/raid1/www/Hosts/bankrupt/CAR

/raid1/www/Hosts/bankrupt/CAR_Public/120831.mbx C L A S S A C T I O N R E P O R T E R Friday, August 31, 2012, Vol. 14, No. 173 Headlines BANK OF AMERICA: Judge Dismisses Privacy Class Action BOEHRINGER INGELHEIM: Faces Lawsuits Over Pradaxa Injuries BP: Price Waicukauski & Riley Law Firm Files Class Action BP: Receives 6,500 Customer Claims Over Recalled Gas BROWNSVILLE DOCTORS: Former Employees File Class Action CENTRO RETAIL: Blames AUD223MM Loss on Class Action Settlement CREDITORS SPECIALTY: Sued Over Deceptive Collection Practices DIOCESE OF COVINGTON: Kentucky Lawyer Loses Legal Fee Bid DIRECTV: Appeal in Suits Over Early Cancellation Fees Pending DJO FINANCE: Continues to Defend Pain Pump-Related Lawsuits DOLLAR RENT: Consumers File Class Action Over Insurance Scheme DYNEGY INC: "Silsby" Class Suit Remains Stayed in New York EECYCLEWORKS LLC: Recalls 400 Bicycle Brakes Due to Fall Hazard EL PASO PIPELINE: Awaits Ruling on Bid to Dismiss "Hite" Suit EL PASO PIPELINE: Seeks Dismissal of Class Suit in Delaware GENERAL MOTORS: Canadian Export Antitrust Suits Deal Approved GENERAL MOTORS: Canadian Dealers Suit v. Unit Remains Pending GENERAL MOTORS: Faces "Scott" Securities Class Suit in New York GIANT FOOD: Alerts Customers of Recall of Daniella Mangos GOOGLE INC: Judge Dismisses Majority of Claims in Class Action GROUP HEALTH: Settles Behavior Therapy Insurance Class Action HEALTHCARE TRAINING: Accused in N.J. of Defrauding Students IMAX CORP: Court Loosens Limitation Period in Class Actions JANSSEN PHARMA: Settles Deceptive Marketing Case for $181MM KKR & CO: Bid to Dismiss Merger-Related Suit Remains Pending KKR & CO: Seeks Summary Judgment in Consolidated Antitrust Suit LENDER PROCESSING: Awaits Order on Bid to Dismiss St. Clair Suit MEAD JOHNSON: Sued Over False Advertising on Enfamil Formulas MISSOURI: Faces Class Action Over "Kelsey's Law" NEW YORK POLICE: March 2013 Trial Set for "Stop and Frisk" Suit PHILIP MORRIS: Appeals in "ADESF" Suit Remain Pending in Brazil PHILIP MORRIS: Dismissal of Sao Paulo Prosecutor Suit Appealed PHILIP MORRIS: Plaintiffs Appeal Judgment in "Smith" Class Suit PHILIP MORRIS: "Kunta" Suit Remains Pending in Winnipeg, Canada PHILIP MORRIS: Still Awaits Ruling on Cert. Bid in "El-Roy" Suit PHILIP MORRIS: Preliminary Motions Pending in "Adams" Class Suit PHILIP MORRIS: "Semple" Suit Pending in Nova Scotia, Canada PHILIP MORRIS: "Dorion" Suit Remains Pending in Alberta, Canada PHILIP MORRIS: Still Defends "McDermid" Suit in British Columbia PHILIP MORRIS: "Bourassa" Suit Still Pending in British Columbia PHILIP MORRIS: Trial in "Letourneau" Suit to Continue in 2013 PHILIP MORRIS: Trial in "Blais" Suit to Continue in 2013 & 2014 PHILIP MORRIS: Hearing in Flue-Cured Tobacco Suit on Sept. 19-20 PRIMO WATER: Seeks Dismissal of Securities Fraud Class Action RG STEEL: Court Clerk Mulls Class Action Over Unpaid Water Bills SCHWEGEL'S FOOD: Sued Over Illegal Check Cashing Fees SHERWIN-WILLIAMS: Recalls 17,850 Tree House Acrylic Coating SHERWIN-WILLIAMS: Recalls 2,700 Dupli-Color Automotive Paints SHERWIN-WILLIAMS: Recalls 98,400 Krylon(R) Glaze, Acrylic Paints TRANSOCEAN LTD: Dismissal Bid in Securities Suit Remains Pending TRANSOCEAN LTD: Hearing on Macondo-Related Suits Deal on Nov. 8 VANGUARD NATURAL: "Goldstein" Suit Voluntarily Dismissed in June VANGUARD NATURAL: Awaits Ruling on Bid to Dismiss Delaware Suit VANGUARD NATURAL: Consolidated Suit vs. Unit Remains Stayed WELLS FARGO: Faces Suit Alleging FLSA Violations in California ZEEKREWARDS.COM: Investors May Wait Months to Recover Money ZYNGA INC: Murray Frank Files Securities Class Action in Calif. Asbestos Litigation ASBESTOS UPDATE: N.C. Appeals Court Keeps Legal Fees Award v. FMC ASBESTOS UPDATE: Fla. Court Flips $6.6MM Judgment v. Union Carbide ASBESTOS UPDATE: NY Ct. Denies Crane Co's Bid to Junk Dummit Suit ASBESTOS UPDATE: NJ Ct. Denies Appeals in Claims v. Integrity ASBESTOS UPDATE: Gen Re's Motion to Quash Transferred to Pa. Ct. ASBESTOS UPDATE: Deers' Suit v. Georgia-Pacific Dismissed ASBESTOS UPDATE: EPA Halts Lend Lease in Barangaroo Over Fibro ASBESTOS UPDATE: Nemeroff Co-Chairs 15th Annual NALC ASBESTOS UPDATE: Chiddix High Students Back After Abatement ASBESTOS UPDATE: Oswego Fall Cleanup to Displace Social Services ASBESTOS UPDATE: Unions Push to Free Australia of Fibro by 2030 ASBESTOS UPDATE: Two Former Alcan Workers Die Due to ARDs ASBESTOS UPDATE: Mine Leftovers Hound Swaziland Progress ASBESTOS UPDATE: Official Assures Safety of Bracebridge Building ASBESTOS UPDATE: Syracuse Abatement Site Burgler Exposed to Fibro ASBESTOS UPDATE: Retired Asbestos Worker Dies of Lung Cancer ASBESTOS UPDATE: Fibro Issue Moves 204 Wofford Students to Mariott ASBESTOS UPDATE: No Recall on Chinese Cars in New Zealand ASBESTOS UPDATE: Fibers From Nanotech Also Cause Mesothelioma ASBESTOS UPDATE: Fund Drive for Old Armory Abatement Initiated ASBESTOS UPDATE: Cleanup Issues Extend JFK High Montreal Reopening ASBESTOS UPDATE: Tesco Closes Carlisle Store for 2 Months ASBESTOS UPDATE: Three Expected Outcomes of Mesothelioma Lawsuits ASBESTOS UPDATE: Farmington Seeks Funds for River Center Cleanup ASBESTOS UPDATE: Cooperative Group Faces GBP150,000 Lawsuit ASBESTOS UPDATE: Crown Court Fines 2 Manchester Firms GBP74,980 ASBESTOS UPDATE: Rock Island's Lincoln School Demolition Underway ASBESTOS UPDATE: Israel Ministry Slams IDF's Fibro Handling Fail ASBESTOS UPDATE: Harbor Square Demolition Set in September ASBESTOS UPDATE: DLS Says LHA Breached Asbestos and Lead Rules ASBESTOS UPDATE: DEP Approves Belcher Foundry Abatement Plan ASBESTOS UPDATE: Parliament Bldg Cleanup & Repair Plans Studied ASBESTOS UPDATE: Meso-Inquest Cites Ron Jones Ltd, Lurbrestol Intl ASBESTOS UPDATE: Ex-Aztec Industries Site Abatement Almost Finish ASBESTOS UPDATE: Morristown Asbestos Case Defense Sues for Time ASBESTOS UPDATE: Early Exposure to Blue Asbestos Studied ASBESTOS UPDATE: Wellington's Aubert Childcare Centre Finds Hope ASBESTOS UPDATE: Research Group Questions HSE's Effectiveness ASBESTOS UPDATE: Adelaide Hospital Accident Stirs Up Fibro ASBESTOS UPDATE: Fed Gov't Distances Self From Barangaroo Issue ASBESTOS UPDATE: Lorillard Tobacco's Move to Transfer Case Denied ASBESTOS UPDATE: Bourne Schools to Open on Time Despite Cleanup ASBESTOS UPDATE: Great Wall Motor Denies Product Recall ASBESTOS UPDATE: Barangaroo Soil Stockpile Raises Concern ASBESTOS UPDATE: Officer Denies Friable Fibro at Werribee Club ASBESTOS UPDATE: Rampant Fibro Violations in Bloomfield Unheeded ASBESTOS UPDATE: 2 UK Hospital Contractors Fined GBP14,322 ASBESTOS UPDATE: Bay City's Former YMCA Building Remediated ASBESTOS UPDATE: Former British Rail Worker Dies of Mesothelioma ASBESTOS UPDATE: CAT Board Sued for Wrongly Obtaining Compensation ASBESTOS UPDATE: Central Hudson Had 1,161 Cases Pending End June ASBESTOS UPDATE: Transocean Units Continue to Defend PI Suits ASBESTOS UPDATE: Maremont Had 21,000 Pending Claims at June 30 ASBESTOS UPDATE: AM Recorded $7MM Rockwell Legacy Liabilities ASBESTOS UPDATE: AM Hikes Liability in Bankhead Suit to $6.4MM ASBESTOS UPDATE: BNSF Railway Remains Exposed to PI Claims ASBESTOS UPDATE: ITT Corp. Had 96,023 Open Claims at June 30 ASBESTOS UPDATE: ITT Corp. Continues to Negotiate With Insurers ASBESTOS UPDATE: Crane Co. Had 57,559 Pending Claims at June 30 ASBESTOS UPDATE: Curtiss-Wright Still Defends Exposure Suits ASBESTOS UPDATE: Interstate Power Continues Remediation ASBESTOS UPDATE: Parker Drilling Defending 15 Suits as of June 30 ASBESTOS UPDATE: Illinois Tool Works Still Defends Exposure Suits ASBESTOS UPDATE: Albany International Had 4,426 Claims at July 20 ASBESTOS UPDATE: General Cable Still Defends Exposure Suits ********* BANK OF AMERICA: Judge Dismisses Privacy Class Action ----------------------------------------------------- Courthouse News Service reports that a federal judge dismissed a class action that accused Bank of America of violating client privacy by outsourcing its customer service network. A copy of the Memorandum Opinion in Stein, et al. v. Bank of America Corporation, et al., Case No. 11-cv-1400 (D.D.C.), is available at: http://www.courthousenews.com/2012/08/28/bofa.pdf BOEHRINGER INGELHEIM: Faces Lawsuits Over Pradaxa Injuries ---------------------------------------------------------- A number of Pradaxa lawsuits have been filed against drug maker Boehringer Ingelheim over its blockbuster blood thinner, alleging that patients and doctors were not properly warned of its bleeding risks. Over the past several months, it is believed that at least 21 cases have been filed across the country, and it is likely that hundreds of more actions will be pursued, according to attorneys involved in the litigation. As the Pradaxa lawsuits move forward, the lawyers working with ClassAction.org are continuing to provide a free legal consultation to patients who suffered internal bleeding while taking the drug, as well as loved ones acting on their behalf. If you or a loved one suffered a cerebral hemorrhage, gastrointestinal bleed or other bleeding event while taking Pradaxa, visit http://www.classaction.org/pradaxa.htmlto have your bleeding injury claim reviewed, at no cost to you. You may be able to seek compensation for medical bills and other damages stemming from your injuries. In the most recent development in the Pradaxa lawsuits, a panel of federal judges entered an order which consolidated all current and future federally-filed cases to a single court. The consolidation of the cases is likely to allow consistency in the rulings and expedite the litigation, which will be overseen by the Honorable Judge David Herndon who is well-known for expediting the litigation involving the birth control pill Yaz. According to the Transfer Order, centralizing the litigation was appropriate because all the actions share common questions of fact arising from allegations that the plaintiffs suffered severe bleeds or other injuries due to their use of Pradaxa; the drug's maker did not properly warn doctors of the risks associated with the drug, including the potential for life-threatening or fatal bleeds; and that there is no antidote to counteract the drug's anti-clotting effects. Used to prevent strokes and blood clots in atrial fibrillation patients, Pradaxa was approved in October 2010. Shortly thereafter, in Dec. 2011, the FDA announced that it would review reports of serious and sometimes fatal bleeds in patients taking the anti-coagulant. While all blood thinners pose a risk of bleeds, it has been alleged that Pradaxa is particularly dangerous because, unlike older drug Coumadin, there is no antidote to reverse its anticlotting effects, leaving doctors without an effective means to treat and stabilize patients who experienced uncontrolled bleeding on Pradaxa. For more information on Pradaxa lawsuits and to receive a free evaluation of your injuries, please visit ClassAction.org today. BP: Price Waicukauski & Riley Law Firm Files Class Action --------------------------------------------------------- On August 27, 2012, Price Waicukauski and Riley, LLC attorneys William Riley, Ron Waicukauski, and Joe Williams filed a class action lawsuit against BP. According to court documents, the plaintiff purchased defective BP gas on August 19, 2012. The following day Plaintiff's vehicle would not start. After taking the vehicle to Plaintiff's local mechanic, Plaintiff discovered that the defective fuel had significantly damaged the engine. The class action seeks to represent all Indiana residents who purchased the defective fuel (United States District Court, Northern District of Indiana). From August 13, 2012 through August 17, 2012, BP shipped approximately 2,100,000 gallons of contaminated and otherwise faulty fuel from its Whiting, Indiana fuel storage terminal to over 200 gas stations in Northwest Indiana and the Chicago area. The Defective Fuel was shipped to BP branded gas stations as well as many other independently branded gas stations. On August 20, 2012, BP began to recall the 2,100,000 gallons of the Defective Fuel because the gas contained higher than normal levels of polymetric residue which damages vehicles and causes them to malfunction in numerous ways including: starting with difficulty or not starting at all; engine stalling; severe engine shaking; fouling of the entire fuel system; and fuel injector and other component failure. As of August 23, 2012, BP had received at least 7,000 complaints from consumers who are believed to have purchased the Defective Fuel. On the same date, BP announced that it had "traced the source of the off-specification fuel" and had made changes to operations at the Whiting, Indiana plant to return fuels produced there back within normal specifications. If you have any questions regarding this lawsuit, then please feel free to call Price Waicukauski & Riley, LLC (317) 633-8787. About Price Waicukauski & Riley, LLC Price Waicukauski & Riley, LLC, of Indianapolis, focuses on complex plaintiff's litigation and has represented the plaintiffs during the several years of this litigation. In the Supreme Court, the plaintiffs are also being represented by Roy Englert and Mark Stancil of Robbins, Russell, Englert, Orseck, Untereiner & Sauber LLP of Washington, D.C., a firm with a specialty in Supreme Court Practice. Price Waicukauski & Riley, LLC is a member of the International Society of Primerus Law Firms. BP: Receives 6,500 Customer Claims Over Recalled Gas ---------------------------------------------------- The Associated Press reports that BP says it has received more than 6,500 claims from customers needing repairs after fueling up with some of the 2.1 million gallons of gasoline recalled in three states over high levels of a polymer residue. The oil giant says Indiana residents filed more than 4,000 of the claims through Aug. 27, Illinois residents filed about 2,000 and the rest came from residents of Wisconsin and other states. Spokesman Scott Dean says BP isn't commenting on two lawsuits seeking class-action status in U.S. District Court in Hammond. Each lead plaintiff in the cases filed on Aug. 24 alleges the recalled gas caused repair bills of nearly $1,000 or more. Mr. Dean says BP has already begun paying claims and expects payments to accelerate as it receives copies of customers' repair receipts. BROWNSVILLE DOCTORS: Former Employees File Class Action ------------------------------------------------------- Emma Perez-Trevino, writing for The Brownsville Herald, reports that former employees of Brownsville Doctors Hospital LLC filed a class-action lawsuit on Aug. 27 against the medical firm in federal court, alleging that they were abruptly fired without notice. They also claim that the hospital, Brownsville MD Ventures LLC, and five unidentified defendants have refused to pay them their wages and benefits following the terminations. The lawsuit indicates that as many as 50 people might have been allegedly terminated. The lawsuit was filed in the U.S. District Court for the Southern District of Texas by Pete Martinez, Allison Torres, Ester Reid, Marcie M. Vasquez, Cristian L. Puga, Juan Jose Rodriguez, Nora Lee Argullin, Claudia Salinas, Jean Denise Taylor, Priscilla Garza, Joe Daniel Losoya, and Diana Gallo, individually and on behalf of all other former employees who were terminated without 60-day notices or cause or as the result of mass layoffs or facility closings on Aug. 17 and thereafter, according to the public record. A representative from the medical facility was not immediately available for comment on Aug. 27, but a staff member told The Brownsville Herald that the facility was open. The former employees seek to recover 60 days' wages, 401(K) contributions, accrued personal time off days and insurance benefits. The former employees who filed the lawsuit are from Brownsville, Los Fresnos and San Benito. The petition filed in federal court indicates that the terminations began Aug. 5. The petition alleges that the mass layoff and/or closing at the facility resulted in employment losses for at least 50 of the defendants' employees or at least 33 percent of the work force, excluding part-time employees. The former employees have requested a jury trial. The petition was submitted by the Law Office of Cary M. Toland of Brownsville. Initial responses consist of a general denial to the allegations with demand for proof. CENTRO RETAIL: Blames AUD223MM Loss on Class Action Settlement -------------------------------------------------------------- Jordan Chong, writing for The Australian Associated Press, reports that shopping center owner Centro Retail Australia has suffered a AUD223 million loss, due mainly to costs related to its settlement of a class action. Centro said the expenses that contributed to the loss were one- offs and, when not included, its underlying earnings in the seven months to June 30 were AUD123.2 million. Chief executive Steven Sewell said the group's underlying earnings were slightly higher than the company had previously forecast. Centro Retail owns 41 shopping centers, valued at AUD6.6 billion. It was reporting its first financial results since it was established in December 2011, with the loss covering the seven months from then to June 30. The company contributed AUD$85.6 million to a class action settlement reached in May, plus incurred a AUD203.3 million loss related to special securities issued to compensate some of its security holders in the event of a settlement. The class action was launched against Centro Group and its auditor more than four years ago. Investors accused Centro of engaging in misleading and deceptive conduct by not disclosing in its 2007 financial report that it had at least AUD3 billion of interest-bearing debt falling due within 12 months. Centro Group has since restructured to become Centro Retail Australia. The company on Aug. 28 said the retail environment was expected to be "mixed", forcing retail groups to innovate and adapt to the "new norm". "Future retail market conditions are expected to be mixed, with factors such as price deflation, continuing cautious consumer activity and increased competition especially in discretionary retail categories," Centro Retail said. It said supermarkets in its portfolio of shopping centers had performed best during a time of household belt tightening. Mr. Sewell said that with the class action resolved, a recapitalized balance sheet and a refreshed and expanded management team, the company had a solid foundation for growth. "We are confident, in light of the strong balance sheet and liquidity position, of delivering earnings growth in 2013 and beyond," he said. Centro forecast underlying earnings of between 15.3 cents and 15.6 cents per security for 2012/13, barring any unforeseen circumstances. It's basic loss per stapled security for the 2011/12 financial year was 16.6 cents. It's securities closed one cent higher at $2.10 on Aug. 28. CREDITORS SPECIALTY: Sued Over Deceptive Collection Practices ------------------------------------------------------------- Ronaldo Suellen, on behalf of himself and all others similarly situated v. Creditors Specialty Service, Inc., Case No. 4:12-cv- 04476 (N.D. Calif., August 24, 2012) is brought by a consumer on behalf of himself and all others similarly situated for the Defendant's violations of the Fair Debt Collection Practices Act and the Rosenthal Fair Debt Collection Practices Act, which statutes set standards for debt collectors to prevent abusive, deceptive and unfair collection practices. The Defendant communicated with the Plaintiff through a collection letter dated March 22, 2012, which sought payment of an alleged debt amounting to $253 on behalf of Pacific Oaks Apartment, Mr. Suellen informs the Court. He alleges that the Defendant's collection letter threatened legal action against him. He contends that the Defendant sent the letter to coerce payment of the alleged debt. Mr. Suellen is a resident of San Francisco County, California, and a high school physical education teacher. The Defendant's principal business is the collection of debts through mail and telephone. The Defendant's agent for service of process is Neal Evans. The Plaintiff is represented by: Irving L. Berg, Esq. THE BERG LAW GROUP 145 Town Center, PMB 493 Corte Madera, CA 94925 Telephone: (415) 924-0742 Facsimile: (415) 891-8208 E-mail: irvberg@comcast.net DIOCESE OF COVINGTON: Kentucky Lawyer Loses Legal Fee Bid --------------------------------------------------------- Jim Hannah, writing for Cincinnati.com, reports that a Northern Kentucky lawyer and past president of the Kentucky Bar Association has lost her battle to share in the about $18.5 million in fees famed Cincinnati attorney Stan Chesley received from the Diocese of Covington sex-abuse settlement. The Kentucky Supreme Court ruled on Aug. 23 that Barbara Bonar, who has a law office in Covington, was not entitled to a portion of the attorney's fees in the class-action settlement. An attorney for Mr. Chesley, James Gary of Louisville, said he was pleased with the decision but declined further comment. Ms. Bonar sued Mr. Chesley, his firm and another lawyer in the firm, Robert Steinberg, five years ago in Boone Circuit Court. She claimed Mr. Chesley forced her out of the sex-abuse litigation and refused to pay her for critical work that brought about the class-action settlement. The roughly $84 million settlement was distributed among about 200 people, with the amount each received determined by the severity of the abuse. The justices upheld a lower court's ruling that Ms. Bonar voluntarily withdrew as co-counsel and therefore wasn't entitled to any of the fees. The high court also let stand a finding that Ms. Bonar committed numerous ethical violations during her participation as co-counsel, which would have constituted grounds for removal and forfeiture of any fees due. The trial judge was upset that Ms. Bonar tried to represent victims in the class-action litigation while also representing victims settling claims on an individual basis. She collected $1.3 million in lawyer fees for 25 individual claims totaling about $4 million, according to court records. That hurt the remaining members of the class because it drained money from the diocese that could have gone to settle the class-action litigation, the trial judge said. Ms. Bonar has argued that the lower court judge was unfair to her because he said from the bench that the bar association had requested all records in the sex-abuse case once it was resolved. The trial judge said he would have referred the case to the bar association, regardless of the request, due to "numerous ethical problems" he perceived. DIRECTV: Appeal in Suits Over Early Cancellation Fees Pending ------------------------------------------------------------- DIRECTV's appeal from an order denying its motions to compel arbitration with respect to claims in class action lawsuits seeking injunctive relief under California statutes, remains pending, according to the Company's August 3, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended June 30, 2012. In 2008, a number of plaintiffs filed putative class action lawsuits in state and federal courts challenging the early cancellation fees the Company assesses its customers when they do not fulfill their programming commitments. Several of these lawsuits are pending, some in California state court purporting to represent statewide classes, and some in federal courts purporting to represent nationwide classes. The lawsuits seek both monetary and injunctive relief. While the theories of liability vary, the lawsuits generally challenge these fees under state consumer protection laws as both unfair and inadequately disclosed to customers. The Company's motions to compel arbitration have been granted in all of the federal cases, except as to claims seeking injunctive relief under California statutes. The denial of the Company's motion as to those claims is currently on appeal. The Company believes that its early cancellation fees are adequately disclosed, and represent reasonable estimates of the costs the Company incurs when customers cancel service before fulfilling their programming commitments. DJO FINANCE: Continues to Defend Pain Pump-Related Lawsuits ----------------------------------------------------------- DJO Finance LLC continues to defend lawsuits related to disposable drug infusion pump products, according to the Company's August 3, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended June 30, 2012. The Company is currently named as one of several defendants in a number of product liability lawsuits involving approximately 65 plaintiffs in U.S. cases and a lawsuit in Canada which has been granted class action status, related to a disposable drug infusion pump product (pain pump) manufactured by two third party manufacturers that the Company distributed through its Bracing and Vascular segment. The Company sold pumps manufactured by one manufacturer from 1999 to 2003 and then sold pumps manufactured by a second manufacturer from 2003 to 2009. The Company discontinued its sale of these products in the second quarter of 2009. These cases have been brought against the manufacturers and certain distributors of these pumps. All of these lawsuits allege that the use of these pumps with certain anesthetics for prolonged periods after certain shoulder surgeries has resulted in cartilage damage to the plaintiffs. The lawsuits allege damages ranging from unspecified amounts to claims of up to $10 million. Many of the lawsuits which have been filed in the past three years have named multiple pain pump manufacturers and distributors without having established which manufacturer manufactured or sold the pump in issue. In the past three years, the Company has been dismissed from more than 380 cases when product identification was later established showing that it did not sell the pump in issue. At present, the Company is named in approximately 25 lawsuits in which product identification has yet to be determined and, as a result, the Company believes that it will be dismissed from a meaningful number of such cases in the future. In the past two years, the Company has entered into settlements with plaintiffs in approximately 63 pain pump lawsuits. Of these, the Company has settled approximately 36 cases in joint settlements involving its first manufacturer and the Company has settled approximately 27 cases involving its second manufacturer. As of June 30, 2012, the range of potential loss is not estimable. DOLLAR RENT: Consumers File Class Action Over Insurance Scheme -------------------------------------------------------------- Courthouse News Service reports that Dollar Rent a Car "cheat(ed) consumers out of millions of dollars" by signing them up for insurance and other services they declined, a class action claims in Federal Court. A copy of the Complaint in McKinnon v. Dollar Thrifty Automotive Group, Inc. d/b/a Dollar Rent A Car, et al., Case No. 12-cv-04457 (N.D. Calif.), is available at: http://www.courthousenews.com/2012/08/28/Dollar.pdf The Plaintiff is represented by: Alan M. Mansfield, Esq. WHATLEY KALLAS, LLC 580 California Street, 16th Floor San Francisco, CA 94104 Telephone: (415) 860-2503 E-mail: amansfield@whatleykallas.com - and - 10200 Willow Creek Rd., Suite 160 San Diego, CA 92131 Telephone: (619) 308-5034 - and - Joe R. Whatley, Jr., Esq. WHATLEY KALLAS, LLC 380 Madison Avenue, 23rd Floor New York, NY 10017 Telephone: (212) 447-7060 E-mail: jwhatley@whatleykallas.com DYNEGY INC: "Silsby" Class Suit Remains Stayed in New York ---------------------------------------------------------- A class action lawsuit captioned Charles Silsby v. Carl C. Icahn, et al. remains stayed as to Dynegy Inc., according to the Company's August 3, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended June 30, 2012. In connection with the prepetition 2011 restructuring and reorganization of the DH Debtor Entities and their non-debtor affiliates and specifically the transfer of Dynegy Coal Holdco LLC by Dynegy Gas Investments, LLC ("DGIN") to Dynegy, a putative class action stockholder lawsuit captioned Charles Silsby v. Carl C. Icahn, et al., Case No. 12CIV2307, was filed in the United States District Court of the Southern District of New York. The lawsuit challenges certain disclosures made in connection with the Coal Holdco Transfer. The Company believes the plaintiffs' complaints lack merit and it will oppose their claims vigorously. As a result of the filing of the voluntary petition for bankruptcy by Dynegy Inc., this lawsuit has been stayed as against Dynegy Inc. EECYCLEWORKS LLC: Recalls 400 Bicycle Brakes Due to Fall Hazard --------------------------------------------------------------- The U.S. Consumer Product Safety Commission, in cooperation with eecycleworks LLC of La Canada, California, announced a voluntary recall of about 400 bicycle brakes. Consumers should stop using recalled products immediately unless otherwise instructed. It is illegal to resell or attempt to resell a recalled consumer product. The bridge of the brakes can crack, posing a fall hazard to riders. The firm has received two reports of brakes cracking, one of which resulted in scrapes and bruises. This recall involves "eebrake" model aftermarket brakes sold between September, 2008 and March, 2011 for use on adult road racing bicycles. The recalled models have both a white "ee" logo on the front of the brakes and a five-digit serial number beginning with either "80xxx" or "09xxx" engraved on either the front or the back of the strut portion of the brake. A picture of the recalled products is available at: http://www.cpsc.gov/cpscpub/prerel/prhtml12/12257.html The recalled products were manufactured in the United States of America and sold at specialty bicycle retailers nationwide and eecycleworks.com from September 2008 through March 2011 for between $570 and $590. Consumers should immediately stop riding bicycles with the recalled brakes and contact eecycleworks or the retailer where they purchased the brakes for a free replacement bridge. For additional information, please contact eecycleworks toll-free at (855) 838-6924 between 9:00 a.m. and 4:00 p.m. Eastern Time Monday through Friday, or visit the firm's Web site at http://www.eecycleworks.com/ EL PASO PIPELINE: Awaits Ruling on Bid to Dismiss "Hite" Suit ------------------------------------------------------------- El Paso Pipeline Partners, L.P. is awaiting a court decision on its motion to dismiss the merger-related lawsuit captioned Hite Hedge LP, et al. v. El Paso Corporation, et al., according to the Company's August 3, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended June 30, 2012. El Paso Pipeline Partners, L.P. (the Company or EPB) is controlled by its general partner, El Paso Pipeline GP Company, L.L.C., a wholly owned subsidiary of El Paso LLC (formerly El Paso Corporation) (El Paso). El Paso is a wholly owned subsidiary of Kinder Morgan, Inc. (KMI). El Paso's and KMI's merger became effective on May 25, 2012. In December 2011, unitholders of EPB filed a purported class action complaint in Delaware Chancery Court against El Paso and its board members, asserting that the defendants breached their purported fiduciary duties to EPB by entering into the merger agreement with KMI. EPB and EPB's general partner were named in the lawsuit as "Nominal Defendants." The complaint alleges that the merger with KMI will result in fewer drop down transactions into EPB and has resulted in a reduction of the price of EPB common units. In February 2012, the defendants filed a motion to dismiss the complaint. The plaintiffs filed an amended complaint adding a derivative claim, and the defendants responded with a second motion to dismiss in April 2012. Defendants believe that this lawsuit is without merit and intend to defend against it vigorously. EL PASO PIPELINE: Seeks Dismissal of Class Suit in Delaware ----------------------------------------------------------- El Paso Pipeline Partners, L.P. (EPB) disclosed in its August 3, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended June 30, 2012, that it has filed a motion to dismiss a class action lawsuit pending in Delaware. In May 2012, a unitholder of EPB filed a purported class action, captioned Allen v. El Paso Pipeline GP Company, L.L.C., et al., in Delaware Chancery Court, alleging both derivative and non derivative claims, against EPB, and EPB's general partner and its board. EPB was named in the lawsuit as both a "Class Defendant" and a "Derivative Nominal Defendant." The complaint alleges a breach of the duty of good faith and fair dealing in connection with the sale to EPB of a 25 percent ownership interest in its subsidiary, Southern Natural Gas Company, L.L.C. (SNG). Defendants believe that this lawsuit is without merit, and have filed a motion to dismiss. GENERAL MOTORS: Canadian Export Antitrust Suits Deal Approved ------------------------------------------------------------- General Motors Company disclosed in its August 3, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended June 30, 2012, that all courts have now approved its $21 million settlement to resolve state court antitrust actions over Canadian car exports. Since January 1, 2001, approximately 80 class action cases have been filed on behalf of all purchasers of new motor vehicles in various U.S. state and federal courts against General Motors Corporation, General Motors of Canada Limited (GMCL), Ford Motor Company, Chrysler, LLC, Toyota Motor Corporation, Honda Motor Co., Ltd., Nissan Motor Company, Limited, and Bavarian Motor Works and their Canadian affiliates, the National Automobile Dealers Association and the Canadian Automobile Dealers Association. The nearly identical complaints alleged that the defendant manufacturers, aided by the association defendants, conspired among themselves and with their dealers to prevent the sale to U.S. citizens of vehicles produced for the Canadian market and sold by dealers in Canada. The complaints alleged that new vehicle prices in Canada are 10% to 30% lower than those in the U.S., and that preventing the sale of these vehicles to U.S. citizens resulted in the payment of higher than competitive prices by U.S. consumers. The complaints, as amended, sought injunctive relief under U.S. antitrust law and treble damages under U.S. and state antitrust laws, but did not specify damages. The complaints further alleged unjust enrichment and violations of state unfair trade practices act. The federal court actions were consolidated for coordinated pretrial proceedings under the caption In re New Market Vehicle Canadian Export Antitrust Litigation Cases in the U.S. District Court for the District of Maine, but on July 2, 2009, the federal court granted summary judgment in favor of the defendants which concluded the federal actions. Certain related class action cases were pending against the defendants in various U.S. state courts. GMCL without conceding liability agreed with plaintiffs to settle all remaining state court cases in the amount of $21 million with the settlement to be apportioned among the claimants, their lawyers and administrative costs. Lawyers representing the plaintiffs sought approval of the settlement by the state courts in late 2011. All courts have now approved the settlement and the funds will be disbursed as the claims, fees and administrative costs are confirmed. GENERAL MOTORS: Canadian Dealers Suit v. Unit Remains Pending ------------------------------------------------------------- General Motors Company's subsidiary continues to defend itself against a class action lawsuit brought by Canadian dealers, according to the Company's August 3, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended June 30, 2012. On February 12, 2010, a claim was filed in the Ontario Superior Court of Justice against General Motors of Canada Limited (GMCL) on behalf of a purported class of over 200 former GMCL dealers (the Plaintiff Dealers) which had entered into wind-down agreements with GMCL. In May 2009, in the context of the global restructuring of the business and the possibility that GMCL might be required to initiate insolvency proceedings, GMCL offered the Plaintiff Dealers the wind-down agreements to assist with their exit from the GMCL dealer network and to facilitate winding down their operations in an orderly fashion by December 31, 2009, or such other date as GMCL approved but no later than on October 31, 2010. The Plaintiff Dealers allege that the Dealer Sales and Service Agreements were wrongly terminated by GMCL and that GMCL failed to comply with certain disclosure obligations, breached its statutory duty of fair dealing and unlawfully interfered with the Plaintiff Dealers' statutory right to associate in an attempt to coerce the Plaintiff Dealers into accepting the wind-down agreements. The Plaintiff Dealers seek damages and assert that the wind-down agreements are rescindable. The Plaintiff Dealers' initial pleading makes reference to a claim "not exceeding" C$750 million, without explanation of any specific measure of damages. On March 1, 2011, the court approved certification of a class for the purpose of deciding a number of specifically defined issues, including: (1) whether GMCL breached its obligation of "good faith" in offering the wind-down agreements; (2) whether GMCL interfered with the Plaintiff Dealers' rights of free association; (3) whether GMCL was obligated to provide a disclosure statement and/or disclose more specific information regarding its restructuring plans in connection with proffering the wind-down agreements; and (4) assuming liability, whether the Plaintiff Dealers can recover damages in the aggregate (as opposed to proving individual damages). On June 22, 2011, the court granted GMCL permission to appeal the class certification decision. On March 26, 2012, the Ontario Superior Court dismissed GMCL's appeal of the class certification order. Accordingly, the case will proceed as a class action. The current prospects for liability are uncertain, but because liability is not deemed probable, the Company has no accrual relating to this litigation. The Company says it cannot estimate the range of reasonably possible loss in the event of liability, as the case presents a variety of different legal theories, none of which GMCL believes are valid. GENERAL MOTORS: Faces "Scott" Securities Class Suit in New York --------------------------------------------------------------- General Motors Company is facing a securities class action lawsuit commenced by George G. Scott, according to the Company's August 3, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended June 30, 2012. On June 29, 2012, a putative securities class action was filed against the Company and a number of its past and current officers and directors in the United States District Court for the Southern District of New York (George G. Scott v. General Motors Company et al). Purporting to sue on behalf of owners of common stock deriving from the Company's 2010 initial public offering, plaintiff asserts non-fraud prospectus based liability claims under various Federal securities statutes alleging that the Company has made false statements about its vehicle inventory controls and production decisions, particularly with respect to full-size trucks. The plaintiff's complaint requests compensatory damages, rescission and litigations costs, fees and disbursements. GIANT FOOD: Alerts Customers of Recall of Daniella Mangos --------------------------------------------------------- Giant Food LLC of Landover, Maryland, following a voluntary recall by Splendid Products LLC, announced it removed from sale Daniella mangos due to possible salmonella contamination. The following product, purchased between July 12 and August 24, 2012, is included in this recall: * Daniella mangos, PLU 4959 Giant Food is aware of illnesses reported in Canada and associated with this recall. Customers who have purchased the product should discard any unused portions and bring their purchase receipt to Giant Food for a full refund. Consumption of food contaminated with Salmonella can cause salmonellosis, one of the most common bacterial foodborne illnesses. Salmonella infections can be life-threatening, especially to those with weak immune systems, such as infants, the elderly and persons with HIV infection or undergoing chemotherapy. The most common manifestations of salmonellosis are diarrhea, abdominal cramps, and fever within eight to 72 hours. Additional symptoms may be chills, headache, nausea and vomiting that can last up to seven days. Customers may call Giant Customer Service at (888) 469-4426 Monday through Friday from 9:00 a.m. to 5:00 p.m. for more information. Customers can also visit the Giant Web site at http://www.giantfood.com/ About Giant Food Giant Food LLC, headquartered in Landover, Maryland, operates 173 supermarkets in Virginia, Maryland, Delaware, and the District of Columbia, and employs approximately 22,000 associates. Included within the 173 stores are 159 full-service pharmacies. Giant is owned by Ahold USA, Inc. For more information on Giant, visit http://www.GiantFood.com/ GOOGLE INC: Judge Dismisses Majority of Claims in Class Action -------------------------------------------------------------- Bill Donahue, writing for Law360, reports that a California federal judge on Aug. 24 once again gutted a proposed class action accusing Google Inc. of unfairly and deceptively applying its advertising pricing policies, dismissing all but one claim from the lawsuit. For the second time in just over a year, U.S. District Judge Jeremy Fogel said advertiser Rick Woods had failed to sufficiently plead that Google had broken a promise to apply automatic discounts when it places Web ads in less-than-optimal locations. GROUP HEALTH: Settles Behavior Therapy Insurance Class Action ------------------------------------------------------------- The Seattle Times reports that Group Health Cooperative has settled a class-action lawsuit by agreeing to cover behavioral- health treatment for autism, an important moment and model for other Washington insurers. Indeed, the state Health Care Authority followed with its partial settlement of a class-action lawsuit, agreeing to cover intensive early-intervention behavior therapy for children with autism- spectrum disorders whose parents have health insurance through the state's Uniform Medical Plan. Coverage for Medicaid patients is also close to an agreement. Convincing insurers to pay for neurodevelopmental and behavioral therapies used to treat this range of clinical conditions is a huge step that ought not be downplayed. These therapies can produce dramatic improvements in children with autism, allowing them to attend school and participate in mainstream activities. Therapeutic costs can easily run families tens of thousands of dollars a year. Washington's mental-health parity law requires coverage for neurodevelopmental and behavioral therapies. That's considerable leverage, but it did not stop insurers from excluding the therapies. Adding to families' challenge in getting coverage is the debate over whether certain treatments are medical, and covered by insurance, or educational, and thus falling under the responsibility of public schools. Efforts over the years by autism-advocacy groups to get the state Legislature to mandate coverage were consistently opposed by insurers. So advocates headed to the courts. With Group Health and the Health Care Authority's agreements, settlements in other lawsuits, including against Premera Blue Cross and Regence Blue Shield, should be next. Agreements about coverage must happen. That's exactly what the state's Mental Health Parity Act promised. Autism is among the fastest-growing developmental disabilities in the nation. The Centers for Disease Control and Prevention estimates 1 in 88 children has some form of autism-spectrum disorder. The rise in diagnoses and treatments has spurred lawsuits across the country as families battle states, insurers and public schools for coverage. Early investment in these therapies make a big difference for a lifetime. HEALTHCARE TRAINING: Accused in N.J. of Defrauding Students ----------------------------------------------------------- Courthouse News Service reports that The Healthcare Training Institute is the latest profit-seeking college to face a class action accusing it of defrauding students, in Union County Court. A copy of the Complaint in Ellithy v. Healthcare Training Institute, et al., Case No. 2826-12 (N.J. Super. Ct., Union Cty.), is available at: http://www.courthousenews.com/2012/08/28/ForProfit.pdf The Plaintiff is represented by: Leslie A. Farber, Esq. LESLIE A. FARBER, LLC 33 Plymouth Street, Suite 204 Montclair, NJ 07042 Telephone: (973) 509-8500 - and - LAW OFFICE OF JEFFREY J. ANTONELLI, LTD. 30 North LaSalle Street, Suite 3400 Chicago, IL 60602 Telephone: (312) 201-8310 IMAX CORP: Court Loosens Limitation Period in Class Actions ----------------------------------------------------------- Julius Melnitzer, writing for Financial Post, reports that the Ontario Superior Court has ruled that plaintiffs who miss the limitation period for obtaining leave to proceed with secondary market securities class actions because of delays inherent in the litigation process can have their leave order backdated to the time the action was filed. "No public interest would be served by permitting a cause of action to be defeated by delays inherent in the litigation process," wrote Justice Katherine van Rensburg in her reasons in Silver v. Imax Corporation, released on Aug. 27. Justice Van Rensburg's ruling undermines the impact of the Ontario Court of Appeal's ruling earlier this year in Sharma v. Timminco, which many regarded as perhaps the most important decision yet on secondary market securities class actions. Sharma requires plaintiffs in secondary-market securities class actions to seek the required leave to commence the action from the court within three years of the date of the impugned misrepresentation. The court's reasoning could have broad reaching implications for other types of class actions. The appellate decision in the $520- million case overturned an earlier decision by Ontario Superior Court Judge Paul Perell. He had ruled that Section 28 of the Class Proceedings Act, which suspends the limitation periods applicable to class actions "on the commencement of the class proceeding," had in effect stopped the clock on the three-year limitation period from the time that the plaintiffs announced their intention to seek leave in their statement of claim. As Financial Post told earlier, the Supreme Court of Canada recently denied leave to appeal in Sharma. Kirk Baert, a class action partner who represents plaintiffs at Koskie Minsky LLP, calls Silver v. Imax "a very big decision." JANSSEN PHARMA: Settles Deceptive Marketing Case for $181MM ----------------------------------------------------------- Attorney General Eric T. Schneiderman on August 30, 2012, announced a record $181 million settlement with Janssen Pharmaceuticals, Inc., and its parent company Johnson & Johnson to resolve charges of improper marketing and advertising of the powerful anti-psychotic drugs Risperdal and Invega. T(his) settlement, joined by New York and 36 other states and the District of Columbia, represents the largest multi-state consumer protection-based pharmaceutical settlement in history. New York will receive nearly $9 million. In a complaint filed on August 30 in New York County Supreme Court, Attorney General Schneiderman charged that from 1998 through at least 2004, Janssen Pharmaceuticals engaged in deceptive and misleading practices when it marketed Risperdal, Risperdal Consta, Risperdal M-Tab and Invega for off-label uses. As a result of the states' investigation, Johnson & Johnson agreed to change its marketing of Risperdal and Invega, and to cease promoting "off-label" uses of the drugs not approved by the U.S. Food and Drug Administration (FDA). "Pharmaceutical corporations' illegal promotion of drugs for off- label uses must stop. Consumers, including parents of children with serious mental disorders and vulnerable patients should be able to trust their doctor's advice without fear that drug companies are manipulating their physician's independent judgment," Attorney General Schneiderman said. "This landmark settlement holds the companies accountable for practices that put patients in danger, and serves as a warning to other pharmaceutical giants that they must play by one set of rules. It goes further by ensuring that the corporations stop rewarding doctors for prescribing certain drugs or presenting scientifically-suspect studies as sound." Risperdal is an anti-psychotic medication used to treat mental illnesses including schizophrenia, bi-polar disorder and irritability associated with children and adolescence with Autism. Invega, which is derived from risperdone, is also marketed for the treatment of schizophrenia and bipolar mania. The complaint charged that Janssen promoted Risperdal for unapproved uses, including dementia in elderly patients, schizophrenia and bi-polar disorder in children and adolescents, and depression, anxiety, obsessive compulsive disorder, conduct disorder, post-traumatic stress disorder, and Alzheimer's disease. Further, the complaint charged that Janssen concealed and misrepresented information regarding the side effects and efficacy of Risperdal thereby putting patients at risk. The settlement prohibits Janssen from: - Making false, misleading or deceptive claims regarding Risperdal or Invega; * Promoting Risperdal or Invega for off-label uses; - Promoting Risperdal or Invega by highlighting use for selected symptoms instead of diagnoses; - Misusing continuing medical education ("CME") programs to market Risperdal or Invega; - Awarding grants to Health Care Professionals ("HCPs") based on their prescribing habits; - Presenting information and conclusions from a study that is not scientifically sound, or presenting information and conclusions in a manner that is not supported by the underlying study; - Disseminating reprints containing off-label usage information. The settlement also requires Janssen to: - Report clinical research results regarding Risperdal or Invega in an accurate, objective and balanced manner; - Disclose on its website a searchable listing of all HCPs and related entities who or which received any payments directly or indirectly from Janssen; - Provide clear and conspicuous disclosure of the risks associated with the use of Risperdal or Invega in all of its promotional materials; - Provide accurate, objective and scientifically balanced responses to requests for off-label usage information by doctors. The filing was handled by Assistant Attorney General Benjamin J. Lee under the supervision of Laura J. Levine, Deputy Bureau Chief, and Jane M. Azia, Bureau Chief of the Consumer Frauds and Protection Bureau. The other states that were part of the settlement are Alabama, Arizona, Colorado, Connecticut, Delaware, District of Columbia, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Maine, Maryland, Michigan, Minnesota, Missouri, Nebraska, Nevada, New Hampshire, New Jersey, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Vermont, Washington, Wisconsin and Wyoming. KKR & CO: Bid to Dismiss Merger-Related Suit Remains Pending ------------------------------------------------------------ KKR & Co. L.P. and other defendants' motion to dismiss a consolidated merger-related class action lawsuit in Delaware remains pending, according to the Company's August 3, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended June 30, 2012. On May 23, 2011, KKR, certain KKR affiliates and the board of directors of Primedia Inc. (a former KKR portfolio company whose directors at that time included certain KKR personnel) were named as defendants, along with others, in two shareholder class action complaints filed in the Court of Chancery of the State of Delaware challenging the sale of Primedia in a merger transaction that was completed on July 13, 2011. These actions allege, among other things, that Primedia board members, KKR, and certain KKR affiliates, breached their fiduciary duties by entering into the merger agreement at an unfair price and failing to disclose all material information about the merger. Plaintiffs also allege that the merger price was unfair in light of the value of certain shareholder derivative claims, which were dismissed on August 8, 2011, based on a stipulation by the parties that the derivative plaintiffs and any other former Primedia shareholders lost standing to prosecute the derivative claims on behalf of Primedia when the Primedia merger was completed. The dismissed shareholder derivative claims included allegations concerning open market purchases of certain shares of Primedia's preferred stock by KKR affiliates in 2002 and allegations concerning Primedia's redemption of certain shares of Primedia's preferred stock in 2004 and 2005, some of which were owned by KKR affiliates. With respect to the pending shareholder class actions challenging the Primedia merger, on June 7, 2011, the Court of Chancery denied a motion to preliminarily enjoin the merger. On July 18, 2011, the Court of Chancery consolidated the two pending shareholder class actions and appointed lead counsel for plaintiffs. On October 7, 2011, defendants moved to dismiss the operative complaint in the consolidated shareholder class action. The operative complaint seeks, in relevant part, unspecified monetary damages and rescission of the merger. On December 2, 2011, plaintiffs filed a consolidated amended complaint, which similarly alleges that the Primedia board members, KKR, and certain KKR affiliates breached their respective fiduciary duties by entering into the merger agreement at an unfair price in light of the value of the dismissed shareholder derivative claims. That amended complaint seeks an unspecified amount of monetary damages. On January 31, 2012, defendants moved to dismiss the amended complaint. The motion to dismiss the amended complaint is pending before the Court of Chancery. Additionally, in May 2011, two shareholder class actions challenging the Primedia merger were filed in Georgia state courts, asserting similar allegations and seeking similar relief as initially sought by the Delaware shareholder class actions. Both Georgia actions have been stayed in favor of the Delaware action. Led by Henry Kravis and George Roberts, KKR & Co. L.P. -- http://kkr.com/-- is global investment firm with $59 billion in AUM as of December 31, 2011. The Company offers a broad range of investment management services to its investors and provides capital markets services to its firm, its portfolio companies and its clients. KKR & CO: Seeks Summary Judgment in Consolidated Antitrust Suit --------------------------------------------------------------- KKR & Co. L.P. and other defendants filed motions for summary judgment in the consolidated antitrust lawsuit pending in Massachusetts, according to the Company's August 3, 2012, Form 10- Q filing with the U.S. Securities and Exchange Commission for the quarter ended June 30, 2012. In December 2007, KKR, along with 15 other private equity firms and investment banks, were named as defendants in a purported class action complaint filed in the United States District Court for the District of Massachusetts by shareholders in certain public companies acquired by private equity firms since 2003. In August 2008, KKR, along with 16 other private equity firms and investment banks, were named as defendants in a purported consolidated amended class action complaint. The lawsuit alleges that from mid-2003 defendants have violated antitrust laws by allegedly conspiring to rig bids, restrict the supply of private equity financing, fix the prices for target companies at artificially low levels, and divide up an alleged market for private equity services for leveraged buyouts. The amended complaint seeks injunctive relief on behalf of all persons who sold securities to any of the defendants in leveraged buyout transactions and specifically challenges nine transactions. The first stage of discovery concluded on or about April 15, 2010. On August 18, 2010, the court granted plaintiffs' motion to proceed to a second stage of discovery in part and denied it in part. Specifically, the court granted a second stage of discovery as to eight additional transactions but denied a second stage of discovery as to any transactions beyond the additional eight specified transactions. On October 7, 2010, the plaintiffs filed under seal a fourth amended complaint that includes new factual allegations concerning the additional eight transactions and the original nine transactions. The fourth amended complaint also includes eight purported sub-classes of plaintiffs seeking unspecified monetary damages and/or restitution with respect to eight of the original nine challenged transactions and new separate claims against two of the original nine challenged transactions. On January 13, 2011, the court granted a motion filed by KKR and certain other defendants to dismiss all claims alleged by a putative damages sub-class in connection with the acquisition of PanAmSat Corp. and separate claims for relief related to the PanAmSat transaction. The second phase of discovery permitted by the court is completed. On July 11, 2011, plaintiffs filed a motion seeking leave to file a proposed fifth amended complaint that seeks to challenge ten additional transactions in addition to the transactions identified in the previous complaints. Defendants opposed plaintiffs' motion. On September 7, 2011, the court granted plaintiffs' motion in part and denied it in part. Specifically, the court granted a third stage of limited discovery as to the ten additional transactions identified in plaintiffs' proposed fifth amended complaint but denied plaintiffs' motion seeking leave to file a proposed fifth amended complaint. The court stated that it will entertain a renewed motion by plaintiffs to file a proposed fifth amended complaint at the close of the third phase of discovery. The third phase of discovery permitted by the court has been completed. On June 14, 2012, plaintiffs filed a fifth amended complaint which, like their proposed fifth amended complaint, seeks to challenge ten additional transactions in addition to the transactions identified in the previous complaints. On June 22, 2012, defendants filed a motion to dismiss certain claims asserted in the fifth amended complaint. On July 23, 2012, defendants, including KKR, filed motions for summary judgment. Led by Henry Kravis and George Roberts, KKR & Co. L.P. -- http://kkr.com/-- is global investment firm with $59 billion in AUM as of December 31, 2011. The Company offers a broad range of investment management services to its investors and provides capital markets services to its firm, its portfolio companies and its clients. LENDER PROCESSING: Awaits Order on Bid to Dismiss St. Clair Suit ---------------------------------------------------------------- Lender Processing Services, Inc. is awaiting a court decision on its motion to dismiss a class action lawsuit initiated by St. Clair Shores General Employees' Retirement System, according to the Company's August 3, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended June 30, 2012. On December 1, 2010, the Company was served with a complaint entitled St. Clair Shores General Employees' Retirement System v. Lender Processing Services, Inc., et al., which was filed in the United States District Court for the Middle District of Florida. The putative class action seeks damages for alleged violations of federal securities laws in connection with the Company's disclosures relating to its default operations. An amended complaint was filed on May 18, 2011. LPS filed a motion to dismiss the complaint on July 18, 2011, and the plaintiff filed a response to the Company's motion on September 12, 2011. The complaint was dismissed on March 30, 2012. The plaintiffs filed a second amended complaint on May 8, 2012. The Company filed a motion to dismiss the second amended complaint on June 8, 2012, and the plaintiff filed a response to the Company's motion on July 9, 2012. MEAD JOHNSON: Sued Over False Advertising on Enfamil Formulas ------------------------------------------------------------- Courthouse News Service reports that a federal class action claims that Mead Johnson & Co. falsely advertises that its Enfamil and other formulas "support your baby's developing immune system." A copy of the Complaint in Route v. Mead Johnson Nutrition Company, d/b/a Mead Johnson & Company, LLC, Case No. 12-cv-07350 (C.D. Calif.), is available at: http://www.courthousenews.com/2012/08/28/NotImmune.pdf The Plaintiff is represented by: L. Timothy Fisher, Esq. Sarah N. Westcot, Esq. BURSOR & FISHER, P.A. 1990 North California Boulevard, Suite 940 Walnut Creek, CA 94596 Telephone: (925) 300-4455 E-mail: ltfisher@bursor.com swestcot@bursor.com - and - Scott A. Bursor, Esq. BURSOR & FISHER, P.A. 369 Lexington Avenue, 10th Floor New York, NY 10017 Telephone: (212) 989-9113 E-mail: scott@bursor.com MISSOURI: Faces Class Action Over "Kelsey's Law" ------------------------------------------------ Douglas, Haun & Heidemann on Aug. 27 disclosed that a class action lawsuit has been filed by Mary Hopwood against the State of Missouri to halt the enforcement House Bill No. 1108 also known as "Kelsey's Law." This new law requires telecommunications providers to disclose subscriber physical location information if a law enforcement officer alleges an emergency need. The new law also requires providers to do "ping locates" a/k/a cell tower triangulation to determine the precise physical location of a user. The suit alleges that Missouri's version of "Kelsey's Law" violates the Supremacy Clause of the U.S. Constitution which prevents states from passing laws that conflict with federal laws. The suit claims the law conflicts with the Electronic Communications Privacy Act ("ECPA") passed by Congress in 1986. The ECPA details circumstances under which private location information may be disclosed. The suit alleges that Missouri's law announces a new, conflicting standard for disclosure and completely eliminates a customer's ability to sue for improper disclosure. Missouri's new law allows a simple request and declaration of emergency to get protected ECPA information. The lawsuit notes that under federal law, wireless providers can refuse illegitimate requests but under Missouri's new law, the providers can only respond 'yes' regardless of whether or not the provider believes that a real emergency exists. Other states have more restrictive laws. For example, last week California's state legislature passed the Location Privacy Act of 2012 (SB-1434) which would make it mandatory for law enforcement agencies to obtain a warrant before gathering location tracking data. As reported by the New York Times in a July 8, 2012 article, cell phone carriers responding to a congressional inquiry disclosed that they answered 1.3 million demands for subscriber information last year from law enforcement agencies seeking information. AT&T stated that its requests for information grew 15% last year at an incurred cost of over $8 million dollars. Plaintiff Mary Hopwood is represented by Craig R. Heidemann and Nathan A. Duncan of the law firm of Douglas, Haun & Heidemann in Bolivar, Missouri. The case is currently pending in the United States District Court, Western District of Missouri (case number 2:12-cv-04238-MJW). A copy of the lawsuit is available at: http://www.bolivarlaw.com/HopwoodSuit.pdf NEW YORK POLICE: March 2013 Trial Set for "Stop and Frisk" Suit --------------------------------------------------------------- Basil Katz, writing for Reuters, reports that the broadest legal challenge to the New York Police Department's controversial crime- fighting tactic known as "stop and frisk" will head to trial in March, a U.S. judge ruled on Aug. 27. The case stems from a class action lawsuit filed in 2008 by four black men claiming they were improperly targeted by police because of their race. U.S. District Judge Shira Scheindlin in Manhattan granted class action status to the lawsuit in March, saying the plaintiffs had established their cases were emblematic of a city-wide problem. The City promptly appealed her decision and the NYPD has strongly defended the tactic, arguing it has been critical in taking guns off the streets and achieving an historic drop in crime rates. The police deny that race or quotas motivate stops and say they are stopping people considered suspicious. At the Aug. 27 hearing, the judge said the case had dragged on long enough and noted that the March 18, 2013 trial would be more than five years since the case was first filed. Darius Charney, a lawyer for the Center for Constitutional Rights, told the judge on Aug. 27 that the plaintiffs had not yet decided whether to ask for a bench trial or whether they would seek to present their case to a jury. Judge Scheindlin is also overseeing two other separate lawsuits contesting the NYPD tactic. PHILIP MORRIS: Appeals in "ADESF" Suit Remain Pending in Brazil --------------------------------------------------------------- Two appeals in the class action lawsuit commenced by The Smoker Health Defense Association remain pending in Brazil, according to Philip Morris International Inc.'s August 3, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended June 30, 2012. In the first class action pending in Brazil, The Smoker Health Defense Association (ADESF) v. Souza Cruz, S.A. and Philip Morris Marketing, S.A., Nineteenth Lower Civil Court of the Central Courts of the Judiciary District of Sao Paulo, Brazil, filed July 25, 1995, the Company's subsidiary and another member of the industry are defendants. The plaintiff, a consumer organization, is seeking damages for smokers and former smokers and injunctive relief. The Civil Court of Sao Paulo found defendants liable without hearing evidence. The court did not assess moral or actual damages, which were to be assessed in a second phase of the case. The size of the class was not defined in the ruling. In April 2004, the court clarified its ruling, awarding "moral damages" of R$1,000 (approximately $490) per smoker per full year of smoking plus interest at the rate of 1% per month, as of the date of the ruling. The court did not award actual damages, which were to be assessed in the second phase of the case. The size of the class was not estimated. Defendants appealed to the Sao Paulo Court of Appeals, which annulled the ruling in November 2008, finding that the trial court had inappropriately ruled without hearing evidence and returned the case to the trial court for further proceedings. In May 2011, the trial court dismissed the claim. Plaintiff has appealed. In addition, the defendants filed a constitutional appeal to the Federal Supreme Tribunal on the basis that the plaintiff did not have standing to bring the lawsuit. This appeal is still pending. PHILIP MORRIS: Dismissal of Sao Paulo Prosecutor Suit Appealed -------------------------------------------------------------- The dismissal of the class action lawsuit captioned Public Prosecutor of Sao Paulo v. Philip Morris Brasil Industria e Comercio Ltda., has been appealed, according to Philip Morris International Inc.'s August 3, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended June 30, 2012. In the second class action pending in Brazil, Public Prosecutor of Sao Paulo v. Philip Morris Brasil Industria e Comercio Ltda., Civil Court of the City of Sao Paulo, Brazil, filed August 6, 2007, the Company's subsidiary is a defendant. The plaintiff, the Public Prosecutor of the State of Sao Paulo, is seeking (i) unspecified damages on behalf of all smokers nationwide, former smokers, and their relatives; (ii) unspecified damages on behalf of people exposed to environmental tobacco smoke ("ETS") nationwide, and their relatives; and (iii) reimbursement of the health care costs allegedly incurred for the treatment of tobacco- related diseases by all Brazilian States and Municipalities, and the Federal District. In an interim ruling issued in December 2007, the trial court limited the scope of this claim to the State of Sao Paulo only. In December 2008, the Seventh Civil Court of Sao Paulo issued a decision declaring that it lacked jurisdiction because the case involved issues similar to the ADESF case and should be transferred to the Nineteenth Lower Civil Court in Sao Paulo where the ADESF case is pending. The court further stated that these cases should be consolidated for the purposes of judgment. The Company's subsidiary appealed this decision to the State of Sao Paulo Court of Appeals, which subsequently declared the case stayed pending the outcome of the appeal. In April 2010, the Sao Paulo Court of Appeals reversed the Seventh Civil Court's decision that consolidated the cases, finding that they are based on different legal claims and are progressing at different stages of proceedings. This case was returned to the Seventh Civil Court of Sao Paulo, and the Company's subsidiary filed its closing arguments in December 2010. In March 2012, the trial court dismissed the case on the merits. This decision has been appealed. PHILIP MORRIS: Plaintiffs Appeal Judgment in "Smith" Class Suit --------------------------------------------------------------- Plaintiffs in the class action lawsuit captioned Smith v. Philip Morris Companies Inc., et al., appealed a judgment granting defendants' motions for summary judgment, according to Philip Morris International Inc.'s August 3, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended June 30, 2012. In the antitrust class action in Kansas, Smith v. Philip Morris Companies Inc., et al., District Court of Seward County, Kansas, filed February 7, 2000, the Company and other members of the industry are defendants. The plaintiff asserts that the defendant cigarette companies engaged in an international conspiracy to fix wholesale prices of cigarettes and sought certification of a class comprised of all persons in Kansas who were indirect purchasers of cigarettes from the defendants. The plaintiff claims unspecified economic damages resulting from the alleged price-fixing, trebling of those damages under the Kansas price-fixing statute and counsel fees. The trial court granted plaintiff's motion for class certification in 2001. On March 23, 2012, the trial court granted defendants' motions for summary judgment in their entirety and, accordingly, entered judgment for the defendants on all claims. On July 19, 2012, plaintiff appealed this ruling. PHILIP MORRIS: "Kunta" Suit Remains Pending in Winnipeg, Canada --------------------------------------------------------------- In the third class action pending in Canada, Kunta v. Canadian Tobacco Manufacturers' Council, et al., The Queen's Bench, Winnipeg, Canada, filed June 12, 2009, Philip Morris International Inc., its subsidiaries, and its indemnitees (Philip Morris USA Inc. and Altria Group, Inc.), and other members of the industry are defendants. The plaintiff, an individual smoker, alleges her own addiction to tobacco products and chronic obstructive pulmonary disease ("COPD"), severe asthma, and mild reversible lung disease resulting from the use of tobacco products. She is seeking compensatory and unspecified punitive damages on behalf of a proposed class comprised of all smokers, their estates, dependents and family members, as well as restitution of profits, and reimbursement of government health care costs allegedly caused by tobacco products. In September 2009, plaintiff's counsel informed defendants that he did not anticipate taking any action in this case while he pursues the class action filed in Saskatchewan, the Adams case. No further updates were reported in the Company's August 3, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended June 30, 2012. PHILIP MORRIS: Still Awaits Ruling on Cert. Bid in "El-Roy" Suit ---------------------------------------------------------------- Philip Morris International Inc. is still awaiting a court decision on a motion for class certification in the class action lawsuit initiated by El-Roy, et al., according to the Company's August 3, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended June 30, 2012. In the first class action pending in Israel, El-Roy, et al. v. Philip Morris Incorporated, et al., District Court of Tel- Aviv/Jaffa, Israel, filed January 18, 2004, the Company subsidiary and its indemnitees (Philip Morris USA Inc. and its former importer) are defendants. The plaintiffs filed a purported class action claiming that the class members were misled by the descriptor "lights" into believing that lights cigarettes are safer than full flavor cigarettes. The claim seeks recovery of the purchase price of lights cigarettes and compensation for distress for each class member. Hearings took place in November and December 2008 regarding whether the case meets the legal requirements necessary to allow it to proceed as a class action. The parties' briefing on class certification was completed in March 2011. A hearing for final oral argument on class certification took place in November 2011. The Company is awaiting the court's decision. The claims in a second class action pending in Israel, Navon, et al. v. Philip Morris Products USA, et al., District Court of Tel- Aviv/Jaffa, Israel, filed December 5, 2004, against the Company's indemnitee (the Company's distributor) and other members of the industry are similar to those in El-Roy, and the case is currently stayed pending a ruling on class certification in El-Roy. PHILIP MORRIS: Preliminary Motions Pending in "Adams" Class Suit ---------------------------------------------------------------- Preliminary motions are pending in a class action lawsuit captioned Adams v. Canadian Tobacco Manufacturers' Council, et al. pending in Saskatchewan, Canada, according to Philip Morris International Inc.'s August 3, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended June 30, 2012. In the fourth class action pending in Canada, Adams v. Canadian Tobacco Manufacturers' Council, et al., The Queen's Bench, Saskatchewan, Canada, filed July 10, 2009, the Company, its subsidiaries, and its indemnitees (Philip Morris USA Inc. and Altria Group, Inc.), and other members of the industry are defendants. The plaintiff, an individual smoker, alleges her own addiction to tobacco products and chronic obstructive pulmonary disease ("COPD") resulting from the use of tobacco products. She is seeking compensatory and unspecified punitive damages on behalf of a proposed class comprised of all smokers who have smoked a minimum of 25,000 cigarettes and have allegedly suffered, or suffer, from COPD, emphysema, heart disease, or cancer, as well as restitution of profits. Preliminary motions are pending. PHILIP MORRIS: "Semple" Suit Pending in Nova Scotia, Canada ----------------------------------------------------------- In the fifth class action pending in Canada, Semple v. Canadian Tobacco Manufacturers' Council, et al., The Supreme Court (trial court), Nova Scotia, Canada, filed June 18, 2009, Philip Morris International Inc., its subsidiaries, and its indemnitees (Philip Morris USA Inc. and Altria Group, Inc.), and other members of the industry are defendants. The plaintiff, an individual smoker, alleges his own addiction to tobacco products and chronic obstructive pulmonary disease ("COPD") resulting from the use of tobacco products. He is seeking compensatory and unspecified punitive damages on behalf of a proposed class comprised of all smokers, their estates, dependents and family members, as well as restitution of profits, and reimbursement of government health care costs allegedly caused by tobacco products. No activity in this case is anticipated while plaintiff's counsel pursues the class action filed in Saskatchewan, the Adams case. No further updates were reported in the Company's August 3, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended June 30, 2012. PHILIP MORRIS: "Dorion" Suit Remains Pending in Alberta, Canada --------------------------------------------------------------- In the sixth class action pending in Canada, Dorion v. Canadian Tobacco Manufacturers' Council, et al., The Queen's Bench, Alberta, Canada, filed June 15, 2009, Philip Morris International Inc., its subsidiaries, and its indemnitees (Philip Morris USA Inc. and Altria Group, Inc.), and other members of the industry are defendants. The plaintiff, an individual smoker, alleges her own addiction to tobacco products and chronic bronchitis and severe sinus infections resulting from the use of tobacco products. She is seeking compensatory and unspecified punitive damages on behalf of a proposed class comprised of all smokers, their estates, dependents and family members, restitution of profits, and reimbursement of government health care costs allegedly caused by tobacco products. To date, the Company, its subsidiaries, and its indemnitees have not been properly served with the complaint. No activity in this case is anticipated while plaintiff's counsel pursues the class action filed in Saskatchewan, the Adams case. No further updates were reported in the Company's August 3, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended June 30, 2012. PHILIP MORRIS: Still Defends "McDermid" Suit in British Columbia ---------------------------------------------------------------- In the seventh class action pending in Canada, McDermid v. Imperial Tobacco Canada Limited, et al., Supreme Court, British Columbia, Canada, filed June 25, 2010, Philip Morris International Inc., its subsidiaries, and its indemnitees (Philip Morris USA Inc. and Altria Group, Inc.), and other members of the industry are defendants. The plaintiff, an individual smoker, alleges his own addiction to tobacco products and heart disease resulting from the use of tobacco products. He is seeking compensatory and unspecified punitive damages on behalf of a proposed class comprised of all smokers who were alive on June 12, 2007, and who suffered from heart disease allegedly caused by smoking, their estates, dependents and family members, plus disgorgement of revenues earned by the defendants from January 1, 1954, to the date the claim was filed. Defendants have filed jurisdictional challenges on the grounds that this action should not proceed during the pendency of the Saskatchewan class action, the Adams case. No further updates were reported in the Company's August 3, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended June 30, 2012. PHILIP MORRIS: "Bourassa" Suit Still Pending in British Columbia ---------------------------------------------------------------- In the eighth class action pending in Canada, Bourassa v. Imperial Tobacco Canada Limited, et al., Supreme Court, British Columbia, Canada, filed June 25, 2010, Philip Morris International Inc., its subsidiaries, and its indemnitees (Philip Morris USA Inc. and Altria Group, Inc.), and other members of the industry are defendants. The plaintiff, the heir to a deceased smoker, alleges that the decedent was addicted to tobacco products and suffered from emphysema resulting from the use of tobacco products. She is seeking compensatory and unspecified punitive damages on behalf of a proposed class comprised of all smokers who were alive on June 12, 2007, and who suffered from chronic respiratory diseases allegedly caused by smoking, their estates, dependents and family members, plus disgorgement of revenues earned by the defendants from January 1, 1954, to the date the claim was filed. Defendants have filed jurisdictional challenges on the grounds that this action should not proceed during the pendency of the Saskatchewan class action, the Adams case. No further updates were reported in the Company's August 3, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended June 30, 2012. PHILIP MORRIS: Trial in "Letourneau" Suit to Continue in 2013 ------------------------------------------------------------- Philip Morris International Inc. disclosed in its August 3, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended June 30, 2012, that trial in the class action lawsuit initiated by Cecilia Letourneau in Canada is expected to continue into 2013 and possibly into 2014. In the first class action pending in Canada, Cecilia Letourneau v. Imperial Tobacco Ltd., Rothmans, Benson & Hedges Inc. and JTI Macdonald Corp., Quebec Superior Court, Canada, filed in September 1998, the Company's subsidiary and other Canadian manufacturers are defendants. The plaintiff, an individual smoker, is seeking compensatory and unspecified punitive damages for each member of the class who is deemed addicted to smoking. The class was certified in 2005. On February 14, 2012, the court ruled that the federal government will remain as a third-party in the case. Trial began on March 12, 2012. At the present pace, trial is expected to continue into 2013 and possibly into 2014, with a judgment to follow as much as several months or more after the conclusion of trial proceedings. PHILIP MORRIS: Trial in "Blais" Suit to Continue in 2013 & 2014 --------------------------------------------------------------- Philip Morris International Inc. disclosed in its August 3, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended June 30, 2012, that trial in the class action lawsuit filed by Conseil Quebecois Sur Le Tabac Et La Sante and Jean-Yves Blais is expected to continue into 2013 and possibly into 2014. In the second class action pending in Canada, Conseil Quebecois Sur Le Tabac Et La Sante and Jean-Yves Blais v. Imperial Tobacco Ltd., Rothmans, Benson & Hedges Inc. and JTI Macdonald Corp., Quebec Superior Court, Canada, filed in November 1998, the Company's subsidiary and other Canadian manufacturers are defendants. The plaintiffs, an anti-smoking organization and an individual smoker, are seeking compensatory and unspecified punitive damages for each member of the class who allegedly suffers from certain smoking-related diseases. The class was certified in 2005. On February 14, 2012, the court ruled that the federal government will remain as a third-party in the case. Trial began on March 12, 2012. At the present pace, trial is expected to continue into 2013 and possibly into 2014, with a judgment to follow as much as several months or more after the conclusion of trial proceedings. PHILIP MORRIS: Hearing in Flue-Cured Tobacco Suit on Sept. 19-20 ---------------------------------------------------------------- A hearing in the class action lawsuit filed by The Ontario Flue- Cured Tobacco Growers' Marketing Board, et al., is set for September 19 to 20, 2012, according to Philip Morris International Inc.'s August 3, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended June 30, 2012. In the breach of contract action in Ontario, Canada, The Ontario Flue-Cured Tobacco Growers' Marketing Board, et al. v. Rothmans, Benson & Hedges Inc., Superior Court of Justice, London, Ontario, Canada, filed November 5, 2009, the Company's subsidiary is a defendant. Plaintiffs in this putative class action allege that the Company's subsidiary breached contracts with the proposed class members (Ontario tobacco growers and their related associations) concerning the sale and purchase of flue-cured tobacco from January 1, 1986, to December 31, 1996. Plaintiffs allege that the Company's subsidiary was required by the contracts to disclose to plaintiffs the quantity of tobacco included in cigarettes to be sold for duty free and export purposes (which it purchased at a lower price per pound than tobacco that was included in cigarettes to be sold in Canada), but failed to disclose that some of the cigarettes it designated as being for export and duty free purposes were ultimately sold in Canada. Similar lawsuits were filed against other Canadian cigarette manufacturers. In September 2011, plaintiffs served a notice of motion seeking class certification. The Court has agreed to hear preliminary motions prior to its consideration of plaintiffs' certification motion. A hearing on the question of whether the plaintiffs' claims are released by settlements entered into previously between the Company's subsidiary and other Canadian cigarette manufacturers, on the one hand, and the federal government, on the other hand, is expected to be heard on September 19 - 20, 2012. The court has also agreed to hear argument on defendants' motion to dismiss plaintiffs' claims based on statute of limitations grounds. PRIMO WATER: Seeks Dismissal of Securities Fraud Class Action ------------------------------------------------------------- Richard Craver, writing for Winston-Salem Journal, reports that defendants in a class-action lawsuit against Primo Water Corp. have filed for a dismissal, saying that the plaintiffs have failed to prove that securities fraud caused the sharp decline in the company's share price. The defendants said the company "specifically and repeatedly warned investors of such risks," which they said were echoed by analysts. "This is not fraud -- it is simply a company being punished in the stock market for being the bearer of bad tidings," the motion said. The suit was filed Dec. 2 in U.S. District Court for the Middle District of North Carolina. Primo is accused of violating the Securities Act of 1933 and the Securities Exchange Act of 1934. The suit essentially accuses Primo and the other defendants of causing shareholders to buy stock at artificially inflated prices. The motion for dismissal with prejudice -- meaning it could not be filed again -- was submitted on Aug. 23. Listed as defendants are three members of Primo's management team, including Billy Prim, chairman and chief executive officer; Mark Castaneda, chief financial officer; and David Mills, secretary and treasurer. Mr. Prim also is majority owner of the Winston-Salem Dash baseball team. Also affected are Primo board of directors -- Richard Brenner, David Dupree, Malcolm McQuilkin and David Warnock -- and underwriters BB&T Capital Markets, Janney Montgomery Scott LLC, Signal Hill Capital Group LLC and Stifel Nicolaus & Co. Inc. Analysts said the suit represents a test of how much legal recourse stakeholders really have when a company's share price plunges unexpectedly, particularly considering that investors accept an inherent risk with any initial public offering. The class-action period runs from Nov. 4, 2010 -- when Primo completed its IPO offering at $12 a share -- to Aug. 10, 2011, when the share price plunged 61 percent to what was then a record low of $5.26, after the company released two negative pieces of financial information. The share price closed on Aug. 27 at $1.23, up 6 cents. By comparison, the stock hit an all-time high of $16.45 in April 2011. The plaintiffs are Employees' Retirement System of the government of the Virgin Islands and Plymouth County Retirement Association of Plymouth, Mass. The Virgin Islands group bought Primo's stock during its November 2010 IPO and Plymouth bought stock during the June 2011 offering. The plaintiffs are requesting damages with interest for class- action participants, as well as the rescinding of the stock offerings, which combined raised more than $100 million. Attorneys for the plaintiffs say that the company overstated its financial and supply chain strengths, particularly around the timing of its stock offerings. The defendants called an amended 136-page complaint filed June 22 "sprawling, repetitive and often internally contradictory." The motion said the earnings misses and lowered share-price guidance "were brought about by events that commonly occur in the life of any company -- lower-than-anticipated sales and delay in product development." As an example that Primo had not committed fraud, the motion cites Mr. Prim's decision to buy $2.25 million in stock on Nov. 10, 2010 -- six days after the class-action period started -- to raise his stake in the company to nearly $23 million. It said Mr. Prim's stake dropped by $16 million in the class- action period. "If this is a fraud, it is a singularly illogical and ill-executed one." "Finally -- and very importantly for this case -- the Supreme Court and the 4th Circuit have tightened the requirements for 'loss causation,' that is, the element of any securities fraud cause of action indicating that to state a claim the plaintiff must show that the plaintiff suffered damage as a result of the alleged fraud." RG STEEL: Court Clerk Mulls Class Action Over Unpaid Water Bills ---------------------------------------------------------------- Matthew Hay Brown, writing for The Baltimore Sun, reports that Baltimore's clerk of the Circuit Court announced plans on Aug. 27 for a class action lawsuit to force the city to collect delinquent water bills from businesses and other large customers. Circuit Court Clerk Frank M. Conaway cited a Baltimore Sun report that counted more than $10 million owed by corporations, nonprofits and government offices. The figure included RG Steel in Sparrows Point, which owed nearly $7 million, according to city records; W.R. Grace & Co., which owed almost $500,000; and the Maryland Zoo, which owed more than $135,000. Mr. Conaway called the city's failure to collect the money, as it was moving to take the homes of private residents who owed far less, "unconscionable and inexcusable." "Hundreds of city homeowners have lost their homes because of $300 or $400 delinquent bills directly because of the aggressive actions by the city to collect revenues, yet the city without any excuses or plausible explanations allows certain corporations and nonprofits to squander millions of taxpayers' dollars in delinquent water bills," he said in a statement. A spokesman for Mayor Stephanie Rawlings-Blake said the city's departments of finance and public works work "very hard to collect from delinquent accounts." "Obviously, the largest amount involved a very complex bankruptcy transaction," spokesman Ryan O'Doherty said, referring to RG Steel. "The law department's working very aggressively to make sure that we're doing everything we can to retrieve what is owed." Mr. Conaway released a letter asking Finance Director Harry E. Black for the names and addresses of homeowners who are more than 90 days delinquent on their water bills "who have been adversely affected as opposed to those that have been allowed to delay payments." "If the Mayor and City Solicitor cannot do their jobs collecting delinquent revenues, and funding recreation centers, fire stations and essential services, then the citizens of Baltimore and the courts simply will have to do their jobs for them," the letter said. Mr. O'Doherty said the mayor's office would "take a close look" at Mr. Conaway's letter and respond to him directly. SCHWEGEL'S FOOD: Sued Over Illegal Check Cashing Fees ----------------------------------------------------- Joe Harris at Courthouse News Service reports that Illinois-based Schwegel's Food Markets charges illegal fees for cashing checks, a class action claims in Madison County Court. The Illinois Check Cashing Act limits charges for check cashing to 50 cents or 1 percent of the value of the check, according to the complaint. Lead plaintiff Julie Wheeler claims Schwegel's charged her 75 cents to cash a check in April. She seeks to represent all Illinois residents whom Schwegel's overcharged in the past 5 years. A copy of the Complaint in Wheeler v. Schwegel's Food Markets, Inc., et al., Case No. 2012-L-1316 (Ill. Cir. Ct., Madison Cty.), is available at: http://www.courthousenews.com/2012/08/28/Schwegel.pdf The Plaintiff is represented by: Peter J. Maag, Esq. MAAG LAW FIRM, LLC 22 West Lorena Avenue Wood River, IL 62095 Telephone: (618) 216-5291 E-mail: maag@maaglawfirm.com SHERWIN-WILLIAMS: Recalls 17,850 Tree House Acrylic Coating ----------------------------------------------------------- The U.S. Consumer Product Safety Commission, in cooperation with Sherwin-Williams Company, of Cleveland, Ohio, announced a voluntary recall of about 17,850 units of Tree House Studio(TM) Clear Acrylic Matte Coating. Consumers should stop using recalled products immediately unless otherwise instructed. It is illegal to resell or attempt to resell a recalled consumer product. The aerosol canister can leak, posing a fire hazard to consumers if the can is stored near a source of ignition. No incidents or injuries have been reported. This recall involves 11-ounce cans of Tree House Studio(TM) Clear Acrylic Matte Coating. The product was sold in a white aerosol can with Tree House Studio(TM) logo and the name "CLEAR ACRYLIC MATTE COATING" printed on the front. Batch date HL2081LT is printed on the bottom of the can, along with UPC code 724504103004. Pictures of the recalled products are available at: http://www.cpsc.gov/cpscpub/prerel/prhtml12/12260.html The recalled products were manufactured in the United States of America and sold exclusively at Hobby Lobby stores nationwide between July 2011 and June 2012 for about $7. Consumers should immediately stop using the recalled product and contact Sherwin-Williams for a refund. For additional information, please contact Sherwin-Williams toll-free at (888) 304-3769 between 9:00 a.m. and 5:00 p.m. Eastern Time Monday through Friday, or visit the firm's Web site at http://www.sherwin-williams.com/ SHERWIN-WILLIAMS: Recalls 2,700 Dupli-Color Automotive Paints ------------------------------------------------------------- The U.S. Consumer Product Safety Commission, in cooperation with Sherwin-Williams Company, of Cleveland, Ohio, announced a voluntary recall of about 2,700 units of Dupli-Color(R) Perfect Match(TM) Automotive Paint. Consumers should stop using recalled products immediately unless otherwise instructed. It is illegal to resell or attempt to resell a recalled consumer product. The aerosol paint canister can leak, posing a fire hazard to consumers if the paint can is stored near a source of ignition. No incidents or injuries have been reported. This recall involves Dupli-Color Perfect Match(TM) automotive paint in green metallic. The liquid paint was sold in an 8-ounce spray paint can. Batch code "HL2031LN" is printed on the bottom of the can, along with UPC code 026916715036. Pictures of the recalled products are available at: http://www.cpsc.gov/cpscpub/prerel/prhtml12/12258.html The recalled products were manufactured in the United States of America and sold at Advance Auto, Autozone, Discount Auto Parts, General Automotive Supply, NAPA, Pep Boys and other retail stores between July 2011 and June 2012 for about $7. Consumers should immediately stop using the recalled product and contact Sherwin-Williams for a refund. For additional information, please contact Sherwin-Williams toll-free at (888) 304-3769 between 9:00 a.m. and 5:00 p.m. Eastern Time Monday through Friday, or visit the firm's Web site at http://www.sherwin-williams.com/ SHERWIN-WILLIAMS: Recalls 98,400 Krylon(R) Glaze, Acrylic Paints ---------------------------------------------------------------- The U.S. Consumer Product Safety Commission, in cooperation with Sherwin-Williams Company, of Cleveland, Ohio, announced a voluntary recall of about 98,400 units of Krylon(R) Triple Thick Crystal Clear Glaze and Krylon(R) Indoor/Outdoor Crystal Clear Acrylic Paint. Consumers should stop using recalled products immediately unless otherwise instructed. It is illegal to resell or attempt to resell a recalled consumer product. The aerosol canister can leak, posing a fire hazard to consumers if the can is stored near a source of ignition. Sherwin-Williams has received 31 reports of leaking canisters, including reports of property damage from leaking paint. No injuries have been reported. This recall involves 12-ounce cans of Krylon (R) Triple Thick Glaze and 11-ounce Krylon(R) Indoor/Outdoor Crystal Clear satin acrylic finish. Batch code HL1311FV, HL2081KL or HL2081MN is printed on the bottom of the can, along with UPC code 075577005000 or 724504035305. The Krylon logo is printed on the front of the white spray can with a translucent top. Pictures of the recalled products are available at: http://www.cpsc.gov/cpscpub/prerel/prhtml12/12259.html The recalled products were manufactured in the United States of America and sold at Ace Hardware, Ben Franklin, Do It Best Corp., Kmart, Lowes, Pat Catan's, Walmart and other retail stores nationwide between July 2011 and June 2012 for about $7. Consumers should immediately stop using the recalled product and contact Sherwin-Williams for a refund. For additional information, please contact Sherwin-Williams toll-free at (888) 304-3769 between 9:00 a.m. and 5:00 p.m. Eastern Time Monday through Friday, or visit the firm's Web site at http://www.sherwin-williams.com/ TRANSOCEAN LTD: Dismissal Bid in Securities Suit Remains Pending ---------------------------------------------------------------- A motion to dismiss the remaining plaintiff in the securities class action lawsuit pending in New York remains pending, according to Transocean Ltd.'s August 3, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended June 30, 2012. On April 22, 2010, the Ultra-Deepwater Floater Deepwater Horizon sank after a blowout of the Macondo well caused a fire and explosion on the rig. Eleven persons were declared dead and others were injured as a result of the incident. At the time of the explosion, Deepwater Horizon was located approximately 41 miles off the coast of Louisiana in Mississippi Canyon Block 252 and was contracted to BP America Production Co. The rig has been declared a total loss. Two federal securities law class actions were pending in the U.S. District Court, Southern District of New York, naming the Company and certain of its officers and directors as defendants. One of these actions, which was dismissed on March 20, 2012, generally alleged violations of Section 10(b) of the Securities Exchange Act of 1934 (the "Exchange Act"), Rule 10b-5, as promulgated under the Exchange Act, and Section 20(a) of the Exchange Act in connection with the Macondo well incident. The plaintiffs sought awards of unspecified economic damages, including damages resulting from the decline in the Company's stock price after the Macondo well incident. The plaintiffs chose not to file an appeal, and this case is now closed. The other action, which is still pending, was filed by a former GlobalSantaFe Corporation shareholder, alleging that the joint proxy statement related to the GlobalSantaFe Corporation shareholder meeting in connection with the Company's merger with GlobalSantaFe Corporation violated Section 14(a) of the Exchange Act, Rule 14a-9 promulgated thereunder and Section 20(a) of the Exchange Act. The plaintiff claims that GlobalSantaFe Corporation shareholders received inadequate consideration for their shares as a result of the alleged violations and seeks rescissory and compensatory damages. The defendants filed a motion to dismiss that resulted in the dismissal of one of two plaintiffs on March 30, 2012, and the subsequent filing of an amended complaint. A motion to dismiss the remaining named plaintiff is pending. Headquartered in Vernier, Switzerland, Transocean Ltd. provides offshore contract drilling services for oil and gas wells. Specializing in technically demanding sectors of the offshore drilling business with a particular focus on deepwater and harsh environment drilling services, the Company contracts its drilling rigs, related equipment and work crews predominantly on a dayrate basis to drill oil and gas wells. TRANSOCEAN LTD: Hearing on Macondo-Related Suits Deal on Nov. 8 --------------------------------------------------------------- A fairness hearing for the final approval of BP America Production Co.'s settlement of lawsuits arising from the Macondo well incident is scheduled for November 8, 2012, according to Transocean Ltd.'s August 3, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended June 30, 2012. On April 22, 2010, the Ultra-Deepwater Floater Deepwater Horizon sank after a blowout of the Macondo well caused a fire and explosion on the rig. Eleven persons were declared dead and others were injured as a result of the incident. At the time of the explosion, Deepwater Horizon was located approximately 41 miles off the coast of Louisiana in Mississippi Canyon Block 252 and was contracted to BP America Production Co. The rig has been declared a total loss. Although the Company is unable to estimate the full direct and indirect effect that the Macondo well incident will have on its business, the incident has had and could continue to have a material adverse effect on its consolidated statement of financial position, results of operations and cash flows. The Company's business has been negatively impacted by the loss of revenue from Deepwater Horizon. The backlog associated with the Deepwater Horizon drilling contract, which terminated at the time of the incident, was approximately $590 million. In the two years ended December 31, 2011, the Company estimates that the Macondo well incident had a direct and indirect effect of greater than $1.0 billion in lost revenues and incremental costs and expenses associated with extended shipyard projects and increased downtime, both as a result of complying with the enhanced regulations and the Company's customers' requirements. In December 2011, such increased downtime resulted in the termination of one of the Company's contracts, which represented backlog of approximately $470 million. The Company has recognized estimated losses of $2.0 billion, $0.8 billion of which was recognized in the three and six months ended June 30, 2012 and recorded in operating and maintenance expense, in connection with loss contingencies associated with the Macondo well incident that the Company believes are probable and for which a reasonable estimate can be made. Additionally, in the years ended December 31, 2011 and 2010, the Company incurred incremental costs, primarily associated with legal expenses for lawsuits and investigations, in the amount of $140 million and $139 million, respectively, and in the six months ended June 30, 2012, the Company incurred an additional $47 million of such costs. Collectively, the lost contract backlog from the incident and from the termination in December 2011, the lost revenues and incremental expenses from extended shipyard projects and increased downtime, the loss contingencies associated with the incident and other incremental costs have had an effect of greater than $4.0 billion. The Company says it is currently unable to estimate the full impact the Macondo well incident will have on it. The Company has recognized a liability for estimated loss contingencies that it believes are probable and for which a reasonable estimate can be made. As of June 30, 2012, the Company has recognized a liability for such loss contingencies in the amount of $2.0 billion. This liability takes into account certain events related to the litigation and investigations arising out of the incident. There are loss contingencies related to the Macondo well incident that the Company believes are reasonably possible and for which not believe a reasonable estimate can be made. These contingencies could increase the liabilities the Company ultimately recognizes. As of June 30, 2012, the Company has also recognized an asset of $235 million associated with the portion of the Company's estimated losses that it believes is recoverable from insurance. Although the Company has available policy limits that could result in additional amounts recoverable from insurance, the Company is not currently able to estimate the amount of such additional recoverable amounts. The Company's estimates involve a significant amount of judgment. As a result of new information or future developments, the Company may adjust its estimated loss contingencies arising out of the Macondo well incident, and the resulting liabilities could have a material adverse effect on the Company's consolidated statement of financial position, results of operations and cash flows. As of December 31, 2011, the amount of the estimated liability was $1.2 billion, and the estimated recoverable amount was $237 million. As of June 30, 2012, the Company and certain of its subsidiaries were named, along with other unaffiliated defendants, in 155 pending individual complaints as well as 179 putative class-action complaints that were pending in the federal and state courts in Louisiana, Texas, Mississippi, Alabama, Georgia, Kentucky, South Carolina, Tennessee, Florida and possibly other courts. The complaints generally allege, among other things, potential economic losses as a result of environmental pollution arising out of the Macondo well incident and are based primarily on the Oil Pollution Act of 1990 ("OPA") and state OPA analogues. The plaintiffs are generally seeking awards of unspecified economic, compensatory and punitive damages, as well as injunctive relief. These actions have been transferred to the MDL. Many of the Macondo well related claims are pending in the U.S. District Court, Eastern District of Louisiana (the "MDL Court"). The first phase of a three-phase trial was scheduled to commence on March 5, 2012. However, on March 2, 2012, BP and the Plaintiff's Steering Committee (the "PSC") announced that they had agreed to a partial settlement related primarily to private party environmental and economic loss claims as well as response effort related claims (the "BP/PSC Settlement"). The BP/PSC Settlement agreement was filed with the MDL Court on April 28, 2012, and provides that (a) the BP/PSC Settlement is subject to court approvals, (b) to the extent permitted by law, BP will assign to the settlement class certain of BP's claims, rights and recoveries against the Company for damages with protections such that the settlement class is barred from collecting any amounts from the Company unless it is finally determined that the Company cannot recover such amounts from BP, and (c) the settlement class releases all claims for compensatory damages against the Company but purports to retain claims for punitive damages against the Company. On May 2, 2012, the MDL Court granted preliminary approval of the economic and property damage class settlement between BP and the PSC and has scheduled a fairness hearing for approval of the settlement for November 8, 2012. After giving consideration to the BP/PSC Settlement, the MDL Court ordered that the first phase of the trial, at which liability will be determined, be rescheduled for January 14, 2013. The Company says there can be no assurance as to the outcome of the trial, as to the timing of any phase of trial, that the Company will not enter into a settlement as to some or all of the matters related to the Macondo well incident, including those to be determined at a trial, or the timing or terms of any such settlement. Headquartered in Vernier, Switzerland, Transocean Ltd. provides offshore contract drilling services for oil and gas wells. Specializing in technically demanding sectors of the offshore drilling business with a particular focus on deepwater and harsh environment drilling services, the Company contracts its drilling rigs, related equipment and work crews predominantly on a dayrate basis to drill oil and gas wells. VANGUARD NATURAL: "Goldstein" Suit Voluntarily Dismissed in June ---------------------------------------------------------------- The class action lawsuit commenced by Herman Goldstein, a unitholder of Vanguard Natural Resources, LLC's subsidiary, was voluntarily dismissed in June 2012, according to the Company's August 3, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended June 30, 2012. On December 31, 2010, the Company acquired (the "ENP Purchase") all of the member interests in Encore Energy Partners GP, LLC ("ENP GP"), the general partner of Encore Energy Partners LP ("ENP"), and 20,924,055 common units representing limited partnership interests in ENP (the "ENP Units"), together representing a 46.7% aggregate equity interest in ENP at the date of the ENP Purchase, from Denbury Resources Inc. Since the ENP Purchase, and prior to an internal reorganization whereby ENP GP and ENP were merged into Vanguard Natural Gas, LLC ("VNG"), the Company consolidated ENP as it had the ability to control the operating and financial decisions and policies of ENP through the Company's ownership of ENP GP. On December 1, 2011, the Company acquired the remaining 53.4% of the ENP Units not held by it through a merger (the "ENP Merger") with one of the Company's wholly owned subsidiaries. The ENP Purchase and ENP Merger are collectively referred to as the "ENP Acquisition." On August 28, 2011, Herman Goldstein, a purported unitholder of ENP, filed a putative class action complaint against ENP, ENP GP, Scott W. Smith, Richard A. Robert, Douglas Pence, W. Timothy Hauss, John E. Jackson, David C. Baggett, Martin G. White, and Vanguard in the United States District Court for the Southern District of Texas on behalf of the unitholders of ENP. That lawsuit is captioned Goldstein v. Encore Energy Partners LP. et al., United States District Court for the Southern District of Texas, 4:11-cv-03198. Plaintiff alleged that the named defendants violated Sections 14(a) and 20(a) of the Securities Exchange Act of 1934 as amended (the "Exchange Act") and Rule 14a-9 promulgated thereunder by disseminating a false and materially misleading proxy statement in connection with the merger. Plaintiff sought an injunction prohibiting the proposed merger from going forward. The case was voluntarily dismissed on June 11, 2012. VANGUARD NATURAL: Awaits Ruling on Bid to Dismiss Delaware Suit --------------------------------------------------------------- Vanguard Natural Resources, LLC is awaiting a court decision on its motion to dismiss a consolidated class action lawsuit pending in Delaware, according to the Company's August 3, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended June 30, 2012. On April 5, 2011, Stephen Bushansky, a purported unitholder of ENP, filed a putative class action complaint in the Delaware Court of Chancery on behalf of the unitholders of Encore Energy Partners LP ("ENP"). Another purported unitholder of ENP, William Allen, filed a similar action in the same court on April 14, 2011. The Bushansky and Allen actions have been consolidated under the caption In re: Encore Energy Partners LP Unitholder Litigation, C.A. No. 6347-VCP (the "Delaware State Court Action"). On December 28, 2011, those plaintiffs jointly filed their second amended consolidated class action complaint naming as defendants ENP, Scott W. Smith, Richard A. Robert, Douglas Pence, W. Timothy Hauss, John E. Jackson, David C. Baggett, Martin G. White, and Vanguard. That putative class action complaint alleges, among other things, that defendants breached the partnership agreement by recommending a transaction that is not fair and reasonable. Plaintiffs seek compensatory damages. Vanguard has filed a motion to dismiss this lawsuit and it intends to defend vigorously against this lawsuit. VANGUARD NATURAL: Consolidated Suit vs. Unit Remains Stayed ----------------------------------------------------------- A consolidated class action lawsuit brought on behalf of unitholders of Vanguard Natural Resources, LLC's subsidiary remains stayed in Texas, according to the Company's August 3, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended June 30, 2012. On March 29, 2011, John O'Neal, a purported unitholder of Encore Energy Partners LP ("ENP"), filed a putative class action petition in the 125th Judicial District of Harris County, Texas, on behalf of unitholders of ENP. Similar petitions were filed on April 4, 2011, by Jerry P. Morgan and on April 5, 2011, by Herbert F. Rower in other Harris County district courts. The O'Neal, Morgan, and Rower lawsuits were consolidated on June 5, 2011, as John O'Neal v. Encore Energy Partners, L.P., et al., Case Number 2011-19340, which is pending in the 125th Judicial District Court of Harris County. On July 28, 2011, Michael Gilas filed a class action petition in intervention. On July 26, 2011, the current plaintiffs in the consolidated O'Neal action filed an amended putative class action petition against ENP, Encore Energy Partners GP, LLC ("ENP GP"), Scott W. Smith, Richard A. Robert, Douglas Pence, W. Timothy Hauss, John E. Jackson, David C. Baggett, Martin G. White, and Vanguard. That putative class action petition and Gilas's petition in intervention both allege that the named defendants are (i) violating duties owed to ENP's public unitholders by, among other things, failing to properly value ENP and failing to protect against conflicts of interest or (ii) are aiding and abetting such breaches. Plaintiffs seek an injunction prohibiting the merger between Vanguard and ENP from going forward and compensatory damages if the merger is consummated. On October 3, 2011, the Court appointed Bull & Lifshitz, counsel for plaintiff-intervenor Gilas, as interim lead counsel on behalf of the putative class. On October 21, 2011, the court signed an order staying this lawsuit pending resolution of an action pending in Delaware State Court, subject to plaintiffs' right to seek to lift the stay for good cause. The defendants named in the Texas lawsuits intend to defend vigorously against them. WELLS FARGO: Faces Suit Alleging FLSA Violations in California -------------------------------------------------------------- William Wolin, individually, and on behalf of other members of the general public similarly situated, and as aggrieved employees pursuant to the Private Attorneys General Act ("PAGA") v. Wells Fargo Bank, National Association, a national association; Wells Fargo & Company, a Delaware corporation; and Does 1 through 10, inclusive, Case No. 3:12-cv-04509 (N.D. Calif., August 28, 2012) accuses the Defendants of violating the Fair Labor Standards Act, the California Labor Code and the California Business & Professions Code. The Defendants' employees, including himself, were not paid for all hours worked because all hours worked were not recorded, Mr. Wolin alleges. He contends that the Defendants knew or should have known that he and the class members were entitled to receive certain wages for overtime compensation and that they were not receiving certain wages for overtime compensation. Mr. Wolin is a resident of Santa Ana, California. He was employed as a "loan underwriter" from February 22, 2012, to July 25, 2012, at the Defendants' Costa Mesa, California location. Wells Fargo Bank is a national association, while Wells Fargo & Company is a Delaware corporation. Both are based in San Francisco, California. The identities of the Doe Defendants are unknown. The Plaintiff is represented by: Melissa Grant, Esq. Valerie Kincaid, Esq. Suzy E. Lee, Esq. Initiative Legal Group APC 1800 Century Park East, 2nd Floor Los Angeles, CA 90067 Telephone: (310) 556-5637 Facsimile: (310) 861-9051 E-mail: MGrant@InitiativeLegal.com VKincaid@InitiativeLegal.com SuzyLee@InitiativeLegal.com ZEEKREWARDS.COM: Investors May Wait Months to Recover Money ----------------------------------------------------------- Richard Craver, writing for Winston-Salem Journal, reports that investors who came late to bidding on defunct ZeekRewards.com may have to wait months to learn when -- or whether -- they will get their money back. A class-action lawsuit was filed Aug. 17 against ZeekRewards.com, the Lexington company shut down by the Securities and Exchange Commission after being accused of running a Ponzi scheme. A total of 83 investors are listed as plaintiffs in the lawsuit against ZeekRewards.com, its parent company Rex Venture Group LLC, their owner Paul Burks and 10 unidentified investors listed as John Does 1-10. Mr. Burks, 65, and the companies are accused in an SEC complaint of raising the money through unregistered securities from at least a million customers nationwide. The listed plaintiffs invested between $100 and the maximum amount of $10,000 per person. A U.S. District Court judge appointed Kenneth Bell as temporary receiver for Rex Venture. As part of filing fraud charges, the SEC issued an emergency order freezing the companies' assets to try to thwart what officials estimate could be a financial collapse worth up to $600 million. The SEC said that after Mr. Bell preserves ZeekRewards.com's assets and reviews claims, he will recommend to the court how to disburse the assets to investors. The asset freeze appears to include all the money invested in ZeekRewards.com through the Aug. 17 shutdown. Mr. Bell could not be reached for comment. He is accepting investor inquiries through e-mail at info@ZeekRewardsReceivership.com Several ZeekRewards.com bidders are questioning why they can't get their money back if their check hasn't been cashed and the company is out of business. According to the N.C. Banking Commission, investors who wrote personal checks to ZeekRewards.com can make a stop-payment request to their financial institution for a fee. However, the commission said the resolution is stickier for investors who used a cashier's check for the payments since the bank becomes the maker, or originator, of the check at that point. What makes the distinction important is financial institutions, for the most part, do not have the authority to stop payment on a cashier's check, also known as an official check, based on the uniform commercial code of N.C. General Statutes. Analysts say many Ponzi scheme artists require customers or investors to pay with a cashier's check because it makes it more difficult for investors to recoup their money. BB&T Corp. spokesman David White said that if the cashier's or official check is not cashed after 90 days, a customer may be able to file a "declaration of loss for official check" form at their branch. The commission recommended that investors who wrote cashier's checks should document their claims and submit them to the receiver as soon as possible. Chrystal Parnell, an assistant vice president for marketing for Allegacy Federal Credit Union, said a hold initially was placed on some members' cashier's or certified checks to ZeekRewards.com because Allegacy felt the SEC actions fit the legal parameters under which it could refuse payment. Allegacy said Mr. Bell requested that the credit union turn over all certified and cashier's checks delivered to ZeekRewards.com. "He expects these checks to be honored by the financial institutions issuing them," Ms. Parnell said. "We have since removed the hold on these payments, and will comply with the law to pay them." Plaintiffs are eligible if they invested in ZeekRewards.com between Jan. 1, 2011 and Aug. 17, 2012. The class-action lawsuit used the SEC complaint as a boilerplate for its accusations of "fraudulent, unfair, deceptive and illegal acts and practices in the solicitation of and sale of purported investment opportunities and contracts." The class-action lawsuit lists the 10 John Does because while they started off as investors, they became "integrally involved in perpetuating the misconduct" and soliciting potential investors, the suit says. The suit also accuses those individuals of removing "significant sums of cash" from ZeekRewards.com in the weeks leading up to the SEC shutdown. "The claims of the plaintiffs are typical of the claims of the proposed class, as all members received the same basic marketing pitch, enrolled in the same ZeekRewards programs, were promised the same types of investment returns, and suffered damages that are only different in actual dollar amounts," according to the lawsuit. The SEC complaint said the companies hold about $225 million in investor funding in 15 domestic and foreign financial institutions. It paid out nearly $375 million to investors. The SEC said about 98 percent of ZeekRewards.com's total revenues, which the company called "net profits" paid to current investors, were in fact funds received from new investors. ZYNGA INC: Murray Frank Files Securities Class Action in Calif. --------------------------------------------------------------- Murray Frank LLP on Aug. 27 disclosed that it has filed a class action complaint in the United States District Court for the Northern District of California captioned Yan v. Zynga Inc. et al., 12 Civ. 4360. The lawsuit is filed on behalf of purchasers of securities of Zynga Inc. between December 16, 2011 and July 25, 2012, inclusive. The lawsuit alleges violations of the Securities Exchange Act of 1934 that occurred when the Defendants issued materially false and misleading statements regarding the Company's business and prospects. Specifically, it is alleged that during the Class Period, Defendants made false and misleading statements about or knew but failed to disclose that (1) the Company's optimistic financial forecasts were not justified in light of declining users of the Company's games and declining average bookings per user; and (2) as a result of Defendants' false and misleading statements, Zynga's stock traded at artificially inflated prices. On July 25, 2012, Zynga issued a press release in connection with its second quarter 2012 financial results, which were much lower than expected. The Company revealed that year-over-year quarterly earnings dropped from $0.05 per share to $0.01 per share, and reported a net loss of over $22.8 million. In addition, the Company dramatically reduced its guidance for 2012, citing "delays in launching new games, a faster decline in existing web games due in part to a more challenging environment on the Facebook web platform, and reduced expectations for 'Draw Something.'" As a result of this disclosure, the market price of Zynga's common stock dropped nearly 40%, from a close of $5.078 per share on July 25, 2012, to a close of $3.175 per share on July 26, 2012. If you are a member of the class described above, you may move the Court, not later than October 1, 2012, to serve as Lead Plaintiff for the Class. A Lead Plaintiff is a representative chosen by the Court who acts on behalf of other class members in directing the litigation. You do not need to be a Lead Plaintiff to be included in the class. If you purchased Zynga securities and wish to discuss this litigation, or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact us. Asbestos Litigation ASBESTOS UPDATE: N.C. Appeals Court Keeps Legal Fees Award v. FMC ----------------------------------------------------------------- Grover M. Ensley, as plaintiff, and FMC Corporation, as defendant, appeal from an Amended Opinion and Award of the North Carolina Industrial Commission raising the questions whether (I) the Commission erred by awarding attorney's fees pursuant to N.C. Gen. Stat. Sec. 97-88.1 (2011); (II) the Commission erred by reducing the amount of the attorney's fees awarded; and (III) the Amended Opinion and Award contains a clerical error with respect to the date from which ongoing disability benefits were awarded to the Plaintiff. In an August 21, 2012 decision, the Court of Appeals of North Carolina affirmed the Commission's award of attorney's fees pursuant to N.C. Gen. Stat. Sec. 97-88.1 after finding that the Commission did not err by finding and concluding that FMC defended this claim without reasonable grounds. Additionally, the Appeals Court held the Commission was not precluded from altering the amount of attorney's fees awarded in its original opinion. Finally, the Appeals Court remanded the portion of the Amended Opinion and Award awarding benefits "beginning January 30, 2006" and directed the Commission to correct this clerical error to award disability benefits to begin as of 18 June 2006. The case stems from the Plaintiff's claim that he suffered asbestosis and silicosis as a result of his employment with FMC. The Commission found that as of June 18, 2006, the Plaintiff is permanently and totally disabled as a result of his asbestosis. The case is GROVER M. ENSLEY, Employee, Plaintiff, v. FMC CORPORATION, Employer, SELF-INSURED (BROADSPIRE, a CRAWFORD COMPANY, Servicing Agent), Defendant, No. COA12-255 (N.C. App. Ct.). A copy of the August 21 Decision is available at http://is.gd/AF14Tzfrom Leagle.com. ASBESTOS UPDATE: Fla. Court Flips $6.6MM Judgment v. Union Carbide ------------------------------------------------------------------ The District Court of Appeal of Florida, Third District, denied William P. Aubin's motion for rehearing or certification but withdrew its former opinion, dated June 20, 2012, to address the arguments advanced in the rehearing or certification motion. Union Carbide Corporation appeals from a final judgment awarding Mr. Aubin $6,624,150 in damages on his asbestos-related, products liability claims. Because Mr. Aubin failed to present any evidence demonstrating that the defective design of SG-210 Calidria caused Mr. Aubin's peritoneal mesothelioma, the Court reversed the trial court's denial of Union Carbide's motion for a directed verdict as to Mr. Aubin's design defect claim. In addition, because the jury instructions given by the trial court were misleading, inconsistent with the law in the Third District, and in effect directed the verdict in favor of Mr. Aubin, the Court reversed and remanded for a new trial as to the warning defect claim. The case is Union Carbide Corporation, Appellant, v. William P. Aubin, Appellee, Case No. 3D10-1982 (Fla. App. Ct.). A copy of the Court's Opinion filed August 22, 2012, is available at http://is.gd/LZN0WXfrom Leagle.com. ASBESTOS UPDATE: NY Ct. Denies Crane Co's Bid to Junk Dummit Suit ----------------------------------------------------------------- Defendant Crane Co. moves to set aside a judgment in favor of Ronald Dummit and for judgment in the Company's favor as a matter of law on the grounds that it is not liable for the mesothelioma Mr. Dummit alleges he developed as a result of exposure to asbestos while serving in the U.S. Navy. With respect to Crane's motion for judgment notwithstanding the verdict or in the alternative to set aside the verdict on the grounds that Crane had no duty to warn, Judge Joan A. Madden of the Supreme Court, New York County, denied the motion pointing out that evidence showed that during the plaintiff's 17 years of service on Navy ships, he was exposed to asbestos not only from products used with Crane's valves, but also from products of other manufacturers. As to Crane, the plaintiff established that he was exposed to asbestos during the maintenance and replacement of gaskets, packing and insulation used with Crane's valves, Judge Madden noted. The duty to warn is not based solely on foreseeability, or the possibility that a manufacturer's sound product may be used with a defective product so as to militate against a finding of a duty to warn; rather, the circumstances in the case show a connection between Crane's product and the use of the defective products, and Crane's knowledge of this connection, so that Crane could be potentially liable based on a duty to warn theory as a manufacturer who meant for his product to be used with a defective product of another manufacturer, or knew or should have known of that use, Judge Madden ruled. The case is IN RE NEW YORK CITY ASBESTOS LITIGATION RONALD DUMMITT, Plaintiff, v. A.W. CHESTERTON, et al, Defendants, Docket No. 190196/10, Sequence No. 020 (N.Y.). A copy of Judge Madden's August 21, 2012, Decision is available at http://is.gd/kukxplfrom Leagle.com. ASBESTOS UPDATE: NJ Ct. Denies Appeals in Claims v. Integrity ------------------------------------------------------------- The Superior Court of New Jersey, Appellate Division, denied two appeals raising the issue of the application of conflict of law principles to breach of contract actions filed by claimants Sepco Corporation and Mine Safety Appliances Company (MSA) against Integrity Insurance Company in Liquidation, following the denial of the claims of each by Integrity's Liquidator, as based on an improper method of allocating loss, and the affirmance of the Liquidator's decision by the Special Master and the trial court overseeing the liquidation. Specifically, the appeals present the question whether New Jersey's pro-rata approach to allocation of coverage among triggered insurers should be applied to the present claims, or whether, under choice of law principles, a joint and several or "all-sums" approach to allocation, adopted in the states in which claimants are incorporated and maintain their principal places of business, is applicable. Sepco, a California corporation that manufactured packing products and gaskets containing asbestos in the period from 1970 to 1979, is named defendant in more than 188,000 suits alleging injury as the result of asbestos-related disease. Sepco has settled approximately 127,000 of the claims for a total of approximately $51.5 million, with $20.8 million in indemnity payments and $30.7 million in defense costs. Sepco's parent purchased an Integrity policy of excess insurance that covered the period from January 1, 1985 to January 31, 1986, offering coverage of a $3 million1 part of an $8 million excess layer over $11 million in underlying insurance. In accordance with a closing plan in Integrity's liquidation case, Sepco filed a claim for coverage under the insurance policy seeking $6 million in indemnity payments and $21.8 million in defense costs. The Court held that at this stage of the liquidation of Integrity, a process that has already consumed 25 years and after an Amended Liquidation Closing Plan has been promulgated and largely implemented, it would be unreasonable for the Integrity Liquidator to attempt to obtain the recoveries anticipated by courts adopting the all-sums approach to allocation. The Court further held that it is satisfied that conflict of law principles permit the construction of Integrity's contractual obligation as a contingent one that has not vested in accordance with New Jersey law. The case is IN THE MATTER OF THE LIQUIDATION OF INTEGRITY INSURANCE COMPANY/SEPCO CORPORATION and IN THE MATTER OF THE LIQUIDATION OF INTEGRITY INSURANCE COMPANY/MINE SAFETY APPLIANCES COMPANY, Docket Nos. A-3850-10T1, A-5191-10T1 (N.J. Sup. Ct.). A copy of the Court's Decision dated August 23, 2012, is available at http://is.gd/5TzRfNfrom Leagle.com. ASBESTOS UPDATE: Gen Re's Motion to Quash Transferred to Pa. Ct. ---------------------------------------------------------------- General Reinsurance Corporation filed a Motion to Quash a subpoena served by Howden North America, who is the plaintiff in a declaratory judgment action pending in the Western District of Pennsylvania. At issue in the action are the obligations of more than 30 insurers with respect to asbestos personal injury claims against HNA. One of HNA's claims pertains to the prospective obligations of General Star International Indemnity Ltd. under a 1998 insurance policy. GSIIL was a direct subsidiary of Gen Re until November 2010 when Gen Re, pursuant to English law, transferred GSIIL to Faraday Reinsurance Co. Limited, another Gen Re subsidiary. In an August 23, 2012, Magistrate Judge Donna F. Martinez of the U.S. District Court for the District of Connecticut transferred the Motion to Quash to the Western District of Pennsylvania to be considered in connection with the pending case of Air & Liquid Systems Corp. et al. v. Allianz Underwriters Insurance Co. et al., No. 2:11-cv-247(JFC) (W.D. Penn. filed Feb. 24, 2011). Judge Martinez held that the court in which the underlying litigation is pending is familiar both with the complex factual background and the legal issues, including relevance, on which the court made rulings based on the recommendation of the special master and oral argument. The case is AIR & LIQUID SYSTEMS CORP ET AL., Plaintiffs, v. ALLIANZ UNDERWRITERS INSURANCE CO. ET AL, Defendants, Case No. 3:12MC51(AWT) (Conn.). A copy of Judge Martinez's Decision is available at http://is.gd/GqUSOAfrom Leagle.com. ASBESTOS UPDATE: Deers' Suit v. Georgia-Pacific Dismissed --------------------------------------------------------- Judge Sherry Klein Heitler of the Supreme Court, New York County, granted Georgia-Pacific LLC's motion for summary judgment seeking dismissal of the asbestos-related personal injury action filed by Maxwell Deer and Carolyn Deer. Judge Heitler noted that in this case, the defendant manufactured asbestos-containing products for a limited period and the plaintiff's allegations against it are neither corroborated nor connected to such time period. Mr. Deer could only speculate as to whether he ever used the defendant's products, and even then, only testified to any such use during the 1950s, a time when indisputably asbestos-containing Georgia- Pacific brand joint compound did not yet exist. The case is MAXWELL DEER AND CAROLYN DEER, Plaintiffs, v. AIR & LIQUID SYSTEMS CORPORATION, et al., Defendants, Docket No. 190261/11, Motion Seq. 2 (N.Y.). A copy of Judge Heitler's Aug. 22, 2012 Decision is available at http://is.gd/8qbUUIfrom Leagle.com. ASBESTOS UPDATE: EPA Halts Lend Lease in Barangaroo Over Fibro -------------------------------------------------------------- Sky News (Australia) reports that the NSW environmental watchdog has ordered Lend Lease to stop removing material from Sydney's Barangaroo construction site to Port Kembla on the south coast after the discovery of asbestos. Environmental Protection Authority (EPA) chief Barry Buffier on Wednesday, Aug. 22, said bonded asbestos had been found in material transported to Port Kembla, prompting it to revoke Lend Lease's resource recovery exemption. "The Port Kembla Port Corporation and EPA inspected the material after its arrival at Port Kembla and undertook testing," Mr. Buffier said in a statement. "The EPA has directed Lend Lease to cease any further removal of the material from Barangaroo to Port Kembla and has directed the Port Corporation to keep the stockpile wet and to undertake air monitoring for asbestos. "The EPA is meeting with Lend Lease (Aug. 23) to determine the best course of action to manage the stockpile of material at Port Kembla." Comment was being sought from Lend Lease. Lend Lease confirmed that small pieces of material containing asbestos from its Barangaroo construction site had been discovered at Port Kembla. "Small pieces of fibro cement material containing bonded asbestos have been found at Port Kembla," the company said in a statement on Aug. 22. It insisted it was abiding by all environmental rules relating to the Barangaroo site, despite the discovery. "Stringent testing regimes were agreed with the government authorities as part of the license process," Lend Lease said. "The screening measures that are in place at Barangaroo South are more stringent than is required under the government licensing obligations." The managing director of the site, Andrew Wilson, said 'all agreed procedures' had been followed at the site. He said these included "additional testing and air monitoring measures." No airborne asbestos had been identified, he said. ASBESTOS UPDATE: Nemeroff Co-Chairs 15th Annual NALC ---------------------------------------------------- A leading representative for mesothelioma victims, Rick Nemeroff, owner of The Nemeroff Law Firm, will serve as co-chair for the 15th Annual National Asbestos Litigation Conference in October. Hosted by HB Litigation Conferences, the meeting brings together leaders in the asbestos field to discuss trends in litigation and determine how recent rulings will impact future cases. This year's conference will feature reviews on previous year's cases, deep dive discussions on multidistrict litigation termination, a study of the evolution of machinery and equipment cases, and an in-house roundtable discussion. Sessions also include mesothelioma treatment updates, trial trends, and strategy for cases using evidence from prior decades. "Our trademark is balance, so we bring together plaintiff and defense firms, judges from different jurisdictions and in-house counsel from major players in the space," said Tom Hagy, CEO of HB Litigation Conferences. "Look at some of the biographies and you will see people who are truly leaders in their areas of practice and industries. Rick Nemeroff is on that list." Practicing since 1993, Nemeroff has established himself as a leading trial lawyer, combining compassion with aggressive litigation skills to fight for individuals and families who have been harmed by indifferent corporations. In addition to delivering record-breaking verdicts, Nemeroff is a sought-after speaker and presenter for all aspects of asbestos litigation. "I'm honored to co-chair this year's conference," said Nemeroff. "It's a great opportunity for us, as representatives of victims and their families, to come together and discuss how we can achieve the best possible outcomes for our clients." The National Asbestos Litigation Conference will be held October 18-19, at Hotel 71 in Chicago. About Nemeroff Law Firm With offices in Dallas, Houston, New Orleans and Pittsburgh, The Nemeroff Law Firm is a nationally recognized trial firm dedicated to helping individuals and families who suffer from asbestos related mesothelioma, harmful pharmaceuticals, and catastrophic personal injuries or death as a result of the wrongful or negligent conduct of others. Led by attorney Rick Nemeroff, the firm serves clients throughout the United States and Mexico, combining compassion and caring with aggressive litigation skills to deliver life-changing results. For more information, contact The Nemeroff Law Firm at 866-435-1831 or go to http://www.nemerofflaw.com/ ASBESTOS UPDATE: Chiddix High Students Back After Abatement ----------------------------------------------------------- Phyllis Coulter at Pantagraph.com reports that Chiddix Junior High school students may have been the happiest of all McLean County Unit 5 students to be back to school Wednesday, Aug. 22. Six months ago they were scared and confused when their school was suddenly closed after a small amount of asbestos was found in a classroom; Wednesday they were excited to be back and see all the changes made. The almost $3.2 million in renovations which included new lighting, carpeting, windows, technology and furniture were the silver lining of the asbestos experience, said principal Tim Green. Students agreed. Jordan Currie, 13, of Normal was glad to see "how nice it looked from last year. I like the carpets best," he said. Fellow eighth grader Connar Dyson said, "It was really confusing and scary moving into a new school. It's fun to be back here," he said. Chiddix closed Feb. 29 and students were educated at Evans, and Kingsley junior high schools and Field elementary school this spring. It was complicated running the junior high at separate sites, Green said. "It is a good feeling having everyone back here," he added. With everything totally gutted after asbestos abatement process, some classrooms were able to be moved and reclaimed for another use. A former health room was retrofitted to be the district's first specifically designed wireless computer science class room, Green said. "It's the direction the district wants to go," he said. Sixth grade computer science teacher Chris Clark is ready to make the best of the wireless classroom in the new practical arts wing of the school using the experience she gained using laptops with her students at Field school this spring. "I'm excited to be here in a brand new room," she said. The project was on time on budget, with the asbestos abatement done by June 4 followed by the renovations. "The scope and size of this project would have been hard to do without the extra time," said Superintendent Gary Niehaus. The sixth-month project was completed just days before the school opened. There are still a few technology things to be completed including installing some interactive white boards, Green said. It was the 10th major school renovation Unit 5 has completed in recent years to bring its older schools up to the standards of its new ones. "This is the toughest of all. It was a very tough project with a tight schedule," said Jeff Monahan, the district's construction coordinator. Sometimes there were as many as 60 people working in the building at once including the Illinois Wesleyan football players who helped things remain on time. "There was no way we would miss the deadline," Monahan said knowing how important the first day was for Chiddix families. ASBESTOS UPDATE: Oswego Fall Cleanup to Displace Social Services ---------------------------------------------------------------- Debra J. Groom of The Post-Standard reports that Oswego County officials are trying to solve a logistical nightmare. The county Department of Social Services building at 100 Spring St. in the village of Mexico -- where about 300 people work and about 135 residents visit daily -- may need to be closed this fall so asbestos-filled ceiling tiles can be replaced. This could mean moving workers for at least a month and alerting all social services clients that they may have to go to a different office. County Legislature Chairman Fred Beardsley said this is the only county building with an asbestos problem. The building was built in the 1980s and the asbestos is in only the ceiling tiles. "Every time we remove a tile to do some maintenance work (in wiring in the ceiling), the particles go through the air," he said. About 80% of the building has the asbestos tiles. No one has become ill, he said. Beardsley said a plan is being drawn up on how to do the asbestos removal work with the least amount of disruption. One option is closing the building and moving workers to another site for about a month. Another option is doing the abatement work one floor at a time in the two-story building. County officials also are discussing whether other repairs or cosmetic work, such as painting, should be done after the asbestos is removed and while the workers are relocated. Beardsley said county officials have talked to Cayuga Community College officials about using some of the college's empty space in its former site on Route 3 (Broadway) in Fulton. CCC recently opened its new site in River Glen Plaza in Fulton. "It's a monumental task, moving people, furniture and computer systems," Beardsley said. Social Services Commissioner Gregg Heffner said Tetra Tech, a consulting, engineering and technical services company in Ithaca, is drawing up a plan of how the work should be done and how much it will cost. That plan should be done soon and will be presented during the legislature's infrastructure and facilities committee meeting Aug. 28. He said it might be difficult if the legislature decides not to move everyone out of the building for the work. "I think the project will be a challenge because we don't have a whole lot of empty space to put workers in while the (asbestos removal) work is being done," Heffner said. "We do have some caseworkers (80 to 90) who could work at home and that could give us some room for swing space." Heffner said Tetra Tech will oversee the project. The county legislature has allocated $100,000 for the project, but the final cost has not been determined yet. ASBESTOS UPDATE: Unions Push to Free Australia of Fibro by 2030 --------------------------------------------------------------- Quentin Coleman at SafetoWork.com.au reports that Australia's manufacturing union and the council of trade unions are pressing for the nationwide removal of asbestos by 2030 following the release of a comprehensive federal report on the hazardous substance. "Australia has the unenviable record of having the highest incidence of asbestos related diseases in the world," Australian Manufacturing Workers Union (AMWU) president Paul Bastian wrote on the union's site. "That's why the Australian Manufacturing Workers' Union, the ACTU [Australian Council of Trade Unions], the Cancer Council Australia, and asbestos support groups are now calling for the removal of all asbestos from public and private buildings by 2030," Bastian stated. The dangers of exposure to asbestos have been expounded in recent years, leading up to a complete ban in 2004. While the list of countries that prohibit asbestos continues to grow, there are several industrialised countries that still allow its use, including nearby China. A recent automotive recall by Chinese manufacturers underlines the divide over safety regulations between the two countries. "Even though the mining and industrial use of asbestos has all but been banished from Australia -- asbestos can potentially appear across almost all of our daily activities," Minister Bill Shorten said in statement released on Aug. 16. "Asbestos remains one of the most serious issues in our workplaces -- but it is increasingly clear that it is much more than this," Minister Shorten said. Over 600 Australians died from mesothelioma in 2010, and the numbers of asbestos-related deaths in the country aren't expected to significantly diminish in the near future. People diagnosed with this disease are expected to live a year or less on average. Some ailments linked to asbestos can emerge up to 50 years after exposure, so it will remain a national health concern for years to come. The Australian Workers' Union (AWU) has also taken up the cause against asbestos, calling on the government to "establish a National Asbestos register for all Australians" suffering from conditions resulting from exposure to asbestos, according to the organization's website. The union also requests the formation of a national asbestos taskforce as well as the creation of a "national body with a regulatory mandate to map priority areas for asbestos product removal." Minister Shorten credited the efforts of Australian unions in the commissioning of the recently concluded Asbestos Management Review, which was initiated on Oct. 29, 2010. The full report will be available online in the near future, according to a Department of Education, Employment and Workplace Relations release. "This report demonstrates how critical and urgent the issue is," Minister Shorten said. "I am going to consult with all jurisdictions and all of the groups that have campaigned for action on asbestos to develop a quick response to the review." ASBESTOS UPDATE: Two Former Alcan Workers Die Due to ARDs --------------------------------------------------------- The Banbury Guardian reports that two former Alcan employees died as a result of exposure to asbestos at the factory, four years after the Banbury firm closed its doors for the final time. At Oxford County Hall on Tuesday, Aug. 21, two separate inquests were held into the deaths of former Alcan employees Terence Jordan and Philip Harper. Both men died at hospices in Banburyshire earlier this year from lung cancer-related diseases resulting from exposure to asbestos during their working lives. Coroner Darren Salter recorded verdicts of death by industrial disease for both men. Mr. Harper, who died aged 91, was first employed by the factory in Southam Road during the Second World War and devoted 38 years to working as an electrical engineer for the company. He died at Banbury's Green Pastures Christian Nursing Home in February from bronchopneumonia as a result of the rare mesothelioma cancer caused by exposure to asbestos. Two months later Mr. Jordan, 72, who was known as Terry, died of metastatic lung cancer, also caused by exposure to asbestos, at Katharine House Hospice. Mr. Jordan had worked as a maintenance fitter at the factory from 1956 until his retirement in 2007, and the inquest heard as a smoker exposed to the asbestos, his likelihood of contracting the disease was 50 times greater than that of a non-smoker. Doctor Eve Fryer, who carried out the post mortem on Mr. Jordan said: "Exposure to asbestos does increase the risk of developing this type of lung cancer. "Those who are exposed to asbestos are five times more likely to develop metastatic lung cancer while you are 50 times more likely to develop it if you are exposed to asbestos and a smoker as they have a cumulative effect." Both Mr. Harper and Mr. Jordan initially visited their doctors complaining of increased shortness of breath and both died within months of being diagnosed with their relative conditions. During Mr. Harper's inquest, the court heard he was diagnosed with mesothelioma in November 2011 after developing a tumor on his lung. His health rapidly deteriorated and he was admitted to Green Pastures on January 31 for palliative care and visited by his GP Nicola Elliott of West Bar Surgery on Feb. 20, just two days before his death. She said: "He was barely rouseable but comfortable. He was indeed dying." Mr. Jordan first complained of chest complications in July 2011 and was initially given a spray to treat the pains, similar to that used in the treatment of angina. He returned to his doctor in September after developing a cough which sometimes contained blood. A resulting chest x-ray later revealed a small tumor in his lung and in October it was confirmed he was suffering from advanced cancer which had spread to his blood and back. Despite undergoing radiotherapy, he was admitted to Katharine House Hospice in February and died surrounded by his family on April 12. Recording the industrial verdict for Mr. Harper, Mr. Salter said: "The vast majority of cases of mesothelioma are caused by asbestos exposure and knowing what we know about Mr. Harper's work history and knowing the underlying cause of death was mesothelioma I am satisfied the cause of death was industrial disease." Speaking about Mr. Jordan, Mr. Salter said: "There was a very sudden deterioration and it must have been a great shock and very unexpected at how quickly things deteriorated. I'm satisfied the deceased died of metastatic lung cancer contributed to by asbestos exposure during his working life as a maintenance fitter." Alcan, which was also known as Alcoa and most recently Sapa, was an extrusion specialist and manufacturer of sheet aluminum. It first opened in 1931 and during its lengthy stint in the town became one of Banbury's major employers, employing thousands of people across the area before it finally ceased operations in 2008. ASBESTOS UPDATE: Mine Leftovers Hound Swaziland Progress -------------------------------------------------------- Ariel Schwartz at Co.Exist relates that the African town of Bulembu found a way to revitalize after the collapse of its local industry: by giving back. There just remains the slight problem of all the asbestos still lying around. The same thing always happens in resource-rich areas: When a town is flush with resources, the population and the economy booms. When the resources (or interest) starts to dwindle, everyone leaves. In the tiny mining town of Bulembu, Swaziland, the population once swelled to over 10,000 people, with multiple schools, stores, entertainment venues, and housing dotting the landscape. In 2001, the company operating the asbestos mine shut everything down, and just like that, Bulembu became a ghost town. That's when Swazi charity Bulembu Ministries Swaziland stepped in and took over the town, turning it into a haven for Swazi orphans -- 306 of them, to be exact. Bulembu provides everything the orphans might need, including placement in a home with a caregiver, a school (The Bulembu Christian Academy), and a health clinic. The revived town is also building up a number of businesses, with profits all funneled back into the Bulembu Sustainability Fund, created to further the town's goals. Among the businesses already set up: a sawmill, a dairy, a water bottling plant, a bakery, and a honey production facility. The dairy, for example, provides milk to all the orphans, and excess supply is sold to denizens of Bulembu, the nearby town of Pigg's Peak, and Parmalat, a Swazi dairy processing company. The Bulembu website describes the bakery: "In years gone by Bulembu relied on shipments of bread coming in from Pigg's Peak -- a town 20 km away along a dirt road. Regular inclement weather made the road dangerous to travel and as a consequence bread deliveries were unreliable and increasingly expensive . . . The Bakery's employees work to produce quality bread products for the Orphan Care Program as well as a wide selection of bread, doughnuts, sticky buns and dinner rolls for the Bulembu community." Despite its successes, not everyone is thrilled with the Bulembu project. Earlier this year, the Australian Broadcast Corporation (ABC), released a story questioning whether the former mining town is safe. It produced asbestos for decades, after all, and we now know that the substance can cause serious illness. The ABC piece explains that most of the children's homes still have asbestos roofs, while the mine's dump sits in the center of the town. "Any form of asbestos is dangerous. Whether it be crocidolite or chrysotile the fact that somebody breathes in asbestos fiber places them at life-long risk of developing an asbestos-related disease," explained Tina da Cruz, the project director of South Africa's Asbestos Relief Trust, in an interview with the ABC. Representatives from Bulembu were wary about speaking with us because of past negative media coverage, but the ABC report claims that the town has performed air testing. Bulembu is also working on rehabilitating the mine dumps and tailings. It's hard to say whether that will be enough -- or if the entire town should just be picked up and moved. The town has an admirable mission. Hopefully, it can clean up any asbestos problems so that they won't mar it. ASBESTOS UPDATE: Official Assures Safety of Bracebridge Building ---------------------------------------------------------------- Louis Tam at Cottagecountrynow.ca reports that a Bracebridge resident is raising concerns about effects of asbestos as construction crews are renovating the old Bracebridge high school. Tim Gaffney says he has "serious concerns" about the spread of asbestos from the McMurray Street building, where debris is currently being removed to make way for a condominium project. Gaffney said he learned about the presence of asbestos there from the developer, John Davies of McMurray Street Investments Inc., during a public meeting earlier this year. Gaffney says he is also worried that years of vandalism inside the school have disturbed the asbestos, leaving the community at risk. "I'm concerned with the way it's being handled," he said. "There are windows that have been broken out of the building for a long period of time." Bracebridge chief building official Tom Hookings, however, said crews on-site are performing their jobs properly. "The contractor/owner has completed a study on the old school and is following all procedures as required through the Ministry of Labour for the removal of asbestos or any other hazardous materials that may be contained in the building," he said in an email. Hookings said that in most cases, asbestos is found around pipes, and that the removal process began last week. Davies said that although asbestos does exist in the building, workers on-site are in compliance with provincial rules and regulations. "There are some locations in the oldest parts of the building where there is some asbestos pipe wrap around some old copper piping in the boiler rooms," he said. "Any asbestos, as is required by law, will be abated under the laws and rules that are applied to abating asbestos or any other hazardous materials." Citing 30 years of experience as a real estate developer, Davies said the cost of abating the asbestos in this project amounted to around $20,000. "I've abated asbestos and other contaminants in 50-storey high- rise buildings and I can assure you . . . under no circumstances for the sake of $20,000 worth of asbestos abatement costs would I ever take any shortcuts or put anybody at risk over a miniscule amount of asbestos that's left in that building," he said. The building was sold by the Trillium Lakelands District School Board in 2010 for $650,000, and has remained boarded up since 2007. Davies had said in past interviews that crews working inside the building have been keeping hallways and access points clear in case first responders need to enter it. Renovation work began in the interior of the building's front entrance earlier this year. Though the project originally envisaged the construction of a 153- room senior's complex, that idea was later put on the back burner in favor of two new residential condominium buildings instead. In late May, Davies said that McMurray Street Investment partner Traditions Seniors Housing wanted to shelve the senior's complex portion of the project until market conditions improve. ASBESTOS UPDATE: Syracuse Abatement Site Burgler Exposed to Fibro ----------------------------------------------------------------- Robert A. Baker of The Post-Standard reports that a burglar who took tools from a building undergoing renovations on James Street also put his health at risk, workers at the site told Syracuse police. Police were called Tuesday, Aug. 21, to 615 James St. by workers removing asbestos at the building. Overnight Monday, Aug. 20, someone broke into the building by breaking a three-by-three-foot hole through a brick wall, police said. The building is secured on the first floor by plywood on the doors and windows and signs both inside and outside the building warn that asbestos removal is taking place inside, police records state. Inside the building, there are safe areas and containment areas, said Bill McHale, foreman for Conifer-LeChase Construction, which is doing the asbestos removal. The burglar entered into the containment areas after breaking into the house, McHale told police. The containment areas have active asbestos in them and are extremely dangerous, McHale told police. Items taken in the burglary include a Bosch electric jackhammer, a Stihl gas-powered saw, two DeWalt reciprocating saws, ladders and scrap wire and copper, according to police reports. ASBESTOS UPDATE: Retired Asbestos Worker Dies of Lung Cancer ------------------------------------------------------------ Frederick N. Rasmussen of The Baltimore Sun reports that John Thomas "Dick" Burda, a retired asbestos worker and former Howard County resident, died Sunday, Aug. 19, of lung cancer at Gilchrist Hospice in Towson. He was 83. Born in Baltimore and raised in Edmondson Village, Mr. Burda attended city public schools. He served with the Marine Corps in Korea during the Korean War, where he was wounded. He was later awarded the Purple Heart. For 35 years until retiring in 1989, Mr. Burda worked out of Pipe Coverers' Union 11, which is now Local 24. The longtime Ellicott City resident moved to Ocean Pines 15 years ago. He was an avid golfer and enjoyed fishing and crabbing with his family. He was a member of American Legion Post 156 and the Knights of Columbus. A memorial Mass will be celebrated at 9:30 a.m. Friday at St. Paul's Roman Catholic Church, 3755 St. Paul St., Ellicott City. Surviving are his wife of 60 years, the former Doris Crandall; two sons, Jay Burda of Reisterstown and Ricky Burda of Westminster; a daughter, Charon Burda of Catonsville; a brother, Mike Burda of Smyrna, Fla.; 10 grandchildren; and two great-grandchildren. ASBESTOS UPDATE: Fibro Issue Moves 204 Wofford Students to Mariott ------------------------------------------------------------------ Christine Scarpelli of News Channel 7 reports that 204 Wofford students will be living in the Spartanburg Mariott until asbestos in their dorm is removed. Wofford Officials said maintenance crews found a moisture issue last week in the Marsh dorm that houses freshman students and resident advisors. The dorm wasn't used in the summer except when maintenance teams were trying to work on air conditioning units to improve their efficiency. Officials say moisture from the air conditioning system, rainy, humid summer weather combined with the building being closed up likely created a moisture issue on the ceiling coating. Wofford spokesperson Laura Corbin says the ceiling coating in the building does have asbestos in it. The asbestos was found on the ceiling coating last week and wasn't an issue as long as it went undisturbed. Officials said the asbestos had the potential to be compromised when the coating was being removed on Monday, Aug. 20 and it will take about three weeks to get rid of. Corbin says crews will work around the clock to fix the problem. First year students are scheduled to move in on Wednesday, Aug. 22, but should be able to be back in Marsh on Friday September 7. They should only be in the hotel for about a week and a half. Officials said the students will stay with their originally assigned roommates, two to a room and will not have to pay any extra money for the accommodations. Officials have already begun moving students and furniture out and have been in contact with parents. ASBESTOS UPDATE: No Recall on Chinese Cars in New Zealand --------------------------------------------------------- Matt Greenop at the Bay of Plenty Times reports that asbestos use in car components has caused the recall of 24,000 vehicles in Australia but the models won't be recalled in New Zealand. Engine and exhaust gaskets in Chinese-made Great Wall and Chery vehicles are both made of materials containing asbestos, a hazardous substance that is banned in Australia. The parts will not be replaced but the cars will get warning stickers that asbestos is present. Australian customers who want the gaskets replaced can ask that the work be done. Both brands are distributed in New Zealand by Neville Crichton's Ateco, but a Sydney-based spokesman says the law here does not require the vehicles to be recalled. Daniel Cotterill said the levels of asbestos in the parts were negligible, which has been backed up by the Australian Competition and Consumer Commission deciding not to enforce the removal of the components. New Zealand owners of Great Wall or Chery vehicles can also request replacement. "Unlike in Australia, it's neither a regulatory nor a health issue in New Zealand," Cotterill told Driven. "That said, if a person was particularly concerned, we will take it on a case-by-case basis." Cotterill said Ateco had enlisted experts to test the materials concerned "to assess if there's any risk at all to drivers, passengers or any technicians that may work on the vehicles". He said the components would be replaced when required for maintenance, but that gaskets of this type rarely need replacing. "We're playing fair, and playing by the rules," he said. "Things get very emotive once asbestos is mentioned. But the amounts are very, very small and the asbestos is actually bound in the matrix of the materials used." Asbestos, proved to be a killer decades ago, has traditionally been used in the automotive industry for high-temperature applications such as brakes and exhaust systems. It has been banned in the industry in Australia since 2004 and most manufacturers throughout the world have stopped using the material. "Brake dust is something that can actually be breathed in," said Cotterill. "These are definitely not in the same category." The company says no more vehicles containing the asbestos-laced parts would be imported, with the manufacturers instructed to change them for non-toxic alternatives. A report by occupational health consultants Hibbs and Associates that was commissioned by Ateco and obtained by Driven confirmed that chysotile, or white asbestos, was present in the parts, and concluded that "the gaskets will not release measurable quantities of asbestos fibers and asbestos fibers will not be entrained into the ventilation or air-conditioning systems". The report did say there was a very slight risk to service people if correct removal and handling procedures were not followed. It recommended that gaskets be replaced when "normal in-service replacement eventually becomes necessary." Australia's Motor Traders Association has slammed the consumer commission's decision not to prosecute, calling the decision "absolutely disgraceful." MTA chief executive James McCall said: "The damage that asbestos in motor vehicles has done to repairers and people in our side of the industry over the years is tragic, absolutely bloody tragic. "And for these companies to be exporting vehicles that contain that sort of material is really a very poor reflection on the company and a poor reflection on the Government for not better supervising the standard of the importers. "They should be recalled and all those things replaced." ASBESTOS UPDATE: Fibers From Nanotech Also Cause Mesothelioma ------------------------------------------------------------- BBC News Health reports that inhaling tiny fibers made by the nanotechnology industry could cause similar health problems to asbestos, say researchers. Some are similar in shape to asbestos fibers, which have caused lung cancers such as mesothelioma. Research on mice, published in Toxicology Sciences, suggests the longer nanofibers are more dangerous. Human and mouse lungs are different, but the researchers hope the study will help to design safer nanofibers. Nanofibers are in a range of goods, from aeroplane wings to tennis rackets. Ken Donaldson, professor of respiratory toxicology at the University of Edinburgh, said: "Concern has been expressed that new kinds of nanofibers being made by nanotechnology industries might pose a risk because they have a similar shape to asbestos." Silver nanofibers of varying lengths were injected into the lungs of mice. Those larger than five micrometers, or five-thousandths of a millimeter, tended to become lodged in the lungs and cause inflammation. The smaller ones were cleared from the lungs. Safety Prof Donaldson said: "We knew that long fibers, compared with shorter fibers, could cause tumors, but until now we did not know the cut-off length at which this happened. "Knowing the length beyond which the tiny fibers can cause disease is important in ensuring that safe fibers are made in the future as well as helping to understand the current risk from asbestos and other fibers." Prof Stephen Spiro, from the British Lung Foundation, said cases of mesothelioma had almost quadrupled in the past 30 years because of asbestos. He added: "This research is particularly interesting as it gives us an indication of the size of fiber that might lead to mesothelioma if inhaled. "If confirmed by subsequent studies, this minimum fiber length can be cited in industry guidelines to help ensure people are not exposed to the sorts of fibers that may lead to such deadly diseases." ASBESTOS UPDATE: Fund Drive for Old Armory Abatement Initiated -------------------------------------------------------------- Tesa Culli of Mt. Vernon Register-News reports that the first steps in getting funding to renovate the former National Guard Armory into the Broadway Market are underway. "We are applying for a grant to abate asbestos at the armory," City Tourism Director Bonnie Jerdon said. "It's the first step that needs to be taken to use the armory." The Broadway Market concept is being undertaken to create a venue for a destination which would include a market, entertainment and a venue for shows and festivals. Under the current plans, the market would be open Thursday through Sunday and include 50% locally crafted arts, goods and gifts, 25% locally produced farm goods and 25% locally prepared foods. The armory, which was replaced by the Armed Forced Reserve Center on Shiloh Drive, is in the process of being given to the city. A deed for the property is waiting on Gov. Pat Quinn's signature. An inspection of the armory property was done last month to determine the amount of asbestos that would need abated to move forward with the project. Preliminary estimates indicate it would cost $300,000. The grant is being sought through the Tourism Attraction Program of the Illinois Department of Tourism and the Illinois Department of Commerce and Economic Opportunity. The grant would pay for half the costs of asbestos abatement if it were approved for the city. "We will be submitting the grant application within the next few weeks," Jerdon said. "We are almost done with it." Jerdon said after the grant has been submitted, the state will determine when to announce if any funds have been awarded. "Usually, the turn-around on this type of grant application would be a couple months," Jerdon said. Jerdon said the Tourism Attraction Program grant is the first of a series of grants which will be sought on the Broadway Market project. "We are working to receive as much outside funding to help pay for the Broadway Market as much as possible," Jerdon added. ASBESTOS UPDATE: Cleanup Issues Extend JFK High Montreal Reopening ------------------------------------------------------------------ CBC News Montreal reports that students at John F. Kennedy High School in Montreal's Saint Michel borough will have to wait until next year before returning to their normal classrooms. The school was shut down in the spring after asbestos was found. The school is now set to reopen on Jan. 7. All of the students were transferred to nearby Rosemount High. The English Montreal School Board said the clean up that was supposed to take place this summer is taking longer than expected and that the school will only be ready to reopen in January. The school was supposed to reopen in time for back-to-school but had originally been postponed to November before being pushed back again to January. The EMSB hopes to have all of the asbestos removed by the end of the year so students can return at the start of January. But after experiencing several delays already, some aren't confident the deadline will be met. Johanne Froncioni, chair of the John F. Kennedy governing board, said the situation has affected enrolment. "We have lost enrolment and, I mean, it's discouraging and disappointing that the kids are not going back in September. It is extremely disappointing but at this point, there is an end in sight," she said. The school board said it took longer than expected to find a reasonable bid to clean up the asbestos. ASBESTOS UPDATE: Tesco Closes Carlisle Store for 2 Months --------------------------------------------------------- The North West Evening Mail (UK) reports that Tesco is shutting its Carlisle city centre store for nearly two months so asbestos can be removed and other work done during a revamp. Bosses say they have taken the decision to "ensure the safety of customers and staff" while the firm freshens-up the look of the dated 1970s supermarket. Buses will carry customers to the firm's store at Rosehill and staff will also be transferred to this branch during the temporary closure. Tesco had revealed earlier this summer that the Victoria Viaduct shop was to get a facelift but has now confirmed the work will mean it has to shut its doors between Sept. 16 and Nov. 3. Doug Wilson, Tesco corporate affairs manager, told The Cumberland News: "We have taken the decision to temporarily close our Metro store on Victoria Viaduct and its car park. "This is not usual, however the works, including the removal of some quantities of asbestos, have to be done safely." Mr. Wilson said the closure was taking place "on the expert advice of our contractors". He added: "It is paramount to ensure the safety of our customers and staff and this has led us to this decision. "During the closure we will be running a temporary bus service to our superstore in Warwick Road at Rosehill and we hope this will assist our existing customers during this period. "The service run by local company Reays will run every 40 minutes taking customers to and from our local superstore. "We will be writing to customers and they will also be able to pick up a copy of the timetable instore. All of our staff will also be transferred to our Warwick Road store during this period." The supermarket is one of 430 Tescos to receive a makeover as the company invests GBP1 billion. ASBESTOS UPDATE: Three Expected Outcomes of Mesothelioma Lawsuits ----------------------------------------------------------------- Mesothelioma News relates that everybody recognizes the dangers associated with asbestos. It is a fact that asbestos causes diseases such as mesothelioma, an aggressive and difficult-to- treat form of cancer that affects the lining of the lungs. It is one of the few cancers where a direct cause can be identified, and the victims of mesothelioma have someone to hold accountable. Well into the 1980s, asbestos was a widely used construction material, popular for its cheap cost and heat resistant durability. Multiple trade workers experienced high levels of exposure. Construction workers of all kinds were exposed on a daily basis. Each branch of the military utilized the material in housing and the building of vessels such as ships, plans and submarines. Families of these workers and veterans were exposed when those directly working with the materials transferred the fibers from their clothes, hair and shoes into their homes. All while asbestos companies turned a profit, knowing that the materials they were producing were exposing innocent people to life-threatening danger. Those who have been exposed to asbestos and diagnosed with diseases like mesothelioma have the opportunity to recover something from these asbestos companies. Filing a lawsuit can provide compensation for asbestos victims. But every lawsuit isn't the same. Compensation can come from three different types of outcomes. Verdict -- Most mesothelioma cases never go to trial. Many cases will be settled out of court long before a court date. But some cases do end up in front of a jury, in which case they will deliver a verdict. The jury will decide if the asbestos company or companies are liable for a person's asbestos exposure and subsequent mesothelioma. If they decide that the company or companies are responsible, they will determine an award. The award consists of both compensatory and punitive damages. That is, actual economic loss and an amount of money awarded to punish the defendant or to set a public example. Settlement -- This is the most common outcome in a mesothelioma lawsuit. When a mesothelioma patient files a complaint, his or her mesothelioma lawyer would begin the discovery process. This is when evidence is collected to prove which companies are responsible for the exposure. If there is relevant evidence, the defendant or defendants may offer a settlement. It is the choice of the mesothelioma patient and his or her family to accept the settlement or continue to trial. Bankruptcy Trust -- Several asbestos companies have filed for bankruptcy due to the amount of mesothelioma and other disease- related lawsuits against them. Upon filing for bankruptcy, the companies were required to set up an asbestos trust for any future asbestos claims. When you file a claim against a company that is in bankruptcy, your claim is settled by the trust. Your mesothelioma lawyer will conduct the discovery process the same as in any case and present the evidence to the trust. The compensation amount is then determined by the trust and awarded to the asbestos victim. This process can be much simpler for someone suffering from asbestos related diseases than the trial process. When a mesothelioma lawsuit is filed, it is common to pursue multiple asbestos companies for recovery. Many mesothelioma patients have been exposed to several products containing asbestos and it is impossible to determine at which point a person reached a level of exposure that resulted in their diagnosis. Therefore, a person filing a mesothelioma lawsuit can receive compensation from a combination of these outcomes from several different defendants. Baron and Budd has spent over 30 years fighting on behalf of mesothelioma patients. Our firm sits on the board and has a long working history with several of the bankruptcy trusts. Our mesothelioma attorneys have a lengthy history of obtaining verdicts, settlements and asbestos trust payments for their clients. ASBESTOS UPDATE: Farmington Seeks Funds for River Center Cleanup ---------------------------------------------------------------- Nathan Hansen of The Farmington Independent reports that the city of Farmington will put nearly $55,000 into repairs at the old Rambling River Center, with the hope that one day, those repairs will help sell the building. On Monday, Aug. 20, the Farmington City Council approved a plan to replace the building's roof and do necessary asbestos abatement. Though currently there is no funding for the project in the city's budget, council members hope to recoup the cost in the building's selling price. Shingles on the south side of the building are curled and damaged, and those on the north side are old. The cost for repairing the roof is $10,000, Farmington parks and recreation director Randy Distad said. That amount will cover the cost for the materials, but parks staff will do the repair work on the roof. Distad built an additional 20% contingency into the estimate for any unforeseen issues like rotting plywood underneath the shingles. "That could be another $10,000," Distad said. The city received two quotes for the asbestos abatement, both from companies the city has used in the past. The low bid was submitted by the abatement company Marvo at an estimate of $42,998. The cost for the two projects is estimated at $54,998, which includes the abatement, the roof materials and the 20% contingency. Distad tried to find grants to help defray the cost, but he was unsuccessful. Once the work is done, the building will be put up for sale "as is." The asking price will be increased to reflect the cost to the city. "Either way the work has to be done," council member Julie May said. "I'm not typically one to say spend money, but I wish we would have done this the first month I was on council." Council member Terry Donnelly agreed with May. "We talked about this for almost four years. I think it's just time to do something," he said. ASBESTOS UPDATE: Cooperative Group Faces GBP150,000 Lawsuit ----------------------------------------------------------- Jenny Barwise of the Times & Star (UK) reports that the daughter of a man who died from asbestos-related cancer has spoken about how he was "cruelly snatched away" from her as she launches a legal battle against his former employers. Before Kelly Gillings' father, Ronald Ash, died, he asked his daughter to carry on the fight against the Co-operative Group Ltd for GBP150,000 damages. And since his death nearly two years ago, the 33-year-old has been tirelessly gathering information and has now issued a High Court writ against the firm where he worked as an apprentice engineer for four years in the 1960s. Mr. Ash died just one month after being diagnosed with malignant mesothelioma -- one of the rarest and most aggressive forms of cancer which affects the lining of the lungs or abdomen. Mrs. Gillings, who runs Dalegarth Guest House in Buttermere, near Cockermouth, said that she still can't believe how much her father's health deteriorated, from when he first fell ill six months before his death. "It's the type of tumor that when you get it, you can't do anything about it -- it's a death sentence," she said. "It happened so quickly. He was very fit and healthy and was only 63 when he died and that's no age at all. "He didn't smoke or drink. He went from being a really healthy, happy chap to dying within six months." Mr. Ash, originally from Newcastle, was planning to move to the Cockermouth area to be closer to his daughter before he fell ill. When he was diagnosed, he started legal proceedings himself and, following his death, Mrs. Gillings has carried on the fight. She said: "It's what he wanted. I don't know whether I would've done it but he wanted me to. I loved him and would have done anything for him." Mrs. Gillings claims that her father was exposed to deadly asbestos dust and fibers when he worked for the Co-op as an apprentice heating engineer between 1964 and 1968. She is branding the Co-op as negligent, and says it failed to provide a safe workplace, failed to keep his work areas free from asbestos, and failed to give him breathing apparatus. The company also negligently failed to provide adequate protective clothing, failed to provide proper ventilation, and failed to have any proper regard for his safety, it is alleged. ASBESTOS UPDATE: Crown Court Fines 2 Manchester Firms GBP74,980 --------------------------------------------------------------- The Mancunian Matters reports that two Greater Manchester firms have been prosecuted after workers were exposed to potentially deadly asbestos fibers at a mill in Bolton. The Health and Safety Executive (HSE) took legal action against Hazelwise Ltd and RH Property Management Ltd after finding dozens of damaged asbestos boards stacked up at Brownlow Mill during a visit in October 2010. Manchester Crown Court heard that neither company had put a plan in place to manage the asbestos in the mill on Tennyson Street, where several small businesses rent units. The HSE became aware of the issue when a contractor on the site raised concerns that asbestos insulation boards had been stripped out of unoccupied floors at the mill, releasing potentially deadly asbestos fibers into the air. Inspectors issued two Prohibition Notices banning the removal of tools and other items from four floors of the mill in case they had become contaminated with asbestos fibers, and preventing access to the floors. They also found that asbestos was present in other parts of the mill, occupied by tenants, but nothing had been done to protect it and make sure it was safe. The court was told the letting agent, RH Property Management Ltd, had raised the issue of the lack of an asbestos assessment in 2006 but did not take any further action. The owner of the mill, Hazelwise Ltd, also failed to arrange for an asbestos survey to be carried out. Both companies pleaded guilty to a breach of the Health and Safety at Work etc Act 1974 for failing to ensure the health and safety of people at the mill. Hazelwise also admitted a breach of the Control of Asbestos Regulations 2006 by failing to properly assess the risks from asbestos at the site. Hazelwise Ltd, of Mauldeth Avenue in Chorlton, was fined GBP40,000 and ordered to pay GBP8,969 in prosecution costs. RH Property Management Ltd, of Greek Street in Stockport, was fined GBP15,000 and with costs of GBP11,011. HSE inspector Philip Strickland said: "Workers at Brownlow Mill have been exposed to potentially deadly fibers because neither company did anything to find out where asbestos was on the site. "It is a legal requirement for owners and letting agents of commercial properties to carry out an assessment as to whether asbestos is present in a building, and what action is needed to keep it safe. "If employers don't take the risks from asbestos seriously, then thousands of people will continue to die in the UK every year as a result of breathing in asbestos fibers." Asbestos boards were commonly used up until the 1980s to help insulate buildings, to build partition walls and as ceiling tiles. The boards only become dangerous if they are broken up and asbestos fibers are released into the air. Fibers that are breathed in can become lodged in the lungs or digestive tract, and may lead to lung cancer or other diseases if large numbers of fibers are inhaled. However, symptoms may not appear for several decades. Around 4,000 people die every year as a result of breathing in asbestos fibers, making it the biggest single cause of work- related deaths in the UK. ASBESTOS UPDATE: Rock Island's Lincoln School Demolition Underway ----------------------------------------------------------------- Alma Gaul of the Quad-City Times reports that the razing of Rock Island's historic Lincoln School was set to resume Aug. 27, after halting Thursday, Aug. 23, because union workers from the demolition company had reached the end of their 40-hour work week, City Manager Thomas Thomas said Friday, Aug. 24. Several people who gathered Friday morning at the school site, 2125 7th Ave., to pick up keepsake bricks said they had heard that work had been shut down by the either the Illinois or U.S. Environmental Protection Agency because of a complaint about how the building's asbestos-containing waste was being handled. Jeff Eder, the city's community and economic development director, said the rumor is "absolutely not true," and a spokesman for the Illinois EPA confirmed that. "Everything's going fine," Dennis McMurray of the state EPA said. The state EPA approved the demolition company's plan to treat all waste in the building as asbestos-containing, and that plan is being carried out, he said. Bill Beaman, the project manager for American Demolition Co., the Elgin, Ill., firm, which is doing the demolition, said that at this point in the demolition, wetting down the building and the debris with water is all that is required because the wetting prevents asbestos fibers from taking flight. The debris is then being transported to the Millennium Waste Inc. Quad-Cities Landfill, Milan, where it is being disposed of properly, he said. Trucks are not required to be covered with plastic with the type of wetted debris that is being removed now, he said. Asbestos-containing plaster will be wetted as well as bagged in plastic and transported in a plastic-lined, closed truck once demolition reaches that point, he said. "The general public is not going to see that," Beaman said. "That is going to happen down in the doldrums of the structure. "We are following every single, solitary regulation on the book," he said. The company has four to eight air-quality monitors on-site and has not detected any concentrations out of the norm, McMurray of the EPA said. "They are going beyond the requirements of the agency" in that regard, he said. While no EPA inspector has been on site since demolition began, an on-site visit was to be made Aug. 27 or 28, McMurray said. Demolition began on the north side of the building and has made its way south. As of Friday, Aug. 24, most of the roof was gone and two levels of classrooms were visible, their doors and some blackboards still intact. The wrecking equipment had not broken through the wall that would reveal the open maple staircase that ascends from the ground floor to the top of the school, splitting to the right and the left as it ascends. A yellow Post-It note with a drawing of a sad face in tears was attached to the wire construction fence surrounding the property Friday morning. At the corner of 6th Avenue and 22nd Street, about 100 bricks and brick chips were lying on the ground, and residents were invited to pick them up as keepsakes. "One brick per household, please," a sign reads. Little else is being salvaged from the building, which is built of brick, Anamosa limestone and Buford stone, and contains a lot of lumber, including wood floors and doors and huge timbers in the attic. Beaman said those items cannot be salvaged unless someone pays to clean them of asbestos, and his company is not interested in doing that. Eder said some metal products such as the exterior staircases were salvaged and will be sold for scrap. ASBESTOS UPDATE: Israel Ministry Slams IDF's Fibro Handling Fail ---------------------------------------------------------------- Amir Ben-David at Yedioth Internet (Israel) reports that the Environmental Protection Ministry warned recently that IDF soldiers are required to deal with asbestos without the appropriate protective gear. Asbestos is an extremely hazardous material. Its carcinogenic properties have resulted in a ban on its use in many nations worldwide, including Israel. Since it poses actual danger, there are strict protocols on the handling, moving and disposing of asbestos -- all of which require handlers to wear hazmat suits. Israel's Asbestos Law, passed in 2011, requires any facility that includes asbestos structures must use licensed contractors to dispose of them. The military has filed a motion for an exemption, citing it cannot outsource such ventures for security reasons. The Environmental Protection Ministry further said that the IDF claims that other than old structures, only two items in its inventory contain asbestos -- armored personnel carriers' covers and brake pads, used in heavy machinery. The ministry initially agreed to allow the IDF to deal with the hazard independently, providing it follows a rigorous protocol, as well as hire external inspectors to review the operations. Still, the ministry claims that the IDF has failed to hold up its end of the deal: "We have learned that soldiers are handling the APC covers," a ministry source told Yedioth Ahronoth. "These are 18-year-old kids that haven't been trained for this. They are being put in danger for nothing." The Environmental Protection Ministry further said that it has recently learned that the IDF report on the scope of asbestos on its bases was lacking. After further review, the military submitted a list of an additional 140 items containing the hazardous material, including vehicles, aircraft, smoke detectors and other equipment used regularly by both the Air and Ground forces. "Troops have been exposed to a highly hazardous material without their knowledge and without the proper protective gear," another ministry source said. The ministry also expressed concern about the IDF's asbestos disposal protocols: "We don't really know what they did with the dismantled asbestos, how it was dismantled, where it was taken and so on. The potential contamination circle is huge," the source said. The ministry's Hazardous Material Directorate has recently sent the Air Force, Navy and Technological and Logistics Directorate letters on the matter. "We have found that the (asbestos) treatment performed in the IAF, INF and other military vehicles and equipment falls short of the requirements of the law," the letters read. "Your blatant disregard of both the law, as well as the orders of the chief medical officer, is outrageous and means the daily exposure of soldiers to asbestos." The ministry demands that the IDF cease all asbestos treatment and allow its experts to take over. Environmental Protection Minister Gilad Erdan said that the situation was "absurd": "It's absurd that the very army that protects us places our sons and daughters in unnecessary rick -- a risk that can be prevented. "I've instructed the ministry to exhaust all the legal measures at its disposal so that the IDF complies with the law and so that soldiers are now exposed to hazardous materials unnecessarily." The IDF Spokesperson's Unit confirmed receiving the letters, adding that "The letter will be addressed through proper channels." ASBESTOS UPDATE: Harbor Square Demolition Set in September ---------------------------------------------------------- Robert Brauchle of the Daily Press reports that construction equipment will be moved to Harbor Square in the upcoming weeks as a Chesapeake-based contractor prepares to raze the blighted downtown apartment complex, according to the authority overseeing the work. Hampton Redevelopment and Housing Authority Executive Director Ronald Jackson said Nansemond River Contractors is scheduled to begin demolishing the buildings on the 18-acre property at North Armistead and Pembroke avenues in mid- to late-September. The city has used cash incentives to usher tenants out of the blighted 368-unit complex after it bought the property last December from Olde Towne Associates LLC. The former owner allowed the property to deteriorate, even though Olde Towne's owners received a pair of Virginia Housing and Development Authority loans totaling $14.5 million to repair the complex's buildings. The state authority loaned Olde Town Associates $6.5 million in 2000 and another $8 million in 2005. While Olde Towne received those loans and was collecting close to $4 million in annual rental income, city inspectors reportedly found mold, flaking asbestos, lead paint and structural problems in Harbor Square when they entered the units last summer. The complex and its finances were the subject of a February investigative report by the Daily Press. City officials had long complained the property was deteriorating and an eyesore in downtown. The complex, built in 1969, housed tenants who paid market rates and others who received Section 8 subsidized housing vouchers. City officials say they purchased the property to remove blight and crime and that building a new courthouse was an afterthought. "This purchase was never about the courthouse," according to a statement the city posted on its website Jan. 3. "It was about removing an 18-acre apartment complex ridden with challenges and not in compliance with the Downtown Master Plan." Still, the method Hampton used to acquire the property was contentious for some residents. The city purchased Harbor Square by assuming Olde Towne Associates' outstanding $12.6 million VHDA loan and paying for another roughly $600,000 in bills and closing costs for the property. The total cost to taxpayers was $13.4 million. The Olde Towne Associates' loan from the state housing authority was close to defaulting because of a "failure to operate, or cause the development to be managed and operated in all respect in a manner satisfactory to the authority," according to a Nov. 10, 2011, letter from VHDA to the previous owner. Hampton Mayor Molly Joseph Ward abstained from votes and discussions on Harbor Square. She calls herself a "passive beneficiary" of a trust set up by her father, Edwin Joseph, who held an ownership stake in Great Atlantic Real Estate-Property Management, which owns Old Towne Associates. A message left with Aubrey Layne Jr., president of Great Atlantic, on Friday morning was not returned. With the property's title in its hands and the residents gone, the Hampton Redevelopment and Housing Authority can now raze the buildings. Nansemond River Contractors will perform the demolition for $1,447,674, with work expected to last about six months, Jackson said. The Chesapeake-based company will first raze the buildings near King Street and will move west toward North Armistead Avenue. Jackson said Nansemond has the proper permits to address asbestos found in the buildings. Authority officials and the contractor will meet with nearby residents and owners of the First Baptist Church of Hampton before demolition begins to let them know the contractor's schedule and how asbestos will be removed from the site, Jackson said. The city plans to build a Circuit Court building on the property, although the design for that building has not yet been made public. The facility and associated parking, however, aren't expected to take up all 18 acres, Jackson said. Any remaining land not needed for the courthouse will likely be used to build new apartments, he said. "We're looking at anything that will enhance that downtown area." Hampton First, a group headed by Hampton University President William R. Harvey, is creating a vision for the city's downtown and waterfront. "Hampton First is still looking at downtown, so this could be a part of that," Jackson said. The city has also spent $280,000 to hire Sasaki Associates, of Boston, to create a new master plan for downtown. The design firm will work with Hampton First to create that master plan. ASBESTOS UPDATE: DLS Says LHA Breached Asbestos and Lead Rules -------------------------------------------------------------- Lyle Moran of the Lowell Sun reports that during the course of its rehab of 132 units at the North Common Village, the Lowell Housing Authority violated multiple regulations governing lead-paint safety and failed to determine if asbestos was present prior to the work beginning as required by law, according to the state's Department of Labor Standards (DLS). The lead-paint and asbestos regulations on renovation and demolition are designed to protect workers, as well as occupants of the buildings where the work is conducted. The Department of Labor Standards Chief of Investigations and Enforcement Brian Wong detailed the department's findings about the LHA's rehab work in an Aug. 15 letter to LHA Executive Director Gary Wallace. City Manager Lynch provided the letter to the City Council late Friday night (Aug. 24) in its meeting packet for Aug. 28's meeting. The LHA's rehab work took place from 2008 to 2011 and the agency failed to secure occupancy permits. No penalties for the violations noted by Wong are spelled out in the letter, but the asbestos violations have been turned over to the state agency responsible for enforcement of those regulations. Wong also wrote his department would welcome the opportunity to help the LHA come in compliance with the lead-paint regulations it violated, as well as other regulations administered by the DLS. The DLS Office was closed when The Sun tried to contact the department Friday night. DLS is responsible for the promotion of workplace safety for public-sector employees. Under the "Deleading and Lead Safe Renovation Regulation," known as the RRP rule, renovation or demolition work in buildings constructed prior to 1978 (with certain exceptions) or child- occupied facilities must be performed by a licensed contractor. The RRP rule became effective on July 9, 2010. North Common was constructed at least 30 years prior to 1978, according to Wong. Wong wrote that the LHA violated state regulations by having the renovation and demolition work performed without a Lead Safe Renovation Contractor License or by obtaining a "Contracting Licensing Waiver" for its own employees to perform the work. The LHA's workers on the North Common work crew did not receive the proper training required under the law, Wong wrote, another violation of the law. The lead-paint violations could have resulted in the assessment of a civil penalty to the LHA for its work after July 9, 2010, Wong wrote, but the letter does not spell out any civil penalties. Wong also noted it is unclear whether the LHA provided its employees "who may have been exposed to lead dust" with protective safety equipment and other safeguards as required by the U.S. Occupational Safety and Health Administration. Exposure to lead can cause lead poisoning, which has a variety of symptoms, but is especially harmful to children. Future work at the LHA that disturbs painted surfaces in North Common or other pre-1978 housing must be performed in accordance with the RRP rule, wrote Wong. A call to Wallace's office Friday night was not answered and an automated email message said he is on vacation. A call to LHA Board Chairwoman Kristin Ross-Sitcawich was not immediately returned. Former City Building Commissioner Robert Camacho raised the prospect of the LHA mishandling lead paint and asbestos in late January, saying based on the age of the complex's buildings there may have been those materials present. City Councilor Rodney Elliott filed motions about Camacho's concerns and on Jan. 31 Elliott alerted the Department of Labor Standards to the LHA renovations. He said Friday night the state's findings confirmed his concerns about the LHA's North Common project. "The rules and regulations are in place so people won't people be exposed to carcinogens or health hazards like asbestos and lead paint, and the rules should be followed," Elliott said. "The safety of the workers and tenants should have been put first, but it is clear that did not happen." As for asbestos, the DLS said samples of two units, with each unit having a separate private company review the samples for the LHA, did not turn up asbestos. But Wong said it is "unclear" to the DLS whether asbestos was present when the renovations took place. Even if there was no asbestos present, the LHA was required to determine if there was any type of asbestos-containing materials prior to the undertaking of any renovation or demolition work, according to Wong. LHA Assistant Executive Director Mary Ann Maciejewski informed the DLS that no asbestos sampling was performed until 2011, Wong wrote. The state Department of Environmental Protection was copied on the letter because they administer the regulation the LHA violated by not performing the sampling work prior to renovation. Failure to identify and remove any asbestos-containing material before renovation or demolition activities can lead to significant penalties, according to guidelines issued by the DEP. The DEP's Offices were closed when The Sun tried to reach the department Friday night. In late January, the City Council passed motions calling on Lynch to have the proper government agencies determine if any asbestos or lead paint present during the Lowell Housing Authority's North Common renovations was handled properly. Subsequently, Lynch sent the DLS a letter notifying the agency of an allegation by a former employee of the city of possible mishandling of asbestos or lead-paint during the North Common Village renovations. Lynch did not immediately respond to requests for comment on Aug. 24. ASBESTOS UPDATE: DEP Approves Belcher Foundry Abatement Plan ------------------------------------------------------------ Susan Parkou Weinstein of the Taunton Daily Gazette reports that State environmental officials have given the green light to the Total Group to continue demolishing the Belcher Foundry. The Massachusetts Department of Environmental Protection stopped demolition at the shuttered iron factory on July 13 after the main building collapsed and sent plumes of black soot into the air and onto area homes and businesses. "They submitted plans for dust control and asbestos abatement and they were approved," DEP spokesman Joe Ferson said. The DEP permit also calls for the containment of an estimated 10 gallons of oil that likely seeped out of a broken fuel container and for the safe removal and disposal of hazardous materials. The malleable iron foundry closed its 175-year old Easton operation in 2007, leaving the site vulnerable to trespassers and scrap metal thieves. The town's building department granted an emergency demolition permit, pending DEP approval. But the work started before the permit was issued. Local public health and state officials met with the demolition company and the property owner to lay out plans for the containment of hazardous materials and dust and the disposal of asbestos and any other toxic materials at the site. "They're playing by the rules right now," Easton Health Agent Mark Taylor said. Asbestos remains in some parts of a building that is still standing but the site is locked up and inaccessible to vandals, he said. The Belcher foundry opened in 1837 and employed 78 workers before it closed, citing the state's high cost of fuel and tough environmental regulations. In late 2004, Belcher received a "Dirty Dozen" award from Toxics Action Center as one of New England's top 12 polluters. In 2006, the foundry was fined $180,000 for failing to meet state air pollution control requirements. They installed an advanced oxidation system to reduce emissions and odor and improve air quality at the plant. ASBESTOS UPDATE: Parliament Bldg Cleanup & Repair Plans Studied --------------------------------------------------------------- The Australian Associated Press relates that Britain's Houses of Parliament building could close for up to five years while essential repairs are carried out, The Sunday Times newspaper reports. The broadsheet said several options were on the table while the plumbing and electrics are refurbished and the building is purged of asbestos, including leaving the Palace of Westminster for good. "Officials are undertaking an initial study into options for the long-term upkeep of the palace," a spokesman for parliament's lower House of Commons told the newspaper. "It is anticipated that the results of the initial study will be considered by the House of Commons commission and the House of Lords committee by the end of the year." The Sunday Times said the Commons and the House of Lords could be evacuated for the first time since World War II, when the palace was repeatedly hit in German air raids. Options include leaving the palace, selling it and building a new parliament; a temporary replica chamber in the palace grounds; or, spreading the repair work out across decades of parliamentary breaks. The interiors of the riverside Perpendicular Gothic palace, completed in 1870, have not been refurbished since the 1940s. Parliament and the Treasury would have to approve the plans, the report said. ASBESTOS UPDATE: Meso-Inquest Cites Ron Jones Ltd, Lurbrestol Intl ------------------------------------------------------------------ The Derby Telegraph reports a carpenter who dedicated 50 years to his work has died after being exposed to deadly asbestos dust. Brian Anguish died at the age of 67, just two years after his retirement from a career which began in 1960. An inquest into his death heard how he saw his colleagues making "snowballs" from asbestos and throwing them at each other while unaware of the life-threatening risks of the substance. During the hearing at Burton Town Hall, South Staffordshire coroner Andrew Haigh ruled the death to be work-related. Mr. Haigh recorded the cause of death as mesothelioma, a form of incurable lung cancer which is normally caused by exposure to asbestos fibers which lodge in the lungs. Mr. Haigh said: "Mesothelioma is a horrible condition, often arising many years after the exposure to asbestos dust." Mr. Anguish did not work directly with asbestos but did breathe in airborne fibers, the court heard. After leaving school in 1960 he completed a carpentry apprenticeship and worked for a number of different firms and also on a self-employed basis until he retired in 2010. During the inquest, deputy coroner Michael Smith read aloud evidence that Mr. Anguish was believed to have worked with two companies where he was exposed to asbestos dust. In 1966, he was employed at Ron Jones (Burton on Trent) Ltd, a company which was dissolved in 1998, on the construction of Coventry's Walsgrave Hospital. He told his family that, while working at the site, he saw other contractors making "snowballs" from asbestos and throwing them at each other. The court heard that he was not given a mask. Then, in 1970, he worked for Lurbrestol International fixing timbers in a factory. The inquest was told that he worked alongside contractors who fitted asbestos ceiling and wall tiles, causing him to be exposed further. He died at his home in Thornewill Drive, Stretton, on June 19. ASBESTOS UPDATE: Ex-Aztec Industries Site Abatement Almost Finish ----------------------------------------------------------------- Bradford L. Miner for the Telegram & Gazette reports that Richard P. Chabot, a selectman in August 1996, was right on the money when he speculated the demolition and cleanup of the Aztec Industries/Asbestos Textile property at Grove and School streets would "run in the millions." In fact, those costs are nearly $3.5 million, the vast majority of the money coming from the federal Environmental Protection Agency's Brownfields grant program. Jim Byrne of the EPA's Brownfields team was in town Aug .24 with Kerry Bowie of the state Department of Environmental Protection, local and state officials to acknowledge the final EPA grant of $200,000 as the cleanup of the 5.35-acre site nears completion. Mr. Byrne spoke at the police station of the benefit of a successful partnership among local, state and federal officials, and cited the tenacity of former selectman James J. Foyle, a member of the North Brookfield Downtown Development Project, in keeping the cleanup work on track and moving forward. The police station, located on two of the former Aztec parcels that had been cleaned up, was cited as a testament to what could be done with previously contaminated property. Selectman Mary F. Walter said all that remains to be done is to find a tenant for the remaining four acres of the site to return the property to the tax rolls. According to Mr. Byrne, the $200,000 is part of $17 million the EPA has designated for cleanup of contaminated sites this year among the six New England states. State Sen. Stephen M. Brewer, D-Barre, citing the loss of tax revenue from the empty lot, said the Massachusetts Development Finance Agency has given the former Aztec property a "Priority Project" designation, making a potential developer eligible for up to $2 million for site assessment or cleanup financing. Cleanup of the property included removal of asbestos-contaminated soil and the installation of an impermeable soil barrier, allowing for the construction of a building such as the police station, on a concrete pad. Jason Petraitis, chairman of the Board of Selectmen, recalled growing up as a child in town seeing the abandoned manufacturing complex, which had become both an eyesore and a public health and safety threat, wondering what would become of the property. "It's a testament to the work of past Boards of Selectmen, and the community as well, that this site was cleaned up to become an asset for the town," Mr. Petraitis said. State Rep. Anne M. Gobi, D-Spencer, cited the "dogged determination" of Mr. Foyle in seeing the project through to completion. Curt Spalding, regional EPA administrator, stated in a news release, "EPA Brownfields funding helps strengthen the economic foundation and is a catalyst for further growth in our communities. Cleaning and revitalizing contaminated sites helps create jobs, and can help a community create new businesses and neighborhood centers while making our environment cleaner, and our communities healthier." Mr. Bowie said EPA Brownfields grant money had been instrumental in helping communities across the state address contaminated properties. "As with the North Brookfield project, frequently this effort is not a sprint, but a marathon." ASBESTOS UPDATE: Morristown Asbestos Case Defense Sues for Time --------------------------------------------------------------- The Associated Press reports that a federal public defender representing a Morristown businessman charged in a complex asbestos-related prosecution says she needs more time to prepare a defense in the case. Attorney Nikki Pierce on Friday filed a motion to extend pretrial deadlines and postpone the January 2013 trial date for Mark Sawyer. Sawyer and four co-defendants were indicted for alleged crimes involving the removal, storage and disposal of asbestos. The Citizen-Tribune reported (bit.ly/SEy2Gm) that Pierce says she's got an unmanageable caseload and 13,000 pages of discovery to sort through before trial. Sawyer's three remaining co-defendants, Newell Lynn "Nick" Smith, Milto Di Santi and his wife, Armida Di Santi, hired high-profile Miami attorneys. The fourth co-defendant, Eric Gruenberg, pleaded guilty to a single asbestos-related crime, and is scheduled to be sentenced on March 4, 2013. ASBESTOS UPDATE: Early Exposure to Blue Asbestos Studied -------------------------------------------------------- Bianca Nogrady for ABC Science reports that children exposed to blue asbestos may face more wide-ranging health problems in adulthood than mesothelioma and lung cancer, according to an Australian study. Researchers from Western Australia analyzed health data from children who lived at Wittenoom, a now-abandoned WA town where blue asbestos was mined for nearly 20 years. The results, reported in the journal American Journal of Industrial Medicine, indicate exposure to blue asbestos in early childhood elevated the risk of a range of cancers and even heart disease in adulthood. Among women who spent a childhood at Wittenoom, the risk of mesothelioma (asbestos-related lung disease) was 70 to 113 times greater than among the general population. They also had a roughly four-fold increase in risk of brain cancer and three-fold increase in the risk of ovarian cancer. The increase in risk of mesothelioma was slightly lower in men than in women, but men also showed an increased risk of brain, colorectal and prostate cancer, and leukemia. While the total numbers of cancers were still small, researchers say this was the first study to report on cancer incidence and mortality in adults exposed to blue asbestos as children. "This is a unique cohort of nearly 2,500 children with quantitative measures of asbestos exposure, exposure to a known asbestos type (crocidolite) and good follow-up," the researchers write. "Most of this cohort has now reached an age when chronic adult diseases are becoming more prevalent and potential associations between adult disease and childhood exposures can be explored." The data also suggested a slightly elevated risk of heart disease and 'nervous disorders' among children exposed to blue asbestos. Co-author Associate Professor Alison Reid says the nervous disorders refers mainly to conditions such as meningitis that were diagnosed while the children were still living at Wittenoom, but the heart disease finding was interesting. "This is something that's coming out in the literature as well," says Reid, occupational epidemiologist at the Western Australian Institute for Medical Research. "A recent study from the UK and possibly one from the US has shown that exposure to asbestos may be associate with an increased risk of heart disease later on." But Reid says the numbers are small, and research in this area is complicated by difficulties in accurately measuring individuals' exposure to asbestos. Their risk may also have been affected by the fact that many still live in rural and remote areas, where mortality from heart disease is higher than in urban centers. Reid hopes that a detailed health questionnaire, recently sent to children raised in Wittenoom, will enable greater understanding of the true health impact of blue asbestos. ASBESTOS UPDATE: Wellington's Aubert Childcare Centre Finds Hope ---------------------------------------------------------------- Jody O'Callaghan of The Dominion Post reports that an Island Bay childcare centre facing closure because of asbestos and its failure to fit the divine mission of its religious landlords may yet be saved. Two potential sites are being considered to house Wellington's Aubert Childcare Centre, which is due to close at the end of the year. The cost of replacing the centre's asbestos roof was originally cited by its owners, the Sisters of Compassion, as the reason for its closure. But they later rejected offers by parents to cover the $300,000 replacement, saying the decision had been made because the centre no longer aligned with the order's mission. Closure would leave 60 families and 22 staff without a centre. Initial efforts to find a replacement property in the suburb were unsuccessful, but Aubert Childcare Centre board chairman Kelvin Wong said about five options had come to light earlier. Some were unsuitable, but two sites were being considered -- a hall building and an accommodation block in the Strathmore and Seatoun areas. There was "cautious excitement" among parents and the board, who had been "running around" trying to make it happen, Mr. Wong said. "We're so thankful for the community for rallying around and giving support. "It's been quite mind-blowing that people would go out of their way to help Aubert Childcare Centre." A massive fundraising exercise would be required to fit out a new building, and they hoped a decision would be made in the next couple of weeks as to whether a move would go ahead, he said. "We have to see whether the teaching team and the parents are supportive of that, because it is a bit of a geographical shift." They would then have administrative and operational issues to tick off, including resource consent, he said. The Sisters indicated that if a site was found, they would consider keeping the centre open until a new one was ready. Mother Aubert Home of Compassion Trust Board chairwoman Sister Margaret Anne Mills was aware there were alternatives being looked at, but had not seen any formal proposals yet. Whether they could allow the centre to remain on site depended on timing and the costs of keeping the asbestos environment safe. But the Sisters would help with relocating the centre in any way they could. ASBESTOS UPDATE: Research Group Questions HSE's Effectiveness ------------------------------------------------------------- Deadline News (UK) reports that the country's health watchdog has been branded "feeble" in failing to prevent nearly 12,000 deaths caused by work related cancers. A Health and Safety Executive board meeting report revealed that cancers were to blame for 8,000 to 12,000 deaths per year due to occupational illness. But according to an occupational health expert more needs to be done to stop people being exposed to dangerous work environments. Nearly 14,000 new cases of workplace cancers are registered every year related to exposure from toxic chemicals and pollution. The biggest killer according to the HSE is asbestos which is accountable for 4,000 deaths per year. There are around 1.8 million tradesmen who are at risk of contracting mesothelioma which causes cancers of the lung, larynx and stomach from asbestos exposure. Almost 800 deaths per year are caused by breathing in silica dust -- stonemasons, quarriers and foundry workers are especially a risk from this. More than 600 deaths in drivers, miners and construction workers are linked to inhaling exhaust emissions from diesel engines. There is even evidence that suggests that prolonged night-shift work is responsible for 500 people dying from breast cancer every year. Other occupational hazards that induce cancer are paints, welding, toxic chemicals used in dry cleaning and the radioactive gas radon. There were reports earlier in the week that a significant level of radon gas was found in four schools in Orkney. The HSE only recently ended its "hidden killer" campaign for highlighting the dangers of asbestos. But Professor Andrew Watterson from Stirling University's occupational and environmental health research group is angry at the HSE's apparent lack of effectiveness. He said: "The HSE occupational cancer prevention strategy is stalled an its actions are feeble. "The consequences for many employees may literally be lethal and the economic costs for businesses and the NHS considerable. Prof Watterson claimed that health bosses are guilty of failing to take action since the 1980s. He also claimed that inspectors of power plants are being pulled from checking on cancer-causing chemicals He added: "It appears to lack expertise and staff to address this subject, partly due to the rundown of its occupational medicine staff and the massive Westminster cuts that it has received. "Instead it is frittering time away on relatively sterile debates about attributable fractions and drawing on partnerships and pledges that don't work." A HSE spokeswoman said: "HSE takes an evidence-based approach to occupational cancer, focusing in particular on identifying those activities and industry sectors that present the greatest risks and working with stakeholders to identify effective and sustainable solutions. "The board agreed that HSE should continue to engage industry partners and with others who may be better placed to deliver successful interventions in this difficult area." ASBESTOS UPDATE: Adelaide Hospital Accident Stirs Up Fibro ---------------------------------------------------------- The Herald Sun reports that a contractor has fallen through a ceiling at the Royal Adelaide Hospital, disturbing asbestos and forcing a patient to be relocated. The incident occurred in a pantry room adjoining the orthopaedics ward but has not resulted in any major disruption. The room was sealed off while the disturbed asbestos is removed. The contractor was taken to the emergency department for an assessment for injuries. "Due to the presence of asbestos in the ceiling area hospital staff immediately introduced the standard asbestos control procedures including sealing the room and restricting access to the area," a hospital spokesman said. "As a precaution a patient in the bed nearest to the pantry was shifted to another bed on the same ward." Air testing devices were used to ensure there was no risk to patients and staff in the ward. The sub-contractor was taken to the Emergency Department and treated for minor injuries. The incident has been reported to Safework SA. ASBESTOS UPDATE: Fed Gov't Distances Self From Barangaroo Issue --------------------------------------------------------------- The Australian Associated Press reports that the federal government has distanced itself from the issue of asbestos at Sydney's Barangaroo development despite helping to create thousands of new jobs there. Five hundred new apprenticeships and 2600 construction jobs for older and indigenous Australians are being created at Barangaroo as part of a $7 million government project announced on Tuesday, Aug. 28. It comes a week after NSW's Environmental Protection Authority stripped developer Lend Lease's resource recovery exemption after bonded asbestos was discovered in rubble taken from the waterfront site. The Construction, Forestry, Mining and Energy Union (CFMEU) also claims to have discovered asbestos at Barangaroo, on the western side of Sydney's CBD, several times this year. Skills Minister Chris Evans, who announced the new jobs on Tuesday, said it's up to NSW authorities to monitor safety at the site. "The asbestos issue is for the state health and safety authorities," he told AAP. "I don't have any direct involvement in that." Senator Evans admitted he was not "expert" on the asbestos issue at Barangaroo. "But the important thing about this project is there's very strong trade union backing," he added. ASBESTOS UPDATE: Lorillard Tobacco's Move to Transfer Case Denied ----------------------------------------------------------------- A California man who contracted the lung disease mesothelioma after being exposed to asbestos at work has won an important ruling that prevents Lorillard Tobacco Company from further delaying a civil damages trial by attempting to get the case transferred to federal court. Doctors for Dimitris O. Couscouris have told him that he may have only months to live, but the Simi Valley resident and his wife have continued to pursue their claims against Lorillard and other defendants as part of a lawsuit originally filed in December of last year. The lawsuit alleges the companies exposed Mr. Couscouris to asbestos, which led to his developing mesothelioma. Mr. and Mrs. Couscouris are represented by attorneys Trey Jones and Rabi David from The Lanier Law Firm's Los Angeles office. In May 2012, Lorillard attempted to have the case removed to federal court, claiming that Mr. Couscouris could not have been exposed to products manufactured by the defendants that were based in California. However, U.S. District Court Judge George H. King denied Lorillard's motion and remanded the case to state court. The company then attempted to remove the case to federal court a second time, but Judge King denied the second attempt on Aug. 1, 2012. Lorillard then appealed Judge King's ruling to the 9th U.S. Circuit Court of Appeals, and filed a motion to stay all the proceedings in state court during the appeal. On Aug. 21, 2012, Judge King denied Lorillard's motion to stay, finding that "Lorillard has failed to establish that it is entitled to a stay of all state court proceedings," and that "Lorillard is not likely to succeed on the merits of its appeal." "We are pleased that the court has decided that this case can continue, and now the Couscouris family is one step closer to receiving justice," says Mr. Jones, lead counsel for the family. The case is Dimitris O. Couscouris, et al. v. Hatch Grinding Wheels, Inc., et al., No. CV 12-6158-GHK. With offices in Houston, Los Angeles, New York, and Palo Alto, The Lanier Law Firm is committed to addressing client concerns with effective and innovative solutions in courtrooms across the country. The firm is composed of outstanding trial attorneys with decades of experience handling cases involving pharmaceutical liability, asbestos exposure, intellectual property, business litigation, product liability, maritime law, bad faith insurance claims, and sports and entertainment law. Visit http://www.lanierlawfirm.com/ ASBESTOS UPDATE: Bourne Schools to Open on Time Despite Cleanup --------------------------------------------------------------- The Bourne Courier reports that if there is one thing that is disconcerting as a Bourne superintendent brings his system toward opening day of a new school year, it has to be state asbestos inspectors poking around aging buildings. Superintendent Steve Lamarche has been riding herd on trace amounts of asbestos in Bourne Middle School, Bourne High and Otis Memorial School. A big part of the problem, he said, was the system's failure to adequately document prior remediation efforts. So a "clean wipe" of affected areas has been underway and retesting is in order. Asbestos and its $27,000 removal represent unsettling issues. But most asbestos is in floor tiles; at Otis Memorial it is in the boiler room; locked away from student access. "Some repairs need more work," Lamarche said Friday, Aug. 24. "And a clean wipe of the entire environment. But everything will be ready for opening day. The schools are safe." All Bourne schools are reaching full capacity. Bournedale Elementary features half-day kindergarten in the morning and afternoon. This total enrollment has not yet been figured, but there are 80 more kindergarten youngsters than first anticipated. Elizabeth Carpenito is the new Bournedale principal. She has been in the district a decade. There are new second grade teachers at Peebles Elementary and Bournedale as well, a new BHS guidance counselor, new math teachers and math coach at the middle school. There will be a continuation of new teaching methods in Grade 5. Think digital and hand-held devices, compelled by an iEconomy of sorts in the education industry. Fifth graders as such will be afforded Nexus 7 digital tablets at the middle school. The devices are similar to Apple's iPads but less expensive. The system bought 180 tablets for kids and nine for instructors. Total cost? In the $40,000 range. Staff will undergo so-called iLearning training. Then administrators will figure out instructional implementation. WiFi was added to Bourne Middle School this summer. Total cost? Around $30,000. Lamarche understands the lure and demand of digital instruction in a still unfolding global age. But it is costly, he says, and that is always a factor when veering from textbooks and whiteboards. Still, he supports learning and instructional innovation. "I think we need to provide this learning opportunity," he said. "But not in every year of their education. But perhaps we'll sell the devices back to families at the end of the year so the kids can bring them back to Grade 6; BYOD, bring your own device to school." Lamarche is still cautious about the digital learning domain; especially on the tablet model. He says it represents "a huge investment" and prefers to tackle the issue in incremental fashion. As for the school committee, he says, they've opted for a "measured" wait-and-see approach as well. How will administrators ultimately measure student achievement and learning for the fifth graders? Lamarche says this will be gauged by the likelihood of increased communication among students, improved writing skills and palpable desires to learn. New computers and desks will be added to BHS, meanwhile, to increase data processing speed. This will afford teacher more Web-based options, teacher access, better reporting to the state education department, accessibility, speed scheduling and data storage. ASBESTOS UPDATE: Great Wall Motor Denies Product Recall ------------------------------------------------------- Li Tao of China Daily (HK Edition) reports that Great Wall Motor Co, China's biggest pickup truck maker, denied that the company had recalled any vehicles from Australia despite the cars sold in the country were found to contain banned asbestos material. "As the engine gaskets containing asbestos are not exposed outside, they will not harm the drivers' health," said Xu Hui, a company secretary from Great Wall Motor said in Hong Kong on Monday, Aug. 27. "No car was recalled from Australia in the past 11 days since the incident took place. None of the consumers have demanded replacement of their engines after we explained to them thoroughly about the issue," Xu said during a media briefing in Hong Kong. Australian Competition and Consumer Commission (ACCC) on August 15 issued an alert, warning that it is monitoring a recall of approximately 23,000 Great Wall and Chery motor vehicles with engine and exhaust gaskets containing asbestos. Recognizing that asbestos does not present any risk to consumers during the vehicle's use, the commission said consumers should not perform do-it-yourself maintenance that might disturb these gaskets as asbestos is a prohibited hazardous substance. Xu said Great Wall Motor has replaced all gaskets with non- asbestos products on all its vehicles sold both on the mainland and abroad since May. He indicated that vehicle sales in Australia, which remain at around several hundred to one thousand, were unaffected. "While we export cars to the so-called Pan-European Market including Australia, we will become more careful with their market guidelines in the future," Xu added. The Hong Kong-listed carmaker's first-half business outperformed a number of its peers on the mainland as its overseas sales had helped offset slowing domestic sales on cooling demand and government controls. Net profit for the six months ended June 30, 2012, rose 29.9% to 2.35 billion yuan from 1.81 billion yuan a year earlier, the company told the Hong Kong stock exchange on Friday. Revenue over the period increased 28.8% to reach 18.29 billion yuan, according to the company. The company will also alter its annual sales target of 550,000 cars in 2012, after selling an aggregated 262,018 vehicles in the first half, representing 47.6% of the overall target volume of the year. ASBESTOS UPDATE: Barangaroo Soil Stockpile Raises Concern --------------------------------------------------------- Chris Paver of the Illawarra Mercury reports that union officials have raised concerns that soil shipped from Barangaroo to Port Kembla and found to contain asbestos has been stockpiled too close to Port Kembla railway station. However, Port Kembla Port Corporation (PKPC) chief executive officer Dom Figliomeni said air monitors showed that asbestos fibers had not been dispersed as a result of the stockpile. The Environment Protection Authority also said any risk was "extremely low." "Within the 15,000 tons, the 25 pieces of asbestos, which were no bigger than about a mobile phone, were safely removed and disposed of according to the law," Mr. Figliomeni said. "So there isn't any exposed asbestos on site and the air monitoring shows that there are no airborne fibers as a result." The EPA has also directed PKPC to keep the material compacted, damp and unmoved. Shipments to Port Kembla were quickly stopped after the first 15,000 tons of soil unloaded from the bulk carrier CSL Pacific were found to contain a small amount of the deadly substance. The stockpile won't grow unless the EPA grants developer Lend Lease a new resource recovery exemption. The South Coast Labour Council on Aug. 29 endorsed bans on unloading or handling further shipments. Maritime Union of Australia southern NSW branch secretary Garry Keane raised concerns about how the soil was stored. "Given the ineffectiveness of their screening process at the other end, we absolutely have to have a concern as to any other pollutants . . . that may have got through their screening processes," he said. ASBESTOS UPDATE: Officer Denies Friable Fibro at Werribee Club -------------------------------------------------------------- Xavier Smerdon of the Star News Group reports that Racing Victoria has launched an immediate investigation into the possible presence of airborne asbestos at the Werribee Racing Club. New Racing Victoria General Manager of Werribee, Ross Kendell, told Star that an investigation would be done after allegations that the area was plagued by the dangerous material. Mr. Kendell denied any knowledge of the existence of airborne asbestos but said it was likely the banned insulation material would be found in some of the buildings. "I'd be fairly confident to say that there is asbestos in some of the buildings. There's asbestos in half the houses in Australia," Mr. Kendell said. "I'm certainly unaware of any disturbed asbestos in any of the buildings. I'd be concerned myself if there was, for my own health." A source told Star that management had known about the disturbed asbestos for several years, an allegation that has been denied by Mr. Kendell. "If somebody is making that kind of allegation then I would question why they didn't act upon it say nine or 10 months ago. Why are we only hearing about this now?" Mr. Kendell said. "Having it been brought to our attention we will definitely be bringing someone in to look very closely at it to determine whether or not there is any airborne asbestos. "Now that there has been some sorts of allegations about airborne asbestos we will definitely be doing an investigation into it." On Dec. 10 last year a storm caused the cancellation of a race meeting after buildings were damaged. Mr. Kendell said the storm was unlikely to have disturbed any asbestos. "In terms of the storm last year . . . the roof of the function centre collapsed. The function centre was only built fairly recently, we're talking less than 10 years ago, so there certainly wouldn't be asbestos in that," he said. "So to say it's because of the storm just doesn't add up." Mr. Kendell said the allegations were concerning to the Werribee Racing Club. "Racing Victoria have come in to provide assistance with the management of the club and we're certainly unaware of any disturbed asbestos in the area," he said. "We're trying to get the club back to kicking some goals and being the club that everyone wants it to be." ASBESTOS UPDATE: Rampant Fibro Violations in Bloomfield Unheeded ---------------------------------------------------------------- Jason Auslander and Kim Holland at KRQE News 13 report that when it comes to asbestos, contractors working in this city of about 8,000 people near Farmington just can't seem to get it right. Four years ago, a Santa Fe-based paving company pulverized asbestos pipe in a residential neighborhood of Bloomfield and spread it all over town. Now, this spring and summer, contractors working on a highway expansion project illegally disposed of the cancer-causing substance not once but twice, according to the New Mexico Environment Department. "I was disappointed," said Benny Kling, an NMED inspector and Bloomfield resident. "Very disappointed. I think everyone wasn't communicating and paying attention." Advantage Asphalt of Santa Fe started the trend in 2008. The company had been hired by the city of Bloomfield to improve the roads in some of the city's neighborhoods. During the construction, Advantage workers dug up a 400-foot section of asbestos pipe, broke it up with hammers and other tools on a residential street and dumped it throughout town including at a Dumpster at Bloomfield High School. The mayor at the time told KRQE News 13 that the city never told residents about the incident because it feared lawsuits. The Environment Department later fined the company more than $800,000. Fast-forward to April 24 of this year. That's when contractors working on the expansion of U.S. Highway 64 unearthed 400 cubic yards of petroleum-contaminated soil and asbestos pipe from the middle of Bloomfield. Envirotech, a local company that disposes of dangerous materials, then transported the 20 semi-truck loads 13 miles south of Bloomfield to a large area called a "landfarm," where the company cleans petroleum from soil, according to Kling's report on the incident. The company then dumped the asbestos and soil on the ground out in the open, the report states. Asbestos is not allowed to be disposed of at the landfarm. In fact, it must be carefully wrapped in plastic and taken to specially-licensed facilities for disposal. "They haven't really explained how it happened," Kling said. "I had difficulty understanding how 20 loads would have been taken there without oversight." Envirotech supervisor Donald Ortiz blamed the mess on Sterling Brothers Construction, the main contractor on the N.M. 64 project, and said no one told Envirotech there was asbestos in the dirt. However, a May 22 memo from Envirotech to Sterling Brothers obtained by News 13 directly contradicts that claim. It states that two Envirotech employees -- an environmental manager and a senior field technician -- were on scene at the road project April 24 not only screening the soil but taking samples as well. "Nobody was minding the store," Kling said. Ortiz called the Environment Department on April 25 and reported the violation, according to Kling's report. Envirotech then cleaned up the soil and asbestos and took it to a licensed asbestos facility in Hovenweep, Utah, the report states. During a meeting with Sterling Brothers and Envirotech after the April incident, Kling said he issued a warning to the companies. "I'm gonna be there watching," Kling said he told them. Kling thought that would be enough to stop any more monkey business. It wasn't. Less than three months later it happened again. On Saturday, July 7, Kling said he was headed through the construction zone on a personal errand. "I had my wife and our two dogs to be groomed," he said. "And we drove through town and I seen these several piles of dirt stacked along the side of the highway -- asbestos pipe broken and scattered all over." The next day, Kling went back to the site, photographed the debris and took samples. "Monday morning, early, I got up, drove down to the site, parked about 200 feet away," he said. "As I watched (I) photographed loaders loading the piles along with the asbestos pipe into Sterling Brothers trucks." Kling then followed the truck through Bloomfield to the Sterling Brothers construction yard on Church Street in town. He watched as the dangerous load was dumped on the ground behind the construction trailer office, he said. News 13 was able to photograph the asbestos debris during a visit to the construction yard earlier this month. "They knew better," Kling said. "They knew better." Cathy Sterling, the owner of Sterling Brothers Construction, declined to speak to News 13. The New Mexico Department of Transportation is ultimately responsible for the U.S. 64 project. News 13 attempted to get some answers from DOT officials, but it turned out they still aren't exactly sure what happened. "I'm not fully aware of the April incident," said Miguel Gabald�n, DOT District 5 engineer. "I do know of a July matter." News 13 asked Gabald�n if he was concerned with his contractors' competence and ethics. "I haven't spoken to anybody at this time to get how serious it was, so I can't answer that at this time," he said. Bloomfield City Manager David Fuqua said he's not quite sure what to think. "I can't speak for what they're doing," he said. "I mean, it's starting to look a certain way, but I can't speak for what their intentions were." Now, after three asbestos problems in four years, the city may start requiring contractors to provide proof they've properly disposed of asbestos they dig up in the city, Fuqua said. "It's sad that we have to do that, but it's starting to look like it's obvious that we're going to have to do that," he said. Melissa Dosher, a DOT spokesperson, said that if Envirotech or Sterling Brothers try to bill the DOT for the latest cleanup costs, they won't get a penny. "We are not going to be paying for it," she said. The Environment Department could fine those companies as well as the DOT for lack of oversight on the highway project. ASBESTOS UPDATE: 2 UK Hospital Contractors Fined GBP14,322 ---------------------------------------------------------- Daniel Ionescu of The Lincolnite reports that two Lincoln companies have been fined after workers were exposed to asbestos during the refurbishment of a Northamptonshire hospital ward. Contractors Simons Construction hired Rilmac Insulation to carry out an asbestos survey for them before work began on Martin Roth ward at St Mary's Hospital in Kettering. The survey identified an asbestos coating on the underside of the ceilings, but missed over 200 square meters of asbestos insulation board (AIB) above. Northampton Magistrates' Court was told on Tuesday, Aug. 28, that when two workers contracted to Simons were told to knock holes in the ceilings on Dec. 17, 2009, they were not told it contained asbestos and they disturbed both layers. Their masks were not the correct type, they were not wearing protective overalls and they were not working in a way that would minimize and contain the release of fibers. Asbestos material landed on their clothes, which they wore for the rest of the day increasing their chances of contamination. The court heard the workers unwittingly increased the risk to themselves when they swept up the debris and left it in a pile on the floor. It was only discovered when a company contracted to remove the ceilings came onto the ward in January 2010 and recognized the material. A licensed asbestos removal company then spent several weeks removing the ceilings. An investigation by the Health and Safety Executive (HSE) found that the fully qualified surveyor from Rilmac Insulation had identified asbestos on the underside of the plasterboard ceiling, which did not need to be removed by licensed contractors, but had failed to identify the layer of AIB above it, which did. HSE also found the two men carrying out the work for Simons had not been trained to recognize asbestos containing materials or how to work safely with it. Simons Construction Ltd, of Doddington Road, Lincoln, and Rilmac Insulation Ltd, of Crofton Drive, Allenby Road Industrial Estate, Lincoln, both pleaded guilty to breaching Section 3(1) of the Health and Safety at Work etc Act 1974 at Northampton Magistrates' Court. Simons Construction was fined GBP5,000 and ordered to pay costs of GBP2,911 while Rilmac Insulation was fined GBP3,500 with costs of GBP2,911. After the hearing, HSE Inspector Martin Giles said: "Rilmac failed to properly identify the full extent of asbestos in the ceiling, while Simons, despite knowing from the survey that some was present, failed to provide a safe system of work, to supervise matters sufficiently and to pass on the information it did have adequately to its contractors. "Asbestos is the single greatest cause of work-related deaths in the UK. Every year around 4,500 people die from asbestos-related diseases. It is vital that work with asbestos is properly planned and supervised and that workers are made aware of the dangers and given the correct protective equipment and training to prevent exposure to this deadly substance." ASBESTOS UPDATE: Bay City's Former YMCA Building Remediated ----------------------------------------------------------- Mackenzie Burger at Mlive.com reports that renovations to transform the former YMCA building into Bay City Academy's new elementary school for the upcoming academic year are complete, said Optometrist and entrepreneur Steve Ingersoll, who founded the Academy. Ingersoll said that updating the 59-year-old building was a process faced with numerous construction hurdles, including asbestos abatement. "As in all old buildings, we have a myriad of construction difficulties with asbestos being one of them," Ingersoll said. "That's all clear, and we are going to be just fine -- the asbestos has been remediated." Ingersoll said that the Academy is waiting on final building safety approval from the fire marshal. The inspection was originally planned for last Friday, but is rescheduled for Aug. 30. "This time of year, every school in the land is looking for inspections and they just weren't able to do it last week," Ingersoll said. "We don't expect any delays (following the inspection)." Most of the renovations to the building were minor, Ingersoll said. Cleaning and furniture arrangement are expected to wrap up around Aug. 31. "We had to widen some hallways and make some adjustments in the configuration, but the rooms are pretty well set up as classrooms," Ingersoll said. "We did do some refurbishing, updated flooring, mechanical and wiring work and address the fire safety system." The YMCA building joins the former Madison Avenue Methodist Episcopal Church, 400 N. Madison Ave., under the academy's umbrella. Starting this school year, which begins Sept. 4, kindergarten through third grade students will have classes at the YMCA building while the rest of the students attend the Madison campus. In addition to the new building, the Academy is adding two grades, seventh and eighth grade, which will be taught at the former church. The expansions equate to an addition of 17 teachers to the staff. The charter school had 165 students enrolled last year, and Ingersoll said that number more than doubled this year, with enrollment growing to 430. An additional 50 students are waitlisted. "Anytime you work on an old building, it is a major project," Ingersoll said. "It is a real pleasure to take these old buildings, turn them into a nice place and put them to use." Ingersoll also owns the Farragut School, 1005 Ninth St. He said a potential long-term goal is to establish a kindergarten through 12th grade academy with room for about 1,000 students. "We are actively working on Farragut School for next year, and wrestling with using it as an elementary school," Ingersoll said. "Ultimately, Madison will be a fine arts school, and the Y will end up being used as a high school where we can circle back and use the pool." Bay City Academy is the fourth charter school Ingersoll has founded, including schools in Traverse City, Hartland and California. ASBESTOS UPDATE: Former British Rail Worker Dies of Mesothelioma ---------------------------------------------------------------- The Derby Telegraph reports that a 71-year-old former railway worker died as a result of an industrial disease, an inquest heard. John Daniels had been diagnosed with mesothelioma, a form of incurable lung cancer which is normally caused by exposure to asbestos fibers which lodge in the lungs, in May last year. Mr. Daniels, of Littleover, worked in Crewe between 1958 and 1964 at the loco works for British Rail and it was here that he believed he had been exposed to asbestos. He started as an apprentice fitter and turner in the works, where asbestos was used to insulate the locomotives. In 1964, Mr. Daniels had moved to Derby to do clerical work. After being diagnosed, Mr. Daniels settled a claim for compensation from British Rail. Deputy coroner Louise Pinder said: "The dangers of asbestos were not known at the time and looking at the detailed report that Mr. Daniels created for his claim, there was no protection -- like masks -- offered to aid breathing. "It is only now that the true danger of asbestos is being discovered. "It seems that Mr. Daniels was breathing it and that it was all over his overalls when he left work, meaning it was woven into the fibers of his clothes. "Mesothelioma is a terrible disease with a long latent period, as shown here, as Mr. Daniels had no exposure for nearly 50 years. "The cancer forms over a number of years and symptoms are shown years later." During the last five months of his life, Mr. Daniels was receiving palliative chemotherapy for his cancer. Mr. Daniels died in May, a year after being diagnosed with the disease. A post-mortem examination was carried out by consultant pathologist Dr. Deirdre McKenna at the Royal Derby Hospital. The examination resulted in eight findings of cancer in his body, though no asbestos bodies were found in his lungs. The cause of death, however, was recorded as disseminated mesothelioma due to asbestos exposure. Ms. Pinder recorded a verdict of death due to industrial disease. ASBESTOS UPDATE: CAT Board Sued for Wrongly Obtaining Compensation ------------------------------------------------------------------ Phil Milford of Bloomberg reports that Caterpillar Inc., the world's largest maker of construction and mining machines, was sued by investors who allege directors wasted corporate assets by not ensuring that executive-incentive plans were tax-deductible. Board members also wrongly enriched themselves by taking compensation that couldn't be deducted, and the company made insufficient disclosures to stockholders, lawyers for a Philadelphia asbestos workers' pension fund and the Lansing, Michigan, Police and Fire Retirement System said in two lawsuits filed yesterday in federal court in Wilmington, Delaware. "There is no reason not to implement compliant compensation plans" that save the Peoria, Illinois-based company tax money, the investors contend in court papers. The investors ask for a jury trial and an order that recipients return wrongly obtained compensation to the company. Caterpillar, with $60.1 billion in sales last year, said last week it opened a new diesel-excavator factory in Victoria, Texas, and will sell the machinery in the U.S., Mexico and South America. The pension funds also challenged in the lawsuit the cash value, including stock options, senior officials could potentially receive -- as much as $87.2 million each under a long-term incentive plan. "This astronomical number, if it is a true maximum, shocks the conscience as to the amount of corporate waste the board may commit," plaintiffs' lawyers said in court documents. "Our normal practice is to not discuss pending litigation," Jim Dugan, a Caterpillar spokesman who hadn't seen the complaints, said in an e-mailed message. The cases are City of Lansing Police and Fire Retirement System v. Caterpillar, 12cv1076, and Asbestos Workers Philadelphia Pension Fund v. Caterpillar, 12cv1077, U.S. District Court, District of Delaware (Wilmington). ASBESTOS UPDATE: Central Hudson Had 1,161 Cases Pending End June ---------------------------------------------------------------- Central Hudson Gas & Electric Corporation had 1,161 asbestos cases pending at the end of June 2012, according to CH Energy Group, Inc.'s Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarterly period ended June 30, 2012. As of June 30, 2012, of the 3,333 asbestos cases brought against Central Hudson, 1,161 remain pending. Of the cases no longer pending against Central Hudson, 2,017 have been dismissed or discontinued without payment by Central Hudson, and Central Hudson has settled 155 cases. Central Hudson is presently unable to assess the validity of the remaining asbestos lawsuits; however, based on information known to Central Hudson at this time, including Central Hudson's experience in settling asbestos cases and in obtaining dismissals of asbestos cases, Central Hudson believes that the costs which may be incurred in connection with the remaining lawsuits will not have a material adverse effect on the financial position, results of operations or cash flows of either CH Energy Group or Central Hudson. CH Energy Group, Inc., is a holding company. The Company's wholly owned subsidiaries include Central Hudson Gas & Electric Corporation (Central Hudson) and Central Hudson Enterprises Corporation (CHEC). Central Hudson is a regulated electric and natural gas subsidiary. CHEC, the parent company of CH Energy Group's unregulated businesses and investments, has one wholly owned subsidiary, Griffith Energy Services, Inc. (Griffith). ASBESTOS UPDATE: Transocean Units Continue to Defend PI Suits ------------------------------------------------------------- Transocean Ltd.'s subsidiaries continue to face asbestos-related lawsuits, according to the Company's Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarterly period ended June 30, 2012. The Company states: "In 2004, several of our subsidiaries were named, along with numerous other unaffiliated defendants, in 21 complaints filed on behalf of 769 plaintiffs in the Circuit Courts of the State of Mississippi and which claimed injuries arising out of exposure to asbestos allegedly contained in drilling mud during these plaintiffs' employment in drilling activities between 1965 and 1986. Each individual plaintiff was subsequently required to file a separate lawsuit, and the original 21 multi-plaintiff complaints were then dismissed by the Circuit Courts. The amended complaints resulted in two of our subsidiaries being named as direct defendants in seven cases each. We have or may have an indirect interest in an additional 12 cases, for a total of 26 cases of interest. The complaints generally allege that the defendants used or manufactured asbestos-containing drilling mud additives for use in connection with drilling operations and have included allegations of negligence, products liability, strict liability and claims allowed under the Jones Act and general maritime law. The plaintiffs generally seek awards of unspecified compensatory and punitive damages. In each of these cases, the complaints have named other unaffiliated defendant companies, including companies that allegedly manufactured the drilling- related products that contained asbestos. All of these cases are being governed for discovery and trial setting by a single Case Management Order entered by a Special Master appointed by the court to reside over all the cases, and none of the 14 cases in which we are a named defendant have been scheduled for trial or pre-trial discovery. The preliminary information available on these claims is not sufficient to determine if there is an identifiable period for alleged exposure to asbestos, whether any asbestos exposure in fact occurred, the vessels potentially involved in the claims, or the basis on which the plaintiffs would support claims that their injuries were related to exposure to asbestos. However, the initial evidence available would suggest that we would have significant defenses to liability and damages. None of our companies have manufactured or distributed drilling mud or additives for same, and the handling of such additives by one of our employees would be a relatively infrequent occurrence that likely would have involved a non-asbestos product. "In 2011, the Special Master issued a ruling that a Jones Act employer defendant, such as us, cannot be sued for punitive damages, and this ruling has now been obtained in three of our 14 cases. To date, seven of the 769 cases have gone to trial against defendants who allegedly manufactured or distributed drilling mud additives. None of these cases have involved an individual Jones Act employer, and we have not been a defendant in any of these cases. Two of the cases resulted in defense verdicts, and one case ended with a hung jury. Four cases resulted in verdicts for the plaintiff. Because the jury awarded punitive damages, two of these cases resulted in a substantial verdict in favor of the plaintiff; however, both of these verdicts have since been vacated by the trial court. The first plaintiff verdict was vacated on the basis that the plaintiff failed to meet its burden of proof. While the court's decision is consistent with our general evaluation of the strength of these cases, it is currently being reviewed on appeal. The second plaintiff verdict was vacated because the presiding judge was removed from hearing any asbestos cases due to a conflict of interest, but when this case ultimately went to trial earlier this year, it resulted in a defense verdict. The two remaining plaintiff verdicts are under appeal by the defendants. "We intend to defend these lawsuits vigorously, although there can be no assurance as to the ultimate outcome. We historically have maintained broad liability insurance, although we are not certain whether insurance will cover the liabilities, if any, arising out of these claims. Based on our evaluation of the exposure to date, we do not expect the liability, if any, resulting from these claims to have a material adverse effect on our consolidated statement of financial position, results of operations or cash flows. "One of our subsidiaries was involved in lawsuits arising out of the subsidiary's involvement in the design, construction and refurbishment of major industrial complexes. The operating assets of the subsidiary were sold and its operations discontinued in 1989, and the subsidiary has no remaining assets other than the insurance policies involved in its litigation, with its insurers and, either directly or indirectly as the beneficiary of a qualified settlement fund, funding from settlements with insurers, assigned rights from insurers and coverage-in-place settlement agreements with insurers, and funds received from the commutation of certain insurance policies. The subsidiary has been named as a defendant, along with numerous other companies, in lawsuits alleging bodily injury or personal injury as a result of exposure to asbestos. As of June 30, 2012, the subsidiary was a defendant in approximately 899 lawsuits, some of which include multiple plaintiffs, and we estimate that there are approximately 2,087 plaintiffs in these lawsuits. For many of these lawsuits, we have not been provided with sufficient information from the plaintiffs to determine whether all or some of the plaintiffs have claims against the subsidiary, the basis of any such claims, or the nature of their alleged injuries. The first of the asbestos- related lawsuits was filed against the subsidiary in 1990. Through June 30, 2012, the costs incurred to resolve claims, including both defense fees and expenses and settlement costs, have not been material, all known deductibles have been satisfied or are inapplicable, and the subsidiary's defense fees and expenses and settlement costs have been met by insurance made available to the subsidiary. The subsidiary continues to be named as a defendant in additional lawsuits, and we cannot predict the number of additional cases in which it may be named a defendant nor can we predict the potential costs to resolve such additional cases or to resolve the pending cases. However, the subsidiary has in excess of $1.0 billion in insurance limits potentially available to the subsidiary. Although not all of the policies may be fully available due to the insolvency of certain insurers, we believe that the subsidiary will have sufficient funding from settlements and claims payments from insurers, assigned rights from insurers and coverage-in-place settlement agreements with insurers to respond to these claims. While we cannot predict or provide assurance as to the final outcome of these matters, we do not believe that the current value of the claims where we have been identified will have a material impact on our consolidated statement of financial position, results of operations or cash flows." Transocean Ltd. is an international provider of offshore contract drilling services for oil and gas wells. ASBESTOS UPDATE: Maremont Had 21,000 Pending Claims at June 30 -------------------------------------------------------------- Meritor, Inc.'s subsidiary had 21,000 pending asbestos-related claims at June 30, 2012, according to the Company's Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarterly period ended July 1, 2012. Maremont Corporation ("Maremont"), a subsidiary of Meritor, manufactured friction products containing asbestos from 1953 through 1977, when it sold its friction product business. Arvin Industries, Inc., a predecessor of the company, acquired Maremont in 1986. Maremont and many other companies are defendants in suits brought by individuals claiming personal injuries as a result of exposure to asbestos-containing products. Maremont had approximately 21,000 pending asbestos-related claims at June 30, 2012 and September 30, 2011. Although Maremont has been named in these cases, in the cases where actual injury has been alleged, very few claimants have established that a Maremont product caused their injuries. Plaintiffs' lawyers often sue dozens or even hundreds of defendants in individual lawsuits on behalf of hundreds or thousands of claimants, seeking damages against all named defendants irrespective of the disease or injury and irrespective of any causal connection with a particular product. For these reasons, Maremont does not consider the number of claims filed or the damages alleged to be a meaningful factor in determining its asbestos-related liability. Maremont's asbestos-related reserves for pending and future claims were $75 million at June 30, 2012. Maremont engages Bates White LLC (Bates White), a consulting firm with extensive experience estimating costs associated with asbestos litigation, to assist with determining the estimated cost of resolving pending and future asbestos-related claims that have been, and could reasonably be expected to be, filed against Maremont. The insurance receivable related to asbestos-related liabilities is $67 million as of June 30, 2012. Meritor, Inc., designs, develops, manufactures, sells, markets, distributes, services, and supports integrated systems, modules, and components to original equipment manufacturers (OEMs) and the aftermarket for the commercial vehicle, transportation, and industrial sectors. ASBESTOS UPDATE: AM Recorded $7MM Rockwell Legacy Liabilities ------------------------------------------------------------- ArvinMeritor, Inc. (AM), a subsidiary of Meritor, Inc., has recorded an insurance receivable related to Rockwell International legacy asbestos-related liabilities of $7 million at June 30, 2012, according to the Company's Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarterly period ended July 1, 2012. ArvinMeritor, Inc. (AM), a subsidiary of Meritor, along with many other companies, has also been named as a defendant in lawsuits alleging personal injury as a result of exposure to asbestos used in certain components of Rockwell products many years ago. Liability for these claims was transferred at the time of the spin-off of the automotive business from Rockwell in 1997. Currently there are thousands of claimants in lawsuits that name AM, together with many other companies, as defendants. However, the company does not consider the number of claims filed or the damages alleged to be a meaningful factor in determining asbestos- related liabilities. A significant portion of the claims do not identify any of Rockwell's products or specify which of the claimants, if any, were exposed to asbestos attributable to Rockwell's products, and past experience has shown that the vast majority of the claimants will likely never identify any of Rockwell's products. For those claimants who do show that they worked with Rockwell's products, management nevertheless believes it has meritorious defenses, in substantial part due to the integrity of the products involved and the lack of any impairing medical condition on the part of many claimants. The company defends these cases vigorously. Historically, AM has been dismissed from the vast majority of similar claims filed in the past with no payment to claimants. The company engages Bates White to assist with determining whether it would be possible to estimate the cost of resolving pending and future Rockwell legacy asbestos-related claims that have been, and could reasonably be expected to be, filed against the company. Although it is not possible to estimate the full range of costs because of various uncertainties, Bates White advised the company that it would be able to determine an estimate of probable defense and indemnity costs which could be incurred to resolve pending and future Rockwell legacy asbestos-related claims. After consultation with Bates White, the company determined that as of June 30, 2012 and September 30, 2011 the probable liability for pending and future claims over the next four years is $21 million and $19 million, respectively. Based on consultation with advisors and underlying analysis performed by management, the company has recorded an insurance receivable related to Rockwell legacy asbestos-related liabilities of $7 million and $9 million at June 30, 2012 and September 30, 2011, respectively. Meritor, Inc., designs, develops, manufactures, sells, markets, distributes, services, and supports integrated systems, modules, and components to original equipment manufacturers (OEMs) and the aftermarket for the commercial vehicle, transportation, and industrial sectors. ASBESTOS UPDATE: AM Hikes Liability in Bankhead Suit to $6.4MM -------------------------------------------------------------- ArvinMeritor, Inc. (AM), a subsidiary of Meritor, Inc., increased its liability in the lawsuit filed by Gordon Bankhead and his spouse to $6.4 million at June 30, 2012, according to the Company's Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarterly period ended July 1, 2012. On March 4, 2010, Gordon Bankhead and his spouse filed suit in Superior Court for Alameda County, California, against more than 40 defendants that Mr. Bankhead claims manufactured or supplied asbestos-containing products he allegedly was exposed to during his career as a janitor; as an ordnance specialist in the National Guard; and as an automotive parts-man. By the time trial began on October 27, 2010, Mr. and Mrs. Bankhead had settled with all defendants except for ArvinMeritor, Inc. (AM), a subsidiary of Meritor, Inc., and three other defendants. The claims against these four defendants were limited to Mr. Bankhead's work as an automotive parts-man. On December 23, 2010, the jury ruled against all four defendants, including AM. AM was assessed $375,000 in compensatory damages for which it recorded a liability in fiscal year 2011. Additionally, AM was assessed $4.5 million in punitive damages. AM filed an appeal on the punitive damages award to the California Court of Appeals. On April 19, 2012, the California Court of Appeals affirmed the trial court judgment in its entirety. Given this, AM increased its liability for this matter to $5.6 million at March 31, 2012. On May 29, 2012, AM requested that the California Supreme Court hear arguments on the points of law raised in the courts, but that court declined to do so on July 11, 2012. Given the foregoing developments as well as the filing of a separate wrongful death action by Mr. Bankhead's spouse, AM increased its liability for this matter to $6.4 million at June 30, 2012. Meritor, Inc., designs, develops, manufactures, sells, markets, distributes, services, and supports integrated systems, modules, and components to original equipment manufacturers (OEMs) and the aftermarket for the commercial vehicle, transportation, and industrial sectors. ASBESTOS UPDATE: BNSF Railway Remains Exposed to PI Claims ---------------------------------------------------------- BNSF Railway Company is party to a number of personal injury claims by employees and non-employees who may have been exposed to asbestos. The heaviest exposure for BNSF Railway employees was due to work conducted in and around the use of steam locomotive engines that were phased out between the years of 1950 and 1967. However, other types of exposures, including exposure from locomotive component parts and building materials, continued after 1967 until they were substantially eliminated at BNSF Railway by 1985. BNSF Railway assesses its unasserted asbestos liability exposure on an annual basis during the third quarter. BNSF Railway determines its asbestos liability by estimating its exposed population, the number of claims likely to be filed, the number of claims that will likely require payment and the estimated cost per claim. Estimated filing and dismissal rates and average cost per claim are determined utilizing recent claim data and trends. Throughout the year, BNSF Railway monitors actual experience against the number of forecasted claims and expected claim payments and will record adjustments to the Company's estimates as necessary. Based on BNSF Railway's estimate of the potentially exposed employees and related mortality assumptions, it is anticipated that unasserted asbestos claims will continue to be filed through the year 2050. The Company recorded an amount for the full estimated filing period through 2050 because it had a relatively finite exposed population (former and current employees hired prior to 1985), which it was able to identify and reasonably estimate and about which it had obtained reliable demographic data (including age, hire date and occupation) derived from industry or BNSF Railway specific data that was the basis for the study. BNSF Railway projects that approximately 60, 80 and 95 percent of the future unasserted asbestos claims will be filed within the next 10, 15 and 25 years, respectively. No further updates were reported in the Company's Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarterly period ended June 30, 2012. Burlington Northern Santa Fe, LLC, made a similar disclosure in its SEC filing. BNSF Railway operates one of the largest railroad networks in North America. A wholly-owned subsidiary of Burlington Northern Santa Fe, the company provides freight transportation over a network of about 32,000 route miles of track across two-thirds of the western US and two provinces in Canada. ASBESTOS UPDATE: ITT Corp. Had 96,023 Open Claims at June 30 ------------------------------------------------------------ ITT Corporation, as of June 30, 2012, had 96,023 open asbestos- related claims, according to the Company's Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarterly period ended June 30, 2012. The Company states: "ITT, including its subsidiary Goulds Pumps, Inc., has been joined as a defendant with numerous other companies in product liability lawsuits alleging personal injury due to asbestos exposure. These claims allege that certain products sold by us or our subsidiaries prior to 1985 contained a part manufactured by a third party (e.g., a gasket) which contained asbestos. To the extent these third-party parts may have contained asbestos, it was encapsulated in the gasket (or other) material and was non-friable. In certain other cases, it is alleged that former ITT companies were distributors for other manufacturers' products that may have contained asbestos. "As of June 30, 2012, there were 96,023 open claims against ITT, including Goulds Pumps, filed in various state and federal courts alleging injury as a result of exposure to asbestos. Activity related to these asserted asbestos claims during the period was: For the Six Months Ended June 30, 2012 ------------------- Pending claims - Beginning 105,486 New claims 2,093 Settlements (602) Dismissals (10,954) Pending claims - Ending 96,023 "Frequently, plaintiffs are unable to identify any ITT or Goulds Pumps product as a source of asbestos exposure. In addition, in a large majority of claims pending against the Company, plaintiffs are unable to demonstrate any injury. Many of the pending claims have been placed on inactive dockets (including 29,431 claims in Mississippi). Our experience to date is that a substantial portion of resolved claims are dismissed without payment by the Company. As a result, management believes that a large majority of the pending claims have little or no value. In the six month period ended June 30, 2012, 10,954 pending claims, substantially all of which were filed in Mississippi and were inactive, were dismissed. Because claims are sometimes dismissed in large groups, the average cost per resolved claim as well as the number of open claims can fluctuate significantly from period to period. "During the three and six months ended June 30, 2012, we recognized net asbestos related costs of $9.7 and $22.3, reflecting a decrease of $6.9 and $9.2 compared to the prior year. The net asbestos-related costs primarily reflect the recognition of incremental asbestos liabilities and related asbestos assets to maintain our rolling 10-year projection of unasserted claims." ITT Corporation is a diversified manufacturer of engineered critical components and customized solutions for growing industrial end-markets, such as energy infrastructure, electronics, aerospace and transportation. ASBESTOS UPDATE: ITT Corp. Continues to Negotiate With Insurers --------------------------------------------------------------- ITT Corporation continues to negotiate settlement agreements with insurers over asbestos-related claims, according to the Company's Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarterly period ended June 30, 2012. The Company states: "On February 13, 2003, we commenced an action, Cannon Electric, Inc. v. Affiliated FM Ins. Co., Sup. Ct., Los Angeles County, seeking recovery of costs related to asbestos product liability losses. During this coverage litigation, we entered into coverage-in-place settlement agreements with ACE, Wausau and Utica Mutual dated April 2004, September 2004, and February 2007, respectively. These agreements provide specific coverage for the Company's legacy asbestos liabilities. In the first quarter of 2012, Goulds Pumps resolved its claims against Fireman's Fund and reached an agreement-in-principle to resolve its claims with another insurer. In January 2012, ITT and Goulds Pumps filed a putative class action against Travelers Casualty and Surety Company (ITT Corporation and Goulds Pumps, Inc., v. Travelers Casualty and Surety Company (f/k/a Aetna Casualty and Surety Company)), alleging that Travelers is unilaterally reinterpreting language contained in older Aetna policies so as to avoid paying on asbestos claims. We continue to negotiate settlement agreements with other insurers, where appropriate." ITT Corporation is a diversified manufacturer of engineered critical components and customized solutions for growing industrial end-markets, such as energy infrastructure, electronics, aerospace and transportation. ASBESTOS UPDATE: Crane Co. Had 57,559 Pending Claims at June 30 --------------------------------------------------------------- Crane Co. had 57,559 pending asbestos-related claims at June 30, 2012, according to the Company's Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarterly period ended June 30, 2012. As of June 30, 2012, the Company was a defendant in cases filed in numerous state and federal courts alleging injury or death as a result of exposure to asbestos. Of the 57,559 pending claims as of June 30, 2012, approximately 19,300 claims were pending in New York, approximately 9,900 claims were pending in Texas, approximately 5,500 claims were pending in Mississippi, and approximately 5,500 claims were pending in Ohio, all jurisdictions in which legislation or judicial orders restrict the types of claims that can proceed to trial on the merits. As of January 1, 2010, the Company was named in 36,448 maritime actions which had been administratively dismissed by the United States District Court for the Eastern District of Pennsylvania ("MARDOC claims"). As of June 30, 2012, pursuant to an ongoing review process initiated by the Court, 26,575 claims were permanently dismissed, and 3,377 claims remain active. In addition, the Company was named in 8 new maritime actions in 2010. The Company expects that more of the remaining 6,504 maritime actions will be activated, or permanently dismissed, as the Court's review process continues. Substantially all of the claims the Company resolves are either dismissed or concluded through settlements. To date, the Company has paid two judgments arising from adverse jury verdicts in asbestos matters. The first payment, in the amount of $2.54 million, was made on July 14, 2008, approximately two years after the adverse verdict in the Joseph Norris matter in California, after the Company had exhausted all post-trial and appellate remedies. The second payment, in the amount of $0.02 million, was made in June 2009 after an adverse verdict in the Earl Haupt case in Los Angeles, California on April 21, 2009. The Company has tried several cases resulting in defense verdicts by the jury or directed verdicts for the defense by the court, one of which, the Patrick O'Neil claim in Los Angeles, was reversed on appeal. In an opinion dated January 12, 2012, the California Supreme Court reversed the decision of the Court of Appeal and instructed the trial court to enter a judgment of nonsuit in favor of the defendants. On March 14, 2008, the Company received an adverse verdict in the James Baccus claim in Philadelphia, Pennsylvania, with compensatory damages of $2.45 million and additional damages of $11.9 million. The Company's post-trial motions were denied by order dated January 5, 2009. The case was concluded by settlement in the fourth quarter of 2010 during the pendency of the Company's appeal to the Superior Court of Pennsylvania. On May 16, 2008, the Company received an adverse verdict in the Chief Brewer claim in Los Angeles, California. The amount of the judgment entered was $0.68 million plus interest and costs. The Company is pursuing an appeal in this matter. On February 2, 2009, the Company received an adverse verdict in the Dennis Woodard claim in Los Angeles, California. The jury found that the Company was responsible for one-half of one percent (0.5%) of plaintiffs' damages of $16.93 million; however, based on California court rules regarding allocation of damages, judgment was entered against the Company in the amount of $1.65 million, plus costs. Following entry of judgment, the Company filed a motion with the trial court requesting judgment in the Company's favor notwithstanding the jury's verdict, and on June 30, 2009, the court advised that the Company's motion was granted and judgment was entered in favor of the Company. The trial court's ruling was affirmed on appeal by order dated August 25, 2011. The plaintiffs appealed that ruling to the Supreme Court of California, which dismissed the appeal on February 29, 2012; the matter is now finally determined in the Company's favor. On March 23, 2010, a Philadelphia County, Pennsylvania, state court jury found the Company responsible for a 1/11th share of a $14.5 million verdict in the James Nelson claim, and for a 1/20th share of a $3.5 million verdict in the Larry Bell claim. On February 23, 2011, the court entered judgment on the verdicts in the amount of $0.2 million against the Company, only, in Bell, and in the amount of $4.0 million, jointly, against the Company and two other defendants in Nelson, with additional interest in the amount of $0.01 million being assessed against the Company, only, in Nelson. All defendants, including the Company, and the plaintiffs took timely appeals of certain aspects of those judgments. The Nelson appeal is pending. The Company resolved the Bell appeal by settlement, which is reflected in the settled claims for 2012. On August 17, 2011, a New York City state court jury found the Company responsible for a 99% share of a $32 million verdict on the Ronald Dummitt claim. The Company has filed post-trial motions seeking to overturn the verdict, to grant a new trial, or to reduce the damages, which the Company argues are excessive under New York appellate case law governing awards for non-economic losses. The Court held oral argument on these motions on October 18, 2011, and a written decision is expected to be issued. The Company anticipates that it will likely appeal any judgment that may be entered on the verdict. On March 9, 2012, a Philadelphia County, Pennsylvania, state court jury found the Company responsible for a 1/8th share of a $123,000 verdict in the Frank Paasch claim. The Company and plaintiffs filed post-trial motions. On May 31, 2012, on plaintiffs' motion, the Court entered an order dismissing the claim against the Company, with prejudice, and without any payment. Such judgment amounts are not included in the Company's incurred costs until all available appeals are exhausted and the final payment amount is determined. The gross settlement and defense costs incurred (before insurance recoveries and tax effects) for the Company for the six-month periods ended June 30, 2012 and 2011 totaled $49.7 million and $56.2 million, respectively. In contrast to the recognition of settlement and defense costs, which reflect the current level of activity in the tort system, cash payments and receipts generally lag the tort system activity by several months or more, and may show some fluctuation from quarter to quarter. Cash payments of settlement amounts are not made until all releases and other required documentation are received by the Company, and reimbursements of both settlement amounts and defense costs by insurers may be uneven due to insurer payment practices, transitions from one insurance layer to the next excess layer and the payment terms of certain reimbursement agreements. The Company's total pre-tax payments for settlement and defense costs, net of funds received from insurers, for the six-month periods ended June 30, 2012 and 2011 totaled a $39.2 million net payment and $35.6 million net payment, respectively. Cumulatively through June 30, 2012, the Company has resolved (by settlement or dismissal) approximately 87,500 claims, not including the MARDOC claims. The related settlement cost incurred by the Company and its insurance carriers is approximately $350 million, for an average settlement cost per resolved claim of approximately $4,000. The average settlement cost per claim resolved during the years ended December 31, 2011, 2010 and 2009 was $4,123, $7,036 and $4,781 respectively. Because claims are sometimes dismissed in large groups, the average cost per resolved claim, as well as the number of open claims, can fluctuate significantly from period to period. In addition to large group dismissals, the nature of the disease and corresponding settlement amounts for each claim resolved will also drive changes from period to period in the average settlement cost per claim. Accordingly, the average cost per resolved claim is not considered in the Company's periodic review of its estimated asbestos liability. The Company has retained the firm of Hamilton, Rabinovitz & Associates, Inc. ("HR&A"), a nationally recognized expert in the field, to assist management in estimating the Company's asbestos liability in the tort system. With the assistance of HR&A, effective as of December 31, 2011, the Company updated and extended its estimate of the asbestos liability, including the costs of settlement or indemnity payments and defense costs relating to currently pending claims and future claims projected to be filed against the Company through 2021. The Company's previous estimate was for asbestos claims filed or projected to be filed through 2017. As a result of this updated estimate, the Company recorded an additional liability of $285 million as of December 31, 2011. A liability of $894 million was recorded as of December 31, 2011 to cover the estimated cost of asbestos claims now pending or subsequently asserted through 2021, of which approximately 80% is attributable to settlement and defense costs for future claims projected to be filed through 2021. The liability is reduced when cash payments are made in respect of settled claims and defense costs. The liability was $848 million as of June 30, 2012. Crane Co. (Crane) a diversified manufacturer of highly engineered industrial products. The Company's primary markets are aerospace, defense electronics, non-residential construction, recreational vehicle (RV), transportation, automated merchandising, chemical, pharmaceutical, oil, gas, power, nuclear, building services and utilities. ASBESTOS UPDATE: Curtiss-Wright Still Defends Exposure Suits ------------------------------------------------------------ Curtiss-Wright Corporation continues to defend asbestos-related lawsuits, according to the Company's Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarterly period ended June 30, 2012. The Company states: "We or our subsidiaries have been named in a number of lawsuits that allege injury from exposure to asbestos. To date, neither us nor our subsidiaries have been found liable for or paid any material sum of money in settlement in any case. We believe that the minimal use of asbestos in our past and current operations and the relatively non-friable condition of asbestos in our products makes it unlikely that we will face material liability in any asbestos litigation, whether individually or in the aggregate. We do maintain insurance coverage for these potential liabilities and we believe adequate coverage exists to cover any unanticipated asbestos liability." Curtiss-Wright Corporation is a diversified, multinational manufacturing and service company that designs, manufactures, and overhauls precision components and systems and provides highly engineered products and services to the aerospace, defense, automotive, shipbuilding, processing, oil, petrochemical, agricultural equipment, railroad, power generation, security, and metalworking industries. Operations are conducted through 62 manufacturing facilities and 58 metal treatment service facilities. ASBESTOS UPDATE: Interstate Power Continues Remediation ------------------------------------------------------- For the six months ended June 30, 2012, Interstate Power And Light Company recorded revisions in estimated cash flows of $8.2 million based on revised remediation timing and cost information for asbestos remediation at its Sixth Street Generating Station, according to the Company's Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarterly period ended June 30, 2012. Interstate Power and Light, incorporated in 1925, provides energy in a tri-state portion of the Midwest. The Alliant Energy utility subsidiary serves more than 525,000 electricity customers and more than 233,800 natural gas customers. ASBESTOS UPDATE: Parker Drilling Defending 15 Suits as of June 30 ----------------------------------------------------------------- Parker Drilling Company is a party to 15 asbestos-related lawsuits, according to the Company's Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarterly period ended June 30, 2012. The Company states: "We are from time to time a party to various lawsuits in the ordinary course that are incidental to our operations in which the claimants seek an unspecified amount of monetary damages for personal injury, including injuries purportedly resulting from exposure to asbestos on drilling rigs and associated facilities. At June 30, 2012, there were approximately 15 of these lawsuits in which we are one of many defendants. These lawsuits have been filed in the United States in the State of Mississippi. "The subsidiaries named in these asbestos-related lawsuits intend to defend themselves vigorously and, based on the information available to us at this time, we do not expect the outcome to have a material adverse effect on our financial condition, results of operations or cash flows. However, we are unable to predict the ultimate outcome of these lawsuits. No amounts were accrued at June 30, 2012." Parker Drilling Company is a provider of contract drilling and drilling-related services operating in 11 countries. The Company has operated in over 50 foreign countries and the United States. ASBESTOS UPDATE: Illinois Tool Works Still Defends Exposure Suits ----------------------------------------------------------------- Illinois Tool Works Inc. continues to defend asbestos-related lawsuits, according to the Company's Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarterly period ended June 30, 2012. Among the toxic tort cases in which the Company is a defendant, the Company as well as its subsidiaries Hobart Brothers Company and Miller Electric Mfg. Co., have been named, along with numerous other defendants, in lawsuits alleging injury from exposure to welding consumables. The plaintiffs in these suits claim unspecified damages for injuries resulting from the plaintiffs' alleged exposure to asbestos, manganese and/or toxic fumes in connection with the welding process. In the first quarter of 2012, the Company entered into an agreement resolving substantially all of the manganese-related claims for an immaterial amount. The Company believes that the remaining claims will not have a material adverse effect on the Company's operating results, financial position or cash flows. Illinois Tool Works Inc. is a multinational manufacturer of a diversified range of industrial products and equipment with operations in 58 countries. ASBESTOS UPDATE: Albany International Had 4,426 Claims at July 20 ----------------------------------------------------------------- Albany International Corp. faced 4,426 asbestos-related claims as of July 20, 2012, according to the Company's Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarterly period ended June 30, 2012. The Company states: "Albany International Corp. is a defendant in suits brought in various courts in the United States by plaintiffs who allege that they have suffered personal injury as a result of exposure to asbestos-containing products that we previously manufactured. We produced asbestos-containing paper machine clothing synthetic dryer fabrics marketed during the period from 1967 to 1976 and used in certain paper mills. Such fabrics generally had a useful life of three to twelve months. "We were defending 4,426 claims as of July 20, 2012. "We anticipate that additional claims will be filed against the Company and related companies in the future, but are unable to predict the number and timing of such future claims. "While we believe we have meritorious defenses to these claims, we have settled certain claims for amounts we consider reasonable given the facts and circumstances of each case. Our insurer, Liberty Mutual, has defended each case and funded settlements under a standard reservation of rights. As of July 20, 2012, we had resolved, by means of settlement or dismissal, 36,349 claims. The total cost of resolving all claims was $8,628,500. Of this amount, almost 100% was paid by our insurance carrier. The Company has approximately $130 million in confirmed insurance coverage that should be available with respect to current and future asbestos claims, as well as additional insurance coverage that we should be able to access. "Brandon Drying Fabrics, Inc. ("Brandon"), a subsidiary of Geschmay Corp., which is a subsidiary of the Company, is also a separate defendant in many of the asbestos cases in which Albany is named as a defendant. Brandon was defending against 7,873 claims as of July 20, 2012. "We acquired Geschmay Corp., formerly known as Wangner Systems Corporation, in 1999. Brandon is a wholly owned subsidiary of Geschmay Corp. In 1978, Brandon acquired certain assets from Abney Mills ("Abney"), a South Carolina textile manufacturer. Among the assets acquired by Brandon from Abney were assets of Abney's wholly owned subsidiary, Brandon Sales, Inc. which had sold, among other things, dryer fabrics containing asbestos made by its parent, Abney. Although Brandon manufactured and sold dryer fabrics under its own name subsequent to the asset purchase, none of such fabrics contained asbestos. Because Brandon did not manufacture asbestos-containing products, and because it does not believe that it was the legal successor to, or otherwise responsible for obligations of Abney with respect to products manufactured by Abney, it believes it has strong defenses to the claims that have been asserted against it. "As of July 20, 2012, Brandon has resolved, by means of settlement or dismissal, 9,727 claims for a total of $0.2 million. Brandon's insurance carriers initially agreed to pay 88.2% of the total indemnification and defense costs related to these proceedings, subject to the standard reservation of rights. The remaining 11.8% of the costs had been borne directly by Brandon. During 2004, Brandon's insurance carriers agreed to cover 100% of indemnification and defense costs, subject to policy limits and the standard reservation of rights, and to reimburse Brandon for all indemnity and defense costs paid directly by Brandon related to these proceedings. "We do not believe a meaningful estimate can be made regarding the range of possible loss with respect to these remaining claims. "In some of these asbestos cases, the Company is named both as a direct defendant and as the "successor in interest" to Mount Vernon Mills ("Mount Vernon"). We acquired certain assets from Mount Vernon in 1993. Certain plaintiffs allege injury caused by asbestos-containing products alleged to have been sold by Mount Vernon many years prior to this acquisition. Mount Vernon is contractually obligated to indemnify the Company against any liability arising out of such products. We deny any liability for products sold by Mount Vernon prior to the acquisition of the Mount Vernon assets. Pursuant to its contractual indemnification obligations, Mount Vernon has assumed the defense of these claims. On this basis, we have successfully moved for dismissal in a number of actions." Albany International Corp. is an advanced textile and material processing company. The Company's business is a producer of custom-designed fabrics and belts essential to paper and paperboard production. ASBESTOS UPDATE: General Cable Still Defends Exposure Suits ----------------------------------------------------------- General Cable Corporation continues to defend asbestos-related lawsuits, according to the Company's Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarterly period ended June 29, 2012. The Company's subsidiaries have been named as defendants in lawsuits alleging exposure to asbestos in products manufactured by the Company. As of June 29, 2012, the Company was a defendant in approximately 628 non-maritime cases and 28,438 maritime cases brought in various jurisdictions throughout the United States. As of June 29, 2012 and December 31, 2011, the Company had accrued, on a gross basis, approximately $5.1 million, and as of June 29, 2012 and December 31, 2011, had recovered approximately $0.5 million and $0.6 million of insurance recoveries for these lawsuits, respectively. The Company does not believe that the outcome of the litigation will have a material adverse effect on its condensed consolidated results of operations, financial position or cash flows. General Cable Corporation (General Cable) is engaged in the development, design, manufacture, marketing and distribution of copper, aluminum and fiber optic wire and cable products for use in the energy, industrial, construction, specialty and communications markets. The Company additionally engages in the design, integration, and installation on a turn-key basis for products, such as high and extra-high voltage terrestrial and submarine systems. ********* S U B S C R I P T I O N I N F O R M A T I O N Class Action Reporter is a daily newsletter, co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Noemi Irene A. Adala, Joy A. Agravante, Ivy B. Magdadaro, Psyche A. Castillon, Julie Anne L. Toledo, Christopher Patalinghug, Frauline Abangan and Peter A. Chapman, Editors. Copyright 2012. All rights reserved. ISSN 1525-2272. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. 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