Document 3ezKo10dE7RzKbxeNY1jr4DKa

February 29, 1984 OSHA Proposed Standard On Asbestos Expected In March As reported (N&N Jan.), OSHA's draft proposal on asbestos was reviewed Jan. 11 by the agency's Advisory Committee on Construction Safety and Health. Subsequent to this meeting, the proposal, without any major modifications, was submitted to the Office of Management and Budget (OMB) on Feb. 10 for review as required by Executive Order 12291. \ At this writing, it is understood that OMB has completed its review and the proposal is expected to be published in the-] Federal Register next week. Assuming the above is correct, the schedule of rulemaking on the proposal will be as follows: . Notices of intent to appear at hearing sub mitted within 30 days after publication. . Comments concerning the proposal submitted within 45 days after publication. . Parties submitting documentary evidence at the hearings must sutmit text of their testimony within 45 days after publication. . Informal rulemaking hearing will begin at 10:00 AM first Tuesday after 60 days from publication (date is likely to be May 15, 1984) . Hearing will be held in the U.S. Department of Labor auditorium. Third St. and Constitution Ave., N.W., Washington, D.C. AIA/NA is proceeding with its preparations to file comments and participate in the hearing. As a related matter, OSHA's emergency temporary standard (ETS) remains in a stayed status and a final ruling on the ETS is awaited from the Fifth Cir cuit Court of Appeals. ASBESTOS INFORMATION ASSOCIATION 1745 Jefferson Davis Highway. Crystal Square 4. Suite 509 Arlington. Virginia 22202 (703) 979-1150 CAPCO JEN 0013279 Page 2 Cancer Society Elects To Broaden Its Scope To Environment And Workplace The American Cancer Society, yielding to pressure from con sumer and labor groups, has broadened its agenda to advo cate strong measures by the government to reduce human ex posure' to environmental and occupational carcinogens. ACS had received appeals from the various groups to extend its scope beyond its traditional concern for smoking and cancer and take more positive positions on control of environmental carcinogens. At a meeting of its board of directors, ACS adopted resolu tions to support government efforts under Superfund, and to prevent exposure to ethylene dibromide. The board also ex pressed, for the first time, positions on asbestos and ben zene, which it will file as comments with OSHA. "We are encouraged by ACS's long-awaited policy reversal and are hopeful that it will now become a leading cancer-preven tion organization," said Dr. Michael Jacobson, Director of the Center for Science in the Public Interest. "ACS should now follow through with the resources and staff to vigorous ly advocate these policies in Congress, the Environmental Protection Agency and OSHA. The ACS can now be a powerful,] ally of citizens groups that have long opposed the introduc tion of cancer-causing chemicals into the environment." First Quarter AIA/NA Directors Meeting Scheduled For Mar. 14 The regular first quarter meeting of the Association's Board of Directors will be held Wednesday, Mar. 14, at Stouffer's National Center Hotel, Arlington, VA. The meeting will com mence at 8:00 AM in the James Room. A reception and dinner are scheduled for Tuesday, Mar. 13, starting at 6:30 PM in the James Room. Dr. Fred Hoerger, Director, Regulatory and Legislative Issue's, The Dow Chemical Company, and representa tive of the Chemical Manufacturers Association, will be the dinner speaker. The AIA/NA Executive Committee will meet on Tuesday, Mar. 13, at Stouffer's National Center Hotel, commencing at 9:00 AM. 0RC Symposium Deals With Asbestos In The Industrial Environment A symposium is scheduled for Mar. 27-28 at the Marriott Key Bridge Hotel, Arlington, VA, by Organization Resources Coun selors, Inc., on asbestos in the industrial environment. CAP CO JEN 0013280 Page 3 Purpose of symposium is to examine practical methods whereby asbestos found in the workplace can be safely handled, re moved, and disposed of. Topics to be covered by authoritative speakers include: respiratory protection; monitoring; disposal; medical sur veillance; legal problems; regulatory agencies; estimating risks; asbestos in office buildings; plant and building dem olition; and dealing with contractors. Symposium is designed primarily to meet information needs of persons who have re sponsibility for asbestos removal operations. For more information contact: Organization Resources Coun selors, Inc., 1625 I. St., N.W., Suite 802, Washington, D.C. 20006; (202) 872-1080. Registration fee for non ORC members is $250.00. EPA And NCI Publish Report On Cancer Rates Environmental Protection Agency (EPA) and National Cancer Institute (NCI) have published a reference report on cancer, mortality rates spanning a thirty-year period for counties-) in United States. Entitled, "U.S. Cancer Mortality Rates 1 and Trends: 1950-1979," three-volume reference provides refsearchers with data that could help in design of studies ex ploring environmental factors which may contribute.to cancer causation. Report's data, based on death certificates and county popu lation information, were obtained from National Center for Health Statistics and Bureau of Census. Death rates per 100,000 population were computed separately for whites and nonwhites by sex. Average annual death rates were calcu lated for all cancers combined and separately for each of 34 cancer sites for three decades: 1950-1959, 1960-1969, and 1970-1979. Rates were computed for 3,065 counties in 49 states. Rates for Alaska are given for entire state but not by county. Data were adjusted to correspond with age distri bution of U.S. population in 1970 to provide for comparabil ity with NCI's network of population-based cancer registries. Report shows that overall cancer death rates would have de clined over years 1950-1979 for most of U.S. male population, if it weren't for increases in lung and other smoking-related cancers. Overall rates for females decreased in spite of a large increase in lung cancer, because of decreasing deaths rates for other types of cancer. Over three decades, lung cancer death rates for white males rose 116 percent; for white females, rate went up 199 percent; for nonwhite males, up 185 percent; and for nonwhite females, up 188 percent. There were also increases in death rates for other smoking-related cancers such as esophageal and laryngeal cancers. CAP CO JEN 0013281 Page 4 Excluding lung cancer, death rates for all other cancers decreased 5 percent for white males, 12 percent for white females, and 13 percent for nonwhite females. The rate for nonwhite males increased 15 percent. These trends are consistent with other statistical analyses on cancer death rates. Dr. Thomas Mason of NCI's Environmental Epidemiology Branch and a co-author of report emphasized that "the data need to be interpreted cautiously. The summary statistics such as percent changes or percentile rankings do not, by themselves, tell scientists or the public what is happening to a cancer rate. Changes in death rates over time as well as rates for counties are influenced by many factors. Regional differ ences in diagnostic accuracy and reporting practices as well as changes in incidence rates, earlier detection, and impro ved treatment and survival all affect death rates for cancer." Dr. Wilson Riggan, a scientist with EPA and investigator for study stated, "The report is an excellent statistical refer ence tool for medical and scientific researchers because it provides a historical data base for comparing past and pre sent cancer death rates. It also provides a method for screening large amounts of data to select geographic areas-. { most suitable for further study." -j However, users of report should bear in mind that population migration patterns, long time period between exposure and appearance of most cancers, and medical advances in knowledge, detection, and treatment of cancer are not considered in this study. Dr. Riggan also explained that although report does give trends in cancer death rates, it does not include cause and effect relationships. No hypotheses are tested in this publication; thus, inference on cause of geographic variations in trends or rates will require additional investigation and data. Copies of report are available from Superintendent of Docu ments, U.S. Government Printing Office, Washington, D.C. 20402. Telephone: (202) 783-3238. When ordering, refer to publication number 055-000-00234-7. Price of three-volume report is $45.00. Academy Issues Report On Nonoccupational Health Risks Of Asbestiform Fibers A committee of the National Research Council - National Acad emy of Sciences issued a 334-page report earlier this month on "Nonoccupational Health Risks of Asbestiform Fibers." This study was conducted under a contract from the Environmental Protection Agency. Lester Breslow, School of Public Health, University of California, served as chairman of the committee. CAP CO JEN 0013282 tI Page 5 The report is replete with stress onthe highly uncertain ex tent of risk from nonoccupational exposure to asbestiform fibers in air to human health. For example, at one juncture the statement is made that estimating the extent of health risk from such low exposures is "fraught with uncertainty." The committee then proceeds to make a quantitative estimate of the risk of excess lung cancer and mesothelioma that "might" occur in persons breathing low levels of asbestos in the air. Based on the committee's estimated level of exposure to 0.0004 f/cc for a 73-year lifetime, "approximate" risk of 10 excess deaths in a million is predicted (nine mesotheliomas and one lung cancer). The committee then emphasized: "Because of the great reliance on assumption and on clearly deficient exposure and effects data, the committee views these risks es timates as guides to the qualitative assessment of non-occupational health risks from asbestos and asbestiform fibers - not as definitive estimates of the amount of disease to be antici pated." A part of the committee's mandate from EPA was to also evaluate the public health risk from fibrous minerals other than asbes tos and from the man-made substitutes, such as rock wool and fibrous glass. The concern is that the asbestos look-alikes also might be carcinogens because they have many of the sam? physical properties as asbestos. The term "asbestiform fibirs" includes all of them for purposes of the study. Results of scientific studies of the man-made asbestiform fibers, mostly fibrous glass, have been "equivocal," the report pointed out. These materials have not been in use nearly as long as as bestos; concentrations in the workplace have been lower, and fewer workers have been exposed. Studies done before 1980 did not, in fact, suggest any serious health risks at all. But the studies done after 1980 begin to tell a different story. Most of them report "excess" lung cancer deaths; that is, more lung cancer deaths than one would expect to find if the fibers were not implicated. The evidence is neither clear nor consistant, however, and the results of long-term mortality studies are not yet in. Copies of the Academy's report may be obtainted from the Na tional Academy Press, Room 700, 2100 Pennsylvania Ave., N.W., Washington, D.C. 20418/(202) 334-3113 at a cost of $22.50 each. Friable Asbestos In Schools Addressed By EPA In a notice expected to be published in Federal Register early Mar., EPA outlines its future program regarding friable asbes tos-containing materials in schools and other public buildings. Agency notice is in response to a petition filed by Service Em- ployees International Union (SEIU), AFL-CIO, under section 21 of Toxic Substances Control Act (TSCA), to initiate rulemaking proceedings under section 6 of TSCA concerning abatement of friable CAP CO JEN 0013283 Page 6 asbestos-containing materials in public and private elementary and secondary schools, and inspection and abatement of these materitils in other public and commercial buildings. SEIU petition sought to have EPA take action in following areas: . Establish standards for determining when friable asbestos-containing materials in schools are hazardous. . Establish requirements for corrective action when friable asbestos-containing materials are determined to be hazardous. . Establish requirements for inspection and abate ment of friable asbestos-containing materials in public and commercial buildings. . Establish standards for performance of abatement activities, including standards for protection of persons performing such activities. EPA has granted three of petition's four requests and has par tially granted fourth. ; As first step in initiating proceeding under section 6 of TSCA, EPA is soliciting written public comments and will convene a public meeting not only on issues raised in petition but on other regulatory and technical options as well. At same time that public imput is solicited. Agency will continue to develop data which can support additional action. With respect to unreasonableness of risk from asbestos-contain ing materials in schools, EPA response to SEIU petition stated a number of factors must be considered. In some cases, asbes tos-containing material is undamaged, potential does not exist for future release, and cost of removing asbestos is extremely high. In such cases, removal could increase, rather than de crease exposure to asbestos, therefore, risk resulting from leaving asbestos in place would not appear to be unreasonable, and best option would be to leave asbestos in place as long as it remains undamaged. On other hand, some schools may contain damaged or deteriorating asbestos-containing material which readily releases fibers, thereby increasing likelihood of expo sure. According to Agency, such risks could be called unrea sonable and costs that may be incurred in removing or otherwise abating asbestos would be outweighed by risks presented. Alternatives which EPA is developing to address problem include additional training programs for schools, contractors, states, parents and teachers; requiring asbestos abatement contractor certification; and requiring abatement of friable asbestos-con taining materials in buildings through use of administrative mechanism and independent inspections or certification of appro priate abatement actions taken. CAP CO JEN 0013284 Canada's bid to regain U. S. asbestos markets The use of asbestos, a minora] known to be carcinogenic, kai been declining yearly u governments, particularly the U.S. government, continue to restrict its me. Now Canada, the nonConuns* nkt world1* leading asbestos supplier, k anxiously looking for a way to regain some of ita markets. The Sodete Na tional de I'Amknte (SNA), an asbestos firm owned by the province of Quebec; will start up a 1-metxk-ton/day pQot plant in April to produce a "safe** phos phate-treated asbestos fiber. SNA cairns that its treated fiber dramatically re duces dust emissions, lowering the risk of asbestos-related diseases. Canada bis s lot at stake. Consump- tion of asbestos in the U. S, the largest. market for Canadian asbestos, has plummeted from s 1973 peak of 796,000 m.t to 335,000 m.t in 1981, according to Gorham International (Gorham, lib.). The Canadian government k pressing the U.S. to relax its regulatory position on asbestos. But Gorham pro-J jects that, even without any fur ther regulatory strictures, U. S. demand will continue to fall, to 250,000 m.t in 1985 and 170,000 m.t by 1990. Confidence. SNA, meanwhile, k so confident that its pilot plant will produce a marketable prod uct that it already is planning for full-scale preduction. "By the end of the year, we hope to have the information available to proceed to construction of a proper factory," says Jean-Marc Lalancette, SNA vice-president of research and development In dustrial production uaing_ the patented process could begin by 1986, he adds. SNA's technology converts the terminal hydroxyl groups of magnesium in duysotfie asbes tos---the most commonly used asbestos and the only kind pro duced in Canada--into phos phate groups. These phosphatetreated asbestos fibers are considered less carcinogenic than untreated asbestos because they reduce cancer-causing as bestos dust Conversion is accomplished by expos ing agitated asbestos fibers to circulat ing phosphorous vapors, a reaction that is carried out in an inert, dry atmo sphere. lalancette says that such phos phate treatment will result in a "slight" price increase of about $100 (Canadian)/ m.t of asbestos, most grades of which currently sell for $400-600 (Canadian)/ m.t U.S. Is Considering Rules to Clean Up SNA claims that its treated asbestos can be substituted for all grades of as bestos fiber in virtually all industrial and construction applications. And the company also claims that its treatment method, nnlike other physical sad chem ical modifications,-- leaves -the chrysotile's fibrous structure intact Competition. But SNA's modified asbes tos will have to compete with a number of substitutes. Glass fiber priced com petitively with asbestos dominates the asbestos substitute market, according to Alvin Keene, vice-president and direc tor at marketing services for Gorham International Silica aad other mineral, product* also compete in the lower end of the market fit some higb-performance applications, higher grades are being replaced by aramid fiber. While tiie provincial government of Quebec k focusing on modifying asbes tos to make it safer, the Canadian gov ernment k directing its efforts toward influencing Washington's asbestos pofi de*. Canada's concern k not surprising: During 1983, Canadian asbestos mines operated at only 5360% of capacity, ac cording to Oliver Vagt, a mineral econo mist with the country* Energy, Mines and ' Resources - Dept Production dropped from 1,492,000 m.t in 1979 to 820,000 m.t in 1983. "Die outlook k for an improvement m 1981, but it all de pends on the regulatory front in the U.S," Vagt says. Dspsrtm. Canada exports 90% of ita asbestos, much of it to the U. S, whore the Environmental Protection Agency k threatening to btn the use of a variety of asbestos products sometime this year and to establish a staged production cap on remaining uses. In a recent speech delivered in Washington, Allan E. Got- Hcb, Canadian ambassador to the U.S, charged, that the direction of U.S. poli cy k tn "apparent departure from the mainstream international approach that has implications for the general princi ple of international harmonization of regulations on asbestos supported by both our governments. *There k no doubt that the recent economic recession has had a large bearing on the poor performance at both our asbestos industries," GotSeb continued. "But there k also no ques tion that the public concerns about health have taken tbdr toll" Asbestos in Schools ' By Andy Pasztos ByaWAU.STunrouaj<Ai.StqffRtport- WASHINGTON--Federal environment officials are. considering mandatory rules t protect schoolchildren and other group from exposure to asbestos fibers from crun bling insulation. The Environmental Protection Agenc; acknowledging that current voluntary guldt lines may be Inadequate, announced that is formally reopening the question i whether to issue legally binding standarc for the cleanup and removal of asbestos l> sulafion. Asbestos, considered by the governmei to cause cancer and respiratory problem was used for insulation In thousands buildings after World War II; it has been d tected at unsafe levels in certain schools at public buildings. Although the agency didn't propose sp cific rules, the announcement Indicates sharp turn from previous'federal policy, ar it could pave the way tar i more aggressb strategy to deal with the problem, agent officials said. Developnint of new rule however, could take afcjrag as two year Since May 1962, the" EPA has requln school officials to inspect classrooms and i form parents and employees about possib asbestos dangers. But it's currently up to 1 cal school officials and parent groups to d dde what, if anything, should be done correct problems. A recent Internal agency report eo eluded that hundreds of schools with serio asbestos pollution haven't done anything alleviate the danger, and ft suggested th tougher regulations may be necessary. T National Education Association and the S< vice Employees International Union al have asked the EPA for more stringent re illations. By some estimates, nearly the n tton's elementary schools may have a bestos problems requiring some protecti' measures. Currently, the agency doesr even require routine Inspections of pub' and commercial buildings for asbestos bers. It isn't clear what the EPA will require control asbestos fibers pollution, and mu will depend on public feedback. But afi agreeing to consider a mandatory progra it's unlikely the agency will decide to a tlnue voluntary cleanup guidelines. EPA fldals previously asserted mandatory ru would be too expensive, cumbersome a technically difficult to formulate, but i agency said it currently is searching ways around those obstacles. Specifically, the agency granted most the demands of the service employees un to initiate formal regulatory action unc Cfurriai W*W/Fbnjly 22. 1984 the Toxic Substances Control Act But at t same time, the EPA rejected union reque for new regulations to protect school e THE WALL STREET JOURNAL ployees and other workers who remove Thursday, February 23, 1984 repair crumbling asbestos insulation. CAPCO JEN 0013285 $6.2Million in Losses From'Asbestos Cases. aj)(WuxtnmJoinw.SMtriliart<r CHICAGO--UNR Industries Inc. said It filed daims with nine federal agencies, seeking reimbursement for 56.2-million to . It's time for^Cpngresslosses from defending Itself against as bestos-related lawsuits. iwp ^ steelmaker, said the claims inwSteXMaBm&ttSitfiiitGsBet&ecBtDpiBy. filed to' reorganijaflco under Chapter 11 of to enter the UJ5. Bankruptcy Code to July 1982. Un derChapter 11. a company is protected from creditor lawsuits while it tries to work out a plan to pay debt. The company currently is operating under that protection. T be Manville Corp.'i bold gambit to evade responsibility for asbestos-related illnesses in the workplace through bankruptcy begs for a congreaaonalreme^r. s-.-. Thetone agencies UNR filed with are the Congress must deal this session with the Immediate departments of justice. Defense, Labor, , Navy and Health and Human Services; the Maritime Administration, a unit of the Transportation Department; the General Services Administration; the Office of the. Surgeon General, and the Public Health Ser vice. an HHS unit prospects that Manville might succeed before the bankruptcy court in insulating itself from lawsuits by individuals claiming health damage from exposure to Manville-made asbestos. There are more than 18,000 such claims pending, including about >50 by Electrie Boat workers who handled insulation material that . Last month to a separate action, the com was uspd extensively aboard submarines until the " pany sued the federal government for 560 early 1970a. When it filed for bankruptcy last August, million, charging that the government shared liability for millions of dollars to as bestos-related injury claims against UNR. The- cfamss actor front, the; production and use of asbestos, during. U1S', shipbuilding eltacts to World War II and thereafter. "Our company's aggressive litigation will Manville claimed it faced at least 35,000 additional suits. -- Congress must also deal with the possiblity that, if. things go well for Manville, other companies will use the threat of bankruptcy art bargaining ehip against claims of this sort establish that the government at best Ig The federal bankruptcy code was never intended to nored the hazards of shipyard asbestos ex protect a solvent company in ManvBle'a posure or at worst even concealed them," an attorney for UNR said. "We feel the gov ernment should be a partner to paying the enormous costs that resulted from the prod uct use." Asbestos has been linked to cancer and lung disease in humans. predicament. The corporation is in sound financial health, with a net worth in June 1882 of $1.1 billion, short-term debt of 8102 million and long-term debt totaling 8488 million. "No company should be able to cloak itself in the judicial processes of the U.S. to dVtde all responsibility," says Rep. George Miller of THE WALL STREET JOURNAL Thursday, February 16. 1984 California, who is chairman of the Bouse Committee ) on Labor. - NO-FAULT ASBESTOSIS COMP FUND PROPOSED The Manville ease Is not entirely one-sided. The company claims, possibly with some justification, that litigious lawyers may be partly at faultfor the WASHINGTON. DC -- A draft of proposed federal legislation to estab lish a no-fault system of compensa tion for asbestos related disease has been dest&pedby the Committee for Eauitable Compensation, comprised of 13 asbestos manufacturers. The mess before the bankruptcy court, hampering serious negotiations in sq effort to enlarge their clients' claims and beef up their own feet. This is allthe more reason for Congress to take a leadership role in dealing with the asbestos claims and not wait for courts to settle the matter. Sen. Gary draft also has been endorsed by the three asbestos manufacturers that have filed tor reorganization under federal' bankruptcy laws -- Manville Corporation. UNR Industries and Arnatex Corporation. The proposal calls for the federal government to . Hart, a Colorado Democrat, has appealed for passage of legislation to create a method of compensating white-lung victim* through a joint government* industry fund to pay asbestos claims. The approach is similar to the one taken by the government to deal with the problem of hazardous wastes. contribute one half of the payments to the compensation fund, which would be the exclusive remedy-for asbestosis claims. T.ne balance of the fund would be coniripuled by manu Whether this is the solution remains to be debated. But it is preferable to denying the rightful claims of American workers that Manville has begun to do in its bankruptcy petition. facturers ana then insurers. State wonsfi.'s1. cpmjififlsalion rules would apply. A maximum of 92 times the ssafea*erage weekly wage in ccsnpesssaJidt; is proposed subject to CT-018 NEW 10N0QN DAY (EJ38.OO0 reductions for partial disability.^ ' 43A-19 IKSURAXEWEtt WEEKLY S.ODO JAN 201934 JAN 31 1984 1 COST HIGH FOR ASBESTOS REMOVAL Removing friable asbestoa_ from the walls and ceilings of the nation's schools would coat $1.4 billion according to a report completed by the Department of Health and Human Services.. The draft report, which was . leaked to the press, said that more than 14,000 school build ings contain flaking asbestos particles that could pose a health risk to students, teach ers and workersfa theschools. Rep. Georg^ Miller, D.- Calif., said thejdraft report brings attention)to a problem that has been {^concern for a long time. He criticized both the Environmental Protection Agency and the Department of Education for not doing enough to deal with the asbes tos situation. The House recently voted ISO million to provide nointerest loans to schools to help with the asbestos removal, but the measure did not pass the Senate. A HouseSenate Conference Committee will determine whether the money will be in the final appropriations measure. Is is Sp QtQ NCLc -dco a) < ~3 CAP CO JEN 0013286 Rulings on future claims f ...... favor asbestos firmsm I ' # ' . tj.. By STEPHEN TARNOFF NEW YORK--The fortune* of ubesto* producers that have filed for bankruptcy due to overwhelming asbestos litigation appear considerably brighter follow-; mg two recent courtdecisions. This optimism stems from decisions involving future asbestos claimants by U.S. Bankruptcy Court Judge Burton R. Lifland in Manville Corp.'s bankruptcy and by the 7th U.S. Circuit Court of Appeals in the bankruptcy of UNR Industries Inc. in Chicago. Both courts have indicated that it is conceivable that claims of future victims of asbestos-related disease could be included in bankruptcy proceedings. Judge Lifland's opinion especially says that future claimants have a "cognizable interest" that must be' considered in the bankruptcy proceedings because they are a "central focus" of the litigation. In the UNR case, the appeals court dismissed UNR's appeal of a lower-court ruling that future claimants were not entitled to a legal representative. However, the appeals court said that future claims could possibly be considered in bankruptcy proceedings. The rulings are significant, attorneys say, because other courts hearing the novel legal question have ruled that future claimants could not be represented in the bankruptcy proceedings. Besides benefiting asbestos defendants that have filed for bankruptcy, the decisions also could benefit other asbestos defendants by furthering a global settle ment of all asbestos cases, some attorneys say. '- "It is the first time that any bankruptcy court has speculated along those lines (to include future claim ants),* says Stephen J. Shimshak, an attorney for Keene Corp. with the New York firm of Anderson Russell Kill Sc Olick. "What we're seeing at the very minimum is another view," or perhaps a rationale developing to include fu ture claims. Keene is the Manville co-defendant that sought a ruling that future claimants be included in the bankruptcy proceedings. Manville, UNR and Amatex Corp. of Norristown, Pa., all filed for reorganization under Chapter 11 of the Federal Bankruptcy Act because they could not deal with the thousands of pending and future claims and still remain solvent. Manville and UNR say they are facing between 30,000 and 120,000 additional lawsuits from asbestos-disease victims. However, Judge Lifland's decision could complicate things for Manville because, while it initially asked the bankruptcy court to rule on future claims, it did not include them as part of the reorganization plan it re cently filed. Instead, Manville is seeking the establishment of a claims-handling facility to deal with future claims without seeking a ruling that they are necessarily dischargeable in bankruptcy. IJ "From our perspective, we have jt always said we believe a vehicle must be found to take care of future claimants in one way or an- other," said Lowell Gordon Har- g 3- JJK <r oo <n riss, a Manville bankruptcy attor- ney with the New York firm of Davis Polk Sc WardwelL "We believe we have achieved that end." But Mr. Harriss, who emphasized jj J o3 gj j|j * < jjj tD CO UJ lu that he was not speaking for Man- Q ville management, also said he saw "no drastic change" in the com pany's approach due to Judge Li- fland's decision. While that decision supports the need for a legal representative for future claimants, attorneys say the impact the representative will have on the bankruptcy proceedings will depend on the type of representa tive that is appointed and the power he or she has. Judge Lifland, who said a hear ing will be scheduled to determine the function of the representative, suggested that the future claimants'' representative might be an amicus curiae (friend of the court), a guardian ad litem or an examiner. Some attorneys believe Judge Lifland's decision on a legal repre sentative could contribute to a global settlement of asbestos litiga tion. "We now have a second opportu nity for all parties to try and come up with a global settlement" that would be in Ml the parties' best in terests, said another attorney close to the Manville litigation. The future claimants include persons who were exposed to as bestos products prior to the com panies' bankruptcy petitions but who have not yet manifested an as bestos-related disease or filed a lawsuit Beginning with the UNR bankruptcy and then in the Ama tex case, the courts denied repre sentatives for these future claim ants because they said their claims could not be dischargeable in bankruptcy. Judge Lifland in the Manville case, however, said it was not nec essary at this time to determine whether future claims are dis chargeable in bankruptcy but that they are "parties in interest" under Section 1109(b) of the bankruptcy code, which he said must be taken into consideration. "While the precise contours-of Code Section 1109(b) have yet to be fixed, they are certainly broad enough to embrace the interests of future claimants as affected par ties," the court said. "Because none of the existing committees of unsecured creditors and present asbestos claimants rep resents this key group, a separate and distinct representative for these parties in interest must be es tablished so that these claimants have a role in the formulation of such a plan." In footnotes to the opinion, Judge Lifland said that future claims may very well be dischargeable in bankruptcy proceedings. "It is the view of this court that the declarations by Judges Hart and King (the judges in the UNR and Amatex cases) that these fu ture claims are non-dischargeable in bankruptcy are based on su- . perannuated and considerably nar row notions of what constitutes a claim dischargeable in bankruptcy," he said. ""TThhees*e notions are at odds with the exppeanded definition of 'claim* contained in Section 101(4) of the Code.**- "In enacting the Bankruptcy Code, Congress specifically in tended to afford the broadest possi ble scope to the definition of "claim" so as to enable Chapter 11 to provide pervasive and compre hensive relief to debtors.? Future claimants also are consid ered "parties in interest" because they were exposed to asbestos prior to Manville's reorganization filing and for insurance purposes vir tually all courts have deemed them' to have suffered injury, pointed out Judge Lifland. "It follow* logically that if expo sure triggers a sufficient interest on the part of future claimants to war-' rant insurance coverage, then this same exposure should justify a dec laration that they are parties in in terest to be impacted by these pro ceedings," he said. Language in the opinion by the the 7th U5. Circuit Court of Ap-, peals in the UNR case also indicates that future claimants may be in cludable in bankruptcy proceed xci eco 5 n - P -3 ings- \ f* **- "A bankruptcy court's equitable powers just might be broad enough to enable the court to make' provi sions for future asbestosis ,'daims J2 co % 2 against the bankrupty whenAt ap proved the final plan of reorganiza tion," the court says at one point. "Could it not be argued, there .*> S:>3 G<9i--at fore, that a bankruptcy court can S36 and should use its equitable powers, which traditionally `have been in "S - 2 voked to the end that.. substance J--2 *3-> Oe C< will not give way to form, that technical considerations will not prevent substantial justice from being done.1" Si An attorney for UNR said that i- while the company was disap pointed that the court did not rule ."3 on the issue of a legal representa = 4! tive, language in the decision and n QO Judge Lifland's opinion was en couraging. "It's very encouraging," said Malcolm Gaynor of the Chicago 15 Jc!Ml! J- .Sfirm of Schwartz, Cooper, Kolb Sc Gaynor. "It (Judge Lifland's deci sion) was exactly what we asked 2 . r ' 2 for." g 2 Cm UNR is considering asking Judge s William Hart to reconsider the matter, taking into consideration ss a u j Judge Lifland's and the 7th Cir cuit's opinions, Mr. Gaynor said. PS Amatex, which filed for reorga nization in November 1932, will in ** n a, <J 4B *7 clude the court arguments in favor 552 of future claimants in legal briefs it 22 c S files with the 3rd U.S. Circuit Court of Appeals. That court is consid Ossjoi-Co.. ering a ruling by a district court I?"5*' judge that said a guardian ad litem, to represent future claimants could 6oc joi- ; --?- not be part of the bankruptcy pro c x> , ceeding. "We will definitely do that," said <S SS ~o *V *` J. Gregg Miller, an attorney for Amatex with the Philadelphia firm of Pepper, Hamilton Sr Scheetz. "They (the decisions) definitely help cur case." ..., CAP CO JEN 0013287