and ducts can "ring us now". According to the report, Mr. Thodey was speaking after a meeting in Canberra with the federal government, union leaders and representatives from asbestos safety groups. The gathering, which included Communications Minister Stephen Conroy and Workplace Minister Bill Shorten, follows the discovery of asbestos in Telstra pits being prepared for the rollout of the national broadband network (NBN), the report related. "Anyone who has any concerns about being exposed to asbestos ring us now," Mr Thodey told reporters. "Anyone who has seen any instances where they think it has not been well handled should get in touch with us." The government has set up a register for people to lodge claims about possible exposure to asbestos. Concerns were raised last week after the discovery of the building material at a Telstra pit in Penrith in Sydney and more issues which arose at telecommunications works in Ballarat, Perth, Adelaide and Tasmania. Mr. Thodey said he had good discussions with unions and workplace safety agency Comcare at the meeting and stressed the telco giant's long experience in dealing with the hazardous material. "I am very clear, whenever we take on the responsibility of remediation, Telstra is responsible, no questions asked," he said. He dismissed suggestions Telstra had cut corners when remediating the pits for the NBN builder NBN Co, which is rolling fibre optic cable through the infrastructure. Mr. Thodey said six pits in Penrith had been cleared, with 14 more to go. Telstra had literally "hundreds of thousands of pits to remediate" over the life of the NBN project, he added. Labor's $37.4 billion NBN is to deliver fibre optic cable to around 11 million premises, schools and businesses across Australia by June 2021. ASBESTOS UPDATE: Pittsburgh Corning's Legal Woes Grinding On ------------------------------------------------------------ Joyce Gannon, writing for Pittsburgh Post-Gazette, reported that late on the Friday that launched the Memorial Day holiday weekend, a judge approved a plan that will finally allow glass and insulation maker Pittsburgh Corning Corp. to emerge from a 13-year stint in bankruptcy. But that development wasn't enough to stir celebration of a conclusion in the case involving hundreds of thousands of lawsuits alleging that insulation the Plum company produced decades ago contained asbestos that caused deadly cancers and other diseases, according to the report. "No doubt there will be objections and appeals," Edwin Beachler, an attorney with Downtown law firm Caroselli Beachler McTiernan & Conboy who served as local counsel to a Texas law firm involved in the case, told the news agency. The reorganization plan signed May 24 by U.S. Bankruptcy Court Judge Judith Fitzgerald clears the way for creation of $3.5 billion trust that will assume Pittsburgh Corning's asbestos- related liabilities and pay out the claims, the report noted. The two companies that own Pittsburgh Corning -- PPG Industries and Corning Inc. -- will contribute millions of dollars to the trust and eventually give up their stakes in the company. Mr. Beachler and other attorneys say it's likely that insurance companies for Pittsburgh Corning will appeal before a U.S. District Court judge gives the plan final confirmation, meaning victims will wait even longer for payments expected to cover about 37 percent of their claims, the report noted. Some victims have already died, lawyers said. "Before it's all resolved . . . it could ultimately extend into 2014," Mr. Beachler said. Though it has taken more than a decade for the case to get this far, that's not unusual in asbestos-related bankruptcies, said James Restivo, an attorney with Reed Smith who is part of a team representing Pittsburgh Corning, the report related. He has worked on several other asbestos bankruptcies, including one involving Pittsburgh-based Harbison-Walker which is now part of ANH Refractories. Asbestos is a fire-resistant mineral that was used in many building and industrial applications until the 1970s when it was phased out because of documented health hazards. Medical experts realized in the early 1900s that exposure to asbestos can cause respiratory diseases and cancer including mesothelioma, a rare form of cancer that attacks the lungs and linings of the heart and abdomen. The claims against Pittsburgh Corning involve pipe insulation called Unibestos that was manufactured from 1964 to 1972 at plants in Tyler, Texas, and Port Allegany, Pa., in McKean County, the report said. The Texas plant was shuttered in 1972 after the federal Occupational Safety and Health Administration found it extremely hazardous. More than 400,000 asbestos-related lawsuits named the company as a defendant. Pittsburgh Corning settled about 200,000 before it filed for Chapter 11 bankruptcy in 2000, saying the remaining cases could exhaust its assets. Like other asbestos-related bankruptcies, Pittsburgh Corning's was prolonged by the sheer number of victim claims being processed and a long list of objections, motions and appeals -- many of them from insurance companies ultimately responsible for paying the victims. Of 40 insurance companies involved in the case, only two were still filing objections when lawyers filed into Judge Fitzgerald's courtroom May 23 to ask for final revisions to the reorganization plan. "Appeals, unfortunately, have been standard in these cases, which further holds things up," Mr. Restivo said. As Barry Bressler, an attorney with Schander Harrison Segal & Lewis' Philadelphia office, put it, "In setting up the trust, the insurers want to put in as little as they can, the debtor generally wants to put in as little as it can, and the claimants are looking for as much as they can get. So you have competing interests." Under the final plan proposed for Pittsburgh Corning, PPG would pay about $825 million to the trust through 2023 along with 1.4 million shares of PPG stock or the cash equivalent. Corning would pay $290 million for the next six years. Their insurers would kick in $1.7 billion. More than 60 such trusts have been created to resolve asbestos lawsuits, including those formed to handle claims in prominent bankruptcy cases such as Johns Manville and one set up for Harbison-Walker. For Pittsburgh Corning -- probably better known for its glass block windows used in homes and commercial buildings -- an exit from bankruptcy isn't likely to have a dramatic effect on day-to- day operations. Since joining the company as chief executive and chairman eight years ago, Phillip Martineau said he has managed it with a "focus on what we could control: how we treat customers, stakeholders and the people we work with and we try to continually improve that." The company generates about $300 million in annual revenues and has 1,500 employees in North America, Europe and Asia. Post-bankruptcy, the company will have a new board of directors and Mr. Martineau will continue as chairman. Currently the board includes representatives of PPG and Corning. "We are very private and have been" since Corning and PPG founded Pittsburgh Corning as a 50-50- joint venture in 1937, Mr. Martineau said. "Part of our private nature is due to the legal restrictions we have in Chapter 11. "We are highly profitable and growing. We are absolutely a success story that's underneath the radar in Pittsburgh." A number of local attorneys have helped steer the Pittsburgh Corning case through the court over the past 13 years. Among the Pittsburgh-based firms involved are: Reed Smith, counsel for Pittsburgh Corning; K&L Gates which represents PPG; Buchanan Ingersoll & Rooney, which represents insurance companies; Campbell & Levine, which represents asbestos claimants; Leech Tishman Fuscaldo & Lampl, which represents trade creditors; Clark Hill Thorp Reed, which represents Corning; Tucker Arensberg, representing insurance underwriters; and Dinsmore & Shohl, representing future claimants. ASBESTOS UPDATE: Telstra Faces Giant Asbestos Liability ------------------------------------------------------- Marcus Priest and Jenny Wiggins, writing for Financial Review, reported that one of Australia's leading asbestos lawyers believes Telstra faces a massive unquantifiable liability from the removal of ageing asbestos lining from hundreds of thousands of telecommunications pits and pipes. According to the report, Turner Freeman managing partner Armando Gardiman said Telstra had been long aware of its potential exposure to liability for asbestos-related claims arising from the pits, as it had been paying out former lines workers who contracted the deadly mesothelioma disease since the mid-1980s. Telstra chief executive David Thodey will meet Federal Workplace Relations Minister Bill Shorten, Communications Minister Stephen Conroy, NBN Co and unions in Canberra, the report related. They will debate calls for an asbestos compensation fund sparked by claims that residents and workers have been exposed to asbestos in the construction of the national broadband network. But in a sign the telecoms group is worried by the financial and reputation risks associated with its handling of asbestos exposure, it has appointed PwC to provide advice on its asbestos systems and processes, the report related. As well, it has put PwC's executive director of network construction, John Gibbs, in charge of asbestos management. AFR Weekend reported there had been claims of potential asbestos exposure in suburban areas in NSW, Western Australia, South Australia and Tasmania associated with the NBN rollout, the report said. There were also claims truckloads of toxic material had been dumped in Black Hill, Ballarat in Victoria. Mr. Shorten has expressed some support for a special fund to be established, similar to the funds set up by building materials groups James Hardie and CSR, to compensate workers. Mr. Gardiman said many Telstra pits made by James Hardie and CSR subsidiary Wunderlich contained all three forms of asbestos -- including the most deadly blue type from Wittenoom. 'HUNDREDS OF THOUSANDS OF PITS IN PLACE' "For nearly three decades, the Postmaster General, and then later Telecom, used asbestos cement pits and asbestos cement pipes in order to run telephone wires and connect domestic users all over the country," Mr. Gardiman said. "There must be hundreds of thousands of pits in place and tens of thousands of kilometres of conduit in the ground. Unless it is handled within the code of practice [for handling hazardous material] every employee or contractor will have a risk of contracting diseases that won't manifest for 20 or 40 years." The asbestos that had been used was now old and would crumble easily, he added. "If the contractors are disturbing material by removing existing pipes or pits and leaving it lying around, they are exposing community members to risk, particularly kids. "If the facts as being presented now are as bad as alleged, then Telstra conceivably faces community claims for the first time in its history, and given they own the pits and the pipes, then conceivably it's their liability." As well as calling for a compensation fund, the Communications, Electrical and Plumbing Union (CEPU) has criticised NBN Co for not doing enough to ensure workers on the broadband network were better trained to deal with asbestos. "They've [NBN Co] failed in their obligation to ensure there's a safe workplace and they've certainly got to pick the ball up," said Allen Hicks, the CEPU's assistant secretary . "Senior management, in our view, need to be held to account." ASBESTOS UPDATE: Sick Driver Appeals to Bradford Ex-Workmates --------------------------------------------------------------- Dolores Cowburn, writing for Telegraph & Argus, reported that a father-of-three suffering from a deadly lung disease is appealing for ex-colleagues to come forward with information about working practices at his former employers. According to the report, Kenneth Kell, from Allerton, a former heavy machine operator, was diagnosed with incurable pleural thickening, which is linked to asbestos exposure and causes the lining of the lungs to thicken resulting in serious breathing difficulties, in 2011. The 52-year-old, who is known as Kenny to his family and friends, worked as a machine operator and driver for Gomersall Demolition, who were based at Marshfield Street in Bradford, the report said. Kenny worked for them for approximately two years from 1979 to 1981/82 and can recall regularly coming into contact with the deadly asbestos dust whilst working for the company. It involved him undertaking demolition work at various mills, garages and factories throughout West Yorkshire, including a Harvesters restaurant in Bradford. He also remembers regularly coming into contact with asbestos sheets and insulation boards which he removed from buildings and broke down into pieces before they were disposed of. He has now instructed specialist industrial disease lawyers at Irwin Mitchell and together they are appealing for Kenny's ex colleagues to come forward with information about the working conditions at Gomersall Demolition and key information about the firm's insurance company. Nicola Handley, an industrial disease expert from Irwin Mitchell's Leeds office, said: "Pleural thickening is a serious illness which can be very distressing for victims like Kenny and their families. More than 2,000 people die from asbestos-related illnesses every year despite the fact employers knew how dangerous it was. "Kenny wasn't given any protective clothing or warned about the dangers of working with asbestos during his career. It is awful that he is now ill simply because he went to work every day." The 52-year-old only realised that he was seriously ill when he collapsed whilst at work in October 2011. He underwent a bronchoscopy, a biopsy and drainage of a pleural effusion at St James Hospital in Leeds before he was diagnosed with the debilitating condition. He said: "My job at Gomersall Demolition involved driving heavy construction vehicles, which had a pulveriser or a breaker on the end to demolish the old factories, mills and garages we worked on. "Most of the time I carried out my work outside of the factories or mills we were demolishing but sometimes I had to drive into the premises and work from the inside, which created an even dustier environment. "I regularly used the machines to break up large asbestos sheets before they were disposed off in skips. "It was incredibly dirty and dusty work and I got covered in dust every day. Even though I was sat in my cabin. I couldn't help but breathe it in, particularly when it was warm when I left the windows of my cabin open. I was never warned about how dangerous asbestos could be for my health or given a mask to wear to protect me from the worst of it. "It's absolutely devastating to think that I could be suffering from this terrible illness simply because I went to work every day all those years ago. "I hope my ex workmates will come forward with information about the working conditions I endured and who the firm's insurance company is so that I can get answers to the many questions I have and get the justice I deserve before it's too late." Anyone with information about the working conditions at Gomersall Demolition, or the company's insurers, should contact Nicola Handley at Irwin Mitchell's Leeds office on (0113) 220 6233 or e-mail nicola.handley@irwinmitchell.com ASBESTOS UPDATE: Researcher Named West Australian of the Year ------------------------------------------------------------- Robyn Preston, writing for WAToday, reported that ground-breaking asbestos cancer researcher and author Professor Bruce Robinson was named West Australian of the Year at a gala ceremony at Crown's Grand Ballroom. According to the report, professor Robinson was recognised for work in founding a clinic to care for patients and a community project aimed to connect children with father figures. As co-founder of award winning Fathering Project, he has also written three books based on research into the reduction of youth- based substance abuse and crime through strong father figures, the report said. Professor Robinson noted his personal philosophy was to turn compassion into action -- an outlook that likely led to his expansive accomplishments in caring for asbestos victims and leading a team which discovered new treatments, the report related. Celebrate WA Chairman John Poynton said the awards were an opportunity to acknowledge the contribution extraordinary people are making to the State, the report further related. "There are many people making a significant contribution to communities across Western Australia; raising our potential and increasing our profile both nationally and internationally," he said. Renamed from WA Citizen of the Year Awards, the 2013 Western Australian of the Year Awards, recognise achievements across a broad cross-section of the community. Nineteen finalists were chosen across six categories, among them well known faces Matthew Pavlich, Dale Alcock and Johnny Young. "It's an exciting time to be a Western Australian and I'm proud to be part of such an important celebration, which recognises homegrown talent and dedication," Mr Poynton said. ASBESTOS UPDATE: Horsham Family Angered at Asbestos Discovery ------------------------------------------------------------- The West Sussex County Times reported that a family from Horsham were shocked to discover asbestos in their home, two years after a house survey which should have identified it. According to the report, Dad Colin Smith told the County Times they will have to move into a hotel for five nights while the asbestos is removed. "It's not so easy when you've got three children," he told the news agency, "to be stuck in the one room for five days. I keep asking why it was overlooked in the first place." They moved into the Saxon Weald home several years ago, after arranging a mutual exchange, the report related. A house survey should have revealed the asbestos, but instead it was found in the eaves by Mr Smith while he was clearing space for contractors to get in and look for the cause of a damp problem, the report added. He realised what it was because he has spent much of his life working as a building labourer -- Mr Smith pointed out that another person in that situation might not have recognised it. He immediately stopped what he was doing and notified Saxon Weald. "They asked: 'Can you not just work around it?', which I thought was just absolutely disgraceful really," said Mr Smith. "It's not just what's happening to me and my family -- it's what could have happened. "I want them to realise it, to look at what could have happened because they haven't done their jobs properly." When a sample was sent off for testing, it proved to be a white and brown mix. 'Brown' asbestos, sometimes known by the trade name Amosite, is regarded as one of the most dangerous types, and was among the first to be banned in the UK. "I just want our complaint to be heard," Mr Smith said, adding: "It's not as if we're moaning, groaning tenants who complain about every tiny little thing." He said they can't afford to pay up front for legal help, but they'd be glad to hear from any lawyer who might be able to help. Saxon Weald have been approached for a comment. ASBESTOS UPDATE: Syracuse Grand Jury Investigating Projects ----------------------------------------------------------- Kristen Griffin, writing for Mesothelioma.com, reported that on June 1, federal and state agents, clad in hazmat gear, raided Hilton Center in Rensselaer, New York while a Grand Jury in Syracuse is investigating asbestos projects connected to the property. According to a subpoena acquired by the Albany Times Union, the Grand Jury is investigating "asbestos related projects" conducted at Hilton Center. In April, the city of Rensselaer shut down the property because it was unsafe, according to the report. Further, Arthur Hilton, the owner of Hilton Center, was illegally renting out the space. Renovated into a "professional center," the former mill site now is a host to various arts organizations, the report said. During the renovation, Arthur Hilton pled guilty to removing asbestos from the property illegally which is in direct violation to the Clean Air Act. The illegally abated asbestos was subsequently dumped near the border of Massachusetts instead of being properly disposed of at a hazardous materials collection site. State and federal officials first took notice of Hilton's construction practices back in 2000 when heating insulation and plumbing materials containing asbestos were found in bags near the property. Asbestos is a highly toxic carcinogen, responsible for several serious medical conditions including asbestosis, lung cancer and mesothelioma cancer. Though a popular misconception, asbestos is not a manmade, manufactured material; in fact, asbestos is a set of naturally-occurring minerals mined for its durability, flame resistance and insulating properties. Asbestos, however, was often combined with other materials during manufacturing such as cement, metals and fibers typically for construction use. Due to its toxicity, removing asbestos without following proper protocols or safety procedures is potentially lethal not only to the workers but also to anyone in the area. Improperly containing asbestos may lead to air or environmental contamination. Breathing in this toxic air can lead to immediate and long-term health conditions including mesothelioma. At this point, the State Department of Environmental Conservation, Environmental Protection Agency or the United States Attorney's Offices are not commenting on the on-going investigation into Hilton Center or Arthur Hilton. Hilton did not know why state and federal officials raided his property. ASBESTOS UPDATE: Free School in Wembley Hit with Asbestos Claims ---------------------------------------------------------------- Matt Dathan, writing for Brent & Kilburn Times, reported that worries have been raised about possible asbestos in a new free school in Wembley Park which opponents say isn't needed anyway. Michaela Community School, approved by the Department of Education, plans to open at Arena House in North End Road in September next year, the report said. The founding governors have been announced and are holding an information event on June 15 at Brent Town Hall to boost intake, the report related. The school, which was originally to open in South London but was twice rejected, has faced opposition from Wembley residents and parents and teaching unions due to the high number of secondary schools in the area, the report related. There are also concerns over the suitability of the building. Jean Roberts, London executive for the Association for Teachers and Lecturers, said: "We're almost certain the building has asbestos and it's right next to the railway line." She added: "There's simply no need for the school in Wembley Park. It's in completely the wrong place; it would be competing with schools in an area where there are plenty, rather than actually adding to the community. "It's also looking to get a fairly exclusive group of children there; it's not like your ordinary children because it's going to be more academic." However, the school's chair of governors, Suella Fernandes, said the school's focus on academic excellence would make a positive contribution to the area. She said: "Michaela will be a school that expects excellence and only 'outstanding' will do." A spokesman for MCS said about 200 parents had registered an interest. He said: "We are awaiting the results of an asbestos survey to reveal whether there is any asbestos in the building. "If the survey does reveal incidences of asbestos on site, it will be dealt with in accordance with all health and safety legislation." He added: "The building has been used as a former college and has been approved for use by the DfE, the Education Funding Agency and the Michaela Community School Trust." ASBESTOS UPDATE: $600,000 Roof Job to Change Ash Street Jail ------------------------------------------------------------ Simon Rios, writing for SouthCoast Today, reported that roofers are fast at work on top of the Ash Street Jail, four weeks into a $600,000 project slated to be finished at the end of June. According to the report, Ed Nicolau, director of facilities for the Bristol County Sheriff's Department, said planning began a year ago to reshingle the 22,500-square-foot roof which had leaks and falling tiles. "We had repairs maybe (two) years ago, and found there was more and more repairs that were needed, and then they decided to just do the roof," he told the news agency. Nicolau said the state Division of Capital Asset Management and Maintenance, which funded the project, conducted a study on the 130-year-old building and concluded the work was necessary. In spite of the shingles' slate-like appearance, Nicolau said "slate wasn't even a consideration." The asphalt shingles were chosen for their 50-year warranty in addition to matching the existing decor of the building. They are rated for hurricane-force winds. Although builders don't know the vintage of the asbestos shingles that were removed, a roofer on the site estimated the roof was last shingled in the 1920s or 1930s, when the style was common. According to the National Park Service, asbestos shingles came into fashion in the early 20th century, and were preferred for being lightweight, cheap and fireproof. After an open bidding process, a contract was awarded to Mill City Construction, with an array of subcontractors handling roofing, carpentry, masonry and asbestos removal. The job also entails brickwork on the roof and carpentry on the cupolas. Nicolau said the wood underneath the shingles wasn't in need of replacement, nor were the copper gutters surrounding the roof's edge. The Ash Street Jail has been an occasional source of controversy in recent years, with some calling for the facility to be retired as a prison. "In days gone by, people were saying that he should build a new jail," said Bernie Sullivan, a spokesman for the sheriff's department. "And (Sheriff Tom Hodgson) said, 'Would you rather I built a jail or a school for children?'" Peggi Medeiros, a New Bedford historian, said she was glad to hear of the upgrade to the historic building, describing it as one of the most important in the city. "You could trace the entire history of New Bedford by tracing the history of the Ash Street Jail," she said. Medeiros said the investment suggests that the building won't be going away any time soon. "Not having to worry about that one is good news," she said. "I'm not sure how delighted all the inmates are with it . . ." The Ash Street Jail was built in 1888 at the approximate cost of $80,000. The jail's most famous inhabitant was Lizzie Borden, the Fall River woman acquitted in the axe-murder of her father and stepmother in 1892. Serving State Police and local departments, today the jail's 220 cells are occupied mostly by detainees with pending criminal cases. ASBESTOS UPDATE: The Block Sky Criticised by Law Firm Over Fibro ---------------------------------------------------------------- Colin Vickery, writing for The Herald Sun, reported that a leading law firm has accused the makers of The Block Sky High of not broadcasting warnings about asbestos. The fourth episode of the Channel 9 renovation series showed contestant Jarrod Coppock removing vermiculite, which can contain asbestos, according to the report. Slater & Gordon asbestos lawyer Margaret Kent said the show sent the wrong message by repeatedly showing Coppock creating clouds of dust while using power tools to remove the textured ceiling material. Footage shows him declaring he would use a jackhammer to remove the vermiculite from the ceiling before setting to work without a face mask. Dust is seen floating through the room, occupied by a camera crew and tradesmen. Ms Kent acknowledges that the show's website highlights the potential dangers of disturbing vermiculite. But she said these were not pointed out to viewers of the May 15 episode. "That The Block's website discusses the potential for vermiculite to contain asbestos probably indicates that the material had been analysed and deemed safe," she said. "Anyone watching that footage in isolation will just assume that vermiculite is safe to disturb without wearing protective clothing or having to seek professional advice." Nine confirmed a hazardous materials audit was done on all properties on The Block before any work. Official tests for asbestos were conducted on the vermiculite at the former motel in South Melbourne. "Nine did not consider it was appropriate to include an asbestos warning in relation to the vermiculite removal given (it) did not contain any asbestos," Nine's Victoria Buchan said. Researchers are concerned that there will be a "third wave" of asbestos victims: DIY home renovators who become exposed to potentially deadly mesothelioma-causing asbestos fibres, present in many homes built before 1987. "It is not reasonable to expect a prime-time TV audience will go online after the show to verify the safety of the contestants' activities," Ms Kent said. "People need to know that even a single exposure to asbestos can cause a deadly disease like mesothelioma for which there is no known cure." ASBESTOS UPDATE: Asbestos Compensation Fund Gets AUD185MM Payment ----------------------------------------------------------------- Bridget Carter, writing for The Australian, reported that a compensation fund set up for asbestos victims received $177.5 million or AUD184.7 million payments from James Hardie during the 12 months to March. According to the report, the Asbestos Injuries Compensation Fund was set up in 2007 to compensate sufferers of asbestos-related disease. So far, James Hardie has contributed AUD599.2 million to the fund. ASBESTOS UPDATE: Chrysotile Variety, An Ideal Roofing Option ------------------------------------------------------------ The Hindu Business Line reported that asbestos Cement Products Manufacturers Association has said that the chrysotile variety used in India is safe for roofing and piping. According to the report, asbestos cement is the most ideal roofing sheets for warehouse, factory or low-cost housing, a spokesperson for the association said. The report related that asbestos industry had received a big boost when the Punjab High Court ruled in its favour, refusing to ban its application and use in the country, he added. The order was delivered on February 6, 2012, by the High Court of Punjab Haryana in the Gobind Thukral and others Vs Union of India in Writ no. 21166 of 2011. Earlier in January 2011, the Supreme Court also had refused to ban manufacturing and use of asbestos products. Asbestos is a naturally occurring mineral found in almost two- thirds of the earth's crust. Depending on the region, every individual breathes in about 10,000 to 15,000 asbestos fibres each day. There is no risk in living or working under chrysotile asbestos cement roof as the fibers are bonded and completely locked-in with cement, the spokesperson said. These products have been in use in the country for over 75 years now. They are practically ageless and maintenance-free whereas metal sheets corrode and deteriorate with age and exposure. They are also easy-to-install, strong and durable, apart from being cost-effective for weaker sections of society. Russia, China, Thailand, Brazil, Mexico, Ukraine and other emerging nations are among largest users of asbestos cement products, the spokesperson added. As regards claims linking materials containing asbestos with cause health hazards, he clarified that various studies by official agencies of the Government have proven otherwise. Issues reported in the West in the past on extensive and uncontrolled usage at that time of the blue and brown varieties of asbestos, production and usage of which has since been banned all over the world. ASBESTOS UPDATE: Fly-tipper Fined for Dumping in Medway ------------------------------------------------------- Joe Bill, writing for Kent News, reported that a careless fly- tipper has been ordered by a court to pay more than GBP2,000 after dumping asbestos sheeting between two houses. According to the report, Lee Terry, 34, of Mierscourt Road, also in Rainham, had offered to get rid of the sheeting from his father in law's house as a favour. But when he was unable to leave the hazardous material at a waste site, he decided to drop it illegally. The tipper then dumped the asbestos among 40 bags of rubbish left between two houses in Roberts Road and Century Road, Rainham, the report said. However, Terry was spotted by an eagle eyed resident who noted the telephone number on the side of his van. This resident then telephoned Terry and complained that one of his vans had dumped waste. Terry returned and removed most of the waste, which he then arranged to be disposed of properly. But a small amount of the material was left behind and laboratory tests showed it was Chrysotile Asbestos, a known cancer causing substance. Medway Council prosecuted and Terry appeared before Medway Magistrates Court on Tuesday, May 21. He admitted he knew he was dumping asbestos, but said he did so after becoming "embarrassed" when he could not dispose of it as he had promised his father in law he would. The court told Terry this was a serious matter and that such a penalty could involve imprisonment but in view of his early guilty plea, he was instead fined GBP1,000 plus a GBP100 victim surcharge. He was ordered to pay Medway Council GBP1,028 in costs. Community safety chief Cllr David Carr, said: "Fly-tipping is irresponsible and thoughtless at the best of times. "That is particularly so when you are dumping a hazardous material such as asbestos. I am pleased this person has been been made to see the error of his ways and hope this sends a strong message to others." ASBESTOS UPDATE: No Answers for Gosforth Mum Exposed to Asbestos ---------------------------------------------------------------- Chronicle Live reported that an inquiry into why a pregnant mum was left with exposed asbestos in her home has concluded -- but will not be made public. According to the report, having carried out its own investigation establishing what happened at the house in Gosforth, Newcastle City Council will not be revealing its findings. This blanket block on information stretches to mum Michelle Lee who first flagged up the issue believing there had been a potentially dangerous lapse in safety procedure at her home, the report said. A city council spokesman said the investigation was "internal at this stage" and was carried out ahead of a follow up investigation next month by the Health and Safety Executive. Feeling in the dark about the ongoing situation Michelle, 28, who lives in Jubilee Crescent with her seven-old daughter Regina, said: "No one has contacted me to let me know what is going on, I didn't even know an investigation had been carried out. I feel as if I've been left in the lurch and am still trying to get the money needed to cover the cost of items removed from my home in case they were contaminated." The ordeal for Michelle began last month when contractors City Build, part of Newcastle City Council, visited the Your Homes Newcastle (YHN) managed property to replace a fire. During the job a plasterer disturbed potentially dangerous asbestos spores, releasing them into Michelle's living room. With the plasterer leaving the job unfinished Michelle says she immediately reported the discovery to City Build and while a senior staff member visited her no action was taken to clear up the dust and debris or seal the suspected site of the asbestos. It was only three days later that staff returned, sealed the area and then that week stripped the house of any furnishings that could have been potentially contaminated. Clothes, trainers, the laundry basket, sofas, dining room chairs, carpets, blinds and curtains were all removed. Both YHN and the council say the appropriate air tests have been carried out and findings were "well below any level that might be harmful . . ." However importantly for Michelle, who was living with Regina in the house for three days before the asbestos was sealed, it is not yet known when the tests were carried out. Having so far been offered only a fraction of the GBP4,000-plus total of her destroyed items and furnishings Michelle is still battling to be fully compensated and has hired a solicitor to help fight her corner. Now four months pregnant she said: "I've been getting anxiety attacks and migraines but, being pregnant, I can't take anything for it. I'm still trying to get the amount needed to replace like- for-like the items they took from the house." A Newcastle City Council spokesman said: "The council is currently investigating Miss Lee's case and the actions of its officers. As well as this internal process, the Health and Safety Executive will launch its own investigation into the case. "It would be inappropriate to comment further at this stage." ASBESTOS UPDATE: QEII Track Reopened After Asbestos Scare --------------------------------------------------------- Scarlett Cvitanovich, writing for New Zealand News, reported that the public walking track near north east Christchurch's QEII Stadium, which was part of an asbestos scare, has now reopened. According to the report, the Canterbury Earthquake Recovery Authority advised that a small amount of asbestos piping was recently found at the QEII site during the demolition. After testing of the area, it has been confirmed there is no risk to the public, the report said. Further testing is still ongoing at the site for the next five to six weeks. ASBESTOS UPDATE: Homes Evacuated as Fire Sparks Fibro Scare ----------------------------------------------------------- STV News reported that several homes near a country park have been evacuated amid fears that a fire in a disused tin factory could have released asbestos into the air. According to the report, firefighters were called to Eglinton Country Park, near Irvine, after reports that a large heap of rubbish was on fire. A plume of thick smoke rose up from the building as specialists investigated reports that the building contained asbestos sheeting, the report said. The park was cordoned off by police and residents living nearby were removed from their homes as a precaution, a spokesman for the Scottish Fire and Rescue Service said. A woman was taken to Crosshouse Hospital, near Kilmarnock, suffering breathing difficulties, but she is not believed to be seriously ill. Scientific advisers set up a mobile laboratory at the scene to analyse debris from the fire for traces of asbestos. ASBESTOS UPDATE: Fibro Link Ruled Out in Ex-Dockyard Worker Death ----------------------------------------------------------------- Daily Echo reported that a former dockyard worker's fatal lung cancer was not asbestos-related, an inquest heard. According to the report, Peter Pawling, of April Grove, Sarisbury Green, died aged 69 at Countess Mountbatten House hospice, West End, on December 30 last year. The report related he was a chartered accountant but worked at Portsmouth Docks as an apprentice for five years from 1958-1963, where he was regularly exposed to asbestos. However, no fibres were found in a postmortem examination or histology tests, his inquest in Winchester was told. A verdict of death due to natural causes was recorded, the report said. ASBESTOS UPDATE: Riverside Residents Living on "Death Row" ---------------------------------------------------------- Driffield Times & Post reported that residents in the Riverside area of Driffield fear they are living on death row because land near their homes is polluted by toxic waste and asbestos. According to the report, repeated calls for action to clear up the site over the past three years have fallen on deaf ears, according to town councillor Kevin Stack. The report related that he claimed that the former East Riding of Yorkshire Council owned depot at Riverside was insecure, overgrown and was a magnet for fly tippers, attracting rats. And he said that children regularly broke into the site to play there -- putting themselves and other at risk by stirring up the asbestos, which sends the deadly fibres into the air. On Tuesday, Coun Stack made an impassioned address to his fellow town councillors who agreed that ERYC should be asked to clear the site and make it safe. "I have been campaigning now for three years to have the former council depot cleaned up because of toxic waste and asbestos, said Coun Stack. "There are piles and piles of asbestos, which is potentially lethal." He said he had liaised with the East Riding Council many times but nothing had been done. "Asbestos is a killer and the residents on Riverside feel like they are living on death row, "he said. "Children are playing with the contaminated waste on the land and the council and the owners have failed to secure the old depot -- there is just a little lock on it and kids have ripped it off. "I don't just mean kids at Riverside because the area is a magnet for kids from all round Riverhead. "Asbestos when manufactured in its whole form is relatively safe but it is when it is broken it exposes its deadly fibres into the area, Asbestos sheets are made up of many fibres but it only takes one rogue fibre to enter the human lung to set off a chain reaction which can result in asbestosis and cancer and an agonising death. These fibres are being blown around in the air around Riverhead." Coun Stack said those at risk include tourists who visit the area in large numbers, residents, skate park users, business park workers and children at a nursery -- which are all close to the old depot. "Residents are also complaining that there is an increase in rats coming from the waste land through waste which has been dumped on the old depot which is likely to increase because of the introduction of fortnightly bin collections. "Residents also say that overgrown weeds are also encroaching from the land into their well maintained gardens." "I feel, as a councillor, it is time to take action and I ask all councillors for their full support so that all residents can live in a safe environment. Coun Joyce Fletcher said: "The best thing we can hope for is to make it safe and try and discourage people from going in there." Coun Phil Stocker said: "Our local MP says the East Riding Council has the power to send in a team, clean it up and then charge the landowner. They should get their finger out and so it." Coun Steve Poessl said: "Get the health and safety down there and environmental health, embarrass the East Riding into doing something." ASBESTOS UPDATE: Toxic Dust Taken and Found from Newport Market --------------------------------------------------------------- South Wales Argus reported that asbestos has been found and removed from Newport Market. But Newport council said there was no risk to the health of shoppers or traders while the removal was carried out, according to the report. "Asbestos-containing material" was discovered during refurbishment works being carried out at the shopping venue, according to the authority. A spokeswoman said work was immediately stopped until a specialist firm could be brought in to remove the material safely. "As this area was already closed off because of the refurbishment work, there was no risk to the health of shoppers or traders while the removal was carried out," the spokeswoman said. Work is now complete and although it did cause a delay the Newport Market project is due for completion this summer. Costs for removing the asbestos will be covered by the budget for the scheme -- said in 2012 to be GBP750,000. A formal written answer to David Fouweather from Newport cabinet members John Richards and Mark Whitcutt said the health and safety executive had to be notified, adding a four week delay. He was told it was "highly unlikely" any more asbestos will be found in the market, and that the project is due for completion in mid-July. He was told there had been structural issues that had slowed down the progress within the market, as well as the discovery of asbestos. Traders have been informed the reasons for the delays, Cllr Fouweather was told. "The architects and engineers produced what they thought were suitable plans for particular areas of the market," the cabinet members said. "However upon breaking out these areas, they have discovered a number of surprising elements of design, which has subsequently led to a re-design by the architects and engineers." The market refurbishment aims to regenerate the High Street end of the city centre, enhance the grade-II listed building with new units to encourage restaurants and cafes to move in. ASBESTOS UPDATE: Daughter of Exposure Victim Appeals for Info ------------------------------------------------------------- Sam Chetwynd, writing for Worksop Guardian, reported that the daughter of a former sweet factory worker who died of an asbestos- related disease is appealing for her mother's former colleagues and neighbours to share information as they may hold vital clues as to how and why she came into contact with the deadly dust. According to the report, inquest was adjourned so that Linda Hunt's family could carry out further investigations as to why she died from asbestos-related cancer, mesothelioma, aged 66, in December last year. Her daughter Joanne Lowde, 42, has instructed specialist industrial illness lawyers at Irwin Mitchell to investigate and help provide answers as to exactly how her mother became exposed to deadly asbestos dust, the report said. Linda, whose maiden name was Dent, started working at the Trebor sweets factory in Chesterfield after she left school although very little is known about the working conditions and whether there was asbestos present in the building. When Linda was around 20 years old, she moved to the Creswell Model Village where she lived until around 1975 and then again from 1979 to 1992. The Model Village was built in 1895 by the Bolsover Colliery Company to house the workers of the Creswell Colliery and their families. When Linda moved to the Model Village, she was married to a miner, but they later separated. In the early 1970s, new kitchens and bathrooms were fitted in the houses in the Model Village. It is believed that the previous kitchens and bathrooms, which were replaced in 2001, may have contained asbestos materials. Joanne and her lawyers at Irwin Mitchell are now appealing for Linda's ex-colleagues and neighbours to come forward to help piece together information about the conditions at the Trebor factory and during refurbishments at the Creswell Model Village. Joanne, who still lives in Creswell, said: "My mother was hard working, and always looking out for others. She became very ill so quickly. She only found out that it could be asbestos-related shortly before she died and wasn't strong enough to help figure out where she had been exposed." "Hopefully people will be able to help us and anyone with any information should get in touch with Irwin Mitchell so that we can try and get answers about how she was exposed to asbestos." Simone Hardy, from Irwin Mitchell's Sheffield office, said: "Asbestos-related diseases can take decades after exposure to the harmful material to fully develop. This can make it difficult to pin-point exactly how and where people were exposed, although often it is via their place of work or property refurbishments." "Unfortunately, very little is known about Linda's exposure to asbestos, but it is hoped that her ex-colleagues at Trebor in Chesterfield and her neighbours in Creswell can help shed some light on how she came into contact with the deadly dust." Anyone with information about the working conditions at the Trebor factory in Chesterfield in the 1950s and 1960s and about the possible use of asbestos in the Creswell Model Village in the 1970s should contact Simone Hardy at Irwin Mitchell on 0114 274 4420 or e-mail simone.hardy@irwinmitchell.com. ASBESTOS UPDATE: Man in Court on School Asbestos Charges -------------------------------------------------------- Sam Chetwynd, writing for Retford Today, reported that a South Leverton man has admitted a dozen charges relating to the removal of asbestos at a former Retford school. According to the report, James Roger Carlton pleaded guilty at Worksop Magistrates' Court to charges which relate with disregarding the presence of asbestos insulation board at the site of the former King Edwar VI School, on London Road. The case was sent to Nottingham Crown Court for sentencing on 17th June, the report said. ASBESTOS UPDATE: Mesothelioma Experts Present New Findings ---------------------------------------------------------- An international roster of experts on malignant pleural mesothelioma (MPM) gathered on Saturday, May 18, in Santa Monica, Calif., to discuss their latest research findings on new lung- sparing therapies for MPM, a rare form of cancer that results from exposure to asbestos and commonly affects the pleura, the lining of the chest. Hosted by UCLA and the Pacific Heart, Lung and Blood Institute, the 3rd Annual International Symposium on Lung-Sparing Therapies for Malignant Pleural Mesothelioma focused on research aimed at preserving vital lung function in MPM patients. Mesothelioma experts now agree that extrapleural pneumonectomy, which involves removal of the lung and surrounding diseased tissues, does not have a place in treatment of patients with this asbestos-related problem. Presentations included the latest surgical techniques for removal of cancerous tumors and a variety of adjunctive techniques. Symposium leader, Robert B. Cameron, MD, FACS, Director of the UCLA Mesothelioma Comprehensive Research Program and Chief of Thoracic Surgery at the West Los Angeles VA Medical Center, presented treatment strategies and results of multimodality treatment of patients with sarcomatoid-type MPM, the fastest spreading and most difficult to treat form of the disease. He also discussed current thermal research at UCLA and the effectiveness of cryoablation in killing MPM cancer cells. The symposium's distinguished faculty included Joseph S. Friedberg, MD, of the University of Pennsylvania, who presented promising new photodynamic therapy results using light to directly kill cancer cells; Olga Olevsky, MD, of UCLA Medical Center, who discussed results of a variety of novel treatment strategies; Italian Radiologist Marco Trovo, MD, who presented the early results of tomotherapy techniques following pleurectomy; and Raffit Hassan, MD, of the National Cancer Institute, who discussed anti-mesothelin agents for mesothelioma therapy. "There were a number of incredibly exciting studies that far exceed what we've seen before," said Dr. Cameron. "All of our collective efforts are finally beginning to pay off in new treatments that truly affect patients." This CME-granting event, which was held at the Sheraton Delfina Hotel, was attended by physicians, nurses, other medical professionals, as well as mesothelioma patients and others with an interest in advances in MPM treatments. About The Pacific Meso Center The Pacific Meso Center (PMC) is a division of the Pacific Heath, Lung & Blood Institute, a 501(c)3 nonprofit medical research institute established in 2002, which is focused on the treatment and prevention of malignant pleural mesothelioma (MPM). The exploration of innovative ideas forms the foundation of PMC's unique research program and provides the promise of future treatment breakthroughs. PMC is dedicated to educating the public on asbestos-related disease and informing them of their treatment options. PMC also connects newly diagnosed patients with patients that have been trough treatment and provides assistance and emotional support. For further information, please contact: Robert B. Cameron, M.D. Professor of Cardiothoracic Surgery and Surgical Oncology Director, UCLA Comprehensive Mesothelioma Program David Geffen School of Medicine at UCLA 10780 Santa Monica Boulevard Suite 100 Los Angeles, CA 90025-7613 (310) 470-8980 (voice) (310) 470-3742 (fax) Email Contact: Clare Cameron 310-478-4678 ASBESTOS UPDATE: Asbestos Bill Ignores Justice for Vets, Citizens ----------------------------------------------------------------- Rep. Nick Milroy wrote to Superior Telegram on the proposed asbestos legislation. He stated, "[H]onoring and protecting Wisconsin's veterans should always be a shared value among Wisconsin legislators, regardless of party. As a veteran, I've seen firsthand the sacrifices these brave men and women make every day to serve our country and keep us safe. That is why I am so troubled by the actions of my Republican colleagues in the state Assembly who knowingly voted to take vital protection away from veterans. After hearing moving testimony from veterans, they decided to make it more difficult for patients, including veterans, who have been diagnosed with mesothelioma to get justice after they have been exposed to asbestos. I'm particularly disappointed by the Republican legislators who chose to ignore the strong opposition to this bill by veterans' advocacy groups, such as the Wisconsin Veterans of Foreign Wars and the Military Order of the Purple Heart. On a party line vote, they even chose to abolish an amendment that would have granted an exemption for veterans who were exposed to asbestos while serving their country. Veterans make up just eight percent of the population -- but 30 percent of people who suffer from mesothelioma are veterans. Many Wisconsin veterans were exposed to asbestos during their military service. And many others were exposed to asbestos while working civilian jobs in factories, plants, shipyards and mills. Veterans who are suffering from this deadly disease have already been through enough -- we shouldn't be putting more obstacles in their way. Unfortunately, these kinds of anti-citizen proposals are all too common in the Legislature lately. Republicans are now pushing a budget measure that would make it easier for predatory rent-to-own companies to take advantage of consumers by no longer requiring them to disclose their interest rates. These companies, along with payday lenders, are notorious for setting up shop outside military bases. These callous measures should not be our focus. We need to be working on important issues, such as helping to create jobs, reforming our troubled jobs agency and rebuilding Wisconsin's middle class. This pattern of attacking workers, families and our most vulnerable citizens needs to end now. We must stand up and fight for Wisconsin veterans. They have worked hard and given so much to protect us. It is our duty to protect them as well." Rep. Nick Milroy, D-South Range, represent the 73rd Assembly District, which includes most of Douglas County. ASBESTOS UPDATE: US Calls on High Court to Snub Pfizer Case ----------------------------------------------------------- Greg Ryan of BankruptcyLaw360 reported that the U.S. solicitor general told the Supreme Court that it should refuse to review the Second Circuit's ruling that a ban on asbestos claims during bankruptcy proceedings does not apply to allegations brought by Baltimore Orioles owner Peter Angelos' law firm against Pfizer Inc. According to the report, Pfizer petitioned the Supreme Court in September to overturn the decision, which held that the company must face asbestos litigation related to its bankrupt subsidiary Quigley Co. Inc. About Quigley Co. Quigley Co. was acquired by Pfizer in 1968 and sold small amounts of products containing asbestos until the early 1970s. In September 2004, Pfizer and Quigley took steps that were intended to resolve all pending and future claims against the Company and Quigley in which the claimants allege personal injury from exposure to Quigley products containing asbestos, silica or mixed dust. Quigley filed for bankruptcy in 2004 and has a Chapter 11 plan and a settlement with Chrysler. Quigley filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 04-15739) on Sept. 3, 2004, to implement a proposed global resolution of all pending and future asbestos- related personal injury liabilities. Lawrence V. Gelber, Esq., and Michael L. Cook, Esq., at Schulte Roth & Zabel LLP, represent the Debtor in its restructuring efforts. Elihu Inselbuch Esq., at Caplin & Drysdale, Chartered, represents the Official Committee of Unsecured Creditors. When the Debtor filed for protection from its creditors, it disclosed $155,187,000 in total assets and $141,933,000 in total debts. In April 2011, the bankruptcy judge approved a plan-support agreement with Pfizer and an ad hoc committee representing 30,000 asbestos claimants. A May 20, 2011 opinion by District Judge Richard Holwell concluded that Pfizer was directly liable for some asbestos claims arising from products sold by its now non-operating subsidiary Quigley. ASBESTOS UPDATE: Asbestos Trustees Need to Open the Books --------------------------------------------------------- The Madison-St. Clair Record reported that at a time of heightened concern over terrorist attacks, it's appropriate to have a national debate about the extent of, and legitimate limitations on, our personal right to privacy. According to the report, with security cameras nearly omnipresent in many public places and drones likely to proliferate in coming years, it behooves us to consider how much scrutiny we're willing to tolerate before it becomes too pervasive. Surely citizens of a free country have a right to know when we're being watched, and by whom. Perhaps most important, we need to know that someone trustworthy is watching the watchers, to ensure that they don't abuse their snooping privileges. We should be especially wary of surveillance agents and advocates who resist having their own activities monitored, the report added. For that matter, any person in a position of authority or performing a public role of any kind should expect to operate in the open with all permissible transparency (excluding delicate personnel matters, proprietary interests, genuine national security secrets, etc.). Though asbestos trusts perform an essentially public or quasi- public function, its transactions too often are shrouded in secrecy. While we can think of numerous nefarious reasons for an asbestos trustee to prefer dealing in the darkness, we've yet to hear a laudable justification for this opacity, the report said. We're not the only skeptics, the report added. "With dozens of asbestos-related manufacturers forced into bankruptcy, a burgeoning swath of the legal action has shifted out of the courtroom and into a nebulous world of trusts that evaluate claims and authorize payouts with little outside scrutiny," the Wall Street Journal noted in a March report. "By design, many are guided by teams of plaintiffs' lawyers -- the very group that seeks money for clients and has earned billions of dollars in fees on payouts through the years." Just this week, the U.S. House Judiciary Committee approved legislation requiring certain asbestos trusts to disclose claim information quarterly and respond to information requests from asbestos litigators, the report related. We can't wait to hear the objections from opponents. ASBESTOS UPDATE: Winchburg Asbestos Disposal Fears are Baseless --------------------------------------------------------------- The Linlithgow Gazette reported that grave concerns have been sparked in Winchburgh after asbestos removal fears have surfaced as new homes are built. Acccording to the report, the Winchburgh development is one of the UK's largest mixed use projects, with the first phase of 550 homes being built over five separate plots. The first has been secured by Barratt and Miller homes, currently building on site. But Raymond McCabe, chair of Winchburgh Community Council, believes the developers have put locals at risk, the report said. He said: "I was informed around Christmas by members of the community that asbestos was discovered where the house building is now taking place, and that it was moved from the field to a storage area adjacent to Auldcathie Landfill. The asbestos was transported by dump trucks, uncovered, across a busy main road where traffic was stopped to allow them to cross. Loads were driven up a public right of way to the storage point. This continued for weeks, if not months." Raymond wants an investigation into what has been happening, and for the site to be locked down. But a spokesperson for Regenco Ltd, managers of the Winchburgh Development said the allegations had no foundation saying: "We have investigated these allegations in relation to the disposal of asbestos and there is absolutely no substance to them whatsoever. All operations on the Winchburgh Development are governed by strict processes and procedures all in line with all health and safety requirements." A Scottish Environment Protection Agency (SEPA) spokesperson said they were investigating. ASBESTOS UPDATE: Pittsburgh Corning Plan Order Revised ------------------------------------------------------ On May 16, 2013, Judge Judith Fitzgerald of the U.S. Bankruptcy Court issued a Memorandum Opinion and Interim Order confirming Pittsburgh Corning Corporation's Third Amended Plan of Reorganization, and provided interested parties the opportunity to file motions for reconsideration so that the Court could correct any typographical or scrivener's errors or any omissions or inaccuracies. Mt. McKinley Insurance Company and Everest Reinsurance Company and Certain Underwriters at Lloyd's, London and Certain London Market Insurers filed motions for reconsideration. A third motion for reconsideration was filed collectively by the Debtor, the Asbestos Creditors' Committee, the Future Claimants' Representative, Pittsburgh Plate Glass Company and Corning Glass Works. A hearing was held on May 23, 2013, and the Court, in a revised memorandum opinion dated May 24, 2013, revises in part the Interim Memorandum Opinion and Interim Order to correct typographical and scrivener's errors and to make certain of the changes requested by the parties. Any change requested in a motion for reconsideration not specifically referred to herein or in the Confirmation Order is, to the extent and in the form that a change requested by a party appears herein, accepted by the Court. In its motion for reconsideration Mt. McKinley argues that the PPG and Corning Trust Funding Agreements are not signed and therefore binding commitments to fund the Plan do not exist. However, the obligation to fund is dependent on entry of a final non-appealable order confirming the Plan, the Court pointed out. Thus, any commitment to fund is conditional on occurrence of that event and only those parties who do fund will receive the benefit of the channeling injunction, the Court said. Judge Fitzgerald ruled that Mt. McKinley is not harmed by the Plan. Despite its protestations to the contrary, its burdens are not increased and its rights under the subject insurance policies are not impaired, Judge Fitzgerald said. Mt. McKinley repeatedly argues the import of In re Global Indus. Technologies, Inc., 645 F.3d 201 (3d Cir. 2011) ("GIT"), and its applicability to Mt. McKinley's situation but the Plan does not increase Mt. McKinley's burdens as identified in GIT, Judge Fitzgerald said. The GIT Court opined that the insurer's "quantum of liability" may be affected as the result of what it perceived to be a huge increase in silica claims and its concern that they also may have alleged asbestos injuries, Judge Fitzgerald noted. Moreover, Judge Fitzgerald pointed out that, (1) the case does not involve silica at all; and (2) the number of asbestos claims against the Debtor has not "exploded" postpetition. A full-text copy of Judge Fitzgerald's Decision is available at http://is.gd/syn0hGfrom Leagle.com. About Pittsburgh Corning Pittsburgh Corning Corporation filed for Chapter 11 bankruptcy protection (Bankr. W.D. Pa. Case No. 00-22876) on April 16, 2000, to address numerous claims alleging personal injury from exposure to asbestos. At the time of the bankruptcy filing, there were about 11,800 claims pending against the Company in state court lawsuits alleging various theories of liability based on exposure to Pittsburgh Corning's asbestos products and typically requesting monetary damages in excess of $1 million per claim. The Hon. Judith K. Fitzgerald presides over the case. Reed Smith LLP serves as counsel and Deloitte &Touche LLP as accountants to the Debtor. The United States Trustee appointed a Committee of Unsecured Trade Creditors on April 28, 2000. The Bankruptcy Court authorized the retention of Leech, Tishman, Fuscaldo&Lampl, LLC, as counsel to the Committee of Unsecured Trade Creditors, and Pascarella& Wiker, LLP, as financial advisor. The U.S. Trustee also appointed a Committee of Asbestos Creditors on April 28, 2000. The Bankruptcy Court authorized the retention of these professionals by the Committee of Asbestos Creditors: (i) Caplin&Drysdale, Chartered as Committee Counsel; (ii) Campbell & Levine as local counsel; (iii) Anderson Kill &Olick, P.C. as special insurance counsel; (iv) Legal Analysis Systems, Inc., as Asbestos-Related Bodily Injury Consultant; (v) defunct firm, L. Tersigni Consulting, P.C. as financial advisor, and (vi) Professor Elizabeth Warren, as a consultant to Caplin&Drysdale, Chartered. On Feb. 16, 2001, the Court approved the appointment of Lawrence Fitzpatrick as the Future Claimants' Representative. The Bankruptcy Court authorized the retention of Meyer, Unkovic& Scott LLP as his counsel, Young Conaway Stargatt& Taylor, LLP, as his special counsel, and Analysis, Research and Planning Corporation as his claims consultant. In 2003, a plan of reorganization was agreed to by various parties-in-interest, but, on Dec. 21, 2006, the Bankruptcy Court issued an order denying the confirmation of that plan, citing that the plan was too broad in addressing independent asbestos claims that were not associated with Pittsburgh Corning. On Jan. 29, 2009, an amended plan of reorganization (the Amended PCC Plan) -- which addressed the issues raised by the Court when it denied confirmation of the 2003 Plan -- was filed with the Bankruptcy Court. As reported by the TCR on April 25, 2012, Pittsburgh Corning Corp., a joint venture between Corning Inc. and PPG Industries Inc., filed another amendment to its reorganization plan designed to wrap up a Chapter 11 begun 12 years ago. The Company's balance sheet at Sept. 30, 2012, showed $29.41 billion in total assets, $7.52 billion in total liabilities and $21.88 billion in total equity. ASBESTOS UPDATE: Horror Movie Right in the CBD ---------------------------------------------- The Australian News reported that the owner of Piccadilly Cinemas has branded the heritage-listed building "totally unsafe" after two ceiling collapses that "narrowly missed the customers." But operator Cyril Watson, who is in dispute with the building's owner, has refused to shut the doors on the business, which has also been ordered by WorkSafe to undertake a risk assessment on its "flaking" asbestos roof, the report said. The 66-year-old veteran cinema operator admitted to The Sunday Times he was afraid the ceiling would cave in again the next time it rained heavily because the old roof and leaking box gutters had not been replaced. A section of the ceiling in Cinema 1 last collapsed in June last year. In a recent statement prepared by Mr Watson for his lawyer, he said: "Now it is totally unsafe to operate this cinema at all. "The ceiling has collapsed in different parts on two different occasions in Cinema 1 whilst people have been watching films. When it does drop it is like a bomb going off. Each time it has narrowly missed the customers sitting in the cinema. "When the winter starts again, which is not very far away, the cinema will flood again . . . If the ceiling falls on top of anybody they will be killed as it is a very heavy ceiling . . . The ceiling has been fixed twice to a very good standard . . . It is the roof and box gutters that need fixing and sealing, not the ceiling." In the statement, Mr Watson complained that rain also resulted in water running down the walls "like a waterfall, which goes over electrical plugs, which we have to tape up to stop the water fusing all the lights." He complained that films had been destroyed by water damage. He also acknowledged he had been warned by a roof plumber that the asbestos sheeting was in dangerously poor condition. "My electrician will not go into the ceiling to change the light bulbs because of the asbestos fibres floating around," he said. The Sunday Times has also seen a letter sent by Mr Watson's lawyer in February to the agents for the landlord reminding them urgent attention was needed to waterproof the roof and "safeguard and suppress the asbestos materials used in the roof". The matters had been earlier raised in a face-to-face meeting last November. In a separate interview, Mr Watson accused the overseas owners of the Piccadilly Arcade of letting the art deco building go to "rack and ruin". He said he hadn't closed the doors on the cinema because he feared being sued by the owners for walking out on the lease. For months he has been locked in a dispute with the owners over rent arrears close to $400,000 and Mr Watson's claim for compensation for loss of business when the cinema was closed for numerous repairs. He is also challenging "excessive" overheads he claims he and other arcade tenants are charged. The lease for the Piccadilly, which opened in 1938 and is considered the grand dame of cinemas in Perth, was taken up by Mr Watson in March 2005. The previous tenant was notorious paedophile Dennis John McKenna, who left the cinema in 2004 with large debts and a trail of angry creditors, including film distributors. Worksafe inspectors visited the Piccadilly last week and issued 14 improvement notices. One notice stated the cinema was in breach of Occupational Safety and Health Regulations for failing to have an asbestos register. Mr Watson has been given until August 9 to complete an identification and risk assessment on the asbestos and to record all information on an onsite register. It's another headache for the cinema operator, who had to deal with a costly bedbug infestation at the cinema last year. More recently, pest controllers were brought back to deal with rodents. A spokesman for the arcade owners told The Sunday Times there were plans to replace the roof, but not immediately. "As a result of this building being heritage-listed we had a conservation architect prepare a conservation plan for the building which was completed in April 2012," the spokesman said. "Since that time we have had preliminary plans prepared by the conservation architect for the arcade and theatre to understand what can and cannot be done to the building. In respect of the asbestos roof . . . sheet asbestos roofing is a stable form of asbestos in particular when painted. Many schools in WA have this form of roofing. That is not to say we will not be replacing it when we renovate the arcade, but it is not at the point where it should be replaced immediately." But WA Asbestos Diseases Society president Robert Vojakovic called on the Health Department urgently to investigate the situation in order to give cinema workers and patrons some peace of mind. After studying close-up photos of the cinema roof Mr Vojakovic said it was in a very poor state and appeared to be "friable" in places. "If the dust can reach the cinema then there is a risk," he said. "The Department of Health or Perth City Council need to have a look at the situation. It's a public facility; it must be free of risk." Roof plumber Rick Rogers, the owner of Millenium Plumbing and Roofing, inspected the roof last year and found it was flaking. He had warned the cinema the roof was dangerous and needed replacing. "It is in poor condition, it's quite flaky," he said. "My old man died of asbestosis at 48. You are talking to a guy who is pretty paranoid." A Worksafe spokeswoman said inspectors didn't see any cause for concern on the inside of the cinema because the asbestos roof is on the outside of the building. A Department of Health spokeswoman said its officials were unaware of any issues at the Piccadilly. "Issues regarding the management of asbestos in the workplace should be directed to the Department of Commerce (WorkSafe WA)," she said. "When required, the department will assist WorkSafe by providing toxicology advice and public health risk assessments." ASBESTOS UPDATE: Jarrow MP Claims Mesothelioma Bill Denies Justice ------------------------------------------------------------------ Chronicle Live reported that hundreds of mesothelioma victims will be denied justice under new legislation, it is claimed. According to the report, the Mesothelioma Bill, which had its second reading in Parliament, was designed to make it easier for people with the killer asbestos cancer to get compensation. But the TUC Northern Asbestos Support and Campaign Group in Wallsend said it will leave out many people while short-changing others. GMB union organiser Michael Blench, who is chair of the group, said: "The Government has received a fair bit of praise since it published the Mesothelioma Bill. It's understandable that those diagnosed with this terrible disease, and the loved ones of those who have died, would welcome any initiative aimed at helping victims to recover compensation. "But it's important to look at the detail of the bill and to see that it is not the act of benevolence it has been portrayed as." As reported in The Chronicle, the Government announced plans for a new law allowing victims to claim compensation even if they cannot trace a solvent employer or insurer. But this will only apply to people who were diagnosed with the condition later than July last year. Hundreds of people diagnosed before that date who are still unable to trace their employer's insurer will lose out ? while those who can claim will receive compensation which falls 30% below the average, it is claimed. Jarrow MP Stephen Hepburn has already criticised the bill in Parliament, claiming victims are being denied compensation because of "leeches in the insurance industry". And Chris Knighton, who runs the Mick Knighton Mesothelioma Research Fund in Wallsend, labelled the measures "a drop in the ocean". She said: "People will benefit from compensation, but it leaves an awful lot of others who still wont be compensated because of the time limit. It is a good start, but it doesn't go far enough and there is a long way to go yet." Now, the TUC group has called for the bill to be amended so it applies to those diagnosed as far back as 2010 - when consultation on the bill began. And it wants the bill to ensure that the amount of compensation paid to mesothelioma sufferers is 100%. "The Government delayed announcing the scheme for over two years while it worked on a deal with the insurance industry which would protect it from having to pay compensation in full," added Mr Blench. "That delay means hundreds of people will be excluded. "And there is no excuse for the scheme paying less than 100% compensation. The victims should not be short-changed because the insurers lost or destroyed their policies." Ian McFall, head of asbestos litigation at Newcastle's Thompsons Solicitors, said: "Unless the bill is improved to provide better protection and full compensation for victims and their families it will let insurers off the hook for losing or destroying the policies they profited from for decades." ASBESTOS UPDATE: Christchurch Call for Tighter Rules on Asbestos ---------------------------------------------------------------- Olivia Carville, writing for Stuff.co.nz, reported that officials are calling for tighter health and safety regulations for the Christchurch rebuild after asbestos-contaminated material rained down into a tradesman's face and a bureaucratic muddle left authorities in the dark. According to the report, a young plasterer, standing on a ladder and wearing no protective gear, used a paint scraper to unknowingly remove material riddled with asbestos from a textured ceiling in Cashmere and a government department is questioning why it was not told. The companies involved both claim to have acted within safety protocols. The incident has unveiled a worrying loophole in which tradespeople are being sent into earthquake-damaged homes to work with potentially contaminated material before it is tested. The Ministry of Business, Innovation and Employment (MBIE) is calling for all employers to test for asbestos before sending workers on-site and said it would be making "preliminary inquiries" into the Cashmere incident. Exterior building firm Goleman, which is at the centre of a government investigation into the handling of asbestos- contaminated material at Christchurch Hospital, was the contractor appointed to manage the Cashmere job on behalf of Fletcher EQR. Former Goleman employee Evan Hyett, 52, witnessed a young plasterer scraping ceiling material containing friable asbestos while wearing no protective gear at the site last October. "He had it in his eyes, in his mouth and all over his face," Hyett said. Goleman general manager Luke Goleman said employees raised concerns and a sample of the material was tested and came back as positive for white asbestos. Work on the site halted immediately and Fletchers was informed, he said. "The issue was dealt with in full accordance with Fletcher EQR's health and safety guidelines." Goleman did not tell the ministry because it was a subcontractor to Fletchers, he said. A Fletchers spokesman said testing showed asbestos was present in the building material but not on the workers' clothing or equipment. The ministry was not informed because "there is no compulsory requirement for the company(ies) involved to notify MBIE". However, MBIE Canterbury Rebuild health and safety programme director Kathryn Heiler said the ministry should have been told "when the employer became aware that asbestos may have been present in the workplace". Under the 1998 Asbestos Regulations, the handling, demolition or maintenance of any part of a building containing friable asbestos requires notification to MBIE. "This situation highlights the need for employers and employees to be aware that repair, maintenance and building work being done in Canterbury may contain asbestos. Hazards should be identified and appropriate controls put in place before any work commences to ensure it is undertaken safely." The emphasis should be on identifying asbestos before the work begins, Heiler said. Fletchers health and safety protocol states all damaged properties suspected of containing asbestos, or built between 1940 and 1990, require mandatory testing. The tests could be ordered by a Fletchers contract supervisor or the site contractor, a Fletchers spokesman said. Fletchers was aware of previous incidents where asbestos was found after work had begun on homes and the spokesman was not sure at what point asbestos tests were expected to be conducted. Canterbury District Health Board medical officer of health Dr Ramon Pink said the health risks of dealing with white asbestos mostly centred on the long-term exposure to future homeowners, rather than the short-term exposure to tradespeople. Prolonged, chronic exposure can cause lung diseases, including cancer. Pink supported the Government's calls to test potentially contaminated material prior to workers being sent in. "If the risk of exposure is there, then we need to minimise it . . . it cannot be a retrospective thing." WORKERS RESIGN OVER ASBESTOS SCARE Contractors who raised the alarm over potentially exposing patients to asbestos at Christchurch Hospital are taking their employer to court for negligence. Exterior building firm Goleman was last week informed another two of its employees had quit over the asbestos saga and that they would be pursuing a personal grievance over the company's alleged health-and-safety breach. The contractors were exposed to white asbestos while working on the roof of the hospital's earthquake-damaged Parkside building in early April and raised public concerns over the way Goleman allegedly failed to warn its staff and put patients at risk to the hazardous material. The Press published the employees' concerns early this month. Two days after the story ran, industrial abseilers Liam Milner, 24, and Neil Silcock, 27, were summoned to a disciplinary meeting with Goleman for breaching their contracts by talking to the media. The meeting was held earlier this month and Milner and Silcock attended along with their lawyer, David Beck. They received no disciplinary action. Beck, of SB Law, wrote a letter to Goleman last week informing it that both Milner and Silcock were resigning and pursuing a constructive dismissal case against the firm. "They have decided to resign on the basis that they do not believe their employer can guarantee their health and safety," Beck said. The pair will be seeking distress damages for a loss of wages and good references for future employment. Goleman manager Luke Goleman said he could not comment as the incident was under investigation by the Government. Test results confirming the presence of asbestos on the hospital work site were obtained by the Canterbury District Health Board (CDHB) on April 2 and Goleman was advised to stop work immediately. The four contractors maintain they were not told about the risk and continued to wander through the hospital unknowingly wearing potentially contaminated material until Fletcher EQR shut the site down eight days later. ASBESTOS UPDATE: Fibro Contamination Hinders Buffalo Redevelopment ------------------------------------------------------------------ Kristen Griffin, writing for Mesothelioma.com, reported that asbestos contamination and rodents, along with a hefty price tag, are what stands in the way of a necessary redevelopment of an abandoned former Buffalo-area school that could potentially reinvigorate the community's struggling business district. According to the report, the Village of Silver Creek, nestled on the shores of Lake Erie and located just outside of Buffalo, New York, is currently examining plans to either redevelop the former school building into apartments or raze the structure completely to make room for brand new commercial development. However, the bigger picture remains that of economics: what is the best way to jumpstart the otherwise struggling business district? The abandoned, asbestos contaminated and rodent infested school is just the tip of the proverbial economic iceberg. Abandoned since 1979, the former school is a health threat in its current condition. Before any work or redevelopment begins, the building must be decontaminated, asbestos removed and rendered safe for contractors. Not surprisingly, the indoor air quality has been compromised. Breathing in air contaminated with small asbestos particles can lead to several serious, oftentimes, lethal medical conditions including asbestosis, lung cancer and mesothelioma cancer. Further, breathing in air heavy with rodent droppings also poses significant risks to respiratory health. According to Nick Piccolo, Mayor of the Village of Silver Creek, the cost with razing the school and preparing the property for a new build is roughly $4.5 million. Though investors are also eyeing the dilapidated school building for redevelopment into apartments, the cost of that project may be a hindrance to growth. Silver Creek is facing an upward economic battle on a more global scale. With large corporations threatening to shut down local operations, potentially irrevocably damaging the area economy, Silver Creek must look to the future. Perhaps the redevelopment of the former school is just the tipping point to inject necessary capital into the local economy that could lure additional investments from outside of the Village and spur investments by local business owners. ASBESTOS UPDATE: New Bill Will Help Asbestos Cancer Victims ----------------------------------------------------------- Newbury & Thatcham Chronicle reported that a Newbury solicitor has welcomed a new parliamentary Bill which will ensure compensation for victims of asbestos-related cancer. According to the report, if it becomes law it will be good news for Mesothelioma sufferers who in the past might have had trouble tracing their employer's insurers because of mistakes in records or a lack of contact details. Brigitte Chandler, from Charles Lucas and Marshall Solicitors in Bartholomew Street, has represented hundreds of sufferers and is glad people will receive justice at last, but she is disappointed the Government will only consider claims diagnosed after July 25 last year, the date it announced its intention to set up the scheme, the report said. Ms Chandler said: "It is particularly unfair to those diagnosed during the two years after the Government consulted on the proposals. We now hope the legislation reaches the statute book as soon as possible." She added: "This new Bill will ensure that many people who were previously denied access to compensation, because the insurance industry could not trace details of their employer's insurance policy, will now receive justice." The Mesothelioma Bill will compensate anyone diagnosed after last July, potentially thousands nationwide, but excludes anyone whose diagnosis was made before that. ASBESTOS UPDATE: NZ Gov't. Says Onus on Employers to Detect Fibro ----------------------------------------------------------------- Radio New Zealand News reported that the Government says it is up to employers to determine if hazards such as asbestos are present in a workplace before work begins. According to the report, contractors Liam Milner and Neil Silcock say they were exposed to asbestos on the roof of Christchurch Hospital and a co-worker was covered in the material while working at a house as part of the city's rebuild -- but nothing was done about it. Employment law specialist David Beck is representing the contractors who he says told their employer, Goleman Ltd, about asbestos falling onto a co-worker at a Cashmere house in October 2012, but were ignored, the report said. Mr Beck told the news agency that government regulations are not being enforced properly. "The regulatory framework of the Ministry of Business and Innovation is just hopelessly under-resourced and has not been very active in this area around the rebuild, particularly around asbestos-related claims. "They don't appear to have taken a very rigid approach to this." The Ministry of Business, Innovation and Employment said it is up to employers to identify such hazards before any work starts. The ministry's Canterbury rebuild health and safety programme director, Kathryn Heiler, says if work has already started when asbestos concerns are raised, then the work must stop and tests must be done to establish whether the substance is present or not. Fletcher Earthquake Recovery says it is investigating a workplace incident involving a contractor in the Canterbury home repair programme, but won't comment further until the investigation is finished. Continued inhalation of asbestos particles can cause terminal lung disease. ASBESTOS UPDATE: Lack of Training Possible in Asbestos Incidents ---------------------------------------------------------------- Newstalk ZB reported that the Canterbury Builders Association says it could be a case of a lack of training in assessing whether a building has an asbestos risk. According to the report, the Council of Trade Unions wants the contract between EQC and Fletcher Building reviewed after two serious asbestos workplace incidents in Christchurch. It was reported that two workers were dangerously exposed to the substance on Fletcher EQR sites after a failure to properly test for it, the report said. Canterbury Master Builders Association President Clive Barrington says its concerning, but it may come down to lack of training. He says some builders do need more training on how to identify asbestos, but there should be a mentality that if there's any doubt, test it. ASBESTOS UPDATE: School Board Considers Asbestos Issues in Schools ------------------------------------------------------------------ Colin McEwen, writing for Brecksville Patch, reported that the Brecksville-Broadview Heights School Board is considering some work at Chippewa Elementary School and at the middle school that would require about $120,000 in asbestos removal. According to school officials, the asbestos doesn't currently present a health hazard to students or staff, but law requires the district to -- very carefully -- remove the material during any renovation or demolition, the report related. "Many of the schools built in the 1950s used asbestos as a building material," Larry Tomec, the district's business manger, told the news agency. "Often when any renovations occur the asbestos has got to go." At Chippewa Elementary district officials are considering new lighting and complete ceiling -- which would automatically trigger asbestos abatement, expected to cost about $73,200, the report said. The middle school needs tile replacement, and the asbestos removal would cost an expected $44,630. "We are running new wiring in the ceilings for a PA system and computer/security networks," Tomec told the news agency. The board is expected the issue further at an upcoming meeting. ASBESTOS UPDATE: Greens Want Answers on ASIO HQ ----------------------------------------------- The Australian Associated Press reported that the Australian Greens are demanding answers from federal government about the "sorry saga" surrounding Canberra's new ASIO headquarters. According to the report, leader Christine Milne is calling for an inquiry into the construction of the spy agency's office, after revelations of espionage, cost blowouts and failure to pay contractors. "I think there can be a proper investigation, an independent investigation, into this sorry saga of the ASIO building," she told reporters in Canberra. An inquiry could also look at why asbestos at the site was not identified as part of standard planning processes, and which have partially led to a budget blowout of some $170 million, she told the news agency. "It's a legacy of the Howard government and it's been carried on under this government," Senator Milne said of the planning and construction process for the building. "This has ramifications at the top level for national security." Chinese hackers stole top secret blueprints to the building, which stands close to completion in the nation's capital, according to an ABC Four Corners report. This has raised concerns the building might have to be gutted and reconfigured because its security has been compromised. "Before we go stripping it and then doing something else, we need to get to the heart of how we got to this mess in the first place," Senator Milne said. Up to 100 subcontractors are believed to be awaiting payment from a managing contractor which has entered receivership. ASBESTOS UPDATE: Portsmouth Schools to Use Up Rest of Surplus Fund ------------------------------------------------------------------ Sarah Hutchins, writing for The Virginian-Pilot, reported that the hoarded construction fund that brought school officials under scrutiny should be empty by the end of the year, Superintendent David Stuckwisch told School Board members recently. According to the report, the board passed two resolutions to transfer money to the city for two projects: asbestos abatement at a preschool and the construction of additional bus bays at the city garage. Once that's completed, the fund will be nearly empty, Stuckwisch said. "That should clear up some of these issues we've had," the superintendent said. For years, school officials transferred millions in surplus funds into the account to pay for construction and maintenance projects without council approval. The fund became the subject of a grand jury investigation. A report, released in February, found that while school officials didn't act illegally, they did violate state and local legal requirements by carving out $52 million over several years for building projects instead of returning the money to the city at the end of each fiscal year. About $519,500 still in the fund will pay for asbestos removal and construction at Olive Branch Preschool Center. The school division had already approved a contract with a company to remove asbestos from the ceilings and replace them. The building's roof also needs patching, Stuckwisch said. Stuckwisch told the board that in "the spirit of openness and cooperation," the school division will transfer money for the project to the city, which will then pay the contractor out of its budget. The division will retain control of the project, he said. During a board meeting, two members voted against the resolution to transfer money for the Olive Branch project. Keith Nance Sr. and Claude Parent voiced concerns that, after the transfer, the city might not pay the contractor. "I don't feel comfortable with this because we are legally responsible for this work, but somebody else is paying the bill," Parent said. Nance put it more simply: "I don't trust these people." The resolution passed with a 5-2 vote. "This is the correct way to move forward with this project," Stuckwisch said. "I have no qualms the city will pay for this project." The division also will transfer $590,000 to the city to pay for the new bus bays. Stuckwisch said the city will take over bus service, saving the division about $86,000 a year. The division will pay the city $759,377 for annual maintenance. In previous years, money from the construction fund was used to build gyms and renovate parking lots at Churchland and James Hurst elementary schools, Stuckwisch said. One of the most expensive projects was renovating Churchland Primary, which got a new gym, library, geothermal heating system and bathrooms, he said. The construction fund and grand jury report have haunted school officials, especially as the board and the council worked to finalize a budget for next year. The council ultimately voted to cut funding to the schools. During a recent budget discussion, Stuckwisch told board members the division will be able to undertake only emergency repair and maintenance projects next year. ASBESTOS UPDATE: NEIC Appeal from Allocation Decision Denied ------------------------------------------------------------ The Appeals Court of Massachusetts, Suffolk, issued an order that answers the central issue whether the pro rata time-on-the-risk allocation method adopted by the Supreme Judicial Court in Boston Gas Co. v. Century Indem. Co., 454 Mass. 337 (2009) (Boston Gas), should be applied to determine the extent of indemnity coverage owed by Liberty Mutual Insurance Company for claims brought against its insured, New England Insulation Company, Inc., for asbestos-related injuries. In the case NEW ENGLAND INSULATION COMPANY, INC., vs. LIBERTY MUTUAL INSURANCE COMPANY, NO. 11-P-1617 (Mass. App.), NEIC appealed from the dismissal of its complaint against Liberty, which sought damages and declaratory relief on the premise that the Boston Gas allocation method was not applicable because of differences in wording between the Liberty policies and those construed in Boston Gas. A judge of the Superior Court concluded that those differences were not significant and that Boston Gas was controlling. Accordingly, the judge dismissed the complaint for failure to state a claim upon which relief may be granted. NEIC took an appeal from the ensuing judgment, but argued error only in the judge's determination that Liberty did not breach its contractual duty to indemnify by deciding, in June, 2010, that it would apply the Boston Gas allocation method to future indemnity payments and allocate shares of losses to NEIC for periods when it did not have coverage. The Appeals Court affirmed the Superior Court's decision holding that NEIC offers no persuasive reason why the pro rata method articulated in Boston Gas should not control in the instant case. Insofar as they bear on the question of allocation, the terms of the Liberty policies are not meaningfully different from the terms of the policies at issue in Boston Gas, the Appeals Court said. Like the policies analyzed in Boston Gas, the Liberty policies unambiguously limit the promised "all sums" coverage to injuries that occur "during the policy period," thus supporting the use of pro rata allocation, the Appeals Court noted. Furthermore, the public policy considerations relied upon in Boston Gas are equally relevant in the instant case. ********* S U B S C R I P T I O N I N F O R M A T I O N Class Action Reporter is a daily newsletter, co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Noemi Irene A. Adala, Joy A. Agravante, Valerie Udtuhan, Julie Anne L. Toledo, Christopher Patalinghug, Frauline Abangan and Peter A. Chapman, Editors. Copyright 2013. All rights reserved. ISSN 1525-2272. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The CAR subscription rate is $775 for six months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Peter A. Chapman at 215-945-7000 or Nina Novak at 202-241-8200. * * * End of Transmission * * *