Securities Class Action Certified Against Halliburton Regarding Asbestos Disclosures

Halliburton now faces a securities class action regarding its alleged failure to adequately disclose its asbestos liabilities and risks. The case was in the news last year when the US Supreme Court overturned the Fifth Circuit and held that it had improperly applied class action rules to reject the class. The issues related to proof of loss causation.  LAW360 (subscription required) reports the trial judge has entered a decision to certify the class - the opinion does not go into much detail due, apparently, to the lengthy prior history. 

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Matt Peacock's YouTube Story on Asbestos Use in India - An Example of a Useful Story Made Less Useful by Flawed Factual Assertions

Matt Peacock has been covering asbestos use issues for many years from a consumer point of view. Now on YouTube is a 25 minute video on asbestos use in India. The story also is on AlJazeera.

The story is somewhat useful for presenting issues about continuing asbestos use. Unfortunately, the story also highlights the reality that discussions about "toxic risks" are too often conducted in short-hand terms and that facts are often distorted. Thus, the "pro-consumer" line of the story is impaired flawed by a Canadian scientist  failing to acknowledge that science does draw lines between the disease-causing potential of different types of asbestos fibers - the lines are real. On the other hand, "industry spokespersons" also fail to state accurate facts about asbestos risks and resulting injuries. The lack of accuracy makes it harder for governments, businesses and consumers to make good choices. 

Some Governments Focus Research Monies on Mesotheliomas

Victims of mesothelioma suffer terribly, and insurers and  companies have collapsed financially because of the costs of monies paid to victims and to defense lawyers, not to mention insurance coverage lawyers and bankruptcy lawyers.  And, of course, governments end up picking up many medical costs.  Since past inhalations of asbestos cannot be undone, a good answer would be to find ways to cure - or at least manage - mesothelioma tumors. To that end, some governments are funding research focused on understanding the pathways that produce mesothelioma, and thus trying to find ways to cure, manage or prevent mesothelioma tumors. The most recent example is a $3.5 million grant by the Cancer Institute of New South Wales to researchers focused on mesothelioma.

One wonders when insurance companies will start direct investment  in cancer research. Hundreds of thousands of mesotheliomas are predicted to occur around the globe over the next forty years. Since insurance companies live for return on investment, one wonders if they've done a decision tree analysis of the risk and return possibilities for finding better, cheaper medical paths to better outcomes for the victims. 

The NSW press release includes the following: 

 

"Almost $7 million has been granted to two eminent research groups, in the latest injection from the NSW Government's translational cancer research program, the Minister for Health and Minister for Medical Research, Jillian Skinner, said today.

The funding is in addition to the $30 million over 5 years already provided by the NSW Government for this hugely beneficial program.

This is part of the NSW Government's record investment to medical research - a massive $105.6 million in 2011-12.

The grants, administered by the Cancer Institute of NSW, have been awarded to the Asbestos Diseases Research Institute (ADRI) and the ANZAC Research Institute, based at the Concord Repatriation General Hospital in Sydney.

The group led by Professor Nico van Zandwijk, director of the Asbestos Diseases Research Institute, has been awarded $3.5 million to improve outcomes for people with asbestos-related cancer and their families." 

 

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Asbestos Health Risks for South African Diamond Miners - 2011 Medical Article

A  2011 medical journal article in Annals of Occupational Hygiene describes possible or actual asbestos health risks in diamond miners in South Africa. The full text of the article is provided at no charge at the link; the abstract states: 

 

"Objectives: Asbestos is associated with South African diamond mines due to the nature of kimberlite and the location of the diamond mines in relation to asbestos deposits. Very little is known about the health risks in the diamond mining industry. The objective of this study was to explore the possibility of asbestos exposure during the process of diamond mining.

Methods: Scanning electron microscopy and energy-dispersive X-ray spectroscopy analysis were used to identify asbestos fibres in the lungs of diamond mine workers who had an autopsy for compensation purposes and in the tailings and soils from three South African diamond mines located close to asbestos deposits. The asbestos lung fibre burdens were calculated. We also documented asbestos-related patholological findings in diamond mine workers at autopsy.

Results: Tremolite–actinolite asbestos fibres were identified in the lungs of five men working on diamond mines. Tremolite–actinolite and/or chrysotile asbestos were present in the mine tailings of all three mines. Mesothelioma, asbestosis, and/or pleural plaques were diagnosed in six diamond mine workers at autopsy.

Conclusions: These findings indicate that diamond mine workers are at risk of asbestos exposure and, thus, of developing asbestos-related diseases. South Africa is a mineral-rich country and, when mining one commodity, it is likely that other minerals, including asbestos, will be accidentally mined. Even at low concentrations, asbestos has the potential to cause disease, and mining companies should be aware of the health risk of accidentally mining it. Recording of comprehensive work histories should be mandatory to enable the risk to be quantified in future studies."

 

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Sue First - Ask Questions Later - 199 Defendants in a New Asbestos Case in West Virginia

Some plaintiff's firms ask questions first and sue only a limited number of defendants (10-20) in asbestos cases. Sometimes there may even be a case that reasonably includes something around 50 defendants. But then there are other cases where the method is to sue "all the usual suspects" and then ask questions later. Here's an example taken verbatim from the West Virginia Record:

 

 

"Man names 199 defendants in asbestos suit 
1/3/2012 1:28 PM By Kyla Asbury  - Kanawha Bureau

 

CHARLESTON -- A man is suing 199 companies he claims are responsible for his father's lung injury and death.

Larry D. Westfall was a member of the Laborers Union Local No. 639 and worked throughout West Virginia and elsewhere, according to a complaint filed Dec. 7 in Kanawha Circuit Court.

Steven D. Westfall claims his father was diagnosed with asbestosis and mesothelioma, from which he died.

The defendants failed to exercise reasonable care to warn Larry Westfall of the danger to which he was exposed by use of the asbestos-containing products, according to the suit.

Steven Westfall claims the defendants failed to inform his father of what would be safe and sufficient apparel for a person who was exposed to or used the asbestos-containing products.

The defendants also failed to inform Larry Westfall of what would be safe and proper methods of handling and using the asbestos-containing products, according to the suit.

Steven Westfall is seeking compensatory and punitive damages. He is being represented by David P. Chervenick, Bruce E. Mattock, Leif J. Ocheltree and Scott S. Segal.

The case has been assigned to a visiting judge.

The 199 defendants named in the suit are 20th Century Glove Corporation of Texas; 4520 Corp., Inc.; Air & Liquid Systems Corporation; Ajax Magnethermic Corporation; AK Steel Corporation; Alliance Machine Company; Allied Glove Corporation; American Optical Corporation; Ametek, Inc.; Anderson Greenwood & Co.; Aristech Chemical Corporation; Armstrong International, Inc.; Armstrong Pumps, Inc.; Ashland, Inc.; Atlas Industries, Inc.; Aurora Pump Company; Bayer Corporation; Bayer Cropscience, LP; Beazer East, Inc.; Bechtel Corporation; Borg-Warner Corporation; BP Amoco Chemical Company; BP Products North America, Inc.; Brand Insulations, Inc.; Burnham Holdings, Inc.; Cabot Corporation; Cameron International Corporation; Canadianoxy Offshore Production Company; Cashco, Inc.; Catalytic Construction Company; CBS Corporation; Certainteed Corporation; Chevron U.S.A., Inc.; Cleaver-Brooks, Inc.; Columbia Paint Corp.; Columbian Chemicals Company; Columbus McKinnon Corporation; Cooper Industries, Inc.; Copes-Vulcan, Inc.; Coppus Turbines; Corbesco, Inc.; Crane Company, Inc.; Crown, Cork & Seal Company (USA), Inc.; Cyprus Amax Minerals Company; Dana Corporation; Degussa Corporation; DeZurik, Inc.; Dow Chemical Company; Dravo Corporation; E.I. Du Pont De Nemours & Company; Eaton Corporation; Eichleay Corporation; the Fairbanks Company; Fairmont Supply Company; Flowserve U.S., Inc., and its Byron Jackson Pump Division; Flowserve U.S., Inc., f/k/a Durametallic Corp.; Flowserve U.S., Inc., a/k/a Flowserve FSD Corporation; Flowserve U.S., Inc., as successor to Edward Valves, Inc.; Flowserve U.S., Inc., as successor to Valtek International; Flsmidth, Inc.; Flsmidth Dorr-Oliver Eimco, Inc.; Flsmidth Salt Lake City, Inc.; Fluor Constructors International; FMC Corporation; Foseco, Inc.; Foster Wheeler, LLC; the Gage Company; Gardner Denver, Inc.; General Electric Company; General Refractories Company; Goodrich Corporation; the Goodyear Tire & Rubber Company; Goulds Pumps, Inc.; Greene Tweed & Co.; Grinnell, LLC; Gulf Oil Corporation; H.E. Neumann Company; Hedman Mines, LTD.; Hercules Chemical Company, Inc.; Hinchliffe & Keener, Inc.; Hoechst Celanese Chemical Group, Inc.; Honeywell International, Inc.; Howden North America, Inc.; Huntington Alloys Corporation; Huntsman International, LLC; IU North America, Inc.; IMO Industries, Inc.; Industrial Holdings Corporation; Ingersoll-Rand Company; Insul Company, Inc.; ITT Corporation; J.H. France Refractories Company; Jabo Supply Corporation; Jacobs Engineering Group, Inc.; John Crane, Inc.; Joseph T. Ryerson & Son, Inc.; Joy Technologies, Inc.; Katy Industries, Inc.; Kentile Floors, Inc.; Lockheed Martin Corporation; M.S. Jacobs & Associates, Inc.; Magnetek, Inc.; Mallinckrodt, LLC; Manitowoc Company, Inc.; McCann Shields Paint Company; McCarls, Inc.; McJunkin Redman Corporation; Meadwestvaco Corporation; Metropolitan Life Insurance Company; Milton Roy Company; Mine Safety Appliance, Inc.; Minnotte Contracting Corporation; Mobil Corporation; Monongahela Power Company; Morgan Engineering Systems, Inc.; Mueller Steam Specialty; Nagle Pumps, Inc.; National Services Industries, Inc.; Nitro Industrial Coverings, Inc.; O.C. Keckley Company; Occidental Chemical Corporation; Oglebay Norton Company; Osram Sylvania, Inc.; Owens-Illinois, Inc.; P&H Mining Equipment, Inc.; Parker-Hannifin Corp.; Parker-Hannifin Corporation; Peerless Industries, Inc.; Pennzoil-Quaker State Company; Pfaff and Smith Builders Supply Company; Pharmacia Corporation; Plotkin Brothers Supply, LLP; Pneumo Abex Corporation; Potomac Edison Company; Power Piping Company; Powermaster Pacific Products; PPG Industries, Inc.; Premier Refractories, Inc.; Rchnewcoil, LLC; Reading Crane; Research-Cottrell, Inc.; Rhone-Poulenc AG Company, Inc.; Riley Power, Inc.; Robinson Fans, Inc.; Rockwell Automation, Inc.; Roper Pump Company; Rust Constructors, Inc.; Rust Engineering & Construction, Inc.; Safety First Industries, Inc.; the Sager Corporation; Saint-Gobain Abrasives, Inc.; Schneider Electric USA, Inc.; Seco/Warwick Corporation; Seegott, Inc.; Selkirk Corp.; Shell Oil Company; Simakas Company, Inc.; S.P. Kinney Engineers, Inc.; Spirax Sarco, Inc.; SPX Cooling Technologies, Inc.; Sterling Fluid Systems (USA), LLC; Sullair Corporation; Sunbeam Products, Inc.; Sundyne Corporation; SVI Corporation; Taco, Inc.; Tasco Insulation, Inc.; Team Industrial Services, Inc.; Townsend & Bottum, Inc.; Trane U.S., Inc.; Trans-Pumps, Inc.; Trans-Pumps, Inc. of Pittsburgh; UB West Virginia, Inc.; Unifrax Corporation; Union Carbide Corporation; United Conveyor Corporation; United States Steel Corporation; Universal Refractories Corporation; Viacom, Inc.; Viking Pump, Inc.; Vimasco Corporation; Virginia Electric and Power Company; Waco, Inc.; Warren Pumps, Inc.; Washington Group International; Waste Management, Inc.; Watson McDaniel Company; Weil-McLain Company; West Penn Power Company; Westinghouse Airbrake and/or Wabco; Whiting Corporation; the William Powell Company; WTI Rust Holdings, Inc.; Wyeth Holdings Corporation; Yarway Corporation; the Young Group, LTD.; and Zurn Industries, LLC.

Kanawha Circuit Court case number: 11-C-2181"

 

 

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ACI's Asbestos Litigation Seminar - January 26 -27th- Philadelphia - Yours Truly Speaking on Asbestos Bankruptcy

The new year brings new seminars, and I'm speaking at one of them on one of my favorite topics - asbestos bankruptcy issues. The American Conference Institute's asbestos seminar is broad ranging, and includes many strong speakers - the agenda and registration are at the web site.  As described below, attendees can save 1/3 by signing up by Thursday. 

Although ACI is rather weighted towards defense-side speakers, this year's event includes some plaintiff's lawyers from active plaintiff's firms. Plaintiff's firms drive the litigation, so it's always useful to hear the thoughts they are willing to share. Set out below are more specifics on the plaintiff's lawyers in particular and the seminar in general.  

 

11:15 View From the Plaintiffs’ Bar on Litigating Asbestos Claims

Benjamin P. Shein
Lead Attorney
Shein Law Center, Ltd.

Vincent L. Greene IV
Member
Motley Rice LLC

Joseph W. Belluck
Founding Partner
Belluck & Fox, L.L.P.

  • Pursuing non-traditional defendants
  • Innovative discovery techniques
  • How federal and state reforms will impact plaintiff ’s attorneys
  • Why are certain cases moving to trial? Identifying the factors that determine which case go to verdict
  • The migration of claims: where they are going and why?
  • An analysis of notable verdicts
  • What are the most commonly paid claims?
  • What is the future of non-malignant claims?
  • Changing demographics: the increase in very old and very young mesotheliomas

 

 

ACI’s 12th Annual Advanced Forum on

Asbestos Claims & Litigation

 

Thursday, January 26 to Friday, January 27, 2012
The Union League, Philadelphia, PA
ACI’s 12th Annual Asbestos conference is an unparalleled opportunity to get up to speed with the new claimants, targets, jurisdictional hot spots, and science while networking with scores of in-house counsel, claims handlers and administrators, and risk managers
 

The defense of asbestos claims and litigation continues to evolve as million dollar verdicts are holding steady around the nation. In just the last 6 months alone, million dollar runaway verdicts have shaken the industry: retired plumber wins $41M in California asbestos case,  NJ top court shoots down $7M asbestos appeal, $25M suit over reinsurance coverage tied to asbestos litigation….and many more. 

This Thursday (January 5) is your last chance to register and save $400 of the full third tier price! Tuition rate increases from $1895 to $2295 starting January 6 - REGISTER TODAY

Attend ACI's 12th Annual Asbestos Claims and Litigation Conference and, in addition to unparalleled networking opportunities, you will come away with up-to-the-minute insights and expert advice for:

  • Bankruptcy filings, confirmations & estimations and the Transparency Between Bankruptcy Trusts and Tort Litigation
  • Asbestos Medicine: The evolution of the medical issues and how the changes affect emerging causation law and Daubert/Frey challenges - "Every Fiber," Low Dose, Encapsulation, Mesothelioma, Lung Cancer and beyond
  • The new hot defendants: The latest on liabilities for premises owners and contractors and the growth of bystander and take home exposure claims
  • The Navy Cases: bolstering your case from discovery through trial
  • Settlement approaches and strategies on countering value inflation due to decreasing viable defendants
  • Developing and herding qualified expert witnesses and then maximizing the deposition once you do

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Internet Marketing - New York Lawyers Seeking Brazilian Brazilian Navy Veterans Exposed to Asbestos Onboard U.S. Warships Sold to Brazil

The Internet enables global marketing for lawsuits arising from asbestos. Thus, a New York law firm (Rudolph F.X. Migliore, P.C.) uses web site listings and the firm's web site to seek out veterans of the Brazilian navy. The veterans are sought because asbestos was widely used on U.S. Navy ships. Indeed, many would say that exposures onboard ships have produced many of the diseases that have bankrupted various manufacturers. According to the advertising, Brazil's navy included several former US warships. 

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Australia's High Court Allows Mesothelioma Recovery Despite the Absence of Supporting Epidemiology

As asbestos litigation continues its global growth,  Australia's highest court issued a December 14, 2011 opinion ruling on evidentiary and causation issues in a mesothelioma case.  The outcome has been summarized by the Curwood firm,  an Australian firm which represents insurers, among others.  The short version of the summary is immediately below - the longer version is pasted further below. The summary below should soon be on the Curwood's website under case notes

The issues arise in the context of litigation against former James Hardie entities which sold automotive brake linings for many years, among other products.  Some former Hardie entities are now part of  the Asbestos Injuries Compensation  Fund - the website is here, and some corporate background is here.  

Curwood's summary is set out below:

"Implications

The decision has affirmed the proposition that all exposure to asbestos may be regarded as being capable of causing mesothelioma, creating a greater challenge for defendants in successfully disputing liability on the grounds of causation in low-dose exposure matters.

As observed in the Curwoods' Case Note on the Court of Appeal decision, the Courts have found that there was sufficient evidence available by 1953 to demonstrate that there was a risk of serious injury arising from exposure to asbestos in an industrial setting (including motor mechanics handling asbestos brake pads) over prolonged periods.

 ____________________________________________________________________________

Australia: High Court adopts cumulative effect theory and rejects single fibre theory for mesothelioma caused by exposure to asbestos brake linings
Curwoods Case Note

24 December 2011
Article by Andrew Spearritt  and David Chong

High Court of Australia1

In Brief

The High Court found that there was sufficient evidence to justify a finding by the Dust Diseases Tribunal of NSW that a motor mechanic's exposure to asbestos brake linings caused Mr Booth's mesothelioma notwithstanding conflicting epidemiological studies.

Background

At the age of 71 years, John William Booth (plaintiff) developed the fatal condition of mesothelioma arising out of his exposure to asbestos. Throughout the course of his life, the plaintiff was exposed to asbestos in both a domestic and occupational capacity. His occupational exposure to asbestos occurred between 1953 and 1983 whilst working as a motor mechanic and whilst handling brake linings which contained asbestos.

The plaintiff commenced proceedings in the Dust Diseases Tribunal of New South Wales against the two manufacturers/suppliers of the asbestos brake linings to which he was exposed; Amaba Pty Limited and Amaca Pty Limited (defendants).

On 10 May 2010, Curtis J delivered judgment in favour of the plaintiff in the amount of $362,640 plus costs.

The defendants filed proceedings in the Court of Appeal seeking to overturn findings made by Curtis J in respect to liability and damages but were unsuccessful. The High Court then granted the defendants special leave to appeal on limited grounds.

Court of Appeal Decision2

The 17 separate grounds of appeal are summarised as follows:

  • Whether expert evidence called by the plaintiff should have been admitted;
  • Whether general and specific causation was established;
  • Whether the injury to the plaintiff was foreseeable;
  • Whether the defendants breached their duty of care to the plaintiff; and
  • Whether a causal link was established between the breach of duty of care and the injury.

Basten JA, with whom Beazley JA and Giles JA both agreed, delivered a comprehensive judgment dismissing the appeal on all grounds.

The strongest objection taken by the defendants was that the trial judge failed to apply the correct legal test concerning the question of causation. The defendants argued that Curtis J failed to apply the "but for" test on causation and therefore misapplied the test referred to in Bonnington Castings Ltd v Wardlaw3 and Amaca v Ellis4 that is, "what is a material contribution must be a question of degree. A contribution which comes within the exception de minimis non curat lex is not material, but I think that any contribution which does not fall within that exception must be material."5

Basten JA stated that the authorities did not support the proposition that Curtis J misapplied the general law test of causation.

Basten JA found that although the evidence in 1953 may not have demonstrated a significant risk to persons exposed to low levels of asbestos dust on rare occasions, such as in the course of home renovations, the risk of exposure in an industrial setting with prolonged exposure was, by 1953, well supported by the evidence.

In considering whether the risk posed by exposure to asbestos dust was foreseeable, Basten JA agreed with the trial judge who noted the need to identify a class of persons who might be exposed to asbestos dust in the course of industrial operations. That approach had previously been accepted in McPherson's Ltd v Eaton6 and Caltex Refineries (Qld) Pty Ltd v Stavar.7

The appeal was dismissed on all grounds and the defendants were ordered to pay the plaintiff's costs.

High Court of Australia Decision

On 10 June 2011 the defendants were granted special leave to appeal from the decision of the Court of Appeal. However, leave was limited to the question of the adequacy of the expert evidence and evidence as a whole, to support the primary Judge's finding that Mr Booth's exposure to brake lining asbestos manufactured by the defendants had caused his mesothelioma.

French CJ delivered the leading judgment whilst Gummow, Hayne and Crennan JJ delivered a joint judgment, both of which dismissed the appeals with costs. Heydon J delivered a dissenting judgment involving a comprehensive analysis of the expert epidemiological evidence.

The defendants argued that the evidence of the medical witnesses focused on "risk" rather than "cause" and that the primary Judge based his findings on causation by reference to an increase in risk. The defendants contended that the medical evidence did not support such a finding on the basis of the Court's decision in Amaca Pty Ltd v Ellis.8

French CJ distinguished the case of Ellis because in that case, the plaintiff failed to prove that it was more probable than not that exposure to asbestos had made a material contribution to his lung cancer whereas in the present case there was no evidence in relation to any other carcinogen capable of causing mesothelioma.

His Honour noted that Professor Henderson, qualified by the plaintiff, made reference to the "Bradford Hill criteria" being a guide to the type of considerations that can lead to an inference of causal nexus.

His Honour asserted that epidemiological studies were not the determinative factor in circumstances where an inference could be drawn that the plaintiff's exposure to asbestos caused the development of his mesothelioma.

His Honour concluded that the primary Judge's interpretation of the expert evidence and his conclusions from it, were open as a matter of law.

In the joint judgment of Gummow, Hayne and Crennan JJ, it was noted that the plaintiff did not challenge the epidemiological evidence tendered by the defendants. Rather, the plaintiff submitted that the fact that the epidemiological evidence was unable to demonstrate a significant increase in risk in motor mechanics (brake-lining exposure) did not prevent the primary judge from making a finding on causation in favour of the plaintiff.

Their Honours held that it was open to the primary Judge to find that causation had been proved on the balance of the evidence notwithstanding the epidemiological evidence specific to automotive mechanics presented by the defendants.

In his dissenting judgment, Heydon J provided a detailed analysis of the evidence before the primary Court and concluded that it was erroneous for the primary Judge to make a finding on causation in light of the evidence. Heydon J held that the plaintiff's expert evidence established that each exposure increased the risk of mesothelioma; it did not follow that each exposure caused the mesothelioma.9 In effect Heydon J held that merely increasing the risk of contracting mesothelioma (the Fairchild10 exception) cannot be equated with causing or materially contributing to the injury.

His Honour also noted that the primary Judge ought to have properly considered the "but for" test in circumstances where there was evidence before him to suggest that the plaintiff would have failed such a test.

Implications

The decision has affirmed the proposition that all exposure to asbestos may be regarded as being capable of causing mesothelioma, creating a greater challenge for defendants in successfully disputing liability on the grounds of causation in low-dose exposure matters.

As observed in the Curwoods' Case Note on the Court of Appeal decision, the Courts have found that there was sufficient evidence available by 1953 to demonstrate that there was a risk of serious injury arising from exposure to asbestos in an industrial setting (including motor mechanics handling asbestos brake pads) over prolonged periods.

The Court distinguished the decision in Ellis11 because in that case the evidence (including the epidemiological evidence) clearly indicated that the plaintiff's lung cancer was caused by inhalation of tobacco smoke as opposed to exposure to asbestos.

The High Court has held in effect that the new head of tortious liability created by Fairchild12 and affirmed in Sienkiewicz13 does not apply in Australian tort law.

Footnotes

1 French CJ, Gummow, Hayne, Heydon and Crennan JJ
2 See Curwoods Case note of 22 December 2010
3 [1956] AC 613
4 [2010] HCA 5
5 Bonnington Castings v Wardlaw [1956] AC 613 at 621
6 [2005] NSWCA 435 also, see Curwoods Case note of 16 December 2005
7 [2009] NSWCA 258 also, see Curwoods Case note of 11 September 2009
8 Amaca Pty Ltd v Ellis [2010] HCA 5
9 See paragraph 139
10 [2002] UKHL 22
11 [2010] HCA 5"

 

 

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UK Government to Resume Ads Regarding Health Risks Related to Asbestos

One factor in the rise of the litigation industry has been increasing knowledge of hazards, which accelerates the propensity to sue. That's why media in the US today are full of real and faux news stories on asbestos, with the Internet, late night tv, and sporting events much used to broadcast the word "mesothelioma." Accordingly, it's worth noting that the UK government apparently is planning to resume its ads warning about asbestos-related health hazards, as described here by British press.

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Uk Government to Resume Ads Regarding Health Risks Related to Asbestos

One factor in the rise of the litigation industry has been increasing knowledge of hazards, which accelerates the propensity to sue. That's why media in the US today are full of real and faux news stories on asbestos, with the Internet, late night tv, and sporting events much used to broadcast the word "mesothelioma." Accordingly, it's worth noting that the UK government apparently is planning to resume its ads warning about asbestos-related health hazards, as described here by British press.

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Continuing Efforts to Model the Risk Curve for Mesothelioma - Data from France

Researchers continue to refine models for the likelihood of developing mesothelioma after asbestos inhalation. Here is the abstract for a new European Respiratory Journal article with a model based on numbers drawn from mesotheliomas in France.  The abstract states the following:

Temporal patterns of occupationalasbestos exposure and risk of pleural mesothelioma

  1. A. Lacourt*,#
  2. K. Leffondré*
  3. C. Gramond*,#
  4. S. Ducamp#,
  5. P. Rolland#
  6. A.G. Soit Ilg
  7. M. Houot
  8. E. Imbernon#
  9. J. Févotte+,
  10. M. Goldberg and 
  11. P. Brochard*,#

+Author Affiliations

  1. *Université´ Bordeaux Segalen ISPED, Centre de recherche INSERM U897 “Épidémiologie et Biostatistique”, Bordeaux France
  2. #Équipe Associée en Santé Travail- Essat (InVS/DST - LSTE-EA3672) Bordeaux France
  3. Institut de Veille Sanitaire Département Santé Travail, Saint Maurice France
  4. +Unité mixte de recherche épidémiologique et de surveillance en transport travail et environnement Umrestte (UCB Lyon 1/InVS/Inrets), Lyon France
  1. A. Lacourt, Isped - Lste - Essat - 146 Rue Leo Saignat - 33076 Bordeaux – France, E-mail:aude.lacourt@isped.u-bordeaux2.fr

Abstract

Asbestos is the primary cause of pleural mesothelioma (PM). The objective of this study was to elucidate the importance of different temporal patterns of occupational asbestos exposure on the risk of PM, using case-control data in males.

Cases were selected from a French case-control study conducted in 1987–1993 and the French National Mesothelioma Surveillance Program in 1998–2006. Population controls were frequency matched to cases by year of birth. Occupational asbestos exposure was evaluated with a job-exposure matrix. The dose-response relationships were estimated using restricted cubic spline functions in logistic regression models.

A total of 2,466 ever asbestos exposed males (1,041 cases and 1,425 controls) were used. After adjustment for intensity and total duration of occupationalasbestos exposure, the risk of PM was lower for subjects first exposed after the age of 20 years and continued to increase until 30 years after cessation of exposure. The effect of total duration of exposure decreased when age at first exposure and time since last exposure increased.

These results based on a large population-based case-control study underline the need to take into account the temporal pattern of exposure on risk assessment.

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Hopefully England and Wales Will Stand Firm Against Trade Union Demands to Allow Claiming for Pleural Plaques

Now that Scotland and Northern Ireland are allowing lawsuits for compensation for pleural plaques, trade union UNITE is arguing that England and Wales also should allow pleural plaques claiming, as illustrated here. But England already - and wisely - seriously considered but rejected legislation to allow pleural plaques claiming - there was an entire consultation process and negotiations with the unions, see here and here for some history. For a broader view across the EU, see this prior post

Hoepfully England and Wales will not repeat the mistakes of their brethren. Simply put, pleural plaques litigation takes money and time away from resolving the far more serious problems of persons suffering from lethal and brutal  mesothelioma tumors. There also are myriad other reasons not to allow pleural plaques claiming. I covered the issues at some length in 2008 in a detailed submission to the UK government's consultation process. The 37 page outline is here, along with its exhibits.

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Pleural Plaques Permitted by Legislation in Northern Ireland

Like Scotland, legislation in Northern Ireland will permit recoveries for pleural plaques. The legislation takes effect next week, and is covered in this government press release.  The BBC has the story here. A past government memo on the subject is here. Background is here from Herbert Smith, a UK  firm on the insurance company side of things. 

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Mesothelioma "Insurance Trigger" Hearings Start Today in UK's Supreme Court - Television Coverage Available

Hearings start today on a group of test cases intended to resolve  "trigger" issues for employers liability coverage in the UK for persons who develop mesothelioma. The story is here in regular media, and a more detailed background story is here on the website of the International Ban Asbestos Secretariat. The hearings follow up on a major coverage ruling last year. The hearings will be available here on SKY tv.

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Australian Government and IBAS to Host 2012 Global Conference to Ban Asbestos Use

Australia will be the forum for a 2012 global conference on the possibility of completely banning asbestos use. The conference will be hosted by the Australian government and the International Ban Asbestos Secretariat (IBAS). The story is here from ABC News, and was announced by Australia's Foreign Minister, Kevin Rudd, and by Laurie Kazan-Allen of IBAS. The IBAS website does not yet include a story. Ms. Kazan-Allen is the sister of Steve Kazan, a prominent US plaintiff's lawyer in asbestos litigation.

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BBC Update on Asbestos Use in India

Here's an update on the BBC's "Toxic Trade" stories on use of asbestos in India. The story is by Matt Peacock. 

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James Hardie Appeal Arguments Are Underway - Should Outside Counsel Have Been a Witness ?

As described here in an Australian newspaper article, the James Hardie appeal is underway regarding disclosure issues regarding its asbestos risks and plans for managing the situation.  The case is one of two important cases on appeal in Australia.  For more background on the issues, see this long prior post or any of the many posts indexed under James Hardie.

An issue on appeal is whether ASIC (the Australian version of the SEC) should have called as a witness an outside lawyer to James Hardie. The newspaper article puts it this way:

"The appeal court found that ASIC had failed to call key witness David Robb, a former partner of Allens Arthur Robinson and one of James Hardie's main external legal advisers.


The court found Mr Robb would have been able to testify about whether the directors signed off on the misleading statement about the company's ability to fund asbestos claims."

Taconite, 82 Mesotheliomas, and Ongoing Studies

Researchers continue to investigate why so many mesotheliomas are showing up in taconite miners. The Taconite Workers Health Study is online here, and is ongoing in Minnesota for workers from the Minnesota mountain ranges. The story is here from John Myers of the Duluth News Tribune.

Here are key excerpts from the article:

"The number of Iron Rangers who died of mesothelioma has reached 82, up from 63 when last reported by state health officials in 2010.

Health officials say they found the additional cases by checking death records in other states for former Iron Range residents who moved out of Minnesota.

That was the report Monday from the University of Minnesota team that is heading the long-term Taconite Workers Health Study. The study, which started in 2008, could be completed as early as mid-2012.

Dr. Jeffrey Mandel, an associate professor at the University of Minnesota’s School of Public Health and lead researcher in the Iron Range study, said a “back-of-the-envelope” analysis shows the mesothelioma rate is considerably higher than it should be.

“But we are still doing the analysis to find out how much so,” Mandel said in a telephone news conference."

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Asbestos Mine in Zimbabwe Also is Viewed as a Source for Jobs

Canada is not alone in seeking jobs through asbestos mining. Here is an article on political upheaval as connected to the Shabani Mine, which is said to contain enough asbestos for 17 more years of production. Articles on history related to the mine are here, here, and here. Turner & Newall once owned and ran the mine, as described  here. Drawing from the Turner & Newall papers, Jock McCulloch wrote this detailed article on how Turner ran the mine. A later, broader paper by McCulloch is here. More Turner history is here. There also is a government study of the mine. 

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Insurers Lose Their Challenge to Scotland's Statute Reinstating Damages for Non-Malignant Conditions

Pleural plaques are back in the news in the UK due to an important new opinion.  As covered in several prior posts (some are here, here and here), Scotland reacted to the Rothwell decision by passing a statute to reinstate damages for non-malignant conditions, such as pleural plaques. Various insurers challenged the law. The insurers now have lost their appeal to the Supreme Court. A BBC article is here, and the opinion is here

My personal view is that paying non-malignant conditions is poor social policy because it diverts finite resources - money, medical attention, science, and legal attention -  away from persons suffering from malignant conditions. Go here for a detailed outline I submitted to the English government when it held a consultation after Rothwell. In short, I urged the government to reject paying plaques claims, and to fund more scientific research on cancer. Ultimately, the English government took those steps as it increased scientific funding and chose not to overturn Rothwell, as covered here and  here

Go here for links to a wider article on plaques claiming across Europe. 

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Asbestos Cement Business Continues to Grow in India

Here is a new article on continuing growth in the asbestos-cement business in India. 

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The Canadian Asbestos Mining Saga Goes On - A Letter from the Would Be Owner/Investor - What Laws Should Apply

A letter to the editor is the latest act in the  saga that goes on in Canada as to a proposed investment in the old Jeffrey asbestos mine which produces chrysotile fibers. The saga highlights the tensions between jobs, investments and risks.  As mentioned before, the reporting and articles do not cover key issues, such as whether the chrysotile fibers are "contaminated" by amphibole fibers. And, as covered by this prior post, the prospects of more fiber sales highlight the need to create at least some global rules in a global marketplace. The letter to the editor is set out below:

Why I want to be in the asbestos business

 
 
 A number of people have ascribed ulterior motives to my reaching out to politicians, opponents, activists and the media recently in an attempt to initiate a dialogue on chrysotile (white) asbestos and export of that product to the developing world.

Many have asked me why I am leading a consortium of investors who want to reopen the Jeffrey Mine in Asbestos.

The main reason is that as a successful entrepreneur I am always looking for promising new ventures that may be profitable, and for products to sell where there is demand. In those terms, the Jeffrey Mine represents a good business opportunity that we project will be profitable for the 20-year lifespan of the mine.

However, like most human beings, my motives extend beyond the mercantile. I see in the reopening of the Jeffrey Mine the opportunity to create wealth in that community. Reopening the mine will create 500 jobs, generate $1.1 billion in salaries to employees over the life of the mine, and generate government revenues in mining duties, corporate taxes and municipal taxes of $330 million. Millions will be also be injected into a fund to diversify the economy of the Eastern Townships. This is very good news for an area that needs good news.

I also see benefits to the end users of the finished product, primarily corrugated cement roofing sheets manufactured using five-to seven-per-cent chrysotile asbestos. For the poorest of the poor in the developing world this lowcost, strong, stable product provides a basic roof over a family's head. Despite statements to the contrary, no substitute product or material can provide the same benefits at the same price. For people living on $2 a day, even chrysotile cement sheets are a stretch, while their alternatives are an impossibility. We owe the world's poor at least the possibility of a roof over their heads. That is perhaps only less important than fulfilling their need to eat and their access to potable water.

None of this would be an issue if asbestos were a completely safe product. In fact, we know that inhaling asbestos in large-enough quantities over extended periods causes mesothelioma and other diseases. We are still seeing the effects of old loose asbestos handled improperly before the 1970s causing deaths now. We take significant precautions in removing old free asbestos from our homes and commercial or institutional buildings today, as well we should.

We also know that chrysotile (white) asbestos was mixed in the past with imported amphibole (blue) asbestos. This mixture, combined with heavy cigarette smoking, was deadly. Today the Jeffrey Mine produces only chrysotile (white) asbestos.

But opponents claim that asbestos of any kind should not be used in any way, at any time, in any place. This is a facile solution. It in no way involves assessing the difference between blue and white asbestos, the risk vs. benefit, and does not factor in current safety measures that bear no resemblance to the cavalier measures in place decades ago in Canada and abroad.

Making decisions such as this based on risk alone would mean, by all logic, that we would have to ban nickel, zinc, mercury and any number of other naturally occurring or man-made substances that pose any risk to humans. That, to me, makes no sense at all. We endeavour to use these substances so as to minimize risk and maximize benefit. And that is what we should be and are doing with chrysotile asbestos.

There is peer-reviewed scientific evidence that exposure to chrysotile asbestos respecting the province's industrial exposure standard of one fibre per cubic centimetre poses no health risk. That is the norm at the mine today and by the World Health Organization today. There is empirical evidence that the mine workers and their families are showing no ill effects from exposure to these levels today. Cancer rates in the area are no higher than they are in other industrial towns or cities.

A central argument of our opponents is that the safehandling practices in Canada cannot be exported abroad and that safety measures cannot be ensured in the developing world. We agree that we cannot ensure safe use everywhere in the world, but we certainly can ensure safe use by our 24 or so clients, and we intend to. We will only sell to major manufacturers who adhere to safe practices, and we will audit those practices annually using qualified, independent inspectors. We will not sell to "mom-andpop" manufacturers. We will be a model of safe handling practices that we hope others who are being supplied by competitors will emulate.

Finally, opponents of the industry claim that the end user's health will be compromised if he or she builds a roof out of cement reinforced with chrysotile. In fact, the product is extremely stable, with a life of about 50 years, and the chrysotile that is part of it is fully bonded and contained. Harmful dust can only be created using highspeed power tools, rare in the developing world, and in fact that risk can be virtually eliminated by wetting the product, as we do when cutting concrete with a power saw. The risk to the user is practically non-existent for any number of reasons, most notably that the chrysotile is not free, the panels do not deteriorate and high levels of exposure are not present over the product's life cycle. Once the product needs to be disposed of, it can be done easily and safely.

We must be careful with asbestos. We must handle it safely, in the ways that have been proven safe. We must be mindful of the tragedy of past use. But we must learn from the past and evolve beyond it, not be hamstrung from moving forward by prior experience that no longer applies.

Baljit S. Chadha leads the consortium of investors intending to purchase the Jeffrey Mine in Asbestos. He lives in Westmount.



Read Readmore:http://www.montrealgazette.com/business/want+asbestos+business/5503381/story.html#ixzz1ZuFoU9i4

 

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Recent Damages Award in Scotland - Mesothelioma

This BBC article reports on damages recently awarded in a mesothelioma death case in Scotland involving a 66 year old man who worked for a construction company in an unspecified job. The articles sets out the damages awards as follows:

"Following expert medical evidence Lord Doherty said he proceeded on the basis that, but for the condition, Mr Wolff could have expected to live for another 17 years.

Mrs Wolff sued both as an individual and as executor following the death of her husband. The judge granted her a total award of £258,520, including £65,000 for the suffering of Mr Wolff - who had experienced "exceptional pain".

The judge also awarded damages to the couple's three daughters totalling £52,317. The couple's granddaughter was awarded £7,084.

Claims made by other family members have already been settled."

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Asbestos in the Headlines - Egypt, Thailand and Korea

In Egypt, asbestos is in the news for increasing cancer rates and concern that a ban on asbestos use is being ignored. 

In Thailand, asbestos is in the news due to concern regarding whether there is adequate enforcement of a ban on asbestos use.

In Korea, asbestos is in the news due to its presence in the grounds of professional baseball fields. Apparently closed asbestos mines are now being used to generate rock used for commercial installations. 

 

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Ongoing Asbestos Industry - Asbestos Fiber Mining in Canada, Problems at an Ongoing Asbestos-Cement Plant in Sri Lanka, and Asbestos Abatement Lawsuit by Monks

Google today dragged up three related stories.  One is this relatively detailed article on efforts to continue asbestos-mining in Canada - a topic covered here before, and by Jon Stewart and the team of The Daily Show. The basic thesis of the would-be miner is that "controlled use" is just fine. 

The related article is here. It's an article from a newspaper in Sri Lanka regarding an asbestos cement factory. According to the article, the local factory suffered a breakdown which distributed factory dust over the surrounding community.  For grins, I googled the factory.  The Mascons website is here. This page displays a wide range of asbestos-cement products it's been producing since 1956.  This page shows the inside of the plant. Apparently related companies grow tea and grow roses and other flowers.  It's an interesting world out there. Mascons probably does not consider itself a future asbestos-defendant.

Finally, there's this article on asbestos-related litigation - in Scotland - arising from a renovation project gone bad. The "greedy plaintiff" (humor intended) is an order of monks which filed suit to recover expenses incurred to clean up an asbestos mess that arose after a renovation project disturbed in-place asbestos-containing materials connected to their chapel. 

Risks and realities end up being balanced, and present jobs and goods carry benefits that some see as outweighing long term risks for which they may or may not have to pay. One wonders, for example, if the Sri Lankan factory owner has insurance, and if it contains an asbestos-exclusion. What about coverage for future "premises liability" claims ?  And, for those thinking in detail about future litigation, here's what Wikipedia provides for an overview of law in Sri Lanka:

"Judicial: Sri Lanka's judiciary consists of a Supreme Court - the highest and final superior court of record,[209] a Court of Appeal, High Courts and a number of subordinate courts. Its highly complex legal system reflects diverse cultural influences.[210] The Criminal law is almost entirely based on British law. Basic Civil law relates to the Roman law and Dutch law. Laws pertaining to marriage, divorce, and inheritance are communal.[211] Due to ancient customary practices and/or religion, the Sinhala customary law (Kandyan law), theThesavalamai and the Sharia law too are followed on special cases.[212] The President appoints judges to the Supreme Court, the Court of Appeal, and the High Courts. A judicial service commission, composed of the Chief Justice and two Supreme Court judges, appoints, transfers, and dismisses lower court judges."

 

 

 

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NERA's 2011 Asbestos Update - Big Picture Observations

NERA publishes an annual summary of big picture findings on asbestos litigation. The 2011 update was issued in July, and is online here. The paper is free for downloading, and includes useful big picture observations on claim filing rates, claim resolution amounts and resolution rates,  and reserving by companies and insurers.  

NERA's complete compilation of asbestos papers is here

 

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Asbestos-related lung cancer claims and the St. Clair County Asbestos Docket - Two Growing Trends

This recent Madison County Record article illustrates two continuing trends - more lawsuits claiming that asbestos caused lung cancer, and more asbestos-related lawsuits in St. Clair County. Both trends reflect efforts to expand the market in claims and trial dates. Plaintiff's lawyers are, after all, entrepreneurial. 

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Life in Asbestos Litigation - An Unusual Order for Court on Sunday

Mass tort litigation includes some interesting moments. This article describes the Delaware "asbestos judge" ordering a special Sunday session due to frustration with the parties. The story starts this way:

"WILMINGTON -- A Delaware judge apparently had enough of what she saw as attorneys' childish bickering in a civil case this week and called them all in to serve detention on Labor Day weekend, advising them to bring their "teddy bears and jammies."

Superior Court Judge Peggy L. Ableman, in an unusually blunt Sept. 1 letter, told attorneys involved in a pair of asbestos personal-injury cases to report to the New Castle County Courthouse on Sunday at 10 a.m. for "a 'special' emergency refresher course in first year ethics and civility ... this gathering is mandatory."

"Attendees are encouraged to bring sleeping bags, toothbrushes, teddy bears and jammies, as the agenda will be exhaustive," she wrote, adding in a footnote, "these terms reflect the court's impression of the childish level to which this litigation has stooped."

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Politics, Canada and Asbestos - A Reminder That Lawyers Can Make Things Worse

The debate and acrimony continue on in Canada as to exporting asbestos, as illustrated by this new NYT guest editorial from the friend of a man who died of mesothelioma created by a Navy exposure. According to the story, the Canadian Tories had the bad judgment to have a lawyer write and complain when the widow used the party's  logo on her website arguing against the Tories' support for continuing export of asbestos fibers. The lawyer's letter of course was turned back against the party by the widow, and produced a small firestorm of bad publicity for the party. A timely reminder that lawyers can worsen a touchy situation by failing to "get" the big picture. 

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Upcoming Asbestos Litigation Seminar Includes a Focus on Science, Including Individual Genetics

Every fall, Perrin Conferences  runs a huge and excellent asbestos-litigation seminar I love to attend.  This fall's conference is Sept 19-21 in San Francisco. The full agenda is here

This year's conference includes a material focus on science and disease, including genetics. The conference also includes significant presentation time from Dr. Victor Roggli, author of  this authoritative treatise on the pathology of asbestos-disease and one of the few experts respected and hired by both plaintiffs and defendants.  

Event Agenda Day 1 

10:30 AM – The Latest Advancement in Asbestos Medicine 

Latest medical advances in causation and treatment 

The pathology of an asbestos disease – do genetics have a role in determining individual causation? 

Epidemiology update 

Alternative causes of mesothelioma 

Breaking down the single fiber theory 

 

Moderators: Sharla Frost, Esq., Powers & Frost, LLP, Houston, TX 

Anne Kearse, Esq., Motley Rice LLC, Mt. Pleasant, SC 

10:30 – 11:00AM- Defense Discussion: 

Michael A. Graham, MD, Professor and Co-Director, Division of Forensic and Environmental Pathology, Saint Louis University School of Medicine, Chief Medical Examiner, St. Louis, MO 

Victor L. Roggli, MD, Professor of Pathology, Duke University Medical Center, Durham, NC 

11:00 – 11:30AM- Plaintiff Discussion: 

Arnold R. Brody, Ph.D., Professor, Department of Molecular Biomedical Sciences, North Carolina State University, Raleigh, NC 

John C. Maddox, MD, Pathologist, Riverside Regional Medical Center, Newport News, VA 

_________________________________________________________________________

 

Event Agenda Day 2 

11:15 AM – Secondary No Longer: The Growth of Bystander and Take Home Exposure Claims 

Industrial Hygiene and Asbestos Disease Causation: 

 Relative Fiber Release Associated with Various Asbestos-Containing Products 

 Calculating Dose 

 Bystander Exposure

 Take Home Exposure 

 Friction Products Exposure 

Victor L. Roggli, MD, Professor of Pathology, Duke University Medical Center, Durham, NC 

Bernard Silverstein, M.S., CIH, Medical Science Affiliates, Columbia, MD 

John Spencer, CIH, CSP, Environmental Profiles, Inc., Columbia, MD 

John Templin, Senior Consultant, MAS, LLC, Seal Beach, CA 

 

 

 
 

 

 

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Asbestos Mining and Production of Chrysotile-Containing Products Is Going Full Bore in Brazil

Some think that asbestos use is is over or dwindling all across the world. Not true.

For example, this new press release from Eternit S.A. reports on the company's better than expected quarter of asbestos mining, and manufacturing of various asbestos-cement products.  

 

"SAO PAULOAug. 9, 2011 /PRNewswire/ -- Eternit S.A. (BM&FBOVESPA: ETER3; OTC: ETNTY), a company with 71 years of activity and the market leader in roof coverings, panels and cement slabs, today announces its  results for the 2nd quarter 2011 (2Q11).

Although 2Q11 is seasonally the weakest period of the year, Eternit operated at full capacity in its chrysotile mining business, above 90% in fiber cement production and in excess of 80% in concrete tiles.

At this page, Eternit SA's website  also provides this information on asbestos fiber production: 

 

"Chrysotile asbestos and amphibolic asbestos
There are two main groups of asbestos, chrysotile and amphibolic. Amphibolic asbestos has hard fibres which are straight and pointed, as well as having a high concentration of iron in their composition. Chrysotile asbestos has curved fibres which are silky and have a high concentration of magnesium in their composition. The characteristics of these fibres is one of bio-persistence, which signifies the amount of time that they remain in the lungs before being eliminated. Chrysotile fibre remains a maximum of two and a half days in the lungs, whereas amphibolic fibre remains more than a year.

The use, manufacture, sale and transport of asbestos in Brazil is regulated by Federal Law 9055/95, and Decree 2350/97 and by Ordinance 3214/78 - NR15 - Annex12 - (www.brasil.gov.br). This legislation regulates the controlled and responsible use of chrysotile asbestos and prohibits the use of all other types of asbestos. Brazil is the world's third largest producer of chrysotile asbestos. The country today is self-sufficient in the production and export of this raw material to more than 20 countries, among them being India, Thailand, Indonesia, Mexico, Colombia and the United Arab Emirates.
 
To read the latest Eternit statement on the controlled and responsible use of chrysotile asbestos, click here."
 
The mine is online here, and is known as Cana Brava. The website tells the story as follows:

 

 

The history of the Cana Brava mine - controlled by SAMA S.A. - Minerações Associadasis confounded with the development process of the inland Brazil in the second half of the 20th Century, particularly in the Central-Western region. The first pioneers who arrived at the place, in 1962, searched for clues of strange"hairy stones" in a region occupied by a few families living along the rivers.--

Five years later, after confirming the existence of chrysotile asbestos, the mine started being exploited, contributing for the appearance of the City of Minaçu, located 510 km far from Goiânia, in the Northern State of Goiás. In addition to the city creation, the mining allowed the beginning of a process of fast economic development, with generation of wealth and employments, allied to the preservation of the natural resources.


Within a little time, Cana Brava mine provided Brazil with self-sufficiency in the production of chrysotile asbestos, exceeding the requirements of the domestic market and allowing the export of fiber to several countries.


Cana Brava is the only chrysotile asbestos mine in activity in Brazil and one of the world’s most productive mines, with installed capacity of 240 thousand tons/year, having a modern industrial park, which serves as reference for the main mining companies of the world.

 

 

 

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Daily Show Lampoons Asbestos Sales and Canada

Selling asbestos fibers today seems not real bright. As a result, this blog includes this post and this post highlighting the flaws in the arguments for selling asbestos fibers for "controlled use."  But Jon Stewart and the Daily Show just did it in a big way, as shown here by opponents of asbestos fiber sales.The Canadian Press later picked up on the story on the story.

Kudos to Stewart and Company for publicizing the folly.

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Overview of the Asbestos-Cement Industry in India as of 1997-98

Here is a comprehensive summary of the asbestos-cement industry in India as of 1997-98.  Papers like this tend to end up becoming "tomorrow's"  evidence.

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Japan's Earthquake Aftermath Produces Asbestos Exposures - Another Reason to Reject Claims that Asbestos Cement Use is "Controlled"

Canadian asbestos miners and asbestos cement makers like to argue that continuing to use asbestos makes sense because use is "controlled."  That might be true every now and then, but Mother Nature has recently and repeatedly proved that the world's societies cannot realistically assume control over nature, and so products need to be evaluated based on the harms they can cause when use is not controlled.   Thus, Insurance Journal reports here that asbestos monitoring is now underway in Japan's tsunami-stricken communities due to asbestos cement wreckage from buildings. Not surprisingly, fibers are being found by the monitoring, and exposures are occurring.  The Insurance Journal article assumes the fibers are chrysotile (white) fibers. But the facts are that a Kubota-owned plant in Japan produced vast amounts of asbestos cement board using the far more carcinogenic crocidolite (blue) asbestos fibers, as is detailed in this medical article.

The controlled use rationale sounds logical. But it fails to account for the reality that we know that we cannot control nature, and there will be nature-caused calamities. We also know there will human mistakes and errors, with a prime example being the BP oil rig fiasco. The controlled use argument also fails to account for events that actually are not predictable. Law and society should move to the point that the controlled-use rationale is carefully scrutinized and limited to situations where it is proved - not assumed -  to  comport with human experience. 

 

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Asbestos Returns to SCOTUS in a Securities Suit Arising from Halliburton's Foolish Purchase of Dresser in a Stock Deal With No Useful Indemnities for Asbestos Expenses

Asbestos returned to the Supreme Court yesterday in the context of securities litigation. The case arises from Halliburton's purchase of Dresser Industries, a long-time asbestos defendant. Ultimately, the disaster known as Dresser forced a chapter 11 filing by Halliburton entities to deal with the asbestos problem. Along the way, Halliburton's stock price cratered. I remember it well because my we had hedge fund traders calling for advice on the scope of Halliburton's massive problems acquired via Dresser and other deals.  

Former Vice-President Dick Cheney was the CEO of  Halliburton when it made the  decision to buy Dresser. The losses which ultimately befell Halliburton were eminently foreseeable and indeed cost the company many billions, although it later recouped some billions through settling insurance policies. (One wonders how Mr. Cheney  and others made the decision to buy Dresser - in a stock  deal - without meaningful indemnities. The purchase seems almost as ill-conceived as Federal-Mogul's decision to buy asbestos giant Turner & Newall, a purchase that also caused a bankruptcy.)

Anyway, the Dresser disaster's consequences for shareholders are now before the Supreme Court in a securities fraud case on class certification standards. Long story short, the shareholder suit involves claims that Halliburton failed to properly disclose the asbestos risks of Dresser (that's surely true). SCOTUS has the case because of the 5th Circuit 's aberrant views on class certification standards. It's aberrant standards frankly are a recipe for how to fail to disclose toxic tort risks and then try to game the system by making belated disclosures to muddy the waters.

The case is provoking much debate, including ongoing blogging at the Conglomerate by several law professors. The posts include all the links one might want. 

The also produced many amicus briefs, including pro-shareholder briefs by the US government , and by Professor Coffee and others. The usual defense groups are of course applauding the 5th Circuit's  view, including DRI and the Chamber of Commerce, but they may have lost some credibility for doing so because the accounts of oral argument say that Halliburton's counsel conceded the 5th Circuit was off the mark at least in part. The Fifth Circuit opinion is here

My conclusion? One hopes the Justices have the wisdom to reverse the 5th Circuit. If they fail to reverse, or approve muddled mixes of disclosures, companies will have much more leeway to fail to make timely and accurate disclosures of toxic tort risks. That's a bad outcome for everyone, except insider traders.  I'm optimistic in view of the Court's pro-disclosure opinion earlier this term in Matrixx . As covered in this prior post,  the Matrixx Court held that drug companies are indeed required to fully disclose adverse facts and possibilities arising from science.

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Will Science Stop Mesotheliomas by Depriving the Tumor Cells of a Needed Ingredient for Growth, at Least in Some Tumors - Clinical Trial Underway in the UK

How will mesothelioma tumors be treated  in a decade ? Will lives be extended for many years? Will every person with mesothelioma seek gene therapy as a remedy ? Will Madison and St. Clair Counties find new cancers to focus on instead ?  

The preceding questions are no doubt somewhat  fanciful. But, science is pressing ahead. Thus, a Phase 2 clinical trial is now underway in the UK to try to stave off mesotheliomas by depriving the tumors of an amino acid (arginine) that some mesothelioma tumor cells need to grow. The theory is that an enzyme known as ADI-PEG 20 will block production of the arginine, and leave the tumor unable to grow. Set out below is the press release from the sponsor - Polaris Group, a San Diego based entity. The company also intends to try the same tactic against small cell lung cancer (SCLC), which is the basic name for forms of lung cancer almost exclusively tied to cigarette smoking.

Polaris' website includes a medical literature section, and it includes an abstract from which the following excerpt is drawn,  as to a Phase 1  trial of ADI-PEG 20. The numbers are relatively encouraging:  

"Results: In keeping with the cell line data, 63% (52 of 82) of patients had tumors displaying reduced or absent AS protein, as assessed using a tissue microarray. Cell viability declined markedly in the AS-negative cell lines 2591and MSTO but not in the AS positive cell line, 28.This response was apparent by day 4 and maintained by day 9 in vitro. Arginine depletion induced BAX conformation change and mitochondrial inner membrane depolarization selectively in AS-negative MPM cells.

 Conclusions: In summary, we have identified AS negativity as a frequent event in MPM in vivo, leading to susceptibility to cytotoxicity following restriction of arginine. A phase II clinical trial is planned to evaluate the role of arginine depletion in patients with AS negative MPMding to susceptibility to cytotoxicity following restriction of arginine. A phase II clinical trial is planned to evaluate the role of arginine depletion in patients with AS negative MPM."

Hat tip to Genetic Engineering & Biotechnology News.

The Polaris press release is below.

_____________________________________________________________________

Date: March 18, 2011

Polaris Enrolls First Patient in Phase 2 Clinical Trial of ADI-PEG 20 for the Treatment of Malignant Mesothelioma

Enzyme-Based Cancer Therapy Now Being Evaluated in Multiple Cancers

SAN DIEGO, March 18, 2011 -- Polaris Group announced today the enrollment of the first patient in a Phase 2 clinical trial of ADI-PEG 20 (pegylated arginine deiminase), the company's novel enzyme-based treatment for malignant mesothelioma. This randomized trial, called "ADAM" (Arginine Deiminase And Mesothelioma), will evaluate the treatment efficacy of ADI-PEG 20 as a single agent compared to the best supportive care. The primary endpoint of the study is progression free survival.

Peter Szlosarek, M.D., Ph.D., of the Centre for Experimental Cancer Medicine, Barts Cancer Institute, Queen Mary University of London, is the lead investigator of the study. "It is with great anticipation that the ADAM trial has opened at Barts and other cancer centers in the U.K., including hospitals in Belfast, Cambridge, Hull, Manchester and Southampton." said Dr. Szlosarek. "We are pleased to be joining Polaris Group in exploring the potential benefits of ADI-PEG 20 in treatment of different cancers."

Malignant mesothelioma is a cancer of the lungs that frequently occurs in people who have been exposed to asbestos. The disease is usually diagnosed two to three decades after prolonged exposure and when it has generally spread beyond the stage for successful surgical treatment. The prognosis for patients with late stage malignant mesothelioma is poor with a median survival of less than one year.

Polaris Group scientists and colleagues have been investigating the metabolic enzyme argininosuccinate synthetase (ASS) and its presence or absence in relationship to growth of normal cells and tumor cells. ASS is required for the production of arginine, an amino acid needed for growth and replication of cells. Normal cells have normal levels of ASS and can produce sufficient arginine for their own growth and survival. However, many types of tumor cells cannot make their own arginine due to a deficiency in ASS and, therefore, must obtain it from external sources. ADI-PEG 20 depletes the external supply of arginine, causing these tumor cells to die.

The sensitivity of several ASS-deficient tumor cell lines to ADI-PEG 20 has been recently reported at the 2010 Annual Meeting of the American Association for Cancer Research. Previous studies supported by Cancer Research UK (CR-UK) and conducted by Dr. Szlosarek demonstrated that 63 percent of patients with malignant mesothelioma had low levels or no ASS in their tumor tissues. The study also demonstrated that viability of mesothelioma cell lines from these patients declined markedly when deprived of arginine if they were ASS-negative.

Robert Jackson, Ph.D., chairman of the CR-UK Discovery Committee, and a member of the Polaris Scientific Advisory Board, commented: "We are very excited to have started the study with ADI-PEG 20 in malignant mesothelioma. Dr. Szlosarek has been one of the leaders in researching and targeting ASS-deficient tumors with ADI-PEG 20. The initiation of this mesothelioma trial with ADI-PEG 20 is a good example of a CR-UK funded laboratory study forming the basis of a new experimental treatment. CR-UK is committed to such important translational research initiatives in cancer."

John Bomalaski, M.D., executive vice president, medical affairs, of Polaris Group, added, "We are very excited about the potential of using ADI-PEG 20 to treat multiple forms of cancer. We are already evaluating ADI-PEG 20 in a Phase 2 trial in small cell lung cancer, and we look forward to initiating additional trials in tumors with a high degree of ASS deficiency. Our belief is that ADI-PEG 20 will play a key role in the future as single agent therapy or in combination chemotherapy for several cancers that continue to evade effective treatment."

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Quebec Government Decides to Guarantee Loan for Asbestos Mining for Indian Fiber Buyer

The Montreal Gazette is reporting that the Quebec government has now said it will guarantee a loan to continue asbestos mining and exports. The government acted despite signficant outcry by opponents. Much of the fiber apparently is bound for India for asbestos-cement boards, as is described in the article.

Australian Appellate Court Affirms Verdict Involving Automotive Brake Linings as a Cause of Mesothelioma - The Opinion Includes Interesting Statements About Daubert, and Biology vs. Epidemiology

It's back to Australia. There, an important new appellate court opinion affirms a verdict for a brake mechanic who won a trial court judgment that his mesothelioma was caused by inhalation of chrysotile asbestos fibers from automotive brake linings.  A popular press article is here regarding the plaintiff, John Booth. The appellate opinion is here. The trial court opinion is here.

The appellate court opinion is noteworthy in multiple ways, and not all are covered here. Of note to me, the US Supreme Court's Daubert opinion was acknowledged as interesting, but was not followed. Second, the Court rejected defendants demand for epidemiological proof. Third, it reached the obvious - but not always stated - conclusion that  tort damages may be awarded when scientists can explain some - but not all parts  - of exactly how a disease is caused. 

Key passages are set out below; the Australian system of numbering paragraphs makes it easy to find the quoted sections.

62 The objection must ultimately be resolved by reference to the contention that Professor Henderson failed to engage with the epidemiological evidence said to demonstrate that there was no causal link between exposure to asbestos in the course of undertaking brake repairs and mesothelioma. That proposition, however, fails at two levels. First, it fails because it assumed that epidemiological evidence is both relevant and dispositive of, or at least superior to, other evidence of causation. Secondly, it fails because Professor Henderson did not disregard the epidemiology.

63 The role of epidemiology in causation inquiries was explained by Spigelman CJ in Seltsam Pty Ltd v McGuiness at [93] in the following terms:

          “With respect to many diseases, medical science is able to give clear and direct evidence of a causal relationship between a particular act or omission and a specific injury or disease. There are, however, fields of inquiry where medical science is not able to give evidence of that character. There are cases in which medical science cannot identify the biological or pathological mechanisms by which disease develops. In some cases medical science cannot determine the existence of a causal relationship. Such a state of affairs is not necessarily determinative of the existence or non-existence of a causal relationship for purposes of attributing legal responsibility. Epidemiological evidence may be able to fill the gap. It is of particular potential utility in the field of what is often referred to as ‘toxic torts’, especially in case of diseases with long latency periods.”

64 Professor Henderson’s evidence in terms supported a causal relationship; accordingly, the epidemiological evidence was not essential or dispositive. (emphasis added).

 The opinion also includes a notable,  brief discussion of whether it matters that science cannot yet explain every part of the biological process that results in the cancer.  The Court emphatically said "no," and explained the holding as follows:

116 It is convenient to deal first with the challenge to the “biological process” evidence. The appellants submitted that such evidence was “incapable” of supporting a finding in favour of the respondent, for three reasons. First, it was said that the biological processes remain “incompletely understood”. That assessment of scientific understanding may be accepted; but it takes the appellants nowhere. The civil standard of proof, on the balance of probabilities, permits a yawning gap between complete understanding and sufficient understanding. There may be an even greater gap between that which is “capable” of supporting a finding on the balance of probabilities and that which the appellants would accept “does” support such a finding. The submission misconceives the nature of the proceedings. (emphasis added).

 

Asbestos Mining Investment Apparently Will Go Forward at Quebec's Jeffrey Mine - Folly or Not

This story from the Montreal Gazette recounts apparent new investment in asbestos mining in Quebec's Jeffery mine. It's disappointing that the reporting lacks substance, and instead is limited to regurgitating spin.

An informed reporter (increasingly, an oxymoron), would ask whether the Jeffrey Mine's chrysotile, like many others,  includes the far more carcinogenic amphibole fibers. One would also ask what will be done when there is an end to the  useful life of an asbestos product. How will it be removed? Will the remover know its content? Or, will the user be uninformed and exposed to a potent carcinogen if in fact amphibole fibers are present ?

Tasmanian Government to Propose Asbestos Public Compensation Fund Payments Funded by Tax on Employers

Here is a media article on a Tasmanian government proposal to develop legislation to pay compensation to asbestos victims. Payments would be funded through a tax on employers. 

Go here for the government's announcement, and it's fairly detailed regulatory impact statement. In short, the proposal is still fluid but is centered around an asbestos compensation fund that would be administered by a special court.  Comments are due by November 12.

According to the media article:

"Under the scheme it is proposed a 64 year old worker with a fatal disease, like mesothelioma, will be entitled to receive compensation of approximately $500,000.

"An 83 year old worker suffering the same condition will be entitled to receive about $250,000."

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More Bad News for James Hardie and Its Asbestos Compensation Fund

Managing legacy liabilities is never easy. For some, it can be a nightmare. Thus, James Hardie and its asbestos compensation fund took yet another hit yesterday through the loss of a tax appeal.  The loss is  described here in mass media in Australia. The mass media is focused on the fund's long term survival prospects in light of the adverse ruling and the continuing slumps in the building sector that buys product from James Hardie entities. 

The company issued a statement yesterday (go here to investor relations page), but did not include a link to the opinion. According to the statement. the loss will result in a charge of about $ 330 million (US) unless there is a successful further appeal. The company also says it will not violate loan covenants by taking the charge.

 

 

Made for TV Movie Ahead Regarding Bernie Banton's Mesothelioma Death, and the Asbestos-Related Corporate Blunders of James Hardie

Perhaps someday Australia's James Hardie company will end up in textbooks as an example of poor handling of contingent product liability risks. For now,  James Hardie's investor relations group has a new challenge that follows after multiple other challenges. The company and corporate  officers and directors already have been through major problems, including convictions of senior officials for misleading investors about future asbestos payouts (the convictions are on  appeal).  Then, the company  was the subject of a new book:  Killler Company.

Now, Australia's Daily Telegraph reports that a made for TV movie may be created regarding the mesothelioma death of Bernie Banton, and the related "James Hardie asbestos saga."   The article is here. It states:

 A tribute to Banton

FREMANTLEMEDIA Australia is developing the James Hardie asbestos saga for a new TV drama, expected to be delivered to the ABC.

An ABC spokeswoman last week confirmed the venture, reiterating it was "in development at this stage and is yet to be commissioned".

The story of James Hardie - specifically the manufacturing company's multimillion-dollar liability payout to former employees as a result of its use of asbestos products - captivated the country the last decade, with stoic campaigner Bernie Banton (who died in 2007) becoming the public face of the David v Goliath battle.

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Evidence to Argue The Myth of "Controlled-Use" of Asbestos

Here is a new article from a UK newspaper that illustrates the argument that it's sophistry to claim to expect  "controlled-use" of most types of asbestos-containing products. In this instance,  a ship-breaking company apparently unknowingly had its employees dismantle ships without any respiratory protection. The workers, unfortunately, were working with boards made from brown (amosite) asbestos fibers, which are far more lethal than are white (chrysotile) asbestos fibers.

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Global Investigations and Publicity on Increasing Global Asbestos Use - An Amazing Online Compilation Created Through the Joint Efforts of the International Consortium of Investigative Journalists, The BBC, The Center for Public Integrity, and Many Others

Today continues the look at sources of  global information regarding the burgeoning industries using asbestos, and their connections to sovereign governments. Here's the story behind the story. The resources below are well worth a look and contemplation.

The Center for Public Integrity is the website host for a massive collection of information on the global asbestos trade, with a focus on Brazil, Canada, China, India, Mexico, Russia, and the United States.  That extensive cache of information was created through joint efforts described below in this quote from the CPI website:

"In the fall of 2009, the International Consortium of Investigative Journalists began looking into the global trade in asbestos, a cancer-causing fiber banned or restricted in much of the industrialized world but aggressively marketed in developing countries. What evolved was a nine-month investigation of an international lobby, much of it coordinated from Canada, which promotes the use of asbestos in construction materials and other products.

ICIJ joined with reporters and producers with the BBC's International News Services to document the asbestos industry’s activities in Brazil, Canada, China, India, Mexico, Russia, and the United States. Our investigation concluded that the industry has spent nearly $100 million since the mid-1980s to keep asbestos in commerce. The team’s reporting reveals close relationships among the industry, governments and scientists, and cites predictions from health experts that new epidemics of asbestos-related disease will emerge in the coming decades. Some experts believe that by 2030, asbestos will have taken as many as 10 million lives around the world.

Dangers in the Dust: Inside the Global Asbestos Trade is based on extensive research in eight countries. The team relied on thousands of pages of documents, including court filings, scientific studies, and financial records, as well as on interviews with health officials, industry representatives, scientists, victims, lawyers, and activists."

 

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Future Asbestos Claiming Evidence Now Online on the BBC with Respect to Asbestos Use in India, China and Russia

Information popping up lately on the BBC and elsewhere indicates that evidence is being gathered today for tomorrow’s claims against the non-US entities that are increasing involved in using asbestos. One example is this July 21 BBC article and video presentation regarding asbestos use in Russia. Preceding days included features on asbestos use in China, and in India.

In general, the pictures and videos show that assertions about “safe use” practices for asbestos are in general assertions of myths and theories that have virtually nothing to do with reality. Some parts of these news stories no doubt will be end up as evidence for future claims against the entities and governments involved in the short-sighted decisions to ignore the realities of the specific risks involved in asbestos use. It is true that the white, serpentine types of chrysotile fibers are much, much less toxic than the amphibole blue (crocidolite) and brown (amosite) fibers. However, many (but not all) chrysotile  deposits include tremolite asbestos fibers that are essentially amphibole fibers. Therefore, the mined chrysotile fibers also include some small amount of tremolite fibers. Accordingly, it's not accurate or enough to argue simply that it's safe to use the white fibers. 

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Science, Politics, Economics and "Toxins" - Canada Apparently Will Reject Some Medical Advocacy and Will Provide Funding to Support Asbestos Mine Expansion

It's fascinating to watch the dances between and among  science, economics, politics and media as to "toxins."  Consider all the dances going on in the the BP oil rig fiasco.

For another example, note the evolution of the asbestos mining debate in Canada. According to this June 12 article from the Montreal Gazette, the Canadian government is on the brink of moving ahead with funding to assist in maintaining and creating jobs at a chrysotile asbestos mine. The funding would cover an underground expansion of  the decades-old Jeffrey Mine located in the Quebec town named Asbestos. The funding apparently will be provided despite vocal international advocacy from doctors at Mt. Sinai Medical Medical Center and elsewhere. (Mt. Sinai was the professional home for Irving Selikoff, one of the first few asbestos researchers).   Here are key excerpts:

"Despite an international shaming campaign, Premier Jean Charest's cabinet appears poised to approve a $58-million loan guarantee that would kick-start Quebec's ailing and controversial asbestos industry.

The proposed underground expansion of the Jeffrey Mine in the town of Asbestos, on hold since 2002 because of a lack of funds, will go ahead if 350 unionized mine workers approve a five-year contract tomorrow and if Charest's cabinet okays the loan guarantee."

***

On Wednesday, provincial Health Minister Yves Bolduc was accused in a letter signed by 36 prominent doctors and public health researchers from 21 countries of ignoring his duty as a medical doctor by supporting the use of asbestos. Quebec's Medical Code of Ethics says a doctor is "not to participate in any concerted action that puts in danger the health of an individual or a population."

The main author of the letter is Philip Landrigan, president of the New York-based Collegium Ramazzini, an independent international academy of 180 renowned experts in the fields of occupational and environmental health.

"Chrysotile asbestos causes serious harm to health. There is no safe exposure level. It goes on killing for generations," writes Landrigan, dean of Global Health at the Mount Sinai School of Medicine in New York City"



Read more: http://www.montrealgazette.com/business/Asbestos+industry+boost/3145594/story.html#ixzz0qe2co8Mr
 



 

 

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Same Couple Files Two Mesothelioma Lawsuits Days Apart in Both Madison and St. Clair Counties

Asbestos litigation never ceases to surprise. This week's surprise is found in an on line article by Kelly Holleran for the Madison - St. Clair County Record, a great, free on line resource for tracking events in the litigation industry in Madison and St. Clair counties. 

The story is that two different law firms filed suits for the plaintiffs, with the first suit filed in Madison County and  the second filed six days later in St. Clair County. According to the article, the plaintiffs and law firms are as follows:


"Glenn and Joyce Metzger of Othello, Wash. filed a lawsuit against 59 defendant corporations April 27 in St. Clair County Circuit Court. They filed a similar lawsuit May 3 in Madison County Circuit Court.

In both complaints, the Metzgers allege the defendant companies caused Glenn Metzger to develop mesothelioma after his exposure to asbestos-containing products throughout his career as an insulator at various sites from 1953 until 1989.

David I. Cates and Judy L. Cates of the Cates Law Firm in Swansea will be representing the Metzgers in their St. Clair County lawsuit. Elizabeth V. Heller and Robert Rowland of Goldenberg, Heller, Antognoli and Rowland in Edwardsville will be representing them in their Madison County lawsuit. "

 

Asbestos, Canada Tries to Define Its Future After Over a Hundred Years as Home to the Old Jeffrey Chrysotile Mine Once Owned by Johns-Manville

Johns-Manville for many years owned the chrysotile mine in the Canadian town of Asbestos. The town is northeast of Montreal, and not too far north of Vermont.  A story from the Montreal Gazette describes some history, the current effort to find the money to finish a proposed underground asbestos mine, and various other alternatives, such as using the old mine pit as a waste disposal site. 

CSR Demerger Effort To Go to the Next Step - Australian Appellate Court Opinion Provides Narrow Guidance on Corporate Asset Divestitures While Facing Significant Asbestos Claiming

Estimates and disclosure of contingent risks are front and center these days in various contexts. Thus, asbestos-specific estimates and disclosures are prominently mentioned in a new  Australian appellate decision in CSR. The opinion was issued at the end of last week, and provides some narrow guidance on solvent schemes of arrangement for companies facing asbestos claiming. A prior post here  describes the trial court litigation regarding the efforts of CSR, an Australian business, to obtain judicial approval of a  reduction of its its asset base when it faces admittedly significant current and future asbestos claims.  The proposed reduction of assets would be accomplished through a "demerger" (in the US, we would call it a spinoff). 

The federal appellate court opinion in CSR is worth reading for those interested in the social and legal policy issues involving tort claiming and corporate transactions. That said,  the opinion is narrow. In short, the court did not approve the demerger, and did not find the demerger reasonable. Instead, it narrowly held that the trial court should allow the process to move forward to a meeting of creditors. 

The future developments in CSR will be interesting. At present, CSR's demerger efforts are opposed by asbestos claimants, AISIC (the Australian counterpart to the SEC), a regional government  fund obligated to pay claims by persons suffering from asbestos-related diseases, and by a significant asbestos co-defendant, James Hardie.  To date, the objectors have not cross-examined various actuaries who prepared estimates of the future asbestos payments by CSR. it will important and interesting to see the substance that emerges from cross-examination of actuaries, if it occurs.  Cross-examination did not occur to date because the parties structured  the proceedings that way and allowed much of the information to remain "confidential."  The appellate court opinion seems to put the reasonableness of the actuarial reports squarely into play for  cross-examination and argument during future proceedings. Thus, the appellate court explained:

" 56  As to the argument advanced on behalf of the James Hardie parties, the reports prepared by CSR’s actuaries purport to quantify the present value of CSR’s future long term exposure to asbestos claimants. There is nothing in these reports which suggests that any category of asbestos claimant has not been included in their actuarial assessment. There is, accordingly, force in CSR’s argument that the learned primary judge erred in treating the disclaimer in the Grant Samuel report as indicating that the assessments made on behalf of CSR did not include persons who have not yet contracted an asbestos related disease as a result of exposure for which CSR is responsible. On the other hand, this important question could have been resolved beyond the possibility of doubt by cross-examination of the relevant authors. That did not occur in the proceedings before the learned primary judge. To say this is in no way to level a criticism at her Honour: the case was conducted before her in accordance with the wishes of the applicant and the interveners. To say this is, however, to recognise that an application for the convening of the first meeting of shareholders under s 411(1) of the Act is not an ideal occasion to attempt to resolve such issues.  " (emphasis added)

  

Investment Report Available for Anyone Looking to Invest in the Chinese Asbestos-Cement Industry

For anyone lookinig to buy into the Chinese asbestos-cement industry, go here to read about an apparently substantial investment report on the indutstry, as advertised for sale on BusinessWire. Amazing to see events repeated around the globe.

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New Asbestos Verdicts Reach Popular Media

It's usually not good for the defendants when the popular legal media is picking up verdicts from asbestos trials. That's true again this time; go here to see the coverage. Trying cases is part of life and a good defense, but there are indeed risks.

CEO of a Pakistani Asbestos Cement Company Faces Possible Role in Investigation of Cancer Death of a Person Associated with the Plant

A new example of the global spread of environmental consciousness as it applies to persons who work at or service manufacturing plants that utilize "toxins."   

As a result of a cancer death of  person associated with a manufacturing plant in Pakistan, the CEO of Dadex Eternit faces  a summons to testify in connection with a complaint and order from environmental authorities in Pakistan. The news is provided by  an article  in  The News International. 

 

Dadex Eternit is a maker of chrysotile board and plastic pipes. According to its website:   " Dadex was established as a public limited company in 1959. Headquartered in Karachi, our two manufacturing facilities, based in Karachi and Hyderabad, are equipped with state-of-the-art machinery. Dadex also has its own rubber plant located within Karachi Factory, producing high quality rubber rings (according to international standards) for our pipes."

 

 

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Madison County's Sibling - St. Clair County - New Asbestos Filings

Madison County, Illinois gets most of the ink, but it has a sibling in St. Clair County. In year's past, when I was a baby lawyer, some considered St. Clair as bad for defendants as Madison County. Asbestos filings have ticked up there in recent weeks, and the filings may mark the start of  new strategic gambits by plaintiff's counsel. Set out below is an update from the always informative Madison- St. Clair Record.

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St. Clair County's nearly dormant asbestos docket is seeing new life.

3/18/2010 4:39 PM By Amelia Flood 

Recent asbestos lawsuit filings by several well-known asbestos attorneys -- and some new partnerships -- have sparked a revival of the little-known and infrequently used asbestos docket.

At least five new asbestos cases have been filed in St. Clair County this year.

Swansea attorney Judy Cates has teamed with the Chicago law firm of Cooney and Conway, having filed four mesothelioma-related asbestos suits on the same day this year, alleging claims against familiar asbestos defendants such AW Chesterton, Bondex and John Crane, Inc.

Cates, who has litigated a number of high profile class actions, had not filed any asbestos cases in at least six years.

Other attorneys have made recent asbestos claims in St. Clair County, including Randy Gori of Edwardsville. Gori, whose firm has brought hundreds of asbestos cases into Madison County's packed asbestos court, has filed at least one asbestos case in St. Clair County this year.

In Gori's newest St. Clair County case, clients Aubrey and Olive Roach claim Aubrey Roach developed cancer from working with asbestos products during his time as an army mechanic in the 1940s.

While Madison County's asbestos filings reach into the hundreds each year, St. Clair County stands in contrast.

From 2004 to 2007 there were just 61 asbestos cases filed in St. Clair County, compared to more than 1,200 in Madison County during the same period of time.

Of the years analyzed in St. Clair County, 2006 had the most filings at 25. There were 22 cases filed in 2005.

None were filed in 2008 and a single one was filed in 2007, according to records from the St. Clair County Circuit Clerk's Office.

St. Clair County clerk Amy Boeving said the asbestos docket is light and hardly used.

Boeving sets hearings once a month and seldom has more than one or two attorneys come through, she said.

"The last few years it's really died down," Boeving said.

St. Clair County Circuit Judge Robert LeChien handled all of the asbestos cases from 2005 to 2009. The 2010 filings have so far been assigned to St. Clair County Circuit Judge Patrick Young.

St. Louis attorney Daniel Francis, who has filed more asbestos cases in St. Clair County than any other attorney, is responsible for four of the 25 asbestos St. Clair County filed in 2006.

Of those cases, 23 named a single defendant, Illinois Central Railroad Company.

Gori has filed the second most number of St. Clair County asbestos cases.

None of the St. Clair County asbestos cases have resulted in verdicts or trials.

That differs from Madison County where juries have decided a number of cases, some having topped $200 million in jury awards.

But the most recent case to go to trial in Madison County was decided in favor of defendant Ford Motor Co.

The trial, which lasted for eight days earlier this month, was the first 2010 asbestos trial for Madison County and the first ever for Madison County Circuit Judge Barbara Crowder who presided.

Crowder is slated to become Madison County's next asbestos judge when Circuit Judge Daniel Stack retires in December. She has already begun taking over her new duties.

The Ford trial ended in a defeat for plaintiff Larry and Meta Williams of Chicago. The couple sued Ford and a number of other companies claiming that asbestos dust contained in brake products caused 58 year-old Larry Williams to develop mesothelioma.

The jury took an hour and a half to find in Ford's favor.
 

 

 

 

 

 

Deposition Time LImits - Who Has Time to Ask About Bankrupt Entities ?

 Ever wonder why asbestos plaintiff's lawyers presently are spending so much time and energy trying to limit the time allowed for depositions of asbestos plaintiffs ? Obviously plaintiff's lawyers on contingent fees prefer to spend less time in deposition than do defense lawyers being paid by the hour.  But, some say there is more to it than just the time.

Consider, for example, yesterday's post and today's images of asbestos products made by entities now in chapter 11. Think about the verdicts plaintiff's might lose  if insurers paid for and co-defendants actually were fully organized and prepared to depose a plaintiff on the extent of his use of the thousands of asbestos-containing products made by any of the over 80 entities that have exited the tort system via chapter 11.  Think also about the time that would be involved. Those are reasons why some say it's perfectly obvious that asbestos plaintiff's lawyers want to get shorter deposition time limits in place in order before the remaining co-defendants get organized and start using depositions to pose meaningful " product identification questions to plaintiff's product identification witnesses.

 

Asbestos Product Catalogs For Sale Online - The Perfect Item For Claimants Against Chapter 11 Trusts

                                        

For several years, it's been well known that eBay traders could make some money selling to plaintifff and defense lawyers old asbestos-containing products, including even old vehicles. Typically the products were acquired for use as trial exhibits.  Now,  this online web site  is trying a new marketing approach -  advertising old asbestos product catalogs as perfect items for claimants against  some or all of the over 80 chapter 11 trusts created by entities that have entered chapter 11 due to asbestos product sales.  I can imagine this working, especially for defendants stuck in the tort system that need to take discovery from plaintiffs regarding their use of products made by former defendants that exited the tort system via chapter 11.  Thus, the website home page urges:

"An excellent resource for help with Asbestos Trust Claims, research material, attorneys preparing litigation, abatement professionals, and anyone interested in knowing what everyday products contained asbestos."

All research material is actual manufacturer's catalogs and brochures in downloadable Color PDF format.

All catalogs can be purchased using  a Credit Card Card     for $39.95 each."

 The online images show old product catalogs from various former manufacturers of asbestos-containing products. Go here for the first page of an old Manville catalog for its industrial products, or go here for its transite board catalog. Or,  go here to relive Eagle-Picher’s wide range of fine ACM.   Or see below for the image from Pitt-Corning's catalog for Unibestos, a product that contained amosite.

 

Numerous World Class Scientists Will Speak at an Upcoming Asbestos Litigation Conference

Here is the online agenda for a great new asbestos litigation conference on May 3 and 4.

Why great ? Because the conference format explicitly recognizes the importance of science to where the litigation has been, and where it will go.  Thus, virtually all of the speakers are doctors and scientists, including several who are world class in anyone's book.  The conference, sponsored by Perrin Conferences,  is titled:     A Conference on Asbestos and Mesothelioma

Science alone of course does not result in lawsuits. Accordingly, lawyers are involved to a degree. The conference chairs are two lawyers with reputations for knowing and enjoying the science side of litigation. They are plaintiff''s counsel Shep Hoffman, founder of The Law Offices of Shepard A. Hoffman, Dallas, and defense counsel, Robert Rich, a partner of Gordon Rees, San Francisco. 

The scientist are listed below - this is by far the best overall assembled group of doctors and scientists focused on asbestos. Part of the power of this group is that it includes speakers with diverging views. And, for anyone interested in the global spread of asbestos disease, and thus some spread of the litigation, do not miss the chance to hear from Dr. Julian Peto, who is at the forefront of those looking all the way around the world. 

It will be interesting to see the level of attendance, the manner in which this conference is conducted, and whether this approach is repeated for asbestos and replicated for other areas of mass tort litigation.  In the past, most asbestos conferences that included much science were conferences sponsored by one side or the other. Thus, for many, many years,  Al Parnell and the Defense Research Institue have held an annual Asbestos Medicine conference that usually included severals doctros and scientists. The conference usually also was attended by a few plaintiff's lawyers. And, likewise, the plaintiff's bar holds periodic meetings, but typically they do not allow defense lawyers to attend.

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Jerrold L. Abraham, MD, Professor of Pathology, SUNY Upstate Medical University,
Syracuse, NY

D. Wayne Berman, Ph.D., researcher in asbestos exposure and risk and President of Aeolus, Inc.,
San Francisco, CA

David Bernstein, Ph.D., Consultant in Toxicology,
Geneva, Switzerland

Arnold R. Brody, Ph.D., Department of Molecular Biomedical Sciences, North Carolina State University,
Raleigh, NC

Andrew Churg, MD, Professor of Pathology, University of British Columbia,
Vancouver, BC

David Egilman, MD, MPH, Clinical Associate Professor, Department of Community Health, Brown University,
Providence, RI

Murray Finkelstein, Ph.D., MD, Associate Professor, Program in Occupational Health and Environmental Medicine, McMaster University and Department of Family Medicine, University of Toronto,
Hamilton, Ontario and Toronto, Ontario

Allen Gibbs, MD, Consultant of Histopathologist for the National Health Service, University Hospital Llandough,
Penarth, South Wales UK

Graham W. Gibbs, MSc Ph.D., MRSC, ROH, President, Safety Health Environment International Consultants Corp. & Adjunct Professor, Department of Medicine, University of Alberta, Alberta, Canada

 

Samuel Hammar, MD, Director of Diagnostic Specialty Laboratories,
Bremerton, WA

Douglas W. Henderson, MB, BS, FRCPA. FRCPath, FHKCPath, Professor of Anatomical Pathology, Flinders University
Adelaide, South Australia

Gunnar Hillerdal, MD, Ph.D., Assistant Professor, Department of Lung Medicine, Karolinska Institute and University Hospital,
Stockholm, Sweden

Howard M. Kipen, MD, MPH, Professor and Interim Chair, Department of Environmental & Occupational Medicine
Chief, Clinical Research & Occupational Medicine Division, UMDNJ-Robert Wood Johnson Medical School
Piscataway, New Jersey

Eugene J. Mark, MD, Professor of Pathology, Massachusetts General Hospital, Harvard Medical School,
Boston, MA

Corbett McDonald, MD, FRCP, Emeritus Professor (Epidemiology), McGill University; Emeritus Professor (Occupational Medicine), University of London,
London, England

Julian Peto, DSc FMedSci, Cancer Research UK Chair of Epidemiology, London School of Hygiene & Tropical Medicine
London, England

Victor L. Roggli, MD, Professor of Pathology, Duke University Medical Center,
Durham, NC

 

 

 

 

 


 


 

London Rejects Pleural Plaques Claiming

As it happens, I'm speaking this week  at an asbestos litigation conference. Yesterday's topic was asbestos bankruptcies and today's topic is international asbestos litigation.  It is therefore ironic that yesterday  the goverment in London publicly confirmed in a press release from the MOJ that the government will not reinstate pleural plaques claiming.

More analysis will have to be done later. For now, the bottom lines are:

  • plaques claiming will not be reinstated
  • some money will be paid by the government to persons who asserted plaques claims prior to the ruling by the House of Lords that held plaques noncompensable
  • the government is going to try to foster recoveries from insurers or guarantee funds, and
  • there will be more funding for scientific reasearch focused on asbestos-related disease

 Pasted below is the full text of the Ministry of Justice's release. The text includes links to the source materials.

Continue Reading...

Australian Consumer Agency Warns Against Decorative Tile Said to Contain Tremolite ("Asbestos") - Snow White

Global awareness of asbestos continues to increase. An Australian government agency issued late last week an advisory warning consumers against a set of decorative stone-like wall tiles said to contain tremolite from China. The information provided is too skimpy to evaluate the real risks. That's too bad -  one would like think that by now all government safety agencies could speak lnowledgeably and articulately about  "asbestos"  and risk.  If you'd like to see the Snow White tile, go here.

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Hardie and CSR Avoid "Collusion" Charges for Trial This Week

Here is an article updating this prior post on the effort to amend "collusion" claims against James Hardie and CSR in an asbestos personal injury trial. In short, the court denied the motion to amend on the eve of trial in this particular case, but is said to have indicated that similar amendments might  be allowed in other cases not so close to trial. See the full text below.
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Judge denies late changes in asbestos case

LEONIE WOOD



February 10, 2010 .


THE Victorian Supreme Court has declined late changes to an asbestos damages case in which a Melbourne man, who is dying from mesothelioma, planned to accuse James Hardie and CSR of joining forces to disguise the dangers of asbestos.

Justice Terry Forrest said the proposed amendments in their present form would not be allowed.


Although the judge said the proposed pleadings in the case of Robert Berengo were deficient, he also made it clear that litigants in the future might well be able to allege joint liability if they properly set out the material facts and the case that is to be answered.

Mr Berengo wanted to allege that the Australian asbestos manufacturers deliberately did not put their brand names on their asbestos-related products during the 1960s and 1970s, making it harder to identify which of the two should bear liability in cases of injury and disease.


He also wanted to allege that the companies had agreed to co-operate to dissuade regulators from restricting the use of asbestos and to influence public opinion about the dangers of their product.


Mr Berengo's trial, in which he accused the two companies of negligence, begins on Tuesday

Asbestos Litigation Risks - Some Companies Seek Unique Legislative Answers for Unique Risks

As described in this article, Crown Cork and Seal continues its efforts to obtain legislative solutions for its unique asbestos litigation risks. Key excerpts are below from an article about action by the legislature in Virginia:

A closely divided House of Delegates voted Monday to shield a company from liability to asbestos-related health claims.


"Del. Terry Kilgore's bill, HB 629, doesn't mention any company by name. But the way it is drafted, it applies to only one: Crown Cork & Seal, a Philadelphia-based manufacturer of cans and bottle caps. It has plants in Suffolk and Winchester.


Crown Cork & Seal has never manufactured any products containing asbestos. But in 1963 it purchased the stock of Mundet Cork Co., which had an insulation division that it sold 90 days later. Under existing law, Crown is liable to lawsuits resulting from the presence of asbestos in Mundet's insulation products.


Kilgore's bill. which won preliminary House approval, limits Crown's asbestos-related liability to the value of Mundet's assets at the time it was purchased.


Kilgore, R-Lee County, characterized the measure as a "jobs bill," saying it would protect a Virginia employer from potentially crippling litigation. Dozens of asbestos companies have been driven into bankruptcy by billions of dollars in lawsuits brought by workers who contracted deadly lung diseases from handling the material."

James Hardie and CSR - Allegations of "Collusion"

The asbestos litigation pot continues to boil in Australia. Over the last couple of weeks, CSR was denied the opportunity to split its business, a topic I keep hoping to get to, but life is busy. For now, here is a new article about plaintiff's seeking to amend a complaint to seek to prove up purported collusion between Hardie and CSR. How much does that sound like US litigation ?  The text also is pasted below.

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Hardie, CSR 'colluded', sufferer says LEONIE WOOD


February 8, 2010 .

THE building products manufacturers James Hardie and CSR have been accused in court of joining forces during the 1960s and '70s in a bid to dissuade regulatory authorities from restricting or controlling the use of their potentially lethal asbestos products.

The court has also heard allegations that James Hardie and CSR deliberately did not mark their company names on asbestos-laden products so that they could conceal which company manufactured them - a move which, the court heard, would make it harder to identify which company had liability for future claims of potential injury or disease.

The allegations emerged on Friday before Justice Terry Forrest in the Victorian Supreme Court during preliminary proceedings ahead of a trial in which a Melbourne man, Robert Berengo, is claiming damages from James Hardie's asbestos liability fund, Amaca, and from CSR.

The fresh allegations come just days after Justice Margaret Stone in the Federal Court in Sydney cruelled CSR's plans to spin off its sugar business, citing concerns about the company's future ability to meet asbestos-related claims.

Justice Forrest will decide tomorrow if Mr Berengo's lawyers can amend his statement of claim to incorporate the new allegations of collusive behaviour.

If the judge allows the allegations to proceed, it may pave a new route for claimants in asbestos-related cases who often struggle to prove which of the two Australian asbestos manufacturers was responsible for products that caused their asbestosis or mesothelioma.

Counsel for both James Hardie and CSR criticised the form of the proposed amendments, with Graeme Uren, QC, for CSR describing them in court as ''a porridge of assertions that don't lend easily to a legal conclusion''.

Mr Berengo was a young boy in the early 1970s when he accompanied his father, a builder, to properties where asbestos-cement sheeting and other asbestos products would be sanded, altered or removed.


The proposed allegations are that James Hardie and CSR, which owned Wunderlich, had an agreement or arrangement about how they would influence Australian public opinion and regulatory authorities in the 1970s, and that they co-ordinated their lobbying of authorities and responses to media articles to stifle public concerns about asbestos.

Counsel for Mr Berengo, John Gordon, told the court that his client planned to allege that ''over a considerable period of time, the two companies ... formed arrangements, agreements or an understanding to act together to influence the public debate on the dangers of asbestos, and to influence regulatory authorities on the control of, and the use of, the asbestos''.

He said that, as a result, the public was not warned by the companies of the risks and dangers of using asbestos products.

CSR sold Wunderlich to James Hardie in 1976. The case is due to begin on February 15.

Citizens in India Protest Abestos Fiber Sales from Canada

Here's another example of global activism regarding asbestos.  Here is the article online; the full text is pasted below.


February 1, 2010


Indian workers rebuke Quebec over asbestos


By CBC News


Unionized workers and activists in India capitalized on Quebec's trade mission this week to blast the province for its active role on the global asbestos market.


Unionized workers and activists in India capitalized on Quebec's trade mission this week to blast the province for its active role on the global asbestos market.

'It will be remembered as an act of barbarism in the history of industrial development where asbestos was knowingly allowed to be used, and where workers were knowingly subjected to it.'?Gobal Krishna, activist


While Quebec Premier Jean Charest led his 130-person mission through meetings with local business leaders and entrepreneurs, Indian opponents spoke out against the asbestos industry, blaming it for making workers in the subcontinent ill.



It's hypocritical for Quebec to ban the use of chrysotile asbestos at home, while selling it to countries in the developing world, said activist Gobal Krishna.


"It will be remembered as an act of barbarism in the history of industrial development where asbestos was knowingly allowed to be used, and where workers were knowingly subjected to it," Krishna told reporters at the news conference in Mumbai.



Asbestos has been banned by nearly every developed country and a growing number of developing nations, but countries like India still rely on the flame-resistant mineral for construction projects.




At least 20 per cent of workers in India are exposed to asbestos on a regular basis, and the building material is responsible for making many Indian workers sick, accused Sanjay Singhvi, secretary general of the Trade Union Centre of India, a labour federation.



Asbestos can't be used safely in India, he said.


The United Nations says chrysotile asbestos, widely used in building materials, accounted for about 94 per cent of global asbestos production and is considered a carcinogen by the World Health Organization. At least 90,000 people die each year from asbestos-related diseases such as lung cancer and mesothelioma, the UN said.



Singhvi said he was disappointed Charest refused to meet with his organization during the weeklong trade mission. Charest's office said Quebec promotes the responsible use of asbestos.

Quebec exports to India hit $427M


Charest arrived in Mumbai on Sunday with 130 Quebecers participating in the trade mission.



The premier said the mission aims to promote Quebec expertise in infrastructure, environmental technologies and telecommunications to the Indian market, which counts more than 1.2 billion people.


Thirteen deals were penned between Quebec and Indian companies on Monday, including an agreement with a Quebec City company specializing in cleaning industrial waste water.


Quebec exported $427 million in goods to India in 2008, including airplanes, paper, asbestos and electronics.


Opposition Parti Québécois members accuse Charest of fleeing to foreign lands in order to avoid political pressure at home, including calls for a public inquiry into the province's dysfunctional construction industry.


Quebec operates two asbestos mines.

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New Science - Exhaled breath condensate biomarkers in asbestos-related lung disorders

Remember those controversies about biased doctors misreading reading x-rays to find asbestosis or "pleural changes consistent with exposure"  to asbestos or silica ?  New science will bring new controversies - see below for a recent article on using biomarkers in exhaled breath to find asbestosis. Here is the online source of the abstract pasted below.

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Exhaled breath condensate biomarkers in asbestos-related lung disorders.


Sharron Chow, Charlotte Campbell, Alessandra Sandrini, Paul S Thomas, Anthony R Johnson, ...Deborah H Yates show all

Respiratory Medicine (2009)

Volume: 103, Issue: 8, Pages: 1091-1097

PubMed ID: 19520561

Abstract

OBJECTIVES: Asbestos induces generation of reactive oxygen and nitrogen species in laboratory studies. Several such species can be measured non-invasively in humans in exhaled breath condensate (EBC) but few have been evaluated. This study aimed to assess oxidative stress and lung inflammation in vivo. METHODS: Eighty six men were studied: sixty subjects with asbestos-related disorders (asbestosis: 18, diffuse pleural thickening (DPT): 16, pleural plaques (PPs): 26) and twenty six age- and gender-matched normal individuals. RESULTS: Subjects with asbestosis had raised EBC markers of oxidative stress compared with normal controls [8-isoprostane (geometric mean (95% CI) 0.51 (0.17-1.51) vs 0.07 (0.04-0.13) ng/ml, p<0.01); hydrogen peroxide (13.68 (8.63-21.68) vs 5.89 (3.99-8.69) microM, p<0.05), as well as increased EBC total protein (17.27 (10.57-28.23) vs 7.62 (5.13-11.34) microg/ml, p<0.05), and fractional exhaled nitric oxide (mean+/-SD) (9.67+/-3.26 vs 7.57+/-1.89ppb; p<0.05). EBC pH was lower in subjects with asbestosis compared with subjects with DPT (7.26+/-0.31 vs 7.53+/-0.24; p<0.05). There were no significant differences in exhaled carbon monoxide, EBC total nitrogen oxides and 3-nitrotyrosine between any of the asbestos-related disorders, or between these and controls. CONCLUSION: In asbestos-related disorders, markers of inflammation and oxidative stress are significantly elevated in subjects with asbestosis compared with healthy individuals but not in pleural diseases

Drs. Frank and Lemen Part of Global Plaintiff's Advocacy Session for April 10 Asbestos Disease Awareness Conference in Chicago

Here is the entire press release (which includes links)  regarding an April 10, 2010 asbestos disease awareness conference set for April 10 in beautiful Chicago. The conference is organized by, among others, the Asbestos Disease Awareness Organization and Laurie Kazan-Allen, who is the sister of American plaintiff's lawyer, Steve Kazan. Through an entity commonly known as IBAS, Ms. Kazan-Allen has devoted well more than 15 years trying to ban the use of asbestos around the globe, and has achieved some signficant success.

Unlike many current and future defendants/corporations/makers/users, and their lawyers, the advocacy groups for victims/plaintiffs are thinking globally. Indeed, well-known plaintiff's experts are part of the advocacy effort. Thus, during the conference,  Dr Arthur Frank and Dr. Richard Lemen are part of a panel session on global advocacy, as is set out below from the conference agenda. Also set out below is a summary of all speakers, except the keynote speaker, who is to be designated later. 

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Session IV Global Advocacy and the Continuing Crisis - Chairperson: Arthur L. Frank, MD, PhD




3:15 - 3:35 Latin America's Asbestos Struggle!, Fernanda Giannasi, Brazil


3:35 - 3:50 Canadian Asbestos: A Global Concern, Canadian Member of Parliament, Pat Martin


3:50 - 4:05 Governmental Agencies Role in Protecting Public Health, Richard Lemen, PhD, MSPH


4:05 - 4:20 Progress Update: The Americas, Barry Castleman, ScD


4:20 - 4:35 A Victims' Call to Action!, Laurie Kazan-Allen, International Ban Asbestos Secretariat (IBAS)


4:35 - 4:45 Panel Q & A, Moderator Arthur: L. Frank, MD, PhD


"ADAO's 6th Annual International Asbestos Awareness Conference


REDONDO BEACH, Calif.--(BUSINESS WIRE)--The Asbestos Disease Awareness Organization (ADAO) will host its 6th Annual International Asbestos Awareness Conference in Chicago, IL, on Saturday, April 10, 2010, with activities throughout the weekend. The international conference will provide education and outreach to families, employers/employees, and scientists throughout the world as part of ADAO's continuing effort to educate the public about the dangers of asbestos, ban its use, and encourage research efforts to improve treatment options. Prominent physicians, scientists, and safety and health care professionals who are experts in the area of asbestos representing the United States, Canada, England, Brazil, and Germany will present current information regarding the status and impact of asbestos in the United States and globally. Discussion will include facts on exposure, asbestos-related diseases and how to prevent them, and where to turn for help. The international conference is made possible by ADAO, the Barbara Ann Karmanos Cancer Institute, and the International Ban Asbestos Secretariat.

WHERE:  Marriott Renaissance Hotel

1 Wacker Drive , Chicago, Illinois

WHY:     To share information and provide support to those affected by asbestos-related diseases, including survivors, families, and physicians. Prominent physicians, scientists, safety and health directors, and survivors will present current and up-to-date information regarding the status of asbestos in the United States and worldwide.

WHO:     Brad Black, M.D., medical director, Center for Asbestos Related Disease; Barry Castleman, ScD, environmental consultant; Jeff Camplin, CSP, CPEA; Sean Fitzgerald, PG; Arthur Frank, M.D., Ph.D., chair, Department of Environmental and Occupational Medicine, Drexel University's School of Public Health; Patrick Gerkin, Ph.D., assistant professor, Grand Valley State University; Fernanda Giannasi, ABREA; Michael Harbut, M.D., MPH, FCCP, co-director, National Center for Vermiculite and Asbestos-Related Cancers, Karmanos Cancer Institute; Tanis Hernandez, LCSW, Center of Asbestos Related Disease; Laurie Kazan-Allen, founder and coordinator, IBAS; Hedy Lee Kindler, M.D., University of Chicago, and president, International Mesothelioma Interest Group; Richard Lemen, Ph.D., MSPH, former Assistant Surgeon General; Terry Lynch, International Vice President, Insulators Union; The Honorable Patrick Martin, member, Canadian Parliament; Linda Reinstein, executive director and co-founder, ADAO; Kimberly Rowse, RN, Center for Asbestos Related Disease; Jordan Summer, musician; James Webber, Ph.D., research scientist, Wadsworth Center; Jordan Zevon, ADAO national spokesman and musician."

Non-Dry Looks at Business History, Including James Hardie - A New Book: "Killer Company"

Back to Australia, asbestos and James Hardie.

As described in this prior post, a rather dry paper by KPMG describes the history of James Hardie and its many intersections with asbestos and asbestos-containing products. That dry look is of course needed and appropriate in the sense that decisions need to be made based on technical information.

There are other sides to the story. A new expose/investigative journalism book is out regarding James Hardie. A book review is set out below from the Ban Asbestos web site run by Laurie Kazan-Allen, sister of an American plaintiff's lawyer, Steve Kazan. The review is by Jock McCulloch, who also has written books on "asbestos companies."  The words of the book review are  worth reading as a counterweight to the dry story told by KPMG.
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Book Review: Killer Company - James Hardie Exposed

Matt Peacock. Sydney: ABC Books, 2009

Reviewed by Jock McCulloch

Australia has the highest recorded incidence of mesothelioma in the world because in the period from 1945 until the mid 1970s Australia was one of the highest users of asbestos based products. The local market was dominated by a single firm James Hardie Asbestos and to a large degree the Australian asbestos story is the story of James Hardie.

James Hardie shares much in common with Johns Manville, Eternit and Turner & Newall. Hardie was a vertically integrated company which enjoyed great commercial success in the decades after 1945. That success was built on an ever widening range of building and insulation materials. Hardie owned asbestos mines in Australia, Canada and briefly in Zimbabwe and manufacturing plants in Australia, New Zealand, Malaysia and Indonesia. Like Johns Manville, it has survived the asbestos scandal to re-invent itself as a non-asbestos building materials manufacturer. Like Johns Manville, James Hardie has used a variety of strategies to inure itself from the people it has injured.

Killer Company is a major contribution to the literature on the asbestos industry. The book has grown out of Matt Peacock's sustained engagement with the issue of asbestos and health. It is based on long hours of archival work sorting through Hardie's internal correspondence. Peacock has also interviewed many of the key players. The result is an insight into the mentality and behaviour of an important asbestos company.

Matt Peacock has played a major role in publicising the risks of asbestos in Australia. In his work as a journalist he has helped to expose the behaviour of the asbestos industry toward its employees, and the consumers of its products. In 1977 Peacock broke the story of Baryulgil, a small chrysotile mine which Hardie operated in northern New South Wales. The work force at Baryulgil was drawn from the indigenous Bundjalung people who lived and worked under conditions every bit as severe as those endured by black workers in South Africa. It was Matt Peacock not James Hardie who warned the community of the risks of asbestos disease. He was also instrumental in forcing a Parliamentary enquiry into the operation of the Baryulgil mine.

In Killer Company Peacock reviews the extent to which Hardie's senior management engaged in the same kind of behaviour that has been documented in British and US courts about Cape Asbestos, T&N and Johns Manville. Hardie knew far more about the risks of asbestosis, lung cancer and mesothelioma than did regulatory authorities or trade unions. Armed with that knowledge it refused over a period of decades to reduce the risks faced by its employees or the users of its products. When a flood of litigation began in the mid 1970s Hardie avoided bad publicity by settling cases out of court. When that failed it sought to move its assets out of the reach of potential claimants. The bad publicity surrounding a move of assets to The Netherlands in 2004 has seen James Hardie become probably the most reviled corporation in Australia. Peacock shows that such a reputation is well deserved.

The health risk of asbestos has taken many forms from workplace exposure, to the dumping of waste and the use of fibre in the most unlikely of products such dental amalgam and children's play dough. Until the 1970s it was common for waste from Hardie's Adelaide factory to be used to dress domestic driveways, pathways and garage floors. In New South Wales thousands of tonnes of waste was dumped into rivers and creeks and on roadways and football ovals. Such waste is virtually indestructible but at least when deposited outdoors by-stander exposure to airborne fibre is sporadic.

Each year thousands of tonnes of crocidolite, amosite and chrysotile arrived at Hardie factories which resulted in the accumulation of hundreds of thousands of hessian bags. In Sydney and Melbourne the bags were recycled by market gardeners to carry potatoes, carrots and onions. In Western Australia wheat farmers received fertiliser in the same bags. Over the period from 1944 to 1966 the Wittenoom crocidolite mine in Western Australia produced 160,000 tonnes of fibre. That fibre was transported in 45 kilograms hessian bags. Matt Peacock has discovered that hundreds of thousands of those bags ended up in domestic dwellings as carpet underlay. Consequently, an unknown number of Australian homes have been contaminated and an unknown number of residents continue to live at risk, every hour of every day.

There is no easy way to estimate the human and commercial cost of the asbestos industry. That is because in parts of Asia and SE Asia the industry is alive and well. It is also because as Matt Peacock has shown the extent of by-stander exposure in the OECD states is still unfolding.

Killer Company is an important book.

Jock McCulloch

School of Global Studies

RMIT University,

Melbourne,  Australia.

January 21, 2010


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There are several other "business history" books related to "asbestos companies." Most of them include significant footnotes and bibliographies:


Blue Murder, by Ben Hills, describes in detail the situation related to the Wittenoom crocidolite mine in Australia, a mine owned for decades by CSR. The book discusses many things, including corporate fiber purchasers and uses.

Asbestos House - The Secret History of James Hardie Industries, by Gideon Harris, is a comprehensive account of that company. Numerous mentions are made of relationships between James Hardie, Turner & Newall, Cape Industries, Johns-Manville, and CSR.

The Way From Dusty Death, by Peter Bartrip, is a comprehensive discussion of Turner & Newall and asbestos regulations in the UK from the 1890s through 1970. This book also discusses interactions between various industry titans, including Cape Industries.

Jock McCulloch has written two books on asbestos, focused primarily on mines in South Africa that were the sources for all of the world's amosite fiber, and much of the world's crocidolite fiber. The mines were owned by Cape Industries entities and various other entities. One book is: Asbestos: It's Human Cost, and was published in 1986. McCulloch's second book was published in 2002, and is titled: Asbestos Blues, Labour, Capital, Physicians and the State in South Africa.

Mr.  McCulloch and Geofrey Tweedale combined to write a 2008 book, Defending the Indefensible, the Global Asbestos Industry and It's Fight for Survival.

In addition, Mr. Tweedale also has written extensively regarding Cape Industries and Turner & Newall/T & N. One of his publications is the book titled Magic Mineral to Killer Dust, Turner & Newall and the Asbestos Hazard.

UK Asbestos Working Party More Than Doubles Estimate to 11 Billion Euros

A summary article from Insurance Business Review is online here, and is pasted below.
____________________________________________________________________________

UK Asbestos-Related Claims To Be Around £11bn For 2009 To 2050


Published:26-January-2010

By Staff Reporter

Total undiscounted cost of UK asbestos-related claims to the insurance market is expected to be around £11bn for the period 2009 to 2050, according to a research by Actuarial Profession's UK Asbestos Working Party.

The research identified that the proportion of people suffering from mesothelioma that subsequently make a claim for compensation has almost doubled between 2004 and 2008.

Of £11bn figure, 90% relates to mesothelioma and over £9bn relates to the period 2009 to 2040, compared to £4.7bn of the working party's 2004 estimate for the same period.

According to Actuarial Profession, the proportion of mesothelioma sufferers that have made a claim for compensation has increased from around one-third in 2004 to nearly two-thirds. This change, which was not expected in 2004, has become evident in recent years and explains most of the increase in total costs.

In addition, the working party has taken into account the Health and Safety Executive's statisticians' revised projections of the number of future deaths from mesothelioma in Great Britain, released in 2009, in conjunction with other projection models.


Brian Gravelsons, chairman of UK Asbestos Working Party, said: "Insurers will of course have already noticed the increased number of claims from mesothelioma sufferers, so these developments won't be a surprise to them. However, the working party's projections will provide the insurance industry with a consistent reference point to help it assess its asbestos liabilities.

"There is still considerable uncertainty surrounding the future cost of asbestos claims, as the number of people that will be diagnosed with mesothelioma many years into the future cannot be accurately predicted. The working party will continue to monitor the emerging experience and update its projections accordingly."

Asbestos Mining and South Africa - Unclosed Mines

This January 2010 article from South Africa reports on this new auditor general report raising major issues regarding failed clean up of mines, including old asbestos mines. As to asbestos mines, it says:

  • Abandoned asbestos mines constitute 3,84% of the total population of abandoned mines. As at April 2008 there were 144 asbestos mines: 45,83% had been rehabilitated, 8,33% had been partially rehabilitated and 45,83% had not been rehabilitated. The status of asbestos mines in the different provinces of South Africa is illustrated in graph 1.
 
 

14 Lung Cancers Among 28 Asbestos Cases Filed in Madison County December 14-18

Go here to see the new filings summary from the Madison  County Record. Of 28 cases, 14 are said to be lung cancer cases and 14 are mesothelioma cases. 13 of the lung cancer cases are filed by Simmons, Browder et al and 1 by the Gori, Julian firm. One could infer that Simmons, Browder et al want to make sure they have plenty of work to fill slots in trial dockets, and want to guard against a falling rate for persons to develop mesothelioma.

Photos and Story of Old Asbestos Theater Curtain in Prescott, Arizona

Google caught a story and photos of an old, intricately painted asbestos theater curtain in Prescott, Arizona.
The article is here. A short video is here.

Chapter 11 Cases Fail to Properly Deal with Future International Claims Against Multinationals Heavily Involved in Selling Asbestos Fibers or Products

The point of today's post is to focus attention on issues and topics that arise from relationships between insolvencies and multinationals heavily involved in selling asbestos fibers and/or asbestos-containing products, and their implications for present and future tort claiming and the ability to enforce bankruptcy court injunctions. To illustrate that the topic is well-grounded in fact, the text below provides a specific example, plus the names of books that describe some multinationals which, in addition to Eternit (see last Friday's post), were very heavily involved in global sales of raw asbestos fiber and/or other products containing large amounts of asbestos.

The topic of multinational relationships vis a vis asbestos claiming and insolvencies has been largely free of careful, public attention during chapter 11 cases. As a result, when chapter 11 trusts were created, little or no provision was made for future international claims, meaning claims to be asserted from overseas against an entity now subsumed by a chapter 11 trust. Such claims were at most handled in name only, with virtually no specific anticipation of the volume of or value of future claims from other nations. What's my basis for saying that no one has ever publicly and specifically estimated the volume and value of overseas claims against US trusts? One basis is general knowledge from involvement in asbestos litigation for 25 years. But, more specifically, that also was the conclusion during an asbestos seminar panel discussion last year. The discussion was part of a March 2009 panel consisting of Steve Kazan (a senior member of the asbestos plaintiff's bar and a lawyer who is very active in international asbestos claiming), Francine Rabinovitz (a wonderful economics and policy expert who advises many trusts, companies and others on future asbestos claiming), and me.

Despite the absence of formal, public estimates of overseas claims, some of the chapter 11 cases have included broad injunctive orders granting debtor entities (and non-debtor entities) the widest possible injunctive relief to protect them against any and all possible future claims, on a global basis. Such orders purport to channel all such claims to the trust created in chapter 11. Issuing global injunctions without meaningful notice and due process is a procedure that is deeply flawed for all concerned, and so will not bind all future claimants, thereby leading to endless claiming and wasted attorney's fees.

On a short-term view, the broad shotgun injunction no doubt appeals to debtors because they (usually) want to exit chapter 11 quickly, and also seek maximum future certainty by obtaining the broadest injunctive protection against any and all future claims. But, the short term approach should be tempered by the reality that the company will not be able to enforce an overbroad, unconstitutional injunction issued without meaningful notice and due process. See Phillips Petroleum Co. v. Shutts, 472 U.S. 797, 812, n.24 (1985)(class action cannot bind persons who were not accorded due process); Stevenson v. Dow Chemical Co., 273 F.3rd 249 (2d Cir. 2001)(class action cannot bind persons who were not adequately represented). Thus, in fact, there is in fact uncertainty if a company is basing its future on an unenforceable injunction.

Overbroad injunctions issued without meaningful notice and due process procedures certainly are adverse for (and illegal as to) a future claimant whose claim may be enjoined when there was no person adequately representing the interest of the overseas claimants whose claims were not actually anticipated in and properly provided for in the insolvency proceedings . As described above, the chapter 11 cases to date have done nothing or very, very little to provide meaningful notice or fair compensation for future overseas claims or claims that arise from corporate interactions, such as joint ventures.

Recognize also that the future claimants also include other corporate entities that will or should be co-defendants in future underlying cases. Like future personal injury claimants, these entities also have not been given meaningful and timely prior notice of proceedings, much less an opportunity to be heard at a meaningful time. Accordingly, to my knowledge, there have not been any hearings to formally and publicly estimate the amount or value of contribution or indemnification claims that current and future co-defendants could or should assert against an insolvent multinational due to both allegedly contributing to the asbestos "exposures" that lead to "asbestos disease."

What kind of corporate interrelationships exist that ought to be carefully, explicitly and publicly considered in the insolvency cases? Consider, for example, the following excerpt from this paper on Eternit (see also last Wednesday's post on Eternit entities.) Specifically, note the assertion that Eternit entities had tight ties to two major asbestos producers that have now been through insolvency - Johns-Manville and T& N/Turner & Newall. Thus, the Eternit paper asserts:

"1960 Eternit Belgium, Johns-Manville (US), T&N and Eternit France together form TEAM, under whose auspices many new [asbestos-cement] firms are established in Asia.

"70-90 Influenced by the debate around the dangers of asbestos, British and American firms are the first to begin to withdraw from the market. T&N and Johns-Manville transfer their interests in TEAM to Eternit Belgium. In addition, Eternit Switzerland withdraws, selling a growing proportion of its interests to Eternit Belgium. By 1989 almost everything which was originally divided between a number of other firms is in Belgian hands. This includes the US firm Eternit Inc."

Want more? Plenty of facts on inter-corporate relationships are out there through books that describe extensive ties between multinational "asbestos companies." In general, the ties consists of joint ventures, sharing knowledge on manufacturing techniques, and sharing information on asbestos health effects. Companies also interacted with each other through inter-company sales of raw asbestos fiber and other products containing asbestos. All of these actions are ones that may give rise to shared liabilities and/or aiding and abetting liability. Here are some examples of the available books; most of them include significant footnotes and bibliographies:


Blue Murder, by Ben Hills, describes in detail the situation related to the Wittenoom crocidolite mine in Australia, a mine owned for decades by CSR. The book discusses many things, including corporate fiber purchasers and uses.

Asbestos House - The Secret History of James Hardie Industries, by Gideon Harris, is a comprehensive account of that company. Numerous mentions are made of relationships between James Hardie, Turner & Newall, Cape Industries, Johns-Manville, and CSR.

The Way From Dusty Death, by Peter Bartrip, is a comprehensive discussion of Turner & Newall and asbestos regulations in the UK from the 1890s through 1970. This book also discusses interactions between various industry titans, including Cape Industries.

Jock McCulloch has written two books on asbestos, focused primarily on mines in South Africa that were the sources for all of the world's amosite fiber, and much of the world's crocidolite fiber. The mines were owned by Cape Industries entities and various other entities. One book is: Asbestos: It's Human Cost, and was published in 1986. McCulloch's second book was published in 2002, and is titled Asbestos Blues, Labour, Capital, Physicians and the State in South Africa.

Messrs. McCulloch and Tweedale combined to write a 2008 book, Defending the Indefensible, the Global Asbestos Industry and It's Fight for Survival.

In addition, Mr. Tweedale also has written extensively regarding Cape Industries and Turner & Newall/T & N. One of his publications is the book titled Magic Mineral to Killer Dust, Turner & Newall and the Asbestos Hazard.

Global Asbestos Claiming - Report on Asbestos Litigation in Nine Nations - Munich Re's Major Compilation of Information

Here is the online image of Munich Re's recent, comprehensive report on asbestos litigation, Asbestos: Anatomy of a Mass Tort. The 112 page report is authored by Nicholas Roenneberg, and is Order number 302-06142. The report can be downloaded and printed from this page.
The same page, on the right hand side, allows you to order a printed copy at no charge.

The report is quite good. It begins with a review of asbestos litigation in North America. The report goes on to explain and explore various factors relevant to reinsurers such as Munich Re.

Beginning at page 58, the report addresses asbestos claiming in other nations in the context of employers' liability. The report covers the UK, Ireland, Italy, Spain, France, Czech Republic, Japan and Brazil. These country-specific reports are well worth reading to better understand the global asbestos claiming situation.

_____________________________________________________________

I owe a hat tip and thanks to Christian Lahnstein of Munich Re for bringing the report to my attention this past fall, and for provding value contributions to dialog regarding mass tort claiming. Christian is a very thoughtful thinker and speaker on the subject of asbestos claiming and its consequences. Indeed, he is thoughtful enough that at a dinner before an international asbestos conference this past fall in London, a smart plaintiff's lawyer listened to Christian for a while and then commented that he was surprised to learn that Christian works in the insurance industry.

Eternit, Etex and Asbestos Cement - Global Scale, Decades Ago - How to Deal with Current and Future Claims ?

Monday's post (12/26) pointed out a variety of product liability, corporate law and compensation issues in the context of one nation (India) and a small group of apparently independent asbestos-cement companies. The point of today's post is to illustrate macro level complexities that arise due to the cross-border issues that arise from multinationals, globalization and immigration, among other factors. A few country-specific points also are noted.

Today's post focuses on the large number of Eternit, Etex and other related entities that for decades have comprised a literally global network of manufacturers of asbestos-cement. Today, some of these companies are in the news because of the recent start of an Italian trial to resolve combined civil and criminal charges involving over 2,500 injuries and deaths suffered by persons injured by asbestos inhaled at manufacturing facilities operated in Italy by Eternit entities. In the trial, individual officers and managers face Italian law charges that are more or less akin to reckless homicide, with the charges related to Italian laws requiring a safe workplace. Additional media stories exist because one of the defendants is a billionaire, and he is busy with actions that rightly or wrongly seek to portray Mr. Schmidheiny as a person who is both "green" and concerned about other people.

Global Scale, Decades Ago: What are sources for facts discussed in this post ? As to the entities in general, this substantial paper provides an extensive and apparently reasonably credible hundred year history of various Eternit entities sprawled around the globe (but note the paper is prepared by partisans plainly interested in causing Eternit entities to make compensation payments.) The paper can be skimmed in just a few minutes to obtain a basic grasp of the global scale and inter-connected nature of the operations. A basic summary is that the entities operated across Europe, Africa, South America and Asia. The paper also describes extensive transfers of business operations between and among entities. For more background and specifics on the trial in Italy, please look to the left for prior posts indexed under Eternit and/or go to this partisan website operated by persons who support the injured persons. Articles here and here relate to Mr. Schmidheiny and his image/actions.

The bottom line ? Actions of Eternit and Etex entities, and their officers and managers, plainly caused many deaths and injuries among plant workers around the globe, and no doubt more deaths and injuries of plant workers will follow in future years. One also may reasonably assume that so-called "take home" exposures have produced some number of deaths or injuries among spouses of plant workers through fact patterns such as a wife contracting mesothelioma due to having shaken out and washed a husband's work clothes laden with asbestos fibers. It also seems fair to conclude that injuries and deaths also have occurred and will continue among persons who worked for contractors who performed services at the plants, such as persons who installed, removed, or serviced a factory boiler. In the US, the latter incidents would give rise to "premises liability" claims. In addition, some additional number of current and future product liability claims will arise among persons who sawed, drilled, broke or otherwise worked directly with asbestos-cement or other Eternit products. For all of these groups of current and future victims of disease, one assumes that some significant number of persons and/or their families will have migrated to other nations.

The injuries and deaths arising from decades of global operations and transfers of business operations will provide the factual grist needed for plaintiff's lawyers, defense lawyers and insurance company lawyers to write and argue a wide range of legal positions on a wide range of liability, compensation and insurance issues. The various positions will be further colored by the years in which relevant action or inaction did or did not occur. The issues for example logically would require parsing which entities and/or officers and directors are directly liable to pay which claims, whether as defendants facing civil claims or via mitigation payments to reduce criminal sanctions ? Also, are those entities or persons financially protected by insurance or other indemnities ? Which entities, persons, insurance policies, or insurers are known, still exist , and are financially viable ? Can funds be obtained from solvent reinsurers who lurk behind insolvent primary insurers?

Other issues may arise regarding which entities or persons are entitled to make claims or decisions regarding insurance or other assets. And, all of these issues will arise under the laws of myriad nations. Moreover, health care costs associated with the injuries will be incurred in myriad nations under myriad legal rules regarding the recoverability of such expenses. To the extents the costs are not recovered from Eternit entities, they will have imposed a burden on the "economic commons" of many nations, and those burdens will be suffered for several future decades due to the 20-50 year latency periods associated with cancers caused by asbestos inhalation.

Also consider the impacts of corporate papers written in myriad languages, and myriad rules on discovery. And bear in mind that most of the paper will not be in digital form. Also think about if and when relevant papers were destroyed or preserved.

County-Specific Topics: To highlight just a few of the legal issues, one may look at the Italian trial to see both differences and similarities when compared, tor example, to the US legal system. One difference between US and Italian law is that Italy allows joinder of both criminal charges and civil claims, an approach that would set off shock waves if used in the US. Second, note that the trial includes claims by Italian government agencies seeking to obtain repayment of expenses incurred for medical care for injured persons. Thus, another example of the reality that diminishing government resources lead to more claiming, and that the US is not unique in being a home for lawsuits seeking government cost recoveries. Note also that the Italian system moves more slowly and in different ways than does the US system. Thus the prosecutors gather and share information and evidence in conjunction with testimony taken at various times before one or more judges. Note finally that the trial coverage highlights yet again the risk related to corporate reputation.

Macro Issues: So, who pays, when and how given a history of inter-related entities spread across the globe, many transfers of entities and assets, and many nations with an apparent interest in asserting jurisdiction and trying to provide due process for both claimants and defendants ? And, how does society cope with the reality that some of the victims probably have moved to other parts of the distant from where they inhaled fibers, and that faux victims will emerge ?

Litigation of course is an option. Consider, however, the incredible amount of wasted resources we saw in US asbestos litigation that took place mainly under one language and with mainly state-based rules of law that vary, but are not so terribly different in their general framework. Now consider the inefficiencies plainly ahead when the Eternit/Etex issues described above will unfold globally in myriad languages under rules of law that in some cases are now fixed but in other cases have yet to be written or decided in developing countries.

For all the above issues, who can or should speak for which future personal injury claimants? Who can or should speak for governments or others who incur health care costs resulting from Eternit-caused injuries ? Who can or should speak for other corporate defendants that will be called on to pay for some or all of the injuries caused by work at Eternit plants or by Eternit products? Who speaks for US and non-US asbestos trusts and/or foundations that will be called on to pay for some or all of the injuries caused by work at Eternit plants or by Eternit products? Who speaks for solvent or insolvent insurers or solvent insurers that are trying to cut off their future payments and risks by participating in "schemes of arrangement" in the UK, the United States or other nations?

Focusing this Week on Global Issues and Future Claims, Starting with Articles on Growing Asbestos Cement Use in India

I keep falling off the "global" side of things. So, this week, I'll make a special effort to be more global. This week I'm also going to try to focus more on the wide range of issues regarding "future" claims. By future claims, I mean future tort or business to business claims that possibly, likely or probably will arise as a result of past and/or current and/or future sales of products that involve risks, whether known, knowable or evolving.

Issues to Ponder: The starting point is India and its booming production of asbestos cement products. As detailed in the articles described below, there are myriad entities involved in and expanding their businesses in India producing asbestos cement products. Plainly, the manufacturing process itself sales produces risks of future physical injuries, and so do sales of the products. So, given the asbestos injury debacles still ongoing in North America, Europe and Australia, what should one think about these processes and sales in other nations. Should asbestos fiber be sold at all since, without it, there is no industry ? Should asbestos-cement sales be allowed ? Should the manufacturers be required to issue warnings in languages geared at the likely readers ? How big should the warnings be? How permanent should the warnings be - after all, someone will dismantle or cut these sheets some day in the future ?

Should the manufacturers be required to buy minimum levels of insurance in case they are wrong in their hopeful assessment that risks are low ? Is insurance even available or is there an "asbestos exclusion" of the sort put into place in the US in the early to mid-1980s? Either way, should their be minimum capital requirements for conducting a business that plainly involves some level of risk? Should these companies be allowed to do business for 20 years and then fold up and exit before cancers arise after lengthy latency periods ? Should they exit through dissolution, insolvency, or chapter 11 like proceedings? Should we judge the actions of the companies, their insurers and their customers based on what we know and have been through in the US, Europe and Australia, or should a different standard apply?

If the risks prove to be greater than stated and/or expected, how much should be paid as compensation when future cancers arise? Should legislation be put in place now that will let insurers keep down premiums and that will warn asbestos-cement users that future damages for a potentially horrible death by mesothelioma will be capped at 1,000,000 rupees? But, what happens when exposed persons migrate to new nations, start families and then become sick (or at risk) in other nations? Will those caps apply ? Will the caps apply to risks of cancer or other disease, or just an actual, manifest disease itself?

If there is much future claiming, shall we (once again) blame the lawyers involved? Shall we blame the business persons who went ahead producing asbestos-cement, knowing they were exposing others to risks and failing to confront fully some very real issues with predictable possible future consequences? Or, shall we blame government officials who let the issues go ? Or, shall we just let the topic unfold on its own, trusting that there will be an economic market-based solution ? Will that solution involve litigation funders? Multinational plaintiff's firms?

Will science save the victims ? In 5, 10 or 20 years, will cancer be a manageable disease? Curable? Always? Sometimes ? For some genomes, but not others? For some cancers, but not others? Will it all depend on when the disease is first spotted as having started at the cellular level?

Simply put, we are now at a time where intelligent, sentient beings are not able to credibly deny the foreseeability of the future issues that may arise. Judge Weinstein and others have plainly said that we in the US have collectively done a lousy job dealing with tort law issues. "Conservatives" blame the trial lawyers. The trial lawyers blame "greed" and purportedly "heartless" business persons. Academics ponder and write, some are great but too many lack a real understanding of the real world of business, science and the litigation industries that thrive on insurance claims and tort claims. Those industries, however, do not have all the answers, and so there is the quagmire known as chapter 11

Myriad former manufacturers and sellers of risky products (not just asbestos) are now in chapter 11, some due to actual insolvency caused by product liabilities and some because chapter 11 is a great place to use legal and financial engineering to dump problems and move ahead without the burden of the past. To that end, our nation's bankruptcy judges have issued rulings creating $ 30 billion or more of asbestos trusts. In the process, the bankruptcy judges hear evidence (very loosely speaking) and make rulings about future tort "liabilities" even though they have little or no clue about the real rules of each of the 50 state court tort systems and/or the realities of insurance claiming or paying, and also have little or no clue why state court tort claim settlements and trials turn out as they do. Too often, they do not even allow objectors to appear and they just "bless" deals cut by interested people, all making money from the outcome. Meanwhile, state court trial judges continue to march asbestos cases to trial despite having little or no idea of or regard for what may or should happen with the $ 20 billion still left in the trusts, and the billions more that will be added. And, virtually no one does or says much for companies that stay in business and are stuck paying the financial tab for deaths and injuries that in fact were caused by companies now sheltered by purportedly world-wide chapter 11 injunctions.

All these abstract issues really do matter and need better answers than we have today. But, the answers are not arriving. Why ? In part because the issues quickly become moot for a person dying from (avoidable) cancer. All they may want to do is try to live, or to die gracefully, perhaps leaving some money behind to support a dependent spouse or children. So, they victims say very little, and their lawyers include some good people, but they are busy looking for the next case and in any event are not really the spokespersons for the future victims.

Who really speaks for these foreseeable future claimants? No one, because their interests are in fact not well-served by today's "future's representatives." Why is that so (in my opinion), when the ranks of the futures representatives include some genuinely good, smart and compassionate individuals? The realistic answer includes many factors. One is that futures representatives are hopelessly conflicted between really sick people and the not so sick. (On this topic, see the Amchem decision, the many law reviews after it, and this great article by Plevin, Epley (now Davis) and Elgarten on the specifics of futures representative conflicts in asbestos bankruptcies) The futures representatives also hit conflicts due to the desire to reach certainty, today or "soon," despite the changes science will bring tomorrow. They also are outnumbered and out muscled. And, finally, the bankruptcy code gives them far too little power, and pays far too little attention to current or future science.

Global Context for Why the Issues Matter: On the last two Sundays, The Toronto Star has published an extended pair of articles (here and here) that are well worth reading as they cover in some detail the topics of increasing use of asbestos in India as a "developing country," and plans to export more asbestos fiber from Canada's Jeffrey Mine. The first article focuses on the growing use of asbestos cement to provide less expensive and "better" housing for people living in massive slums in India. The author, Jennifer Wells, candidly confronts the disparities between the "talking points" offered by the manufacturers and government as compared to the reality of actual working conditions in factories and the reality that there are no safeguards on use in the slums. She also points out that all of the warnings on the products are in languages other than Hindi. Ms. Wells also identifies the manufacturers and fiber suppliers.

The second article focuses on the issues regarding Canada's continuing export of chrysotile fiber, and plans to expand the exports from the Jeffrey Mine. The mine was formerly owned by Johns-Manville and has been in use for decades. According to the article, the open pit phase of mining is drawing to a close, but an underground mining phase is perhaps approaching fruition. The article includes some of the needed dialogue regarding the distinctions between the different asbestos fibers. Unfortunately, the article does not report on whether the "new" fiber to be mined has or has not been tested for "contamination" with amphibole fibers.

These article are yet another example of the issues that evolve as "developing" countries face opportunities and choices. In part, they face choices between current and future health risks, and the demands/pressures of industry and a vast population. They also face choices between the financial and health costs and risks encountered by people aspiring to "better" living conditions.

For those interested in more on the topic of banning asbestos, consider Laurie Kazan-Allen's website that documents her many years spent campaigning with others to ban asbestos use around the world. Ms. Kazan-Allen works through an organization known as the International Ban Asbestos Secretariat (IBAS). Ms. Kazan-Allen is the sister of an American asbestos plaintiff's lawyer, Steve Kazan. She has accomplished a great deal to limit the harms that can arise from asbestos use. She also has organized many groups of victims seeking medical care. legislation and/or compensation. The website contains a vast amount of information and is well worth the time to browse for anyone interested in the issues. The website also highlights a paper on and an upcoming conference opposed to asbestos use in Asia. In addition, Steve Kazan provides a website known as the World Asbestos Report.

Others, of course, would say IBAS goes too far in seeking to ban all use of all forms of asbestos. That position is well laid out in the Toronto Star's second article.

Unfortunately, there is no website focused on those who will have the future risk or disease, or the interests of the companies that will in the future pay bills for other companies.

Watch on Monday for A. M. Best Findings and Projections on Asbestos and Environmental Losses

This article from Business Insurance overviews points from an A.M. Best study to be released on Monday with data and projections on losses from asbestos and pollution claims. Here are some excerpts from the Business Insurance advance article:

"Best estimates the industry's ultimate asbestos and environmental losses will reach $117 billion, down from a previous estimate of $121 billion. Asbestos exposures, however, are projected to reach $75 billion, up $10 billion from a previous estimate; environmental exposures are projected to drop to $42 billion from a previously estimated $55 billion. (emphasis added)

"The increase in asbestos estimates reflects ongoing, elevated levels of annual incurred losses, as well as a subtle shift of losses away from product liability claims to more costly nonproducts claims against more peripheral defendants," according to the report. "Also affecting asbestos losses is a growing proportion of settlements in more serious cases, principally related to mesothelioma, which is increasing the average values of such claims.

More Lung Cancer Claims in Asbestos Litigation ?

Here is the Madison County Record's weekly report on new asbestos claims filings. The article lists fourteen new claims. Five of the claims are for lung cancer.

I've not done a meaningful analysis comparing the rate of lung cancer filings, but my gut is telling me that there is a developing uptick in the rate of lung cancer claims in asbestos litigation.

Pictures of Asbestos Snow and Much More on flickr

One learns many things at asbestos litigation conferences. This year's learning includes being told about a collection on flickr of well over 500 pictures of asbestos-containing products. Here is a picture of a box of asbestos snow. The related collection will appear to the right if you pull up that link. Or go here for an overview of the collection.

Asbestos - UK - Update on Various Topics

I'm headed to London this weekend to chair an asbestos litigation conference starting On Tuesday the 29th, so this seems a good time for an update on new speakers added to the conference roster and on some UK developments regarding asbestos litigation.

Conference Update: Two additional conference speakers have been added. One speaker will address new research regarding the impact of the chapter 11 asbestos trusts in the United States. Some of the research data was released in the US earlier this month and quite explicitly proves that indeed the chapter 11 bankruptcies have a significant impact on the litigation fortunes of the defendants that remain in the tort system. The research was undertaken by Bates White and will be presented by Peter Kelso. Additional upcoming research on asbestos bankruptcies also will be discussed.

Another speaker was added to address the evolving topic of litigation as a target of investors. Litigation investment will be addressed in two ways. First, Selvyn Seidel of Burford Advisors will explain the nature of the business and how and why it is expanding. Second, additional speaker Andrew Evans will describe the emerging market in which defendant companies may pay other companies to take over some or all litigation risks in, for example, asbestos litigation. Mr. Evans is part of a business known as Litigation Resources Group that has its roots in Bates White work on the economic realities of asbestos litigation.



Conference registration is still open at the online site here. The conference runs all day on Tuesday the 29th and a half-day on Wednesday the 30th. I'm speaking on the 30th as part of a panel on asbestos trusts.



Pleural Plaques: Trade unions in the UK this week started ratcheting back up their efforts to persuade the UK government to enact legislation that would reinstate damages claims for pleural plaques. This September 24 article from the UK asserts that the unions expect "betrayal":

"Unions will again call on the Government to restore compensation for pleural plaques sufferers at the Labour Party Conference next week.

Gordon Brown was presented with a campaign video produced for the Trade Union and Labour Party Liaison Organisation by Jim Kennedy, political officer of construction union UCATT, this week.

Unions are demanding a new law to overturn the Law Lords' 2007 decision that sufferers of the asbestos-related disease do not need compensation.

Mr Brown promised the TUC Congress that ministers would examine the question when Parliament returns. But UCATT warned earlier this year that they were expecting "betrayal" on the issue"

Asbestos in Schools Hysteria in the UK: Hard to believe the way asbestos-in-schools history is now repeating itself in the UK via essentially hysterical UK news articles that fail to take any lessons from like prior hysteria in the US. Thus, this article from the UK's Mirror newspaper rather hysterically reports that 50,000 law suits are expected against uninsured UK school councils for allegedly causing asbestos-related disease. The article states:


"Test case may lead to 1000s of asbestos compensation claims


By Mark Ellis 23/09/2009
A test case may open the floodgates to thousands of compensation claims for asbestos-related cancers, a court heard yesterday.
And it could create a massive financial burden on education budgets for generations to come.
The warning comes amid fears that many comprehensive schools built in the 60s are riddled with the potentially lethal material.
It also adds weight to the Mirror's Asbestos Timebomb campaign. Lord Justice Moses at London's civil appeal court heard that 50,000 cases against largely uninsured councils are expected over the next 40 years.

And he set the stage for a landmark ruling by allowing council chiefs at Knowsley, Merseyside, to appeal a £240,000 award.
The case involves Dianne Willmore, 49, who blames her time as a pupil for her incurable lung cancer.
Asbestos timebomb: For more information on the Daily Mirror's campaign visit our blog."


UK reporters actually interested in facts and reality would do well to take lessons from the US experience. Asbestos-in-buildings hysteria swept the United States in the 1980s as EPA and plaintiff's lawyers predicted waves of deaths of janitors and school teachers, and thousands of lawsuits arising from injuries to be attributed to the presence of asbestos in school buildings. Ultimately, the hysteria ended because defendants W. R. Grace, U.S. Gypsum and National Gypsum gathered and analyzed literally tens of thousands of air samples in school buildings. The samples were analyzed and evaluated by world-class experts, including Rich Lee and Morton Corn (Dr. Corn earlier was a highly senior OSHA official and oversaw a dramatic but thoughtful reduction in the PELs for asbestos) . Their peer reviewed articles and testimony ultimately stemmed the tide of hysteria because they proved that in most but not all instances, the indoor air in schools contained no more asbestos fibers than did outdoor air. They also proved that even if fibers are being released in a certain spot in the building, the fiber levels a few feet away are still normal. Morton Corn proved this by, among other things, using air sampling to monitor fiber levels at various points in a room in which he was using a baseball bat to strike an asbestos-containing ceiling material.

Meanwhile, asbestos-in-buildings lawsuits at first flourished in the mid to late 1980s and early 1990s but then faded away hen the plaintiff's bar realized that the cases were very hard to win and expensive to litigate. Indeed, my then-partner Pat Lamb and I went to trial for W.R. Grace back in 1995 on asbestos-in-buildings claims brought by the Chicago Board of Education and numerous suburban school districts. After several days of trial, the claims settled for a very modest fraction of the demand.



Today, asbestos-in-buildings claims do not exist in the US except in the non real world of chapter 11 cases where science and state law are routinely ignored. Why? Because Congress' section 524(g) gives economic power to claims that lack merit by giving claimants votes the debtors need to exit chapter 11, thus leading debtors to pay money to settle claims that plaintiff's do not in fact bring or win in state courts. This pattern once again highlights that chapter 11 decision-making for tort claims is seldom grounded in reality.

Update on Bates White Paper on Impact of Asbestos Bankruptcies

Now online here at no expense is a new paper by the economists at Bates White. The paper is titled "The Naming Game" and is well-worth reading because it uses data from Alameda County to prove the reality that when defendants have exited the tort system to chapter 11, plaintiffs lawyers have in fact sought out and sued new defendants with increasing frequency. The paper also raises other interesting questions for discussion another day regarding the practices of plaintiff's lawyers in collecting money from asbestos trusts AFTER they have finished collecting money in the tort system.


The online article is a reprint from the September 2 issue of the Mealey's report for Asbestos Litigation.

New Bates White Paper on Asbestos Litigation, Bankruptcy Trusts, and Plaintiff's Habits in Naming Defendants

Just in time for upcoming asbestos litigation seminars. the economists at Bates White have issued a new report on asbestos litigation, asbestos trusts and the practices of plaintiff's lawyers in choosing and naming defendants to target in lawsuits. The article is well-worth reading as it uses data from Alameda County to prove the reality that as defendants have exited the tort system, plaintiffs lawyers seek out new defendants, among other things.

The article is in the new September 2 issue of the Mealey's report for Asbestos Litigation, or presumably is available through Lexis/Nexis in general.

The Litigation Industry - 1 Lung Cancer and 17 Mesothelioma Lawsuits - A Week's Worth of Madison County New Asbestos Case Filings

Many words have been written and said about asbestos litigation and class action litigation in Madison County. Disturbingly, academics and many others lack meaningful access to many concrete facts regarding the day in, day out events in Madison County and other courts that are very active in tort litigation. Instead, war stories and antecdotes - often but not always extreme - tend to dominate the media and academic exchanges, and produce many disputes about what really is and is not happening. In that light, the points of this post are 1) to provide an example of one week of asbestos claims filed in Madison County and 2) also to point out that the litigation industry now includes free news sources focused on providing a continuing flow of information regarding some of the active forums for tort litigation.

One group of sources for data consist of "the Record" publications that focus on Illinois' Madison and St. Clair counties, Southeast Texas and West Virginia. Specific to Illinois are the Madison and St. Clair County Records. All are free online publications, with paid print versions. The publications are run by private ownership, with an investment from the U.S. Chamber of Commerce. The Chamber of course has a view but that does not change the facts nor the reality that these publications provide by far the best real time, free and easy windows in to the goings on in these active venues that are so much a part of the litigation industry.

Free email subscriptions bring readers the news each week as defined by the Record; subscription sign up is available at the Ma,dison Record's home page (here). More or less each week the Record publishes a summary of the new asbstos case filings ( I keep bugging them to also put the complaints online, but so far that has not happened.) Set out below is the weekly summary for the week July 27-31.

As you read the case summaries, note how few of the cases appear to have a meaningful connection to Illinois. And, beyond considering the litigation industry view, consider also the widespread impact of cancer. Imagine what these families have been through or are going through as they try to cope with the devastion caused by these 18 of the 1.4 million cancers that will be diagnosed this year in the United Sates according to this detailed Powerpoint presentation for 2009 from from the American Cancer Society.

_________________________________________________________________


18 new asbestos cases filed July 27-31


8/20/2009 8:39 AM
By Kelly Holleran

A total of 18 new asbestos lawsuits were filed in Madison County during the week of July 27 through July 31.

The following claims were filed:

--Norbert and Marjorie Bossen of Iowa allege Norbert Bossen developed mesothelioma after his work in the United States Navy from 1944 until 1946; as a boilermaker in the late 1940s and early 1950s; with Gilbert and Bossen Farm Implements from the early 1950s until 1967; as a pipe fitter from 1967 until 1982; and performing home remodeling work to his homes in the mid 1970s. The Bossens are represented by Robert Rowland and Elizabeth V. Heller of Goldenberg, Heller, Antognoli and Rowland in Edwardsville. Sean P. Worsey of Levin, Simes, Kaiser and Gornick in San Francisco will serve of counsel. Madison County Circuit Court case number: 09-L-795.

--Walter Derby of Colorado, an aviation mechanic, consulting engineer, police officer, security guard, laborer, tree trimmer and contractor/construction worker at various locations throughout Illinois, California, Colorado and Oklahoma from 1967 until 2007 claims mesothelioma. Derby is represented by Timothy F. Thompson Jr. and Ryan J. Kiwala of Simmons, Browder, Gianaris, Angelides and Barnerd in East Alton. Madison County Circuit Court case number: 09-L-789.

--Catherine Fridmanski claims her recently deceased cousin, Andrew Mulato, developed mesothelioma after his work as a bricklayer and steelworker at various locations from 1940 until 1980. Fridmanski is represented by Andrew O'Brien, Christopher Thoron, Christina J. Nielson, Bartholomew J. Baumstark and Gerald J. FitzGerald of the O'Brien Law Firm in St. Louis. Madison County Circuit Court case number: 09-L-792.

--Josie Gonzales of Texas claims her recently deceased husband, Eulalio Gonzales, developed mesothelioma after his work as a laborer and foreman at various locations throughout Illinois, Missouri, Colorado, Kansas, New Mexico and Texas from 1958 until 1985. Josie Gonzales is represented by Amy E. Garrett and W. Brent Copple of Simmons, Browder, Gianaris, Angelides and Barnerd in East Alton. Madison County Circuit Court case number: 09-L-798.

--Joseph and Sandra Goudreau of Michigan claim Joseph Goudreau developed mesothelioma after his work as a laborer, painter, operator and engineer at various locations in Illinois, Michigan, Alabama and Wisconsin from 1950 until 2000. The Goudreaus are represented by Timothy F. Thompson Jr. and Ryan J. Kiwala of Simmons, Browder, Gianaris, Angelides and Barnerd in East Alton. Madison County Circuit Court case number: 09-L-801.

--Julie Hied of Montana claims her recently deceased husband, Lyle Woolston,developed mesothelioma after his work as a rancher and mechanic at various locations from 1968 until 1978. Hied is represented by Robert Phillips, Perry J. Browder and Rosalind M. Robertson of Simmons, Browder, Gianaris, Angelides and Barnerd in East Alton. Madison County Circuit Court case number: 09-L-775.

--Betty Hughes of Virginia claims her recently deceased husband, Cecil Hughes, developed mesothelioma after his work as a laborer and carpenter from 1970 until 1979. Hughes is represented by Robert Phillips, Perry J. Browder and Rosalind M. Robertson of Simmons, Browder, Gianaris, Angelisdes and Barnerd in East Alton. Madison County Circuit Court case number: 09-L-776.

--Robert and Barbara Krupp of Illinois allege Robert Krupp developed lung cancer after his work in the U.S. Coast Guard from 1952 until 1955; as a laborer at Mallinckrodt Chemical Company from 1955 until 1957; as a laborer at The New York, New Haven and Hartford Railroad Company from 1957 until 1961; as a laborer at Stickland Trucklines from 1962 until 1965; and as a laborer at Manufacturers Railway Company from 1965 until 1991. The Krupps are represented by Randy L. Gori and Barry Julian of Gori, Julian and Associates in Edwardsville. Madison County Circuit Court case number: 09-L-777.

--John Lappin of Missouri, a machinist and steelworker from 1947 until 1992, claims mesothelioma. Lappin is represented by Andrew O'Brien, Christopher Thoron, Christina J. Nielson, Bartholomew J. Baumstark and Gerald J. FitzGerald of O'Brien Law Firm in St. Louis. Madison County Circuit Court case number: 09-L-772.

--Ronald H. and Karen L. Larson claim Ronald H. Larson developed mesothelioma after his work as a field lineman with the United States Army from 1960 until 1963 and as a steel plate inspector at Bethlehem Steel from 1963 until 1987. The Larsons are represented by Randy L. Gori of Gori, Julian and Associates in Edwardsville. W. Mark Lanier, Patrick N. Haines, C. Taylor Campbell, J.D. McMullen and William H. Barfield of The Lanier Law Firm in Houston will serve of counsel. Madison County Circuit Court case number: 09-L-781.

--Christopher Morelli of New Jersey claims his recently deceased wife, Michelle Morelli, developed mesothelioma after her work as a laborer at Lockheed Martin in 1982. She was also exposed to asbestos fibers while doing abatement work during the late 1990s and was secondarily exposed through her husband, who owned a painting, drywall and texture company from 1982 until now, according to the complaint. Christopher Morelli is represented by Randy L. Gori and Barry Julian of Gori, Julian and Associates in Edwardsville. Madison County Circuit Court case number: 09-L-782.

--Jimmy E. and Rosalee Murphy of Arkansas claim Jimmy Murphy developed mesothelioma after his work as a manufacturer from 1967 until 1971 at Tucker Duck and Rubber Company, Fort Smith Table and Chairs and Bowmen and Company; as a laborer for Capco from 1971 until 1976; as a welder for Structural Steel in 1976; as a forklift operator for Farmland Feed Mill from 1976 until 1980; as a welder for Branham Industries from 1980 until 1981; as a welder for Interstate Electric from 1983 until 1986; and as an assembly line worker for Trane from 1986 until 2000. The Murphys are represented by Elizabeth V. Heller and Robert Rowland of Goldenberg, Heller, Antognoli and Rowland in Edwardsville. Madison County Circuit Court case number: 09-L-793.

--Shirley Jo Peeler of Ohio, a cashier for Liberal Markets from 1953 until 1956 and an employee at Revco and a press operator at Stanhope Products from 1956 until 1958, claims mesothelioma. Peeler is represented by Elizabeth V. Heller and Robert Rowland of Goldenberg, Heller, Antognoli and Rowland in Edwardsville. Madison County Circuit Court case number: 09-L-794.

--Larry C. and Bettye M. Sims claim Larry C. Sims developed mesothelioma after his work as an engineer and machinist mate while in the U.S. Navy from 1962 until 1987; as a maintenance man at Dorchester School District in South Carolina from 1987 until 1998; as a home remodeler at his house from 1960 until 1970; and as a shadetree mechanic from 1959 until 1979. The Sims are represented by Randy L. Gori of Gori, Julian and Associates in Alton. W. Mark Lanier, Patrick N. Haines, Angela B. Greenberg, Sam T. Richard, Bridget B. Truxillo and Lauren H. Ware of The Lanier Law Firm in Houston will serve of counsel. Madison County Circuit Court case number: 09-L-779.

--Toni Solano of Texas claims her recently deceased husband, John M. Solano, developed mesothelioma after his work as a laborer and division engineer for Burlington Northern Santa Fe Rail Road from 1975 until 2005. Toni Solano is represented by Elizabeth V. Heller and Robert Rowland of Goldenberg, Heller, Antognoli and Rowland in Edwardsville. Madison County Circuit Court case number: 09-L-796.

--Robert A. and Darlene M. Switzer claim Robert A. Switzer developed mesothelioma after his work as a service representative, products liability specialist, maintenance, expert claims witness for Caterpillar Tractor Company from 1953 until 1988; while being enrolled in officer's candidate school where he learned and performed duties on Navy ship from 1944 until 1946; while working for a road equipment contractor and on welded metal tracks from 1949 until 1953; as a farmer at Norvel Switzer Farm from 1926 until 1944; as a shadetree mechanic from the 1950s until 1980; and in residential construction from the 1950s until 1980. The Switzers are represented by Randy L. Gori of Gori, Julian and Associates in Edwardsville. W. Mark Lanier, Patrick N. Haines, R. Craig Bullock and J. Kyle Beane of Houston will serve of counsel. Madison County Circuit Court case number: 09-L-780.

--Leo J. and Ruth A. Vietmeier claim Leo J. Vietmeier developed mesothelioma after his work as a laborer, assembly line worker and maintenance man at American Vitrified in the 1950s; as a laborer while in the AFL-CIO Union in the 1960s; as a mine worker at Pegg's Run Coal Mill in Pennsylvania in the 1970s; as a meat cutter at Giant Eagle from 1980 until 1996; as a home remodeler at his home from 1967 until 1990; and as a shadetree mechanic on his automobiles from 1950 until 1980. The Vietmeiers are represented by Randy L. Gori of Gori, Julian and Associates in Alton. W. Mark Lanier, Patrick N. Haines, Angela B. Greenburg, Sam T. Richard, Bridget Baragona and Lauren H. Ware of The Lanier Law Firm in Houston will serve of counsel. Madison County Circuit Court case number: 09-L-778.

--Mary Ellen White of New Hampshire claims her recently deceased husband, John Grohosky, developed mesothelioma after his work in the U.S. Navy from 1944 until 1964 and as a forklift driver from the early 1970s until 1988. White is represented by Randy L. Gori and Barry Julian of Gori, Julian and Associates in Edwardsville. Madison County Circuit Court case number: 09-L-784.

--Fred Young of Wisconsin, who served in the British Navy from August 1940 until August 1954 and who worked as a mechanical researcher from 1954 until 1956; as a mechanical researcher at AV Roc from 1956 until 1958; as a design engineer for Pratt and Whitney from 1958 until 1960; as a design engineer at the GE Nuclear Power Demonstration Plant from 1960 until 1963; as a senior reactor operator at Ontario Hydro from 1963 until 1965; as a maintenance supervisor at Thunder Bay Generating Plant from 1965 until 1967; as a maintenance supervisor at Wisconsin Electric Point Beach Plant from 1968 until 1972; as a laborer at Bechtel from 1972 until 1984; and as a consultant at Wisconsin Electric Point Beach Plant from 1984 until 1989, claims mesothelioma. Young is represented by Randy L. Gori and Barry Julian of Gori, Julian and Associates in Edwardsville. Madison County Circuit Court case number: 09-L-797.

Madison County's Asbestos Judge, Daniel Stack, to Retire in 2010

This article from the Madison County Record reports that Judge Daniel Stack has decided to retire as of 2010. Judge Stack is well known as the Madison County judge who took over the asbestos docket from Judge Byron. Judge Stack is generally credited with having made Madison County a less extreme place to litigate for asbestos defendants, although that's relative praise. That said, Madison County continues to grind out trial dates and settlements for asbestos cases, and so claims for 2009 are up from recent years.

Want More on the Interplay Between Asbestos Trusts and Judicial Proceedings ? Go to the HB Asbestos Seminar in San Francisco 9/23-9/25

As posts on this blog reflect, there are in my view enormous issues out there regarding the interplay between asbestos trusts (mainly chapter 11 trusts) and the state court tort system. Happily, asbestos litigation seminars are paying an increasing amount of attention to the issues arising from the two parallel compensation systems. Two upcoming seminars offer great opportunities to learn more about the asbestos bankruptcy issues and much more.

Here are some specifics for the first of the two seminars:

1) HB Asbestos Litigation Conference Sept. 23-25 in San Francisco

The HB group took over from Mealey's and is running an upcoming 3 day asbestos litigation seminar. The program in general is excellent and is of special interest to me because of its focus on asbestos bankruptcy issues and because one of the chairs is fomer Chicagoan, Joe O'Hara, a lawyer who has tried asbestos cases for years for Owens-Illinois. Joe is now the Asssociate General Counsel for Owens-Illinois and a great lawyer I've known for more years than I want to admit. Joe and OI are very tuned in to the asbestos bankruptcy issues, and so the seminar program includes two Sept. 23 sessions focused on asbestos trusts and asbestos bankruptcy issues. In addition, numerous state court judges will be there and will end up hearing and/or saying a lot about these issues. Despite lots of other competing life events at that time, the sessions look so good to me that I'm flying out for just that day.

The specifics for the two asbestos trust and bankruptcy sessions are as follows; the speakers are quite knowledgeable:


2:30 Asbestos Claims Processing

•What bankruptcy trusts are operating and what are they paying?
• Timing of claims filing
• Best Practices - efficient methods for claim submissions
• Avoiding mistakes - areas of concern for claimant processing & payment
• W-9 forms, tax issues, 1099's to clients
• TDP's and processes within that may benefi t defendants
• Accounting for the money still in trust, the value of average mesothelioma claims & future projections on claims vs. assets and funds availability in trust

Francis McGovern, Esq., Professor of Law, Duke University School of Law
Larry Haden, President, Claims Resolution
Nicholas Vari, Esq., K&L Gates


3:45 The Surge in Bankruptcy Trust Payouts: Can You Make Everyone Happy? Maximizing Recoveries and Creating Fair Credit Allocation

• What adjustments should be made in the tort system to account for the bankruptcy payouts?
• What disclosure obligation should exist regarding pending trust claims, actual payouts, and expected future trust fi lings?
• Should the tort system encourage or leverage plaintiffs to file claims with the Trusts before the claims leave the system?
• Third party practice and the Defendants' interaction with the Trusts

Moderator: Joseph O'Hara, Jr., Esq., V.P. & Associate G.C., Owens-Illinois
Hon. Richard Aulisi, Supreme Court Justice, 4th Judicial District of New York
Hon. Ken Kawaichi, (Ret.), JAMS
Hon. James McBride, Superior Court of California
Joseph Belluck, Esq., Belluck & Fox LLP


To register, the HB home page is here. The entire asbestos agenda is here. In this tough yuear for budgets, note that inside counsel from corporations and insurers are invited to attend free of charge.

The Next Asbestos Still Is More Asbestos

For years, many have posed the question: what is the next "asbestos" ?

The answer usually has been: more asbestos.

Here is one recent example of why the answer remains largely true. The example is a plaintiff's firm press release urging the need to treat taconite as if it is asbestos even though its never before been classified as asbestos. There are some real health issues as to taconite, which you can see from this University of Minnesota web page addressing an ongoing study. The point here though is that the next asbestos is more asbestos. The second point is that the underlying JOEH article it cites purports to find a medical link between the presence of pleural plaques and pain in this particular person. The plaintiff's bar no doubt will continue to use this article as part of the always ongoing campaign to find reasons why money should be paid to persons without actual impairment of their day to day activities.

The James Hardie Saga - Tax Regulator Will Gain Access to Asbestos Papers

James Hardie's asbestos trust continues to create issues. Here is an article regarding the Australian tax regulator seeking and gaining access to asbestos-related papers, apparently including papers exchanged with its accountants. Trusts are plainly an excellent concept for resolving asbestos and other toxic tort claims without massive litigation waste, but they are indeed complex undertakings.

Update - Due Process Denials Via Time Limits on Depositions in Asbestos Cases

Update of July 14 to May 7 post reposted below: The National Law Journal includes a July 13 article updating on the case below. The update is that some defendants sought interlocutor appellate review of the trial judge's order in which he "reluctantly" declined to bar a deposition transcript created under the circumstances described below. Thus far, review has been declined by California's intermediate appellate court and by the California Supreme Court. The defendants, however, will continue to press the issue through other appeals and when it arises in other cases.


_______________________________________________________________
May 7 post

More and more legal news outlets have picked up on some parts of the asbestos litigation gamesmanship. Walter Olson's Pointoflaw uses the humorous (for lawyers) title "Asbestos: The Texas- California Two-Step" to link back to a California blog article (from Cal Biz Lit) that links to and quotes from a California trial judge's opinion (available here in full text) sharply criticizing the Waters & Kraus plaintiff's firm for its litigation tactics. Specifically, Judge Munoz criticized the firm for at least 10 times filing cases in Texas and then refiling in California after the plaintiff has been deposed in Texas. The same opinion was picked up in Legal News Line and today by law.com via the National Law Journal, and the ABA Journal online.



Why do plaintiff's play that game? Because it helps the plaintiff avoid meaningful scrutiny in depositions. How/why is that true? Because some states, including Texas and Illinois, have rules that limit depositions to six hours. Specifically, as Judge Munoz explained in his opinion:



"Plaintiff's law firm, which is a multi-state firm, has, in at least nine other cases, filed cases in Texas which were then dismissed after the plaintiffs' deposition had been take."



The reason for this procedure is apparently because under Texas law the deposition is severely limited to six hours per side. Additionally, under Texas law the failure to mention the defendant's product is a basis for summary judgment. The law in this state is to the contrary."



"It is the court's opinion that the filing of the Texas action was deliberately done to prevent the defendants from having adequate discovery and to prevent the filing of motions for summary judgment because of the California rule requiring specific questions about product identification."

Judge Munoz is correct that the tactic can and often does prevent a meaningful defense. Why is that - shouldn't six hours be enough? No, not even close in many cases. Why? Because in many cases, the plaintiff sues dozens of defendants and makes claims involving alleged "exposure" at dozens or hundreds of job sites. For example, the plaintiffs often are tradesmen (say an electrician or a pipefitter) who worked for a business that serviced dozens of businesses large and small (for example, stand alone power plants and power generating facilities at factories or refineries). That person may well have worked at dozen or more facilities a year, and may well claim that he was "exposed" to asbestos at each such site. In that situation, the defense lawyers need to carefully depose the witness to prove that in fact there was no actual inhalation of fibers from a specific job site. That proof is gathered by asking about the specifics of the work at the job site.

For example, in a typical deposition, the defense lawyer may be given a job site list from the plaintiff. The lead lawyer taking the deposition will then say: "I see you have listed the Acme Manufacturing Plant as a job site at which you claim you were exposed to asbestos. Please tell me about why you think you were exposed there?

The plaintiff may well respond: "I think I was exposed at the XYZ company because I brought in electric lines to a circuit breaker, and there were big pumps about 30 feet away from me. I assume the pumps contained gaskets that contained asbestos, and I assume the pipes leading in and out of the pumps were insulated with asbestos."

Once that testimony is on the record, then the defense lawyer for the gasket company needs to question witness in detail to find out the specifics of the pumps (who made them, what he knows about them) and then needs to take testimony to prove that in fact there was no actual "exposure" because, for example, 1) the plaintiff never touched the pump, and 2) the gaskets, if any are inside the pump, and the pumps were operating at the time of the plaintiff's work, so that fluid was flowing through the pumps and therefore any gaskets were wet and incapable of releasing a respirable asbestos fiber. Doing that takes time, but it has to be done if the company wants to obtain summary judgment when that "exposure" (or a few like that) are the only basis for potential liability. So, for a plaintiff with a long job site history, the deposition process may take literally several days if the testimony is to be taken well so that defense lawyers can make a record that proves up a solid defense for trial for each defendant in the position of the gaskety company. The plaintiff's lawyers, however, seek to limit the depositions to six hours to avoid the strong defenses, and of course will say it's their job to zealously represent their clients.

Isn't this all silly - shouldn't the plaintiff refrain from putting at issue job sites and alleged "exposures" where realistic lawyers who know their science also know that there was no actual inhalation at all of asbestos fibers or no meaningful inhalation? Yes, but that's not what happening in the tort system. Instead, the problem is that some but not all plaintiff's lawyers are pursing the "any fiber fiber counts" theory, supported by a small cadre of experts who will testify to their opinion that "any and all fibers add to the risk. "' Some courts have rejected that theory, but others let it go to the jury and others do not yet have concrete appellate case law. For much more detail on the "any fiber" or "every fiber" theory, the experts, and the case law, look to Mark Behren's very recent article "What's New in Asbestos Litigation" at pages 528-531.

The deposition time problem is made worse by the plaintiff's who claims that the pump maker should be held liable for failing to warn the plaintiff about the insulation that someone else installed over the pipes that connect to the pump . That legal theory also is popular in asbestos litigation today - for more specifics on the theory and the rulings to date, once again see Mark's article, but this time at pages 542-545. Here, though, the point is not to debate the merit of the legal theory. The point instead is to explain that because of that theory, the pump maker's lawyer needs to spend time questioning the witness about the insulation in some detail. E.g. does he know the age of the insulation (in the US, it won't have asbestos if it ws installed after about 1973, absent unusual facts), does he "know" if it contained asbestos (the answer should be no), was the insulation ripped or torn (properly jacketed insulation does not release fibers) , was anyone working on the insulation (could release fibers), did he touch the insulation (he probably did not but that's needed for the summary judgment motion). The result is that a six hour time limit often times denies a defendant its due process right to a meaningful opportunity to gather evidence and have a meaningful trial.

Some but not all plaintiff's lawyers typically will respond in at least two ways. First, they will say that some defendants send to depositions some ill-prepared defense lawyers who ask stupid questions because some insurers and some clients are too short-sighted to pay for well-trained lawyers who know their facts and science. That complaint is sometimes valid. Indeed, I've seen it happen. But that's NOT the fault of the well-prepared gasket company lawyer who must be accorded the due process chance to gather meaningful evidence to protect her client. The remedy instead is for the plaintiff's lawyer to bring a motion for protective order specific to that lawyer or defendant.

Second, plaintiff's lawyers will complain that some defendants play their own asbestos litigation games, such as removing cases to federal court just before trial of a dying mesothelioma victim, with the result being the loss of the trial date and the plaintiff's death before the trial is rescheduled. I'm told that has in fact occurred. But, once again, that's not the fault of all defendants and it's not relevant to the question of deposition time limits.

Finally, some will say that the problem is that the plaintiff came in and hired counsel just before death and there is not enough time. That can happen, but it's getting harder and harder to justify or believe that excuse in this age of non-stop mesothelioma ads online and on tv. And, in any event, when counsel was hired does not control the number of hours needed for deposition.

What steps would help to end this game. There is no one answer. One step would be an asbestos case-management order that automatically grants an extension of the deposition time in any case involving more than 5 defendants and 10 job sites. Another good step would be to have an activist trial judge who understands the science and the law, and who will take calls from depositions to block time-wasting by anyone, and who will ensure that each defendant receives a meaningful opportunity to prepare its defense.

Promoting Asbestos-Cement Manufacturer as Providing a Good Stock to Purchase

Ironic the difference a continent can make. In the US, companies usually do not promote their involvement in current or past production of asbestos-containing products. Not so in India, where an online stock analyst item regarding Eternit Eeverst Ltd. lauds the profit in the company's production of asbestos-cement products. It states:



"The Tatas and the Eternit Group of Belgium set up the pioneer of asbestos fibre products in India, Eternit Everest Ltd . The company is a pioneer in the manufacture of fibre cement roofing products and flat sheets. Eternit enjoys a market share of over 20%. Everest Industries Limited provides you with the world-class building solutions to meet your construction requirements, in the Industrial, Commercial and Residential sectors. Historically, Everest has provided rural shelters by making corrugated roofing sheets available to farmers at a competitive price. The company is poised to capitalize on the opportunities in rural India where various housing and infrastructure initiatives are envisaged by the Government.
Products & Services

Everest offers a complete range of building solutions which includes Ceilings, Walls, Flooring, Cladding, Doors, Roofing and Pre-Engineered Steel Buildings. These are produced at Everest's state-of-the-art ISO: 14000 certified manufacturing facilities at Kymore, Nashik, Coimbatore, Kolkata and Roorkee. With over 4000 retail points spread across the nation together with the strength of over 1285 highly qualified and experienced engineers, designers and technicians, Everest provides you building solutions that successfully meet the highest standards of quality and durability.

Everest, the second largest player in the roofing industry, manufactures various asbestos and non-asbestos based products like roofing sheets, flats and boards that find application in housing, false ceiling, partitioning, interior etc. The company has embarked on a project to add capacities of non-asbestos products that also demand higher margins. It expects to capture square meter corrugated sheet market in the country. Following the break through in exporting this product in the Sri Lankan market, the company plans to tap the export market as well.
However the company is increasingly looking at international markets to widen its revenue base; it expects exports to increase in the coming years. Everest is actively looking at opportunities in African and European markets (where asbestos is banned) to widen its geographical reach. With the increasing share of exports in its total sales, the operating profit margin of the company will improve, as exports fetch better margins than domestic sales.

Valuations

At current market price, stock is trading at 7.82 P/E multiple of its FY2010 estimated earnings. We recommend investors to buy "Everest industries Limited" with medium to long term investment horizon."

Asbestos Cement Bombs - Really !! Enjoy Celebrating Independence Day for Our Great Nation !!!

On this our nation's anniversary of its independence, you may find interesting/amazing a Pravda article on 1940s era use of cement bombs made from asbestos cement. And, by the way, this post was written long ago but set to post today. http://english.pravda.ru/main/18/87/344/10033_concrete.html

Soviet Invention of the 1940s: Concrete Bombs

20.05.2003 Source: URL: http://english.pravda.ru/russia/2851-concrete-0

Although the USA says concrete bombs used in raids on Iraq are the latest innovation, the USSR used them already in WWII.

The wonderful weapons that Americans used in raids on Iraq, the concrete bombs, were produced by Soviet plants already in the beginning of WWII. However, it seems that the USA hasn't hit upon another know-how of the Soviet Union. These are slate mines that were produced by the Soviet enterprise Kommunar in the 1940s.

Samples of this "weapon" can be seen in the city preserve museum in the Russian city of Novorossiisk. Deputy Director of the museum Lev Stepko describes the exhibits and speaks about their negative and positive aspects. The waterproof body of the weapon increases its reliability. Only the fuse is made of metal, which makes the slate mine immune to mine-detectors.

However, series production of concrete bombs and slate mines was started because of the availability and low price of the stuff they were made of. Weapons of this kind had several disadvantages as compared with the conventional arms: they were very fragile and could be damaged in long transportation. Concrete bombs and slate mines were used by the Soviet army in the Caucasus battle.

However, there are just few documents in the Novorossiisk city museum saying how civil enterprises producing construction materials were turned into defense enterprises. For example, documents in the archives of the concrete department of the People's Commissariat for Construction Materials say, a production line for making concrete bodies for bombs was opened at the enterprise Proletariy. About 20,000 concrete bodies for bombs were produced at the enterprise.

Historian Sergey Novikov searched the archives of the concrete industry museum and found documents proving that all concrete-making enterprises started this kind of production from November 1941 and finished it in August 1942, when German troops neared the city of Novorossiisk. Equipment of the concrete enterprises was evacuated to Georgia and Central Asia then. As Sergey Novikov says, the concrete enterprises mastered a unique technology. Concrete bombs were mostly used for training purposes, but those produced in the cities of Nevyansk, Volsk and Novorossiisk were used at war. Workers in Novorossiisk made concrete bodies even for unique 5-ton bombs.

The usage of those cases depended upon the stuffing. Explosives or chemical agents could be placed inside the concrete bodies; chemical agents were also used in target indicators. Those indicators were dropped on targets, but they didn't detonate and indicated the area for bombing which was clearly seen by pilots in the sky. It is highly likely that concrete bodies were sent to the arsenals where the military filled them with tolite and trotyl. There is also a version saying that concrete producers even had to stuff the bomb bodies themselves.

Documents in the archives reveal anxiety of top managers at the Novorossiisk concrete enterprises: they realized that strict discipline measures must be taken at the enterprises because they were given an unusual task of filling concrete bodies with explosives. As for production of slate mines at the enterprise Kommunar, historian Sergey Novikov even managed to find a woman participating in the production in the 1940s. Maria Leonova didn't assemble slate mines herself; she worked as an electrician in the production workshops of the enterprise.

She says that production of the weapon was started in the autumn of 1941. The production cycle wasn't difficult. Fresh asbestos-concrete mass (so-called eternit) was placed into moulds made of wood. The newly-made slates were used for making boxes of different sizes. Prominent edges of the newly-made boxes were moistened and trimmed. Bodies of mines were placed into special chambers for drying. Those mines were used against tanks. As it becomes clear from the story told by Maria Leonova, the slate boxes were stuffed with explosives somewhere outside the enterprise. Although, the workers of the enterprise didn't have to deal with explosives, they all the same had to keep the details of the work secret.

The war in Iraq has demonstrated that all modern innovations were developed long ago and were recently just furnished with modern details, such as high-precision laser pointing systems. As representatives of the US and UK Air Force say, the latest concrete bombs are meant for hitting particular targets. There is no explosive inside these bombs; the effect of these bombs is based upon kinetic energy and high percussive power. As the coalition forces say, concrete bombs don't split into pieces and consequently cannot injure accidental victims. They may say whatever they wish, but the present-day hostilities have already demonstrated that there cannot be absolutely humane weapon at all. Svetlana DobritskayaNovorossiisk Rabochy


© 1999-2006. «PRAVDA.Ru». When reproducing our materials in whole or in part, hyperlink to PRAVDA.Ru should be made. The opinions and views of the authors do not always coincide with the point of view of PRAVDA.Ru's editors.

Asbestos Litigation Conference - Asbestos Bankruptcies, Chrysler, GM, and Others

In light of this morning's news from the General Motors chapter 11 case, and emails landing in my inbox of late, this seems an apt time to mention that the recession, chapter 11 cases and asbestos litigation are all intersecting at upcoming asbestos litigation conferences.

For one, Perrin Conferences is hosting a September 14-16 asbestos litigation conference in San Francisco. In a nod to the recession and slashed corporate budgets, Perrin Conferences is offering free registration to inside corporate lawyers. Go here for the agenda.

The entire conference looks excellent for both substance and speakers. My eye was particularly caught by the seminar's day three panel on chapter 11 cases related to asbestos claims. Who knows what the world will look like by then, but for now, the panel is top notch:


9:00 AM - Asbestos Bankruptcy: New Filings, Confirmations & Dismissals

Overview of the current Chapter 11 asbestos bankruptcy landscape, Part I: Why are these companies still in bankruptcy?

Overview of the current Chapter 11 asbestos bankruptcy landscape, Part II: Who are these new filers and how are they doing?

Overview of the asbestos trust process, the Three "C's": Claims, Contribution and Cooperation
Will there be any defendants left? The automotive industry and bankruptcy

Joseph F. Rice, Esq., Motley Rice LLC, Mount Pleasant, SC
Charles Mullin, Litigation Resolution Group LLC, Washington, DC
Robert Phillips, Esq., SimonsCooper, LLC, East Alton, IL
Lucy P. Allen, SVP, Mass Torts and Product Liability Chair, NERA Economic Consulting, New York, NY

Argentine Manufacturing Plant Workers Assert Asbestos Exposure Claims Against DuPont In Delaware

Per this article from Delaware Online:

June 25, 2009
DuPont sued over asbestos in ArgentinaEx-Lycra plant workers say they were exposed
By ANDREW EDER and AARON NATHANS
The News Journal

DuPont Co. exposed workers in Argentina to asbestos until the late 1990s despite knowing the risks of the material, according to three lawsuits filed Wednesday in Delaware.
The lawsuits came from former workers at a Lycra spandex plant in Mercedes, Argentina, that was part of DuPont until the sale of its textile unit in 2004.
DuPont knew that exposure to asbestos could harm workers as early as 1964, the complaints said, but the company continued to use asbestos in the heat pipes and machinery of its Argentina facilities until the late 1990s.
The workers, Cristian Dematei, Juan Carlos Laborda and Ceferino Ramirez, are represented by the Wilmington law firm Jacobs & Crumplar. The law firm said more lawsuits would follow.
Dematei, who worked at the facility for 11 years, suffers from asbestosis, a chronic condition that causes shortness of breath and an increased risk of lung cancer, the complaint said.
Laborda worked at the plant from 1968 to 1980, according to his complaint, and suffers from asbestosis and asbestos-related lung cancer.
Ramirez worked at the facility for 32 years before retiring in 1993. He has been diagnosed with asbestos-related laryngeal cancer and asbestosis, his lawsuit said.
The lawsuits allege that workers were never warned of the dangers of asbestos exposure or given respiratory protection.
Amanda Velazquez, asbestos medical paralegal for Jacobs & Crumplar, said: "They need to break the double standard," referring to DuPont stopping using asbestos in U.S. plants earlier.
DuPont spokesman Dan Turner said, "While we have not had the opportunity to review the filing yet, and cannot comment on the specifics, we do find it puzzling that the plaintiff's attorneys have filed the compliant in Delaware rather than the country of origin. The safety and health of our employees, our neighbors and our community has and continues to be DuPont's highest priority."
Velazquez said it makes sense to sue a company in the place where it is based.

Amphibole Asbestos Fibers - Increased Mesothelioma Deaths In Towns in Israel and Italy

Current articles here and here follow up on a conference in Israel regarding a town there with high mesothelioma rates. Asbestos campaigners long-ago reported here that the town included an asbestos-cement plant that used the amphibole asbestos fibers known as crocidolite and amosite. A detailed report with pictures is available here at World Asbestos Report. The company operating this plant is said here to have been Eitanit, formerly known as Isabest; wit the town and factory located in Nahariya, in the Western Galilee.

According to one of the articles above:

"The choice of topic by Asbestos Consultant Andy Oberta was particularly relevant to Greece - a country in which asbestos-cement products are still being manufactured. The case study An Asbestos-Cement Plant in Israel: Contamination, Clean-up and Dismantling detailed Mr. Oberta's involvement with a project in the City of Nahariya, Northern Israel. For nearly fifty years, amosite, crocidolite and chrysotile had been used at this site during the manufacture of asbestos-cement pipes and sheet products. The factory owners distributed asbestos waste to local people for use on their driveways, paths and farms throughout western Galilee. Although the plant shut in 1997, friable and non-friable waste material was still lying on the beach and by the roads which bordered the factory site. Town councilors thought a good use for the area would be a children's amusement park and plans were developed to build this tourist attraction. A series of photographs illustrated the hazards of such a plan and Mr. Oberta explained the process by which negotiations with the Israeli Ministry of the Environment and local people resulted in the rejection of this idea."

According to an old article you can find online through various paid sources:

COPYRIGHT 1991 Israel Business TodayEitanit Set to Re-enter U.S. Market The U.S. Federal Court recently canceled the ban on asbestos products initiated by the EPA in 1989. The decision opens the way for Eitanit, formerly called Isasbest, to reenter the U.S. market. The company is the only manufacturer of asbestos products in Israel and anticipates sales of $25 million in 1991. Managing Director Uri Peled says the company has invested significant sums in reducing health hazards to its 200 employees. Eitanit is owned by the Federman family.

Old manufacturing plants also have created issues'>http://www.eia-usa.org/forum/viewtopic.php?id=14">issues in the Chicago area as an old Manville plant that used amphibole fibers was located in Waukegan near an Illinois public beach and state park.

Asbestos Campaigners 1,200 Mile Bike Ride in the UK

Asbestos campaigners in the UK have embarked on a 1,200 mile bicycle trip to publicize the need for more medical research into asbestos-related cancers and to publicize asbestos issues. The trip is the subject of a blog known as "Breath-Taking Journey" and is found here. The ride is to end on July 4.

Updated - Reactions to Travelers Manville Asbstos Bankruptcy Opinion

An article here provides a quick comment from Elizabeth Warren and mentions law students who helped Prof. Isacharoff.


A Law360 article here includes the following quotes:

"Gary Svirsky, a partner in O'Melveny & Myers LLP's securities litigation practice who has been observing the case, said in an e-mail that the Supreme Court "opted to rule on the narrowest of grounds." The court may have opted to keep its decision narrow "so as not to unduly limit the court's flexibility in addressing complex problems that might be raised in future bankruptcies," such as the recently filed bankruptcies of U.S. automakers, Svirsky said."While beyond the scope of this report, the issues posed by nonderivative claims remain open and alive after this decision in our opinion," he said.
The court "seems to have gone out of its way to not adjudicate the actual merits of the dispute and just say that it has to progress in an orderly fashion from the bankruptcy court," said Samuel Issacharoff, a New York University law professor who represented asbestos claimants in the case before the Supreme Court.serving the case, said in an e-mail that the Supreme Court "opted to rule on the narrowest of grounds."
An Am Law blog article by Alison Frankel reminds readers of prior exuberant comments by Travelers' counsel, Mr. Ostrager, and quotes him as follows:

Ostrager told the Litigation Daily by e-mail that the Supreme Court ruling is "100 percent in our favor." He added: "Every aspect of the Second Circuit's substantive legal reasoning was rejected (either expressly or by implication). It is, therefore, a complete and total victory."

CSX Moving Towards Trial on Claims Against West Virginia Asbestos Plaintiff's Firm Peirce, Raimond & Coulter and Radiologist Ray Harron

An article by Steve Korris in the Madison County Dail Record provides an update on CSX's lawsuit targeting the Pittsburgh-based Peirce, Raimond plaintiff's law firm and radiologist Ray Harron, one of the doctors identified by many as facilitating bogus claiming. The case is set for trial in August on CSX's claims that in essence accuse the law firm and doctor of manufacturing bogus law suits. Here are some key excerpts from the article:

"Baylor's case was a sham," CSX lawyer Marc Williams of Huntington, W.V. wrote to U.S. District Judge Frederick Stamp on June 16.During his May 11 deposition, Baylor "had virtually no knowledge of the circumstances" around his representation by Peirce, Raimond and Coulter of Pittsburgh, Williams wrote.

He wrote that Peirce firm lawyers "consistently acted without his authorization."He wrote that at his deposition Baylor identified his own signature on a questionnaire but said handwriting on the asbestos exposure section belonged to someone else.

Stamp plans to start trial Aug. 11 on CSX's fraud conspiracy suit against the Peirce firm, owner Robert Peirce, and radiologist Ray Harron of Bridgeport, W.V."

The Record, as its known, is a great source for general information about litigation developments in some well-known venues for tort litigation. The information comes with a definite but disclosed pro-defense view, as explained here. Different iterations of the Record focus on different "plaintiff-friendly" jurisdictions, including West Virginia (go here) and southeast Texas (go here).

NonMalignant Claims Going Back Up If You Judge by the Manville Asbestos Trust Report for Q 1 2009

Walter Olson 's PointofLaw has a June 12 post about Judge Weinstein writing a pessimistic paper about the way courts handle mass tort claims. Judge Weinstein may feel the need to write again after considering the Manville Trust's quarterly report for the 1st quarter of 2009. The report is available here, and is depressing both for what it shows and what it does not show.


The visible and depressing part of the report involves nonmalignant claims - the ones that seemingly have been fading away. But, that's not true for Manville during the first quarter of 2009. Instead, nonmalignant claims went back up - significantly - contrary to prior trends. They are said to be category 2 nonmalignancies, which means "asbestosis/pleural plaques" with a scheduled payment of $12, 000 (subject to prorated payment ) under the terms of the 2002 Manville TDP procedures available here - see page 7.

Specifics? Doing a little math from figures shown in the report's cover letter to Judges Lifland and Weinstein, it looks like there were about 2,900 nonmalignant claims, which is far more claims than ALL the Manville claims filed in 1Q 2008. According to the report's cover letter:

"During the first quarter of 2009, the Trust received 4,853 new claim filings compared to 1,776 for the same period of 2008. The malignant filing population has accounted for approximately 40% of the total for the first quarter of 2009 claim filings compared to 68% for the first quarter of 2008. The percentage decrease in malignancies is attributed to the sharp increase in the filing of unimpaired non-malignant Level 2 claims." (emphasis added)

"The Trust settled 3,749 claims for $30.4 million during the first quarter 2009 compared to 1,582 claim settlements for $14.8 million during the same period of 2008. The average settlement amount for the first quarter of 2009 and 2008 was approximately $8,100 and $9,300, respectively. Once again, the decrease in the average settlement amount is due principally to the higher percentage of non-malignancy claims settled during the first quarter 2009."


Also depressing is the lack of data in the report to tell readers where these nonmalignant claims are coming from and the nature of the supporting proofs. Are these claims from persons resident in the US or persons who live overseas? Are some of these claims from older claimants who perhaps really did inhale large amounts of Manville fibers, or are some these claims from younger claimants with x-rays read by physicians of dubious repute who have not yet been banned from submitting the reports ? Or, are these all valid claims supported by sound medicine and science ? The report does not shed light on the answers to the questions. Once again, bankruptcy- related proceedings prove themselves to be the antithesis of transparency, and the Manville Data apparently remains unavailable, thus making it harder for anyone to figure out the real facts about tens of millions of dollars that perhaps should instead be available to be paid to mesothelioma claimants.

Asbestos Awareness and Asbestos Ban in Dubai

An article here describes a construction group in Dubai trying to raise consciousness regarding asbestos in building projects. This type of activity was what the US went through in the mid to late 1980s, and it spawned tort litigation seeking to recover the costs of coping with asbestos regulations. According to the article:

"By volume, there is more asbestos here than in the UK. The asbestos here is different to what you find back in the UK. It is usually asbestos cement and is classified as a lower risk. There is also legislation but it did not come into effect till 2006 and there is low awareness and a possibility that it is present in projects before that period. Besides, the current law only applies to asbestos boards. So it is legal to use water pipes for water supplies and sewage," said Faulkner. "Hence we are working with Build Safe UAE to create greater awareness among the 90 signatories of BSU."

FELA Plaintiffs Must Prove A Genuine and Serious Fear of Cancer

In a win for defendants in general and some asbestos defendants in particular, the U.S. Supreme Court issued a June 1, 2009 per curiam opinion holding that when FELA claimants pursue "fear of cancer" claims, the defendant is entitled to an instruction that the jury must find evidence that the fear is "genuine and serious." The opinion is titled CSX Transp., Inc. v. Hensley, 556 U.S. _______ (2009). The slip opinion is here. The issue arose because a plaintiff said to have suffered other severe diseases also claimed damages for alleged fear of cancer due to having been diagnosed as having asbestosis.


The win is significant for railroads and others because FELA applies nationally since it is a federal statute. Click here for a Wikipedia article on the history of FELA.

Book from Belgium 1907 re Asbestos and Rubber

Full text here

Pdf image here - includes old photos of workers

Unknown Asbestos Mine on a Cliff in Corsica

Go here to Flickr

GM Bankruptcy Underway and the Asbestos Plaintiffs' Lawyers Already Have Appeared in Force

The free version of the GM docket is located here. The case is assigned to Judge Gerber, who has been handling the Thompson-Hayward asbestos bankruptcy. An Am Law Daily article here provides a nice summary of the lawyers and parties, except that somehow it missed the lawyers for the asbestos claimants.

At least some of the lawyers for asbestos claimants show up in docket number 81, which is an appearance filed by Sander L. Esserman and Peter C. D'Apice of Stutzman, Bromberg, Esserman & Plifka as counsel for the Ad Hoc Committee of Asbestos Personal Injury Claimants. The ad hoc committee is said to consist, "at this time," of asbestos personal injury claimants represented by the law firms commonly known as 1) Waters & Krause; 2) SimmonsCooper, 3) Weitz & Luxenburg, and 4) Brayton Purcell. In addition, Stephen Kazan of Kazan, McClain, Lyons, Greenwood & Harley is listed as an ex officio member of the committee.

In addition, docket number 114 is an appearance for asbestos claimants represented by Kelley & Ferraro.

Update: The Difficulties of Managing Contingent Liabilities - Now James Hardie Is Hit with the Burden of $ 14 Million Verdict for Antitrust Violations

The Australian version of the WSJ has an interesting article by a McKinnsey consultant writing about corporate reputation risk, with the article somewhat tied back to James Hardie. An interesting read.

_________________________________________________________

Contingent liabilities are not easy to manage, as exmplified by this month's events for James Hardie. To begin with, its business is down due to the housing slump. Them its directors this month lost their trial on securities law violations regarding disclosures related to its asbestos trust, and its asbestos trust announced it is underfunded at present. Now comes the word that former subsidiaries of the the company lost a $ 14 million antitrust verdict in Chile, and that Hardie has idemnification obligations for the verdict due to terms of prior m & a transactions. According to the same article, the company has set May 20 to release numbers for its fiscal year end, which was as of March 30.


All of the above is tough enough. Now consider various other implications. One wonders, for example, whether some or all of these events have caused defaults on loan covenants for corporate financing. Even if there are no present defaults, one must wonder what its lenders will be thinking when the company next seeks access to capital or loan markets. Consider also that it will at some point probably need insurance renewals, including d & o coverage. Overall, the point is that contingent liabilities are tough to manage, and the success (or not) of risk managers may be critical to the future of a company.

UK Update

An article on the BBC and an article on Scotsman.com report that trial has started on the insurance indsutry challenge to Scotland's recent legislation reallowing lawsuits seeking compensation for pleural plaques. According to the articles, trial is expected to end by June 12.



Meanwhile, London still has not announced a decision on pleural plauqes but campaigning about asbestos medical research continues to grow. A May 25 article reports that 22,000 Brits signed a petition to Downing Street to request a central medical authority to lead research efforts regarding mesothelioma, and yet another article reports on two lawyers and another person embarking on a 1,200 mile bike marathon aimed at encouraging medical research, with the journey to be chronicled on a blog.

Asbest: The Russian Town that Is All About Producing Asbestos and the Dangers of Amphibole Fibers

A May 5, 2009 Slate article by Shaun Walker is about Russian towns that revolve around one industry. Such towns, he says, are known as monogorods. As it happens, he chose to write about the monogorod town of Asbest.


The article caught my eye for two reasons. One is the scope of the industry - according to Mr. Walker:

"There are 19 different factories and workshops that make up UralAsbest, the company that defines the town, he told me, and more than 70 percent of the families living in the town have at least one member who works there. He handed me an English-language brochure called "Asbestos Saves Lives."

The other noteworthy point is the town/industry's focus on the controversies over the toxicity of various types of asbestos fibers, and short, glib answers to complex questions. Plaintiff's lawyers hate to admit it, but the reality is that amphibole fibers (usually crocidolite or amosite) are by all accounts far more "toxic" than are chrysotile fibers. That said, some chrysotile fibers from some mines are "tainted" by amphibole fibers. The subtlies, however, usally are not discussed, as is the case in ths town of Asbest:

Kholzyakov sat back in his chair and let out a long sigh. "The thing is, amphibole asbestos, which was used in Europe, really was dangerous. But we mine chrysotile asbestos here, which is perfectly safe. It's only because companies in the West have made expensive substitutes that there is a campaign to ban us."

The party line in Asbest jibes well with a Pravda item on asbestos use. The full text of the article is below with the first three items reaaranged to appear at the top of the list. Bear in mind this is from the English version of Pravda.
http://english.pravda.ru/science/19/94/377/16671_world.html


10 myths of the past, which never materialized.

Environmental pollution: some people feared that the civilization would come to end by 2020 due to sky-high levels of industrial and communal pollution which should result in a lack of oxygen and poisonous evaporation.

Asbestos: Micro particles of asbestos cause lung cancer. Asbestos was produced in Canada and the USSR. Canadian asbestos companies went bankrupt following an anti-asbestos propaganda campaign instigated by the competitors. Russia's asbestos makers have survived the bad times. The incidence rate of cancer in the town of Asbest does not exceed an average national incidence rate of cancer.

Global warming: industrial emissions of carbon dioxide cause the greenhouse effect that leads to overheating of the earth's surface. Consequently, polar ice will melt away causing the global ocean level rise by one meter.

Steam-driven locomotive: serious scientists were asserting that cows would stop bearing offspring and produce milk at the sight of a locomotive. They also clamed that air would be squeezed out of train carriages at 20 km per hour and passengers will suffocate as a result.

Robot: intelligent machines will shake off dependence and take command of the world; humans would submit to the power of the machines.

Spacecraft: spacecraft were making holes in the atmosphere during the takeoff; the earth's protective anti-radiation layer of the atmosphere will be eventually destroyed and thus the earth will be exposed to dangerous space particles.

Microwave oven: fried sausages can irradiate in the dark; radiation from food cooked in the oven will pile up in the human body and cause cancer.

Cell phone: radiation emitted by a cell phone receiver can affect the brain by liquefying it. Paradoxically, a cell phone phobia could not stop the massive spread of cellular communications all over the world.

Vaccination: the danger of vaccination is one of the longstanding fears in the world; the first objectors appeared shortly after the first vaccination campaign launched by Dr. Edward Jenner in 1796; many objected to vaccination in Russia at the end of the 1990s.

London Delays Its Decision on Pleural Plaques Legislation

This May 12, 2009 post updates a post of Wednesday, April 22, 2009 regarding pleural plaques and asbestos issues in the UK.

The UK press is now reporting that the UK government has now publicly stated that it will not make its decision on pleural plaques legislation until some time prior to Parliament's summer recess. The statement can be seen here in context, but it's brief. The statement says:

"Jack Straw (Lord Chancellor, Ministry of Justice; Blackburn, Labour)

Of course, I fully acknowledge the concern of my hon. Friend and other hon. Members on both sides of the House about that issue. Consideration of the responses, of which we have received quite a number following publication of our paper on the way forward, is taking longer than we anticipated, because of the complexity involved. However, I certainly intend that we should come to conclusions before the summer recess."

Meanwhile, union groups and their supporters have continued to agitate for legislation to once again allow claiming for pleural plaques. A "members bill" was introduced and discussed in Parliament. The discussion can be read here, and reveals that at least some of the legislators are ill-informed on the issues.

My personal opinion is that London will rue the day if it allows plaques claiming to go forward. Plaques claiming in the US was a disaster for companies and Chapter 11 trusts that were swamped by claims from persons with little or no impairment. The April 22 post links to my detailed set of reasons regarding why plaques claiming should not be reinstituted.

Did Asbestos Fibers and Earthquakes Help Start Life on Earth ??

New Scientist has a brief new online article that poses the question as it builds from an article in a journal titled Astrobiology. The abstract is below for the Astrobiology article that summarizes an experiment testing the hypothesis. ( I love to scuba dive with my two daughters but I'll bet these fissures are too deep for us to do any on-site investigation.)

Abstract
We report the results of our efforts to study the effects of seismic shaking on simulated biofilms within serpentinite fissures. A colloidal solution consisting of recipient bacterial cells (Pseudomonas sp. or Bacillus subtilis), donor plasmid DNA encoded for antibiotic resistance, and chrysotile (an acicular clay mineral that forms in crevices of serpentinite layers) were placed onto an elastic body made from gellan gum, which acted as the biofilm matrix. Silica beads, as rock analogues (i.e., chemically inert mechanical serpentinite), were placed on the gellan surface, which was coated with the colloidal solution. A rolling vibration similar to vibrations generated by earthquakes was applied, and the silica beads moved randomly across the surface of the gellan. This resulted in the recipient cells' acquiring plasmid DNA and thus becoming genetically transformed to demonstrate marked antibiotic resistance. Neither Pseudomonas sp. nor B. subtilis were transformed by plasmid DNA when chrysotile was substituted for by kaolinite or bentonite in the colloidal solution. Tough gellan (1.0%) promoted the introduction of plasmid DNA into Pseudomonas sp., but soft gellan (0.3%) had no such effect. Genetic transformation of bacteria on the surface of gellan by exposure to exogenous plasmid DNA required seismic shaking and exposure to the acicular clay mineral chrysotile. These experimental results suggest that bacterial genetic exchange readily occurs when biofilms that form in crevices of serpentinite are exposed to seismic shaking. Seismic activity may be a key factor in bacterial evolution along with the formation of biofilms within crevices of serpentinite. Key Words: Biofilm--Chrysotile--Evolution--Pseudomonas sp.--Seismic shaking. Astrobiology 9, xxx-xxx

James Hardie Judge Did Not Believe the Directors

Reading the trial judge's opinion makes it plain he did not believe the Hardie Directors when they made denials or professed a lack of memory. For summaries of key aspects of the evidence and the ruling, go here or here.

Opinion/Judgment Regarding James Hardie and Its Private Asbestos Trust

The James Hardie opinion/judgment is available here. The link also was added to the prior post containing links to the charges and a helpful summary of the outcomes.

Asbestos and Criminal Law - Prosecution of W R Grace Officials Coming Unglued Due to Prosecutorial Misconduct ?

The New York Times ran a Saturday article detailing growing evidence of government misconduct in the criminal prosecution of WR Grace officials. Unlike most of the ongoing superficial stories about the trial, this article includes links to the judge's opinion excluding evidence proferred by the government, plus a brief from teh Grace side that details government misconduct. The article also includes references to the students and professors following the trial through a reasonably helpful blog.

The bottom line? As is so often the case when speaking about asbestos, the opponents of industry seek to ignore scientific lines drawn for many years between types of asbestos and how asbestos is defined. The science and lines deserve respect because, at the end of the day, good decisions have to be based on science.

Please do not take me as seeking to excuse everything done by industry or insurers. I certainly agree that officers of Johns-Mansville and some other companies took inexcusable actions. Some of their insurers also have much dirty laundry.

That said, distinctions between among asbestos fiber types are very real and their "toxicities" are different by orders of magnitude. For example, crocidolite fibers are usually viewed as 5oox more potent that chrysotile fibers in terms of causing mesothelioma.


Caveat/Disclaimer: In the mid-to-late 1990s, I was part of ateam of lawyers who represented W.R. Grace in asbestos litigation. My personal opinion is that the prosecution always has been a travesty because it ignored the facts and science regarding the Libby, Montana zonolite mining facility purchased by Grace after the facility had been in operation for many years.

Updated - James Hardie - Links to the Opinion/Judgment, the Charges by the AU SEC and a Tally on the Outcomes

The Australian SEC - known as ASIC - has posted on its website the charges it filed, and a document summarizing which charges were sustained and which were dismissed. All of the charges relate in one way or the other to James Hardie's contingent risks regarding asbestos claims.

Update: The opinion/judgment is available here.

UK Pleural Plaques - Developments in Scotland and London

The battle over pleural plaques claiming is continuing to evolve in the UK

With respect to the Scottish legislation allowing renewed pleural plaques claiming, an April 21, 2009 Business Insurance article by Sarah Veysey reports that four insurers have now filed the promised lawsuit challenging the pleural plaques legislation in Scotland. The article states: "the four insurers challenging the law represent more than half of the U.K. employers' liability market. They are Aviva P.L.C.; AXA Insurance, the U.K. arm of AXA S.A., RSA Insurance Group P.L.C.; and Zurich Financial Services Group." Much the same information is found on the website for the Association of British Insurers.


Meanwhile, the Brtish government still has not announced its position on pleural plaques. An April 8 article said that London is supposed to provide its answer on plaques "after Easter." The article states in pertinent part:

"Prime Minister (Gordon Brown) has issued a statement that a decision on pleural plaques will be made when Parliament resumes after the Easter recess.

During Prime Minister's Questions Brown was asked (by Jarrow MP Stephen Hepburn) what he planned to do to end the compensation injustice for pleural plaques sufferers. Brown replied: "Asbestosis is a terrible disease, and all those who suffer from it deserve the best of help from the public authorities. It is right that we look again at this as a result of legal actions that have been taken about the obligations of insurance companies. "The Justice Secretary will make a statement on this when we return after Easter."

I previously submitted to the government in London a detailed opposition the the pleural plaques claiming. You can see it here.

Grace Libby Trial

U.S. v. W.R. Grace trial started February 19 in Missoula MT. The WSJ Law Blog notes that the case seems to be flying under the radar without a lot of news coverage.

The WSJ Law Blog also provides a link to a great resource about the trial - the Grace Case blog, a joint project of the law school and the school of journalism of the University of Montana. The Grace Case blog has been covering the trial - from both a legal and a journalistic perspective - since the trial started.

More On Nolan Opinion Regarding the "Lipke" Issue in Illinois Asbestos Litigation

Lawyers are starting to react publicly to the Illinois Supreme Court's ruling on the Lipke issue. One article is pasted below, and quotes a well-respected and veteran Chicago lawyer, Ed McCambridge, 'as saying:

'It's probably the biggest asbestos opinion in the history of the state,'' McCambridge said. ''It is clearly going to have a huge effect on how cases will be tried in this state."

Ed is more than correct. Indeed, the opinion has national implications.

Why? Under (misinterpretations) of the Lipke case decided decades ago, the absurd result was that the last few defendants left in cases in Illinois were under enormous pressure to settle. Why? Because Lipke was construed to say that the jury could only hear evidence of the alleged exposure to the products of the defendant(s) in trial. For example, assume a plaintiff with mesothelioma who spent 10 years working at the old Manville plant in Waukegan, a suburb north of Chicago. Assume he spent his 10 years shoveling the especially lethal mphibole asbestos fibers that Manvilleused in some of its products. Assume also that outside of work, he once changed car brakes and once changed a gasket on a pump. Under Lipke as misconstrued, the plaintiff could take the brake lining maker and gasket maker to trial, but the defendants could not put in evidence to prove up his work at the Manville work as the sole cause of his mesothelioma. Does that make for an absurd trial and an absurd result? You bet, but trial judges in Illinois applied the law that way for decades, thus making Illinois a favored forum for plaintiff's to bring cases against defendants with little or no actual role in causing mesothelioma.

As Ed said, the implications are huge for the trial of cases in Illinois. The implication also are national because "Illinois values" should now fall for many defendants. That matters nationally because asbestos bankruptcy "liability estimates" have for years been artificially inflated by "Illinois values." Indeed, I was personally involved in proving in a bankruptcy that the settlement values for one defendant were 8x higher in Illinois than anywhere else in the nation.
So, so long as defendants and insurers do not blow this win with bad trial tactics, Illinois values should drop. The ruling also will be germane to choice of law issues, a topic of increasing importance in asbestos litigation.

Two other observations. One wonders why it took the Illinois Supreme Court almost tow years to issue this fairly simple opinion. One also wonders why it took insurers and defendants decades to take up an asbestos verdict and get Lipke reversed. During those years, literally billions of dollars were paid out for asbestos claims filed in Illinois.


http://www.chicagolawbulletin.com/news/get_story_text.cfm?id=100003346&SessionID=2516884

Ruling aids exposure defense on asbestos

By Bethany Krajelis Law Bulletin staff writerSPRINGFIELD -- The defendant in an asbestos case should not have been barred from presenting evidence of the decedent's other exposures to the material, the Illinois Supreme Court held Thursday.

In a 5-1 ruling, the high court remanded the matter of Sally Nolan v. Weil-McLain to the Circuit Court for a new trial and overturned two appellate decisions, saying the lower courts had misinterpreted a rule created in Lipke v. Celotex Corp., 153 Ill. App. 3d (1987), to prevent defendants from introducing evidence of other exposure.

Justice Robert R.Thomas did not take part in the decision and, while Justice Thomas L. Kilbride agreed with the majority that it was an error to exclude such evidence, he disagreed that the error requires a new trial.

Nolan sued 12 defendants, including Weil-McLain, in 2001, claiming that her husband's death from mesothelioma was caused from asbestos exposure at work. The other defendants settled, leaving Weil-McLain, a manufactorer of cast-iron boilers, the only defendant at trial.
A Vermilion County jury awarded Nolan $2.3 million in 2004. The 4th District Appellate Court affirmed the lower court's ruling, relying on Lipke, Kochan v. Owens-Corning Fiberglass Corp., 242 Ill. App. 3d (1993), and Spain v. Owens-Corning Fiberglass Corp., 304 Ill. App. 3d (1999).
The Lipke court acknowledged there can be more than one proximate cause of an injury, but noted that ''the fact that plaintiff used a variety of asbestos products does not relieve defendant of liability for his injuries. Evidence of such exposure is not relevant.''
In a 26-page opinion on Nolan's claim written by Justice Charles E. Freeman, the court agreed with Weil-McClain's argument that the trial court misinteprepated Lipke in barring the defense from preventing evidence of other sources of asbestos exposure that Clarence Nolan had encountered.
''Lipke simply determined that evidence of the plaintiff's other exposures was not relevant to the specific defense raised, i.e., that the plaintiff did not have an asbestos-related disease,'' Freeman wrote. ''In the matter at bar, however, defendant wishes to offer evidence of decedent's other exposures for different purposes: to contest causation through the use of the sole proximate cause defense, which was not raised by the Lipke defendant.''
Because the Kochan court extended the Lipke rule to say that evidence of other exposure is always irrelevant, which the justices acknowledged basically makes it impossible for asbestos defendants to argue a sole proximate cause defense, the high court overruled that portion of the Kochan decision.
In overruling Kochan and Spain, the high court also relied on its decisions in Thacker v. UNR Industries Inc., 151 Ill. 2d (1992), and Leonardi v. Loyola University of Chicago, 168 Ill. 2d (1995).
And while Kilbride agreed with most of the majority opinion, he said in his dissent that the error of not allowing evidence of other exposure at trial does not merit a new trial. He noted that other evidence that was admitted did provide Weil-McLain grounds for a sole proximate cause defense.
''[A] new trial is not warranted because Weil-McLain was able to receive a fair, albeit not perfect, trial in spite of the trial court's ruling,'' Kilbride wrote.
Nolan's attorney, David A. Novoselsky, said Kilbride's dissent says it all.
''In my opinion, the defendant got a fair trial here,'' Novoselsky said. ''This jury heard all of the evidence. It's as simple as that.''

Novoselsky said he plans to recommend that his client petition for a rehearing before the high court. He said he would ask the justices to consider Kilbride's dissent.

Richard P. Godfrey, who represented Weil-McLain at oral argument, said he was pleased with Thursday's opinion and believes the ruling will have an impact on a number of other cases.

Edward J. McCambridge, the national coordinating counsel for Weil-McLain, said Thursday's opinion is not only huge for the company, but for asbestos litigation in general.
''It's probably the biggest asbestos opinion in the history of the state,'' McCambridge said. ''It is clearly going to have a huge effect on how cases will be tried in this state.''

Edward Murnane, president of the Illinois Civil Justice League, and Gregory L. Cochran, the president of the Illinois Association of Defense Trial Counsel, both said they welcome the long-awaited decision with open arms.

Illinois Supreme Court Rules for Asbestos Defendants on the "Lipke" issue

Defense lawyers, defendants and insurers all are smiling today because the Illinois Supreme Court today issued a ruling that favors defendants in asbestos litigation. Specifically, the court made plain today that the so-called Lipke rule no longer applies if it ever did. The opinion is available from the Illinois Supreme Court's website or here. Within the world of asbestos litigation, much will be said about this opinion over the next few days.

Asbestos Litigation Data - Navigant Database

This post follows up on a prior post that described the Manville asbestos trust halting its prior practice of licensing its claims data to third parties for uses such as estimating future claim counts, seeing evidence of claiming trends, and weeding out fraudulent claims.

After the original post, I heard two sets of comments through emails, phone calls and personal conversations. First, I heard multiple comments that fall into the general category of complaints that the Manville data cutbacks are exacerbating an already difficult claims management situation arising from the absence of verifiable public data on asbestos claim payments.

Second, I heard from professionals at Navigant regarding a database of asbestos claims it is licensing to users, and its ongoing efforts to expand the scope of the database. Navigant is the name of a consulting firm that today is home for scores of professionals with massive asbestos experience. Navigant's data and professionals have roots in extensive work for insurers and insureds on asbestos claims as the claim morphed in the late 1970s and early 1980s. I'm happy to give its database a bit of a plug here because I know from personal experience that Navigant's professionals do lots of great work on asbestos claims. Indeed, back in the 1980s, I worked with several of their professionals (then at Peterson & Co.) on the dinosaur known as "asbestos-in-buildings" claims. (That species of asbestos claims long ago became extinct in the tort system due to lack of merit, but - incredibly - those claims still live on in the alternative universe of asbestos trusts. Why that is so is a story for another day. )

Marketing material for the Navigant database is available here. The gist is that the database includes a variety of useful data, with two subsets that are especially valuable. One subset consists of all mesothelioma lawsuits filed in the United States beginning in 2005. The data can be organized by state and in time sequence. These are powerful tools to evaluate the scope of recent mesothelioma claims, which today are the claims driving the majority of the costs for asbestos defendants and/or insurers. The database also identifies the entities named as defendants in each case, and to the extent available from the complaint, the nature of the plaintiff's trade and alleged dates of asbestos exposure. This information also is highly useful for assessing the relative role of a particular defendant as compared to others, and for assessing insurance issues tied to exposure date allegations.

Navigant's Brad Drew and others are responsible for the database, and tell me they are working on trying to expand the database through cooperative efforts among defendants and others. Hopefully they succeed in the far less than simple task of herding together decision-makers and information from the key players among the thousands of asbestos defendants. (Once upon a time back in the late 1980s and early 1990s, the plaintiffs were at a disadvantage because the relatively limited set of defendants and insurers actually worked pretty well together to share claims data and war stories. That stopped being true as more and more of the original original defendants fell into bankruptcy and the number of defendants exponentially expanded as plaintiff's lawyers and experts started selling the notion that even the tiniest "exposure" constitutes a "cause" of disease.)

The Navigant database also includes hundreds of thousands of old asbestos claims assembled over the many years that Navigant has been processing claims for insurers and defendants. This data also can be very valuable for estimating claims, perceiving trends and proving up facts regarding the "elephantine mass' of asbestos claims. Old claims also may be used to find fraudulent multiple claims by one person.

It's great that Navigant is making this data available. That said, it seems incongruous that there is no free, national database of objective data regarding asbestos litigation.

Response to Wonk 411 Comment Seeking to Justify Part of the GIT Result

Wonk 411 posted a comment regarding my April 7 post on GIT. You can read the full comment under the post.

In essence, Wonk 411 trys to justify the GIT result by suggesting that silica exposures are different than asbestos exposures because some silica exposures may be ongoing. Wonk is right that silica exposures may be ongoing. That is, however, a distinction without a difference for at least two reasons. First, Wonk assumes that asbestos exposures are over, but in fact they are ongoing for many products. Second, the theory for enjoining claims is to protect a company against a judgment that might hurt its finances. But that risk of an adverse judgment also arises from new silica exposures as it does from old silica exposures. The risk of adverse judgments also arises if a company issues misleading SEC filings or engages in fraud, but certainly no one would suggest that a bankruptcy court would or should immunize it from being sued. The same risk also arises from suits by state Attorney Generals, which is why they filed an amicus brief discussed in today's post. So, I appreciate Wonk taking the time to comment, but I'd say the comment is wrong. See below as to ongoing asbestos exposures, a subject I know way too well from having litigated asbestos-in-buildings cases for 9 years for GAF and then WR Grace.

In fact, asbestos exposures are or may still be occurring today. How and why is that? Because many asbestos-containing products are still in place, and some of the products may give off fibers if disturbed under certain conditions. Thus, the buidling materials sold by various bankrupt companies remain in place in buildings. For example, W.R. Grace's asbestos-containing Monokote fireproofing is still installed on the beams of many buildings for fire protection. Innumerable feet of wallboard still are joined by joint compounds containing asbestos. Millions of feet of asbestos-containing pipe-covering are still installed in pipe chases and boiler rooms around the nation. Millions of pieces of Congoluem's allegedly dangerous floor tiles also are still in place in hospitals and schools. Want proof? Look at the claims in asbestos bankruptcies that are filed by Dan Speights' law firm as counsel for building owners with asbestos-products still in place. They want lots money to repair or replace the materials even though claimants long ago stopped bringing the claim in the tort system because they could not reliably win the claims. You also clould read Judge Fitzgerald's opinion denigrating the viability of Zonolite insulation claims. You can see the opinion here. The opinion (correctly) concluded as follows:


"Claimants were required to show a disputed material fact to establish that ZAI poses an unreasonable risk of harm. Claimants failed to provide any epidemiological evidence or any risk assessment. They have shown no material fact in dispute. Claimants cited to the OSHA standard as an applicable regulatory yardstick, but failed to account for the lifetime exposure differences between the workplace and a home attic insulated with ZAI. In addition, the evidence established that the risk of exposure from ZAI in the home is less than that of dying in a bicycle accident, by drowning, or from food poisoning.

The various Daubert objections have been addressed in this opinion and will be incorporated into an order.

Without any scientifically reliable evidence indicating that ZAI poses an unreasonable risk of harm, this court must grant Grace's motion for summary judgment in part and deny claimants' motion for summary judgment in part, limited to the threshold issue of unreasonable risk of harm as it pertains to all proofs of claim. While the determination made herein may prove to be fatal to the property damage claims, several different theories of liability were proposed in the individual proofs of claim and may still need to be addressed..... "

Proceedings are Underway in an Italian Criminal Prosecution of Owners and Managers for Exposing Employees to Asbestso Hazards

A Swiss media article describes significant media and partisan attention focused on the first day of trial in an asbestos-related criminal prosecution of former owners and managers of Eternit businesses that for decades were global manufacturers of asbestos-cement board, among many asbestos products. Hundreds of people are said to have gathered for the first day of the prosecution that involves allegedly knowing or reckless industrial hygiene decisions said to have resulted in premature deaths and injuries to over 2,500 manufacturing plant employees and local residents. The alleged misdeeds of Eternit have been widely chronicled over the years while this prosecution effort was ongoing. Informative articles are available here and here , and an article I wrote back in 2004 provides some context for EU businesses facing asbestso litigation's expansion into Europe.

Prosecutions of this sort raise a wide-range of issues. From the American perspective, perhaps the most striking aspect is that Italian law expressly allows trial that combine criminal and civil claims, thus giving the defendants significant risks that would not exist in a civil trial in the US. Italian law also allows the judge to reduce sentences to some degree if compensation is paid to victims. This trial will not end quickly - Italian criminal trials move slowly and include a variety of procedures not directly comparable to American criminal trials.

What's the likley outcome? My assumption/prediction is that this trial ultimately will result in Eternit entities and the individual defendants offering to plead guilty subject to a proviso limiting their sentences in return for creation of a significant private fund/trust that will pay money to claimants and that will make some payments to Italian government agencies such as INAIL to offset payments that have paid medical expenses for victims. I strongly suspect the deal will not be as cushy for the defendants as was the tobacco deal cut in the United States.

Asbestos & the Media - Korea

One factor behind asbestos litigation is the amount of media attention focused on asbestos. Accordingly, it's telling to see the increasing media attention around the globe. A current example arises as the Korean media focuses attention on products with talc that may or may not contain asbestos fibers. A Korea Times article of April 5 reports on 11 baby powers said to be "contaminated," and describes calls for investigations into whether balloons or gum used talc that contained asbestos fibers.

Old Baseball Gloves and Football Helmets with Asbestos Linings - Ebay

Here is an article by an Ebay trader showing pictures of old baseball gloves, and really old football helmets (think Red Grange style helmets) lined with asbestos to provide padding. These are just two of the many uses of asbestos as a textile.





Why, you might wonder, is an Ebay trader writing about asbestos. It's been well known for some time that asbestos litigation generated its own niche of Ebay shoppers, as is described here in an article from 2003. Why? For one, both plaintiff's lawyers and defense lawyers seek to find visual evidence for use in trials and during discovery. So, we buy old catalogs, pictures or even samples of products. Investigators and lawyers also buy and test old products for the presence of asbestos. For example, in a case I was involved with, there was no immediately clear source of asbestos exposure, but the plaintiff had a form of cancer (mesothelioma) usually but not always linked to inhalation of asbestos fibers (especially inhalation of amphibole asbestos fibers). Testing of old appliances proved that he had worked for a few years at an appliance production facility operated by a company that sold a line of products that included wires insulated with asbestos fibers.

Link to Transcript from Oral Argument in Travelers/Manville Asbestos Bankruptcy Case

The oral argument transcript is availble here.

American Plaintiff's Lawyers Seeking New Markets Target Global Shipyards for Claiming, Including Claiming Against US Asbestos Trusts

Are American lawyers going abroad to seek out new asbestos claimants? Of course they are. Like any business person, they are seeking new markets.

Shipyards in Europe provide concrete examples. In particular, a March 24, 2009 article describes an American plaintiff's lawyer, Mitchell Cohen, speaking to shipyards workers in Malta, with the group apparently having been assembled the GRW trade union. According to the article, Mr. Cohen was talking about making claims against US asbestos trusts. Likewise, a 2004 article describes Mr. Cohen having been in Spain to speaking to and handing out settlement checks from US asbestos trusts to persons who worked on US Navy vessels in Rota, Spain.

Why shipyards? Shipyards anywhere in the world are great sources for asbestos claiming due to widespread use of asbestos during shipbuilding, including signficant use of the highly toxic amphibole fibers. Indeed, much of America's asbestos claiming arose from shipyards. Now, the claiming pattern is being repeated with claimants from shipyards around the globe seeking to file lawsuits and claims against asbestos trusts established in the US through Chapter 11 proceedings.

Moving Towards the end of James Hardie Trial re Creation of Its Asbestos Trust

James Hardie is an Australian building products company that made lots of asbestos-cement products, some of which were made from the especially lethal blue asbestos fiber known as crocidolite. In years past, it was being sued frequently. It then redomesticated to the Netherlands and established a trust to pay victims, perceiving the law there as favorable towards that end. The trust turned out to be grossly underfunded (which in my opinion was obvious from the start to anyone with a brain and any meaningful experience in asbestos litigation). Ultimately 10 of the senior officers were taken to trial by Australian securities regulators for misleading statements to investors. A recent newspaper article indicates the case is moving towards the end of the becn trial, with summations having started. A decision is expected in a few months. It will be fascinating to see how the judge assesses the situation.

Congoleum Asbestos Bankruptcy Denied and Set for Appeal

It is striking news that a bankruptcy judge has refused to allow Congoleum to continue to try to confirm an asbestos bankruptcy plan. Instead, late last week, she cut off the litigation with a final order that is being appealed. The opinion and related papers are here. The case has along history that is summarized in an appendix to the opinion, and I will not try to summarize it here today since I am on vacation. That said, the appeal here, if it goes forward, could break some fascinating new legal ground applicable to any and all asbestos bankruptcies. Issues that could be resolved include standing to contest terms of the Chapter 11 plans, and the propriety of plan voting rights related to persons who settle claims before and after the bankruptcy under special deals.

The news is striking because over the last few years, there have been very few denials of the outcome sought by the asbestos plaintiff's bar and the handful of companies that found the process expedient. Indeed, these and other players have created an asbestos compensation system parallel to but largely cut off from the tort system. That alternative system has been created in US federal bankruptcy court through trusts, with most created under chapter 11 of the bankruptcy code. The system is huge - existing asbestos trusts held something north of $ 30 billion prior to the financial fiasco, as is described in teh Bates White paper cited below.

The basic procedural history of asbestos bankruptcy litigation is well told in a wonderful series of continually updated papers that the Crowell & Moring firm makes available on its website at this page. Mark Plevin and other lawyers at their firm have represented insurers opposed to various terms of many of the chapter 11 plans. A great overview of the situation is provided by PdD economists Charles Bates and Charles Mullen of Bates White in their paper titled: Have Your Tort and Eat It Too.

Disclosure: I have in the past and do now represent non-insurer parties opposed to certain terms of asbestos bankrupcties, and also have represented and do represent entities that are defendants in or financially tied to asbestos litigation through indemnity obligations or shared insurance. Further specifics are available on my bio at my law firm's website (www.butlerrubin.com) or feel free to email me at work if you need further information.

Google AdSense Rates - Mesothelioma Dominates the Top Payment Ranks

How valuable are mesothelioma claims to plaintiff's firms? I can't tell you for sure but plainly they are much sought. An Internet site purports to list prices paid for clicks through Google's Adsense that allows bloggers to be paid through ads on their website. The top end of the list is dominated by search terms related to mesothelioma. The entire blog entry is at:
http://romilagupta.blogspot.com/

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Asbestos Cloth Used in 1907 Time Capsule

Another unique asbestos use popped up this morning - asbestos cloth (a common thing) but this time used to wrap around and preserve old wax records placed into a lead and iron time capsule created in 1907 for the Paris Opera by the promotion-minded developer of the wax record recordngs systems. The NYT article is here.

Asbestos Cement Bombs, Another Unusual use for Asbestos

I never cease to be amazed at all the ways that asbestos fibers were put to use, and here's one new to me. According to Pravda, asbestos-cement was used to build cement bombs in the 1940s. The article from Pravid is here, and the full text also is set out below.


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Soviet Invention of the 1940s: Concrete Bombs
20.05.2003
Source:
URL: http://english.pravda.ru/russia/2851-concrete-0

Although the USA says concrete bombs used in raids on Iraq are the latest innovation, the USSR used them already in WWIIThe wonderful weapons that Americans used in raids on Iraq, the concrete bombs, were produced by Soviet plants already in the beginning of WWII. However, it seems that the USA hasn't hit upon another know-how of the Soviet Union. These are slate mines that were produced by the Soviet enterprise Kommunar in the 1940s. Samples of this "weapon" can be seen in the city preserve museum in the Russian city of Novorossiisk. Deputy Director of the museum Lev Stepko describes the exhibits and speaks about their negative and positive aspects. The waterproof body of the weapon increases its reliability. Only the fuse is made of metal, which makes the slate mine immune to mine-detectors. However, series production of concrete bombs and slate mines was started because of the availability and low price of the stuff they were made of. Weapons of this kind had several disadvantages as compared with the conventional arms: they were very fragile and could be damaged in long transportation. Concrete bombs and slate mines were used by the Soviet army in the Caucasus battle.
However, there are just few documents in the Novorossiisk city museum saying how civil enterprises producing construction materials were turned into defense enterprises. For example, documents in the archives of the concrete department of the People's Commissariat for Construction Materials say, a production line for making concrete bodies for bombs was opened at the enterprise Proletariy. About 20,000 concrete bodies for bombs were produced at the enterprise.
Historian Sergey Novikov searched the archives of the concrete industry museum and found documents proving that all concrete-making enterprises started this kind of production from November 1941 and finished it in August 1942, when German troops neared the city of Novorossiisk. Equipment of the concrete enterprises was evacuated to Georgia and Central Asia then.
As Sergey Novikov says, the concrete enterprises mastered a unique technology. Concrete bombs were mostly used for training purposes, but those produced in the cities of Nevyansk, Volsk and Novorossiisk were used at war. Workers in Novorossiisk made concrete bodies even for unique 5-ton bombs. The usage of those cases depended upon the stuffing. Explosives or chemical agents could be placed inside the concrete bodies; chemical agents were also used in target indicators. Those indicators were dropped on targets, but they didn't detonate and indicated the area for bombing which was clearly seen by pilots in the sky. It is highly likely that concrete bodies were sent to the arsenals where the military filled them with tolite and trotyl.
There is also a version saying that concrete producers even had to stuff the bomb bodies themselves. Documents in the archives reveal anxiety of top managers at the Novorossiisk concrete enterprises: they realized that strict discipline measures must be taken at the enterprises because they were given an unusual task of filling concrete bodies with explosives.
As for production of slate mines at the enterprise Kommunar, historian Sergey Novikov even managed to find a woman participating in the production in the 1940s. Maria Leonova didn't assemble slate mines herself; she worked as an electrician in the production workshops of the enterprise. She says that production of the weapon was started in the autumn of 1941. The production cycle wasn't difficult. Fresh asbestos-concrete mass (so-called eternit) was placed into moulds made of wood. The newly-made slates were used for making boxes of different sizes. Prominent edges of the newly-made boxes were moistened and trimmed. Bodies of mines were placed into special chambers for drying. Those mines were used against tanks. As it becomes clear from the story told by Maria Leonova, the slate boxes were stuffed with explosives somewhere outside the enterprise. Although, the workers of the enterprise didn't have to deal with explosives, they all the same had to keep the details of the work secret.
The war in Iraq has demonstrated that all modern innovations were developed long ago and were recently just furnished with modern details, such as high-precision laser pointing systems. As representatives of the US and UK Air Force say, the latest concrete bombs are meant for hitting particular targets. There is no explosive inside these bombs; the effect of these bombs is based upon kinetic energy and high percussive power. As the coalition forces say, concrete bombs don't split into pieces and consequently cannot injure accidental victims. They may say whatever they wish, but the present-day hostilities have already demonstrated that there cannot be absolutely humane weapon at all.
Svetlana DobritskayaNovorossiisk Rabochy

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UK Government to Speak "Soon" on Whether to Support Payments for Persons With Pleural Plaques Attributed to Asbestos Inhalation

A prior post on this blog described the UK government issuing a Consultation paper requesting views and information on, among other things, whether it should support legisaltion to cause compensation to be payable persons diagnosed as having pleural plaques attributed to asbestos inhalation. The UK government had said it would provide its position during November 2008, but did not do so. On February 11, 2009, however, Gordon Brown publicly said the Government will "soon" announce its view.


I submitted to the UK government a detailed outline of reasons why my opinion is that payments should not be made for pleural plaques. The paper is available here.

Below is the Q and A that prompted the comments by Gordon Brown.

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http://www.theyworkforyou.com/debates/?id=2009-02-11a.1360.3


House of Commons debates
Wednesday, 11 February 2009
Oral Answers to Questions -- Prime Minister



Michael Clapham (Barnsley West & Penistone, Labour) The Prime Minister will be aware that it is almost 18 months since the Law Lords made a decision denying compensation to people suffering from pleural plaques as a result of negligent exposure to asbestos. Does he agree with me that we can restore justice and fairness only if that Law Lords' decision is overturned?



Gordon Brown (Prime Minister; Kirkcaldy & Cowdenbeath, Labour) I met my hon. Friend last week and we talked about this very issue. It is very important that we get a resolution following the court judgment on pleural plaques. The Secretary of State for Justice has been looking at this matter and talking to his colleagues right across Government about the implications of what can be done, and I can assure my hon. Friend that an announcement will be made very soon.

New Asbestos Claims - in Korea

Popular wisdom has it that that the types of tort litigation we have in the US are abhorred by the rest of the world. The reality, however, is that the world is changing, as is evidenced by today's news including an article from the Mainiachi Daily News regarding the filing of two new asbestos claims in Korea. The full text is set out below.

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Bereaved families of 2 South Koreans sue firms over asbestos deaths
SEOUL -- The bereaved families of two South Korean residents who died from mesothelioma after living near a factory producing asbestos have filed a damages suit against three parties including Nichias Corp., it has emerged.
In the suit filed at the Busan district court, plaintiffs demanded companies including Tokyo-based Nichias Corp. pay 200 million won (about 14 million yen) each in compensation.
It is the first time that local residents near an asbestos factory have filed a damages suit in South Korea. Local environmentalist groups and former residents near the factory have also joined hands in seeking relief measures.
The plant -- an asbestos spinning factory -- was run by Jeil Asbestos (present-day Jeil E&S), which was jointly established by Nippon Asbestos (forerunner of Nichias) and a South Korean company near Busan city hall in 1971. The plant continued to operate until 1992.
One of the male victims was living 900 meters away from the factory for seven years in the 1980s and subsequently died in 2006 from mesothelioma at age 44. The other victim was living 2.1 kilometers away from the factory for four years during the 1970s and died in 2002 from mesothelioma at age 62.
On Nov. 13 this year, their bereaved families sued Nippon Asbestos and Jeil E&S, as well as the South Korean government for "failing to take measures to improve the factory."
According to the complaint, the plaintiffs claim that Nichias established the joint venture while knowing the toxicity of asbestos but concealed it from the public.
"Nichias moved (its operations) to Busan after regulations against asbestos particulates were strengthened in Japan and it became difficult to produce asbestos in the country. The company now also operates plants in Indonesia and other Third World countries. We want to prevent the spread of pollution exports through the suit," said a representative of a Busan-based environmental group supporting the plaintiffs.
A representative of Nichias said, "We have not received the complaint and have not confirmed the suit. Those involved in the joint venture have already retired and we do not know the details."
In a related development in December last year, the Daegu district court in South Korea ordered Jeil E&S to pay 158 million won in compensation to a female former employee of its Busan factory who died from mesothelioma. The court case has subsequently prompted a series of damages suits against the company by its former employees.
Click here for the original Japanese story
(Mainichi Japan) November 18, 2008

Asbestos Litigation - Will the UK Reinstate Compensation for Pleural Plaques ?

How should governments and courts decide/define when persons have a condition that should warrant payment of compensation through tort claims or through government agency programs ? The question is relevant in many settings, but the issues I know best relate to asbestos litigation. The question is presently the subject of discussion in a variety of jurisdictions and contexts.

Issues of this sort are under discussion in the UK. There, asbestos-related cancers are increasing significantly, and so are lawsuits seeking damages for the cancers. Paying compensation for cancer is easy to understand in many instances. However, some groups want to go further. Thus, some constituencies are urging the UK government (Britain and Wales, for this purpose) to use legislation to change recent case law so that payments may or will be paid to persons who can be deemed to have a condition known as "pleural plaques." Plaques are marks on a lining outside the lung, and the plaques are markers of past asbestos inhalation, but do not cause any impairment except, perhaps, in unique circumstances.


These issues arise because the House of Lords issued an opinion holding that common law compensation was not payable, concluding in essene that plaques do not constitute an injury. Subsequently, the UK Ministry of Justice issued a 9 July 2008 "Consultation" paper asking for views on whether the UK government should use legislation to allow or facilitate payment of compensation to persons with pleural plaques. The UK Consultation paper is a lengthy document setting out information about the issues, and five possible alternatives for government action, with a cost estimate for each of the five proposals. The government's Consultation paper is available online at: http://www.justice.gov.uk/publications/cp1408.htm.

Many papers were submitted on both sides of the issues, and the collection will be posted here as time permits. For now, I've posted online an image of the paper I submitted in opposition to the two most extreme aspects of the proposals set out in the Consultation paper.

The UK Government is expected to submit a reply to all the papers, and the reply is expected during November 2008.

Go Vote - Extreme Views in Politics and Tort Litigation - We Need "Better"

With election day in the US just 2 days away, this is a plea to all to get out and vote on Tuesday, if it's not already done.

This also seems an appropriate time to comment that it seems plain that both politics and tort litigation tend to inspire extreme views, generally to the detriment of society.

Our presidential campaign this year has been marked by ads and extremist emails too often filled with either outright lies or distortions of small nuggets of truth. On top of that come blatantly extreme attacks on each contender's personal life and views. I'll add my voice to the many who are asking for "better" from our politician and parties.



Sad to say, the same is too often true for discussion of tort litigation issues. Extreme views in tort litigation are illustrated by articles built around extreme cases instead of in depth looks at the overall facts. Extreme attacks on individuals are illustrated by comments posted beneath a Wall Street Journal blog post that noted the much too young death of Fred Baron, a very successful but sometimes controversial plaintiff's lawyer who spent decades on asbestos litigation, with his early work shaped and informed by his work related to cases arising from an infamously dirty place commonly known as the Tyler Texas pipe plant. In my view, debate about tort litigation issues also needs "better" than extremism.

Update - Canada Adopts A Position of Silence on Chrysotile Asbestos Exports

A prior post here noted that Canadian scientists recently criticized the Canadian government for continuing to support global sales of chrysotile asbestos fibers. The industry historically was very valuable for Canada in terms of jobs, taxes and revenues - the mining itself is graphically shown in a wonderful McCord Museum set of online photos of miners and the mines that show abysmal safety practices.


According to a front page Globe and Mail article on October 31, 2008, Canada took a formal position of silence this past week at proceedings under the Rotterdam convention to decide whether chrysotile asbestos fibers should be added to a list of the world's most dangerous substances and thereby banned to a large degree. In past years, Canada actively spoke against adding chrysotile to the list. The net result was the same because the convention calls for consensus, which was not achieved since nations such as Pakistan and India oppose the ban. Those nations are among many in which asbestos-cement board remains a popular building product despite hazards that may arise if good work practices are not used when the material is cut or destroyed. Cement board is a strong building material used for many roofs and walls in countries that lack trees and/or the infrastrcuture needed for lumber for use for building materials, and is flexible enough that scrpas of it were molded into a giant penguin shown here because of concerns about the asbestos in it.

This outcome is major disappointment to groups such as the International Ban Asbestos Secretariat that has worked for over a decade to obtain a global ban on asbestos fiber sales.


Politics, Torts, Policy and Risk - Canadian Medical Association Takes a Stand on the Asbestos Use Exampple

The Canadian Medical Association has come out with an editorial, described here, that calls on Canada to join with other countries to further regulate "asbestsos" exports. The topic is of interest in Canada because its been a major exporter of asbestos for decades, and so the fibers produce jobs, corporate profits and tax revenue. The issue is in part caused by disputes about how safe or unsafe are the various types of asbestos fibers and their various end uses. The topic is relevant here because a recurrent issue in tort litigation no doubt will be whether and how health standards and practices in one country should effect what happens in another country or be applied in different countries.

The same issues also arise for politicans, as illustrated by the article. In the US, the issue has arisen during the US presidential election through Senator Obama has called for further and/or additional enforcement of terms intended to protect workers and "the environment" against processess that are not deemed as safe as practices in the US. Some have called it that a good idea, and others call it "protectionism." Some would say that it is short-sighted if the US and other "developed" economies do not push or "nudge" others to move towards less risky practices. Otherwise, it seems that industry is receiving a subsidy in the form of allowing it to undertake operations known not to be "safe." That said, others argue that the US should "let the free market" work and not "interfere."

Lots of room for debate in this area, and it will be interesting to see what happens.

More Asbestos Claiming ? British Government Asks for Views on Pleural Plaques Compensation Issues

Global tort litigation issues continue to evolve. Last fall, the UK's highest court decided that it would not permit recovery of money as compensation for persons found to have "pleural plaques." Pleural plaques are generally deemed benign markers of past inhalation of asbestos fibers. Now, on July 9, the British government issued a request for comments on whether to use legislation to overturn the decision precluding damages.


Specifically, the "consultation" process calls for interested persons to submit views on whether persons with "pleural plaques" should be allowed a chance to recover damages for the physical change in the lungs or anxiety. The consultation paper, number 14/08, is viewable here.


So, what's at stake? In dollars, it's some number of billions; current estimates probably will prove to be too low, just like most other estimates of asbestos costs. In lives, the issue may or may not have significance. Pleural plaques generally are thought not to impair life function in any way, but they generally are considered a marker for past asbestos inhalation. Some may argue that finding those people now will help them later avoid premature deaths by leading them to annual health screenings with a focus on their particular risks.

Back to dollars. The consultation likely will become a fight between insurers and insureds as to which entities pay how much. Insurers and reinsurers will have issues between them. The process also will include battles between solvent entities and entities that claim to be insolvent or are pursuing "schemes of arrangement." Schemes of arrangement? They are end of corporate life financial engineering tools. Insurers like to say that the schemes free up capital to return to the marketplace and stimulate business. Insureds like to say that schemes improperly allow insurers to avoid IBNR claims, which are claims that are foreseeble based on past events, but that have not yet been filed because, for example, the future claimant does not yet know that a mesothelioma tumor already has formed and is growing, at a microscopic level.

Note also that government agencies will have a financial stake. Legislation may help them avoid paying the massive health care costs that may accrue when a mesothelioma is found "early."

The issues also may be described more broadly. This could be a chance to find a fair compensation and medical treatment plan that avoids the many flaws in the current American systems, and to think carefully about how one defines who is "sick" or when they are "injured." This could be a chance to limit attorneys' fees to modest amounts. This could be a chance to take a long term view. This could be a chance to look for new answers.

Update - Japanese Asbestos Litigation Ramps Up - Suit by 178 Plaintiffs Names 46 Companies and Government as Defendants

In a prior article of May 18, we noted an asbestos lawsuit in Japan. Since then, the lawsuit has not received much press, nor has there been a public annoucment of the filing of the second lawsuit that was indicated when the existing lawsuit was filed. My efforts to obtain the complaint from the plaintiff's firm were turned down by that firm, citing ethical issues since I represent defendants. One wonders what issues are involved in providing a copy of a public document. In any event, it appears that the plaintiff's firm also is not sharing the complaint with Laurie Kazan Allen or others on the plaintiff's side since her website now refers to the lawsuit, but only to the original press release/article in Wikipedia. http://ibasecretariat.org/lka_jap_cause_effect.php. The complaint also has not appeared in Mealeys, HarrisMartin or other publications that follow asbestos litigation.

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Asbestos litigation is ramping up in Japan. The English language version of a Japanese newspaper article reports that a lawsuit was filed in Japan late last week on behalf of 178 contruction workers (or their heirs) against 46 building products companies and agencies of the Japanese government. The article does not identify the defendants, or the lawyers. The articel also says that "About 40 construction workers from Kanagawa Prefecture will also file a similar suit at the Yokohama District Court in June."

A parallel article on Wikinews adds some quotes from workers, but not much more.

Surprisingly, the website of the International Ban Asbestos Secretariat does not yet include an article on the topic. That may well change.

Nanotube technology causes asbestos-like lung diseases?

The NY Times has a great opening paragraph on this:

"Nanotubes, one of the wonder materials of the new age of nanotechnology, may carry a health risk similar to that of asbestos, a wonder material of an earlier age that turned into a scourge after decades of use when its fibers were found to cause lung disease ..."

Full article:

NY Times - Health Risks from Nanotubes

The Next "Asbestos" - Dust from Mammoth Tusks !

In Yakutsk, Russia, "the next asbestos" has been identified - it's dust generated from artisans carving up the mammoth tusks that are estimated to more or less litter the tundra at a rate of 600 skeletons per kilometer. Really ! See the May 13, 2008 Chicago Tribune article by Alex Rodriguez.

So, how is this "the next asbestos"? It turns out that tusk carvers use mechanical grinding tools and generate lots of dust, but do not want to wear masks. According to the article:

"At his workshop, the whir of grinding tools fills a second-floor room where 16 Yakut artisans painstakingly carve chunks of tusk into everything from figurines of bears and tigers to hilts for decorative daggers and swords. Mammoth tusk dust hangs heavy in the air, an occupational hazard that Petrov says he compensates for with a $130 bonus tacked onto the workers' $520 monthly salaries."

Now you see the linkage - a developing industry with workers anxious for jobs, and extra pay offered to work with a hazardous substance. And, the corporate CEO is aware of "the hazard" but thinks he is doing the right thing by paying a 25% bonus for "assuming the risk." But of course no one really knows the full extent of the risk. So, what happens in x years when some but not all of the artisans contract mammothosis or, worse yet, a malignant tumor linked mainly to working with mammoth dust, with cigarette smokers suffering the tumors at a 10X higher rate.

Mammoth dust, of course, is not really going to be the "next asbestos." The facts from the article, however, sound very much like the testimony one can hear from factory employees who worked in dusty factories, including people who worked even after OSHA took effect in 1971. The issues also take on new vitality because asbestos uses is spiraling upward in Asia and the former Russia, and the media has finally caught up to the fact that carbon nanoparticles appear to raise tumor risks akin to amphibole asbestos fibers. 

The policy question it seems is: what can/should/might societies  do to try to avoid future deaths, economic losses, societal losses, and litigation from hazardous materials ? Is an OSHA "top down command and control" regulation the only/best answer, along with less than extravagant workers compensation payments? Or, should the payments be raised to higher levels that are more actually likely to satisfy the injured and their families? Should the owner be offered some kind of creative new economic "Nudge" to keep the employees safe, as might argued by Messrs. Sunstein and Thaler in their wonderful book: Nudge, Improving Decisions About Health, Wealth, and Happiness. Or, should a present economic "Nudge" go directly to the employees? Or do we wait for and allow repetitive lawsuits against tusk finders/sellers who "knew or should have known of the "dangers of mammoth dust," and then fault the lawyers who bring the lawsuits for imposing a "tort tax" on society.



Issues of this sort abound,and in my view, receive too little attention in the "tort reform" fights.  Other issues arise because insurance is not what it used to be, which is a problem since one of the rationales for some product liability rules is that risk can be spread through insurance. In reality, however, insurers seek to exclude long-tail risks. Thus, asbestos exclusions and pollution exclusions were added to CGL policies in the 1970s and 1980s. Mold became an issue later and also is subject to exclusions. Business Insurance commented recently that such exclusions may encourage "little guys" to try to hide problems instead of fixing them, but ultimately some lawyers will come along and take everything when some people actually do become really ill. 

There is much room here for innovative thinking on all sides of the many issues. 


Asbestos Pictures - Great McCord Museum Collection of Photos and Text on Canadian Asbestos Mining Circa 1890s -1930s



It's a long story as to why, but I stumbled across some online and historic pictures of asbestos-mining and processing. The collection is presented by the McCord Museum of Montreal, which looks to be quite an interesting place. Its online presentations include a great collection of photographs and text showing asbestos mining in Canada starting in the late 1800s and moving up through the 193os or so. The photos of the steps in processing the ore are especially interesting as they show clouds of fibers, and lots of work being done by women and children. The website has several very nice tools to view the photos as a film or individually, including a zoom feature. The presentation is well worth viewing simply as a history lesson even if you are not involved in asbestos litigation.

Attorneys' Fee Awards in Mass Tort Litigation

Some recent attorneys' fees awards illustrate that specialized mass tort litigation is becoming ever more entrepreneurial and rewarding when claims succeed in areas such as product liability litigation. Much of the history of teh financing of contingent fee claims is very well explained by Professor Stephen C. Yeazell of UCLA in his 2001 article, "Re-Financing Civil Litigation," 51 DePaul Law Review 183 (2001). I highly recommend the article to anyone interested in understanding the economics of mass tort litigation. The article was part of a DePaul Law School symposium organized through a $ 1 million gift from Robert Clifford, one of Chicago's most-respected plaintiff's lawyers. One might also consider Prof. Yeazell's related online lecture apparently published as an honor by UCLA for distinguished work by its professors.

The recent examples? "Fen-phen" litigation produced a most recent award of $ 412 million fee award for several plaintiff's firms. The Point of Law authors note that all of the awards work out to about $1,000 per hour based on hours reported to have been billed. The Mass Tort Litigation blog authors also noted the award and provide cites for some of the key rulings in that litigation.

The Florida phase of the tobacco litigation recently produced a $ 218 million fee award for plaintiff's counsel. The award is described as providing a 5x multiplier for the risks undertaken by plaintiff's counsel, Stanley and Susan Rosenblatt. According to the news article, the trial judge who awarded the fees took pains to praise the efforts of plaintiff's counsel, saying:

''I think this is one shining example of an effort that was undertaken with diligence and for an amount of time that would have destroyed most people,'' Miller said, according to a hearing transcript. The Rosenblatts' performance is ``an example of the kind of lawyering that is done here in South Florida.''

Japanese Company Voluntarily Pays Asbestos Claimant

I'm often told that asbestos litigation is essentially just a U.S. issue because our culture is said to be so litigious. However, even the reputedly nonlitigious Japanese culture has produced asbestos claims and payments. A Japanese website reports that a Japanese corporation recently voluntarily paid compensation to a person claiming to suffer from mesothelioma. The claimant was aided by a victim's rights group based in Japan. The victim worked at a manufacturing plant reported to have used crocidolite fibers.