Archive for the ‘Legal News’ Category
Tuesday, August 31st, 2010
Commercial insurer CNA Financial Corp. has completed its transfer of $1.6 billion of asbestos and environmental pollution liabilities to a subsidiary of Warren Buffett’s Berkshire Hathaway Inc.
As a result, CNA said it expects to recognize an after-tax loss of approximately $370 million for the current quarter.
CNA Financial has said the deal eliminates “a significant source of uncertainty” for the Chicago company, which is primarily owned by Loews Corp., a conglomerate controlled by New York’s Tisch family.
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Thursday, July 29th, 2010
The Pennsylvania Supreme Court has ruled that two plaintiffs alleging that exposure to asbestos caused their illnesses cannot have their cases dismissed on summary judgment simply because the plaintiffs’ doctor opined that their illnesses are attributable both to exposure to asbestos and to smoking.
According to the plaintiffs’ attorney, the court’s ruling in Summers v. Certainteed Corp. and Nybeck v. Union Carbide Corp. could impact many cases beyond asbestos litigation by setting the standard of review of summary judgments as a de novo review, rather than an abuse of discretion standard of review.
Justice Max Baer, writing for a majority including Chief Justice Ronald D. Castille and Justices Debra Todd and Seamus P. McCaffery, overruled a prior Superior Court ruling, Quate v. American Standard Inc.
In that 2003 case, the Superior Court ruled that when a plaintiff has symptoms that could arise from exposure to asbestos, as well as from another malady, “‘the existence of those non-asbestos-related medical conditions negate his ability to establish the necessary causal link between his symptoms and asbestos exposure,’” Baer said.
The Supreme Court rejected the bright-line rule implied in Quate — that plaintiffs should be precluded from recovery when their breathlessness and other symptoms could be attributable to diseases, some of which are caused by asbestos exposure and some of which are due to other causes.
Baer said such issues of causation, when backed by “reasonably certain expert opinions,” should survive summary judgment and go to juries to determine causation.
“Under this commonwealth’s jurisprudence, where it is clear that reasonable minds could differ on the issue of causation, precluding asbestos litigants from pursuing causes of action, supported by competent medical evidence, merely because of the existence of competing health conditions, is unsustainable,” Baer wrote.
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Wednesday, July 21st, 2010

Indian Workers Protest Asbestos
Despite proven links to cancer, a ban in the European Union and restrictions in the United States, industry lobbyists have ensured that asbestos is still very much in demand in the developing world, a report out today shows.
An investigation conducted by the International Consortium of Investigative Journalists and the BBC, Dangers In the Dust: Inside the Global Asbestos Trade , found that the asbestos industry has ignored waves of asbestos-related disease around the world that have led to bans or restrictions in 52 countries, and continues to ply the mineral in developing nations.
More than half of the two million metric tons of asbestos that were mined worldwide in 2009 was exported to developing countries India and Mexico, where demand is high for cheap building materials.
Most of the asbestos sold in those countries is used in cement for corrugated roofing, in water pipes and for home construction.
The asbestos industry’s growth has been fueled by an marketing campaign of international industry groups and led by the Canadian government backed Chrysotile Institute.
Asbestos fibers when inhaled can cause a variety of diseases in humans, including lung cancer and mesothelioma, a cancer of the lining of the lung. The continued export of asbestos to developing countries will tragically create a new generation of asbestos victims far into the 21st century.
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Monday, July 19th, 2010
The Asbestos Disease Awareness Organization (ADAO), today released a statement from Linda Reinstein, CEO and Co-Founder, regarding the California proposed legislation to drop the state rock, serpentine.
“In a united call for compassionate action, The Asbestos Disease Awareness Organization (ADAO) fully supports the Drop the Rock campaign to remove the official California State rock, Serpentine, which is the host rock for asbestos. The tragic irony of this designation is that asbestos exposure can cause numerous respiratory diseases and cancers including lung cancer and mesothelioma. The legislation behind the movement, SB 624, is about abolishing a symbol that conveys a very dangerous legacy. In 1965, Serpentine was designated as the state rock of California to promote the then lucrative asbestos mining industry, an industry that has since been closed down” said Reinstein.
The World Health Organization, The Environmental Protection Agency, and U.S. Surgeon General agree: all forms of asbestos are carcinogenic and there is no safe level of asbestos exposure. According to the State of California Department of Conservation, ‘Chrysotile often occurs as fibrous veinlets in serpentine. Chrysotile in fibrous form is the most common type of asbestos…serpentine often contains some asbestos, and exposure to asbestos fibers have potential human-health consequences…’
SB 624 enjoys widespread bipartisan support. It unanimously passed the Manhattan Beach City Council, Californian State Senate and California Assembly Committee on Natural Resources and is supported by such organizations as the Children’s Hospital of L.A.
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Thursday, July 15th, 2010
The Associated Press reports that geologists and industry advocates are pushing California lawmakers to keep serpentine as the official rock of California. Their arguments for keeping the rock: the asbestos often found in serpentine is not as dangerous as other types of asbestos and trial lawyers will create new claims if serpentine is declassified.
The health concerns regarding asbestos are well documented. The World Health Organization, among numerous health organizations, has found that all types of asbestos, including chrysotile – the kind found in serpentine, are hazardous to humans. No safe level of asbestos exposure has been identified. Indeed, even lower level exposures to asbestos, including chrysotile, can cause the development of mesothelioma. For these reasons, over 50 nations world-wide have banned the mining and use of all forms of asbestos. There is no real debate in the scientific world about whether chrysotile or any other forms of asbestos are toxic.
As for new litigation that will be caused by stripping the rock of its official title – that’s a scare tactic. As Ben DuBose stated in today’s Associated Press report, removing serpentine as the California state rock will not result in any new types of litigation. The reason – it’s not the rock itself but the asbestos that’s commonly contained in the rock that poses the hazard.
The reason California needs to drop the rock – it’s really out of respect to all of the asbestos cancer victims, including several thousand in California. The proposed law is the decent thing to do since the asbestos industry pressured the California legislature to give serpentine its special status in the first place.
For more information, see our previous post on whether to drop the rock.
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Monday, July 12th, 2010

Leslie Controls, Inc. , a company that manufactured asbestos-containing steam equipment for US Navy wartime ships, filed today for a pre-negotiated Chapter 11 bankruptcy to resolve asbestos liability claims.
Leslie was a major supplier of steam control equipment for military and merchant ships during World War II. Many Leslie steam equipment products contained asbestos component parts or required asbestos external insulation. Claims against Leslie primarily involve asbestos on US Navy ships from the 1940s to the 1980s according to the bankruptcy filings.
See Forbes article for more information on the the bankruptcy filing of Leslie Controls Inc.
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Tuesday, July 6th, 2010
An Auburn, Illinois man, has been fined and sentenced to probation for placing Virden, Illinois residents at risk of asbestos exposure when he remodeled a nursing home without determining whether the extensive work would result in asbestos exposures for the residents.
The man was sentenced in Macoupin County to 18 months probation and 90 days in jail. He must also perform 100 hours of community service, and pay $5,000 in fines.
Daniel Merriman, of the Illinois Environmental Protection Agency (IEPA), issued the following comment on the punishment: “It was a just sentence that takes into account the seriousness of the offense, the hazard that was created and the potential risk to the neighbors and the community.” Merriman also added, “People tend not to take the asbestos issue seriously.”
The Illinois EPA investigated the case after obtaining knowledge that the former Virden Nursing Home was being rennovated without properly inspecting and removing the materials containing asbestos. The owner also apparently failed to notify the IEPA of the toxic material.
These careless actions have put Virden residents at risk for contracting several asbestos related diseases. Inhalation of asbestos fibers can result in asbestosis, lung cancer and mesothelioma , a cancer most typically seen in the lining of the lung.
Next Generation Ministries pleaded guilty to improper asbestos removal, and its Vice President pleaded guilty to a misdemeanor, failure to prove notification of demolition or renovation.
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Thursday, July 1st, 2010
Two Kansas City, Missouri men have been indicted by a federal grand jury on charges of improperly handling asbestos. The allegations stem from April 2001 to July 2006, during which time the men had been illegally removing and disposing of the asbestos-contaminated materials.
The grand jury found that the men, violated the federal Clean Air Act, and are subject to sentences of up to seven years in prison, and fines of up to $500,000 if convicted.
The federal charges allege the two developers improperly removed and disposed of the asbestos while working on the Citadel Plaza project.
Asbestos is a naturally occurring fibrous material most commonly exploited for its fire retardant properties. When asbestos is disturbed, the toxic material becomes airborne–posing a serious to health threat to those exposed.
Asbestos exposure can lead to the development of asbestosis, lung cancer and mesothelioma, a cancer of the lining of the lung.
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Monday, June 28th, 2010

Serpentine - California State Rock
The Los Angeles Times reports a California state senator has introduced a bill to decertify the California state rock. A waste of time you say? Not in this case. Serpentine, the official rock of California, is asbestos containing.
At one time at least three asbestos mines were operated in California: The Altas Mine, The Johns-Manville Coalinga mine and the Union Carbide Calidria mine. During the 1960s, at the height of California asbestos mining, the legislature named Serpentine as the Golden State’s official rock.
Times have changed. Asbestos has claimed thousands of American lives.
While the California mines may be closed, the dangers remain. Areas around the old mines have been designated as Superfund sites and the Bureau of Land Management closed a 48 square mile area of the Diablo Mountain Range which encompasses the old Atlas Mine north of Coalinga. An EPA study found dangerous levels of asbestos dust were being stirred up by weekend motorcycles and ATVs.
Against this backdrop, asbestos victim advocacy groups, including the Asbestos Disease Awareness Organization have sponsored a petition drive, called Swap the Rock, aimed at pressuring lawmakers to dump the official state rock.
Thousands of Californians and other Americans have been killed by asbestos – a mineral which still poses a threat today. Changing the state rock designation is the right thing to do.
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Friday, June 18th, 2010
James Hardie, an Australian maker of fiber cement building products, which generates most of its earnings from US sales, has completed the restructuring of the corporation as an Irish entity for tax and management reasons, says a Hardie spokesman.
The company, which originally moved from Australia to the Netherlands in 2001, had also become involved in disputes with Australian and U.S. authorities over its asbestos liabilities.
James Hardie, for much of the 20th century, was involved in the manufacture, distribution and mining of asbestos and asbestos containing construction products. With numerous asbestos manufacturing plants in Australia, the James Hardie asbestos product line has been credited as a significant source of Australia’s asbestos epidemic. Australia has one of the highest rates of asbestos-related disease in the world; it is estimated that between 30,000 and 40,000 people will have contracted an asbestos-related disease in Australia (including mesothelioma and lung cancer) by 2020. See American Journal of Industrial Medicine
The company has said the move to Ireland will not affect its commitment to contribute to the Asbestos Injuries Compensation Fund.
For more information on the corporate move see the Wall Street Journal
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