Document B8wZDVr5nBMD9qeDrpgrODNYX

MINUTES OF THE ANNUAL ~ of the PRICriON MATERIALS STANDARDS INSTITUTE, INC. Wednesday and Thursday. June 16 and 17, 1982 at Sawgrass Ponte Vedra Beach, Florida ACTIVE MEMBERS PRESENT Abex Corporation Bendix Corporation Brasshestos ~ianufacturing Corporation Certified Brakes. Lear Siegler CoppadY Delco-Horaine Division Guardian Corporation Nuturn Corporation P. T. Brake Lining Company. Inc. H. K. Porter Compaay, Inc. laybestos-Marihattan, Inc. Reddaway .anufacturing Company, Inc. Thiokol Corporation V1~g~n1a ~ctioa Products S. K. Wellman Corporation Wheeling Brake Block Mfg. Co., Inc. arHERS PRESENT Abex Corporation BeDdix Corporation Cougar Automotive Corp. (Regional) Delco-Moraine Divis:I.on B. E. Porter Company P. T. Brake Lining Company Raybestos-Manhattan, Inc. Reddaway Manufacturing Company Wheeling Brake Block Asbestos Compensation Coalition Legal Counsel Friction Materials Standards Institute REPRESENTATIVES Robert E. Nelson, Vice President Francie E. Messier William Simon, Treasurer Robert .J. Anderson Donald L. Emrick Norman Morse Larry DeFrance Stuart Comins W. Max Sleeth David E. Cuuningham Jolm M. Moore John P. Gallagher Thomas Kennedy Gordon A. Carrigan, President Lee Burgess (6/16) Philip H. Grim, Jr. James W. Armstrong AlexTflbori Fred Yost George J. Bohrer Steve Doyle Ben Kublin Donald J. Testa F. William Barton Rob Burgess (6/16) Dave Pullen (6/16) Dennis Ross (6/16) Robert P. Gorman, Counsel Edward w. Drislane, Secretary Mr. Carrigan, President, called the meeting to order at 1:30PM, June 16, 1982. As the first order of business, Mr. Carrigan called for a roll call. FMSI 07154 u-- { (1) Uinutes of Annual Minutes :.t- ' . - , . , ; . -.. - i. .. . - .-, ~ . Mr. Robert E. NelSon, Abex Corporation: :Mr. Gord~ A. Carrig~#. ~~. ~- ~elbnan Corjlor~tion . . I-lr. F. William Bartan/'Reddaway 'Manufacturing company .Mr. D#._d -~~ Cun~~~~-~~f' ~~~~stes~~a~t~~.~J~fi::-~;;. ._: __,.. ..!.. . .... v_: ,:M . r. 1 Ca Comins ~ , : rrigat11 Presi offered tb{ -~ "1 1 --' l -.rl"' - ~ . - , ,.,-. dent; ca1led for ,nominati ~ame~ o~j1~~ ~~o~n Morse: ! ons c;i~ :,.f~ ;..,'"\: ~------, i .,~ ~----~- - from the- flo'or; Mr.. G~a:rili.an...~o.g}oriiti.on. ., ~ ~ - - : .f:_:. ... ..:'. ':'"'_ in nomination. Mr. Mor8eaec1ined the 'nomination/ :..J. <-~- .:.,.: ; . ...lc. - - c' 1' anCl pas - -.'" t _. -:-.......... ~r--~~-....,\-r~rt1' f,n :,51~-n,., ....... ,.:.r,.,~ ";~r} . .nr:Jjc_- Upon motion duly maae,. secoriaea unanimously sea,' it. was: . RESOLvED: That no~n~tiaris Ji- the~B~~~a:;~.t..- ~.q:~~~- Directors be clo~ea~ . The Secretary was directed to-cast one ballot' for': the election of Mr. Robert E. Nelson, }1r. _Gordon .A. Carrigan,. Mr. F_. William Barton, ..... :. . ana Mr. 'David E.~- C~n:i~gh~ to the Board of' DirectorS~ ~ri:te:.secretary' 1 .- : .advisf!d that: tlie ballots~:J:l.ad been so CaSt._: .Tbe-~resiaept~ adYfsed that-. .: . with' 'tlie electiOn. of these four Directors that. the' Boara~haa the.. - - .. required seven Memb~-~~... :'; ~~~: _ . ..: _.,:.,.:. ;,i., __ ; . =-"":-~;-:, , J..,_j_, ~'-- ....; _ ~ ..:-Jl~ .3.-: ... , :....r __ :.,:: "\~;~j:.... :::z~..~. ":!::':. :: ... ;; ..~~: . . I",~L-~ .. -~--:~ .-r..r ...: i" ;;:i-_r ...... _. - - ~~- r,- .c_-l-.:-~ r;~.~-- Mr. Messier adVised the Membership<that it was. tbecominittee's intention : to recommencl 'the' fol'lc:itrlng a'l~te~'ofo~ficer~~ for ~le~t_ioh .~t _'th.e.:,Boarci _:> '' - of Directors meet.ing- 'fol~~p.g. t~r:~ir;a~.:;t'ie~e~hip, s~s-~~-~-~l~ :. .,: . ~~~~ For Pre~ldent - -, . Mr:-~- Rob~~t' E. N~lson .. ' -~ : : = .::-: ~- :""~ _:_ :' --: . For Vice P~es::i.dent ~ _.- Mt'~ Stuart cOmins . . - "-. " .. ,_~ For Treasurer .. --' . . Mr: Willikm Simon._ . ..-.. _: . ' :--.. -:c,_, . :: For Sec.ret~cy ~ -~-1i~-:.Ec1Ward w.nrlSlane ~ ,, . - -- HEALTH MID ENVIRONMENTAL AFFAIRS COMMITTEE Mr. A~trorig, Chairman of the Health and Environmental Affairs Cotnnrl.tt.e~, :,~ present~d this report_. . Refer io EXHIBIT 9. ' ~. _ .:, ~. :, ; . ., -. .l ' ; ~ I Mr. Armstrong noted actions .taken. by. the. Committee and the ..Institute Office. since earlier meetings~' .. .Be- noted in particular. that concern was rising relative to .litigation _h:,: the asbestos area,_ -:and pr~posal.S. for Federal. . Legislation:in- thecomj>ensati~area.-~ ;.Ba.Sed on this concern. the coi:Dmittee,~; met with representatives of the, Asbestos Compensation Coalition relative .. ~. to its activities, and recolnmended that a representative of t:his Coalitio~ ,.~- address the full Meooership at this Meeting. - __, : . : :- . ~ . - He also noted the concern with iandfill and waste disp.osai -requirementii:- -::; At its meeting, this .Committee. ~sked that .the. Bo.ard of J)~re.etors appr.oye a,_;J request .to the Federal EPA on approved ..lan?fills .for friction materials -- ., waste, and asked that the Board suggest the means for making such a request. Mr. Armstrong reviewe4 general -,OSHA and EPA activities in areas of concern to friction materials manufacturers and noted that the Institute had written NIOSH for either a final report or a status of the NIOSH contract for "Jiealth Hazards in Brake Lining Repair and Maintenance Workers Occupationally Exposed to Asbestos." FMSl 07155 .Minutes of_ Ann~l Mee~in~ -8- , , .,J., J.. un-~_... 1_._6,;J-.1, 7, 19&2.. l.- ~ ,. . '. :.:'1'. i ' ... ,: .. .. Mr. Armstrong disc,ussed.,litigation and-it was noted tb-at;. ..tf an .it:~.di"IQ-dual..- :... was covered by.workmens compensation, that party then.could become a plain- tiff in a third party suit against a supp~ier of asbestos or asbestos - products. The problem with' landfills ijas-that~-~neiT:~ava'ilab:U.i~y.y~.Aryi~g up, and sites and waste__ !:'J;a~spbri~'rs''we'te':tes's_. a~cess.ibl:e,-~lW.C~nsid~i:~ly_.lllOre ex- - pensive. The waste'pr"b~~~m:~~~-~t"~bab~y more:~ot .:a che\!li,c~l.. p~p!>}.em with" phenols, formaldehyde, sp~vents:.an~ ~he.',li'lSe,~-; "~ :I:t ~~as- ~pl:~d:tb~t:,. Fepr~sE:n,t:,a.t~v:e,s ~of. :the Asbestos Compensation- Coalitioli'were at- the meeting-, an.-d-l:heir presentation:- might answei_'-.-qq_-e~t.i'o~~,-i~~~r'<.~:h.~-~'"-'~~i--_l:'g~::H-;o;.n. t~.:S.c~-~_-<~-~:in-S..:::~~r:a-n.i:--~-!~~~-a~.~:._;.. ;:._..:.,4;;~_-r..:~:.~-_-.-,-.,::~.-:::.-n.~ Upon motion du~y- ~a~~. ~~f?~~ee~-~O,cl.,1;~,~~m~:?~~Y;J!}~~~~~-. ~_r ~a,s;:,_.;~. p:~:::t..;;: -~r/-' RESOLVED:. -T~ acc~pt -tn'e:,report df~.tlle~Realth ~nd ~P,-y~r'?~m~n~~J..-:.o;;c ..Affairs Commit't;e-. as'-wri't.ten!:L- ...... .:;:..... ;:. -. -~ . -..... . . :1 .. !_ ... ~ .~:t ~":'~j~,:)-~ ... ~i .... . ' - ~ I ; , .... :. :..: :,:. ._ ASBESTOS COMPENSATliON -COAI:.J;TION -- ...... . --. - .. . ~~ _.: ~.:""] ::::: The to thPereMse.ieateinngt~-~-~cno~o~tainMg;_!._t:hapti!M{rre~;:P_uPt'liliEl~:m~;"bh-fao.-tb:ehe~n.~-P.l~n~V~~i:tea:~9t--o~~a~~awt~*s!s>~.th~eo:~Miletii:lbje~r- ship after .e;l!rli,er:. co~!~.~-tl;_-,wi t1i.:~17i .~.11.~-~'t{r~g.i _s He:~J.:~q~~d ~~.-t~qp!D'~!!~~j_: ~ifai rs Committee. _u~~ car~igaif !e'lt~ ~-t--was:t'imeoly that the;.;~q!-~iJ-i7?~ 'hr:~!)l~-'::eR!t~~ .-~his invitation to our Meeting because of. the il'lcreased ana~~ce~r.P~..t.~-~t~.Sl!_t~cm: insurance r~latiy~ ~~.~.~P.~s~os !7XJ.>OS~re,_p~s.t:!i~... M~.]Q~B. ~~tt'C!~~~c-~~-~~!,J2.ennis Ross_ :'i'h.~ ~,also .w~.t~:-~J:ie- Coa'liti~~: -,, :B_oth_Mr_.:?p.~len~.~d J:i~ .. Ross_ p_r_esenterd stheentaCto~cornli.~i on ~ For h-.~a~~;~~~~rotufn~,~d:,.fhi_~t; w,~aos~~~neo~~t~etd:iatn~:a~ts~t:hue~ ~a9~U~~;}.:~?!:l!.ge.f.~ff!~:~F~~I?::7c~-n-e~-~-"~t~~!J.~s :-_a.p~z:et:-he Coalit1on: Celotelt Division of, Jim Walte'!'; A_sarco, ~itt~burg CoP.ling, Unarco, Johns-Hanville, Raybestos-Manhatt-~," ~tex:~ ~nd Eagie PitCher~-- The e~rller legislative initiatives were i16ted "inc-luding: the Hart Bill~: the Fenwick Bill and the Hiller Bill. The Coal{ti-_bil saw nfer:ij:s-, :and short:..c~qings 'iii .~cJch of these, and felt that while_. ~hey did not-' have:a complete _.P.~ck~&~.J~ .o.ffer at this time, they needed broader support and w_ould encou_rag~. ~ean.fngfi.Jl input noW.from laws Ins uits t itu in t t heeM~.a.!.sf.ibb'e.e.srtso an s' d a r oth e a -, ers an . d It was stated .that th~i'e are thE!re.:..a.t:~ more -psbest;os-related 18,000 lawsuits _the:in cour~s thap car accident strlts-.- The anegat:fnns'-are that -asbestos _ - products iliB.mi'fiicturers knew of t:he hea:lt'h -pr~blern arid_ (lid :n9t 'f~~ the. e'xp.os-ed arts enworker. Late'ly, the issue of "strict= Hab:llity" -has wli:ere .'it ~ould not matter if the manufacturer dt'dn"i i_~cni' of the-heklth 'haiards:.:...:-be iould-l:ie held ;,. liab the ;~tee.w_ i_hJe~aSifl?!-,~:--~tYS~~_~,t~;~. :~r..~-t'-:(~S?-~usretq-~~.-.~..~1n~t,D,.te_osh.atd~a~ -:~V~..I-~;~'::J.JnoSh: ,n.s,-'fM_a9nr.,y1i.;.p'~1e~F:. -~~~~c~e..p_,a:w-:.t".~P--~}Cti-oly~:(_),: -~982 .; . . . : 'I ; ;:., '' . . ...... - ;--.,held manufa~tuters: 1.n that' State stri-ctly._,:ltable ;for ,.asb~.~-t.os-in~duced htrrm art have:regarines!;l that: due- to th-e ~inift:ed.-stat~-;pf;thi. _,,they_-t:'o'u14 :n.oi::"'tbetl A'"":i-: .. :, .-~<Mil o f , thr,~f;~lt_h"~ ~. ha z f ; d s1!-posed by_--ash..est.QS ;} - -~ 0!:i~.-.f~'";.-,.:- ." .-: .. - ~._ ~~ ,~-,-;.~ -~--~~: . :!. _; :.. ~,. . i ., ,.. ;': 4 .. "' The increase in litigation has s~vera'l .roots. There ba.s. qt}~n an._ erosion in t~~--~Xfl.~siyity ,of ~~~~~ens COmpEmsation -as the'r~_m_ed)r:'fnca;;:reS: of' e)cpoifttre.. TSl~;le~r.:PS.lta_i~nt~e~1.:Wt:o~rl4~;~-~re:l!-s~-vc-oom~p,e~n_sf-:as ti:o'-n_eiPti.--vDiotgyJ;.a'a~S_:(tBtt~;-~~,_!~Pel._':.sn,:cl:yn-;~e~:~.-~,~:d~eq_uc'o!nte~1.rnegq~~uti b_~~is ring - ,.that cb~ b'~ '-:~{led 'Within' ti;-o.~ot' 'tbvee..-j~a;t:s. -~f. ewosure~ S6m~::St:-iite -'plans ~re now: tildVing~io:r:eq-i.Ii-rements;'-of twpr;_to ~thr_ee.:.Y~~rs. af~er --$anifestat:loi'l: .,_~?f- 5h<at~.~-.a~~-;; _ - !. .-.:~ ~;-_ ~~ -~: -,.-- ... ".~,:, :-- _._--~~_-_:. -.,- :,.: .;, '- - ---- -: .' - '- : -,._.,, ,:<Jc~ ._.:.>-~- ~ :-,~-:r~ . :.r_ r ..""7a.,___-..~-,---: ' :-:: -~- . . : .,._ .:~' )~_,.-=--~~":."~_:,l::o~ . ::,.:....:., t l . ...:..-. '!--.. .:. <f ~... () "" ~;~ - ..( .; t . ~, ~:~__: ~~->.-.-_._\~-;; <-: -~~ . ,..\..~ \;;!"! ~ ._! .: .... ... ._, -- : -~-. - ~ .. ..-. ~~-, . r ,.. . .-.: '! FMSI 07156 . ~ifnutes o f . .A.__r,)nt~i.a.~ }1eeting -9- -." t- ~~!~\.i--~~J.u...n. e1. _1!_6~r-!l1~7 !o19h~8j2.L'!jJJ' of~1r. Pullen suggested the poor distribution of funds to the injured party with distribution a typical $100,000 award . Such an award could go up to . $60,000 in fe~s ;-- $5 ;000 ~:in costs': $10,000 -to ~repay Horkf!leOS Co!llPensation. and ...,. - ' ' .. -. 1 . .- . . . . . .. ~ the final.$25,000t:othe injured party for'lifetime medical'C.osts.'-Counting .the 'co~ts of the''iieferi~ant.. _pard.es ;..,.and inducl:ing:'the -costs :D~ ~~fending:suc cessfully where':ni)a~ar<f,~:f'S .inaile~; it 'may cosf'$200,000"tci='get;~$15;ooo ~to _the .:injured parfYt'Tl!is:'sy$tem~~f awart\s."'is'wasteful~ arid it:'ig;;:suggestea~_thatq .s.ome oi:lit!:r ~.Ys.tein slit,u1id:.'b'e 4>~ti:er_;" ...A _sii&sesHSn: fbat{;tlier~Foe '"fift:Y:'miHorm laws r in=-t:his -area=:for'.'tli~t>:So stafes' is =Jboi:1i:uilr~ausHc:'and:;~ost:1yt"~1"It=i.s~.l suggested' ad!iitiotialiy 1that'"guc~i?>uniform.. plans.rin'. the==so::st:ai:es -~~on~~r 'bHns havethe united States Governi:ieni ~n.tas~a.:-partidpani: 'wheri~tfie'"Governinent'.::.r\nl::l~ftlp- ,yards of 'World :War:II. b~eb responsible ~or a majodty-of tbe casel'in~r; litigation' foaay. -~}tr~ Pul!en'.'and~Mr.~ 'Ross'-suggestei:l t1iaf it ~~state=-by'-'State approach is not' the-solutioii~ 1 tliat the. solutiOn niay 'be =the Fei:Ieral tove'ri:iment; acting on 'Four Principles~ ~- :J' L.!!:-:-- . - "'.- ~-!': :~.. ::1::-::.:q ~ r.::r'!)"J.:r...t ::::.1.; f.::.~; ", .~.:!-.::~-::- ~ !Y.T2::.(..~~1-z:..:l t:~~ ;,;.j: 1. Settlement b~ prompt. adequate and equitable 2. Proof of" injury would 'be::on. He'arly-~del'inei:l meaical evaluad.oti~ ::.rrT . . (avoiding..the'."B~atk'Lung'.1 .. theocy~'whe'rer:any 'exposure'l!:f.a ~uf:- :.uv.:;::.:; . ' '" ffcient proofJ-:z::: ;::1 w:D :::;:..l.: :_.;~. : :-...:~ J~'.-: biUOv? r.;c..,t:tJ..U,:;;j -~H~:i ::t!>Jl::i : 1 ''3~ co"5t~/woulif'~'ot.:.be-;d~ei:l~on:_.-tlie'taxpayers--tli~'>burden,must:'be r.;r;.::J On:" those''TeSpOnSlfb1.e'1 !.;. fJc o. ~ ;: :: U f':l;; r:; S' !o11TI2.2e-;?.aJ3 ;Ji;Jjj !J.::v;;x eD-.;J wou1a. z.;- such settlement p'roV:rae the'exciusive:t,remedy;~>proh'ib'it-:.:tunr:r. ing third party litigation. .::lu:-\.:r-.1 ~n.~b.r;~,q Th~ GovehtnenCwouli:l its'e1.Fbear: 50%.;of the"' total costs;. :as ~oughly:: 50iJ of ;: . . .. . . - _-:_exposure occurred-:in.::shipyardSat:wartiine;r.c-r,:. '' ~-:; :c'"-"c'd':.!, ~.r:L., r,:. b:o, ':._:-_,_.t" -.. ;.:. ~~=- ~ ~:: _~: -~.,- ~ -~!.:.~"". -.-.....-_~.t':t.-1 =:-=::.. ':1:;:: -- ;::..-.:._ ... Mr. Pullen- noted the three f'e'arli"er -1.egislative initiatives on !asbestos r.compensation: 51643- the -Hcirt~iBi'll',HR5224;:.. :the Fenwick' Bill, :.andRR5J35{:.~ :'":: the Miller Bi1.1.' - Both:'the~HartB'r11. and ;th"' Fenwick 'Bill ;are dead.-::..:\<fui:ile4j the Miller Bili i.s 'technica1.ly.,:ali~e . it: is probably politically .dead..~,-:---:1: ;, :1. :: -~~~ ,- . _., .. c- _,-~~ ..- ..! !~.:,. :._--:_:; - ~ ~'2~..:-~; ._._ .._.!"!_-!.:.; .~-:---:,: The coalit'ionhas:rrecol!liilendeci' a'ineW legislative approach~-Among ;the.:ad-=-.: f.:; vanta.ges would be~that !rt' ~oeEi ,not .federalize woi:kmens compens11ti:On., but ;)r;:;; rather w'orks:with.in:!tlie erlsd,ng!State"workt!lens comi>ensatlon: frariework~'! -.It. would safeguard the funding, as the imple[llenting resolutions woul'd .have za _;j linited life of five or ten years, and the entire resolution could be terminated -if: 'the :pay..;.out .e-xeeeded.~he funds~ available,. "::ornith~ would :re:Jn- :l 1 state tort litigation' ~-'-the-:ir".eniedy..>~ In :either twor9s,, ;:t:his :Would-avoid;-: 'l-,, possible mtlirnited -funding .whi'ch 'eould -"'result' fr{)m r.legislati.otl~cnf,'!t:he:<"Jilack ..lung,. variety." - . r;".'. --. . -~-, - __.:-~.::-: -~;._: - .~ .... : : ' ~: -~,: .. :___ ::-".. E.'J~-~ 2i:i)lJ.";!;-~- :t .. Copies of :a:"sunimary .nf :the Occupational piseaselCompeiisati.on. Ipiprovementf).:- Act and the J:r.tplementing.JR.esolution~or .Ashestos Related 9liseases" Mere <.1:::.: distributed. ,.The CoaU.tion':had.fp.repared .these Suomari-es r.t;o,~escrlbe.ot: :;;!:: generally the legislative approach recommended.;: i .The ;Act:wou1d rbe :a:;; :-:.:.:7, .;_~ generic approach not limited to asbestos which could function for a range of .occupational ttliseases. :'IThis :would'-relate ~to .the. types :of diseases.,! the_:. provision .:of benefits. anteractionbetween Federal and State P.rograms ;!:and; financing ~of :the ::fund. :.l The :proposed :Act would :pr.ovide that, t:his remeqy was the exclusive remedy .::for those ~injured. 'by the occupational disease. 'rb.e l Act would provide or Implel!le_nting-Resolutions .:for the qiff.erent occup~tional diseases and .these resolutions'would provide ;for, a :limited life c-Qf th~~; ~ ~: resolution .and 'that :the. resolution could be..tenninat;ed .if...the J.Pay,-:-out _:exce~ded available funds ;absent .enacting additional authorizations. ~!:.jjJ:: . :,:' ,.-.:.!r:' ': - '- l ~ FMSI 07157  lU.nutes of Annual Meeting -1o- .. June 16- -i7,":i982.. ~ .... .- l ' .. : .. It was. s~gg~sted that .if 'the exis~ing -system ..of~ tort liab:Uity is not maychanged that there~will ~e bankruptci~ within this industry~ There cases wa8.even l;>e hankruptci~s 'b_y_:the itisurance .carrler~.__ 8s "there( now are' 400 .t'o .50_9 '~ new being litigated monthly. I( noted .that solutions to. tb:i.s. --~ ;~ ~ manfpro])lem :were:;~omp~ex~ .. a. ~d .th...a. t if . there)~ .. . .~o--sol.u.t. i. on a S b. e s t.o s - p.r. O.<.\ ucts \ .... .. =, .~anufacturers.may ,~~::o'!lt::ofrl>~~ness~ . ThC: .C~!!t~<m -~~ this time req~s~s> input fromany interested party .~na that when .a .draft,of_the legi(!!lation.is-, available; the..lnstitut'e and~it.s Meinbers iu,{ght help-~dth. constructf'Ve~ ~--=o~.,; criticism of the~-propased-Act~: Now ~ ..the. time' to .discilss. the .plan~~d~ as-~ nothing is n~ cast in C:Onctet:~_:this:.rs:.-tj._~ best-~ime for inpui:.,:,:It~was,,.. stated that the Coalitian _should ha,ve- t;be- language ,ready in -the neXt. month;_ .. or so and lJould hope to have" copies readY .fo~ the .institu:te. ana other.' .., ~-~ ~ ... interested parties at that time. They wouid hoi>e- ~o have'the pr~posed Act .. in the legislative hopper by late 1982. .,_ - The C~alition 's proposals we~e opened for questions and diacussiqn. 'In answer to a question on coope;.ation with th.e. Coalition, Mr. -~u~len ~oted that the Coalition would welcome applications for Me~~rsbip i~_~be Co~lition from interested parties. Questions were asked :on financin'g the fund 'and it was noted thS:t assessments would. be made on a formula bas~d ou-e~ch : .emmanufacturer-'s defendant sett~_emen_ts and. judg~en~s Md ~ne nUmber of pending lawsuits. .. . !<':: ~ -- i :; _;I .. :. ' + _ Mr. Pullen noted that it was .possible .that his_ ~ompa~y_- (J~hns-Man~ile) m:l.ght . end up being assessed a higher proportion-of the ;eosts2 of.'tfle.'fund, but .that such a program would compensate those funding it with injured parties giving uPup tort rights . The efficiency-of sueb SIH~o_gramwp:Uldbe.that to 85%_. . of the costS now consumed in t~rt .:litigation__could.be eliminated He noted that currently about 2% of cases go :to _verdict,: .and::about 65;_-~ave. been' defendant verdicts~ 'As some other than Johns-Manville cases have had 85% defendant verdicts, Johns-Manville may end up paying a higher percent?ge fee than others. It was noted that one defendant had-_wori 16 -out o! 18 cases, and :that the process of settleinent bas_. ipcreased':li.tiga~i_on. : Some_ def-;ndants .-. may reappraise their J.:itigation strategy and_.prefer going_~-o ver_dict rather than settling~ --. ' - . .,,: :' -,~ r_.'." ' - .~-~--- . ' It was not~~'-:~~:t-:Dr.' Selik()~f .had.~-r~~~te:;.~{~~~oo~ ~~ce~-~ .J.mis :~~ce~ 9eaths , per year .from 'aSbestos eXposure a1ong with: 2,500 asbestosis cases 81ld 2,000to 3,000 mesotheiioma. c:ases.i - While 'most ~observers ,believe Dr.." :selikoff'-s . projections are too hi~, this is an indicator of the scope of possibl~ : litigation. One party questioned if an alleged victim of asbestos exposure. could readily make ~his. claim .through. the intended compensati~ fwd; .wouldn't this open even more ;c;lai..lDS t_han tort clitigat:l'on.'':.'In::Tespona~, :..i.t was u~ted . that some observers feel-!:he: "~aclcpot~' sett1ement.c.cif :tori: l:i.~igat1-~ 1s. :more attractive to the :al:leged, Victims.-.--.;.~ ~ . .' ,-. ; .., ; : , . . :, . '.. J - . , -:; :. : ~- ~ ' J ' .-: ~. - ' : With this open discussion con~l~d~d. ~Mr. Armstroog, Chairman of the Institute's Health and Envirtm~t:ttal Affairs Committ_ee .suggested that Mr. J?~llen 's and Mr. Ross's presentation had:given the Members a oroader perspective o~ .~he.: issues, and he asked or-more .pa~icipation of -the.-Members iri ~he work of his,.,. cotmnittee. u WaS stated that ~ome -Members may wish to parti~p-ate as .in.- . .. dividual Members of t:he ~Coalition, and that the 'Institute -wished. the Coalition- to -maintain liBisori with the I~tit_ute through its Health ~d 'Environmen_tal Affairs Committee. ..It was -ask~d- :th-at the :eoalition .place _;the Institute on its mailing list. and that the Institute would forward data on to its Members. Mr. Pullen and Mr. Ross projected that the draft of the proposed new legislation would be availble - in two or three weeks, and that a draft would be sent to FMSI 07158 the Institute at t.h. at~-:~t- im..~........<,!n.:--~-r-e~-s-~p~.~o--n.-s..e. ~:~-t~~oi!J!-i)a~f>:~q.\l. ~,:tio..n..~!..-'i. t was noted that there was no sponsor for such proposed le~slatiol) a.t this Ume. . ; . . -.:. . ., __,.:-.:.~--..~! .. t' ~ ::.:.-.-.~~> -~.. ,, - i ~:,:;.:-1::....-~.:~;- -~- --~~:~~--~=: :.:.!1':. .::.~~ ":l.',~->:-:;~-;:,:__ _,;-~--...:.... :., . :-~ The President thanked Mr. Pullen ani:l ~Mt:'Ro~~,. fo'r:'ihe:i:r 'eff~~ts. o:O '-fli:fs .: " 1 p r e s e ntat ........ ion :..: o~ ;. _-...:. p-o~ ~s-ri:~:t:.i$'o1 n-~~~...,-y...!!!~- ~!Je!"'!."~' b-,!:--,..;;S~_<_ .?,~...s"\~~~-OJJ,D"R~_S.~~lt3i..oJn.t...E.:_;.\_..C.C~:?o~!)"!-l"'!_t~iSJo.n.~ t J,_{-J:l.--.:,~:_...,-. .. _.1Y .J..d. 'mide,- 's~~cmcied' ~bd~ijnai\l:tiJbusif :'pa~clf~t~-~f~ ~-~ ~J"f~i~-: ~;:,1Upori mat:!on idu1.y 1 t;!'..- .. ,. ... _~;.... _... , . :.'.r . ~ .:..:-::,:.<.;.fJ~"n:j s.!;.)~!"lv~~~;~):i...!.~-=~!'!!;~ J.d f!~~s st1:l ll~.~!J b.ts.rl'::_--j.~-..,.~:-'-?6 .-_.'REso-LVED:- - 'To -tharik:-M'rr:[ PuliJ.illand~.M.-r:' Ross ~o"'f ~ib.rf::\ -.c::.v ?0 f'.:1,JP:~~~ ..- .''!:- .; ~-~ :Asb'eEit'os iouipeiuiariOJi:::cQ1i11ttml'::foi.~iif:;i.i- :f :r..~_.: ~n~.;::r~:~;;,e,t' '.!? -: - !:._;: ! ' . present~tien at'-~l_lls' "Jeet:.i~~~'ii- :: ::':::.!:-~l:;::-..: !jl ~.o:r~:;:.::...":,)' :._ t ...- .J I'\:.: r,.:,.; : . - )'(1,,.=. ~"':.~ 1~.:~~~>.:- 0 .-t?l':"' ~-;,!n.1:!. ~'-':.:-~-;..:...tr!J,:!i~J;l::.l::r -- ; .. -~ . 'FEE~FORMULA COMMITTEE.r(p.ARi'2)' ::-J~-J~:-._1:;.-?_r.". :;~~~;;';: .J --.d.""'.-:~... "!J,;,. . :... ~. . ~~: .,:...~~~:. ~ ...;.Y:~~:. ! _: .:: : .r.~~:~ ~r-~: .L ..:..:-;:;::-:-1-~::.:::~l lEarlier in _the Die~~in~~~ ~~.e-,~~ers ::~si':~s~~ -a'J>~'#.s~-~- ~~crea8e~'iti' .:t:~e~.:_' annual -fee 'with S' "changeln~<'t:he"fee formula. .It was. mo:ved that :this it;em:';~ .be. tableici\lntil.. after p'resetitatlcins b}/:the He8rtll. 'and -Erivirmlineii~al,:Affairs' Committee and members of the Asbestos Compens-ation Coalition~~-- The .President called for additional discussion on this agenda item. . ' ,, . .";. :-,:::.: .... ~~}: .. ~~-'~;~:~; ..; .{i~:.:ld~:f_I;_~i-.!"~-..!!~::-..: :.~:~a:;:._-~;: ~:.~:.~= ~-=.!~ =~:.~:;:., c; . r The Board of Directors had vo.ted to._increase t~e annual f~.e by ~ ~-~nge in the fee formula as followS:fY.---:-d' r;-:1.~ ;:::n "?1.'<::~9-:: ~.:': .~.t:.::.=~:!. ~/ :(!.:!'.-.... :..--; :z~:~ ~: ;s_.: _;..j !...::;: !~~ {--i:-2.-:: ~: ~:-~ nr.: ~ r.::.-.1-~s::.. .'J Active Member: Basic Fee Increase from $1, lSO =t'o'$1,300, .. '~~.-no ...~~nge ~-. t~~; -~~~8~9'-. as~~~ment . : -- -.-::;:_:_.'- --~_: __ ::....:... ~""":::::-=. _::_; _::_-_.__::__::!,:!,__ - Regional Me~er (Regular) Increase from $1,450 to $1,600 ' ... . ,:~.r'-;-:. :.::-:_. r:_";J: .~- .-:':....-~." . .~.;-. :.-_;.-.""': - :.:' .~ . ~:~--:-:;,-: !..o ."RegHm&i ~Memb.er (ASsoCiation) 'Increa~~ ;from .$2r40o :t~:~$2,6qo ,.,=- "',' ........ : 7~ ~ _-:-i -~~ ~~ .:..! -. :;_r. . r: .: ~-~ ~, : ~ : .... :.-:... . _.. .:._ ~; - '!! ._ ..: . . :- .,.. , j . __.: ... -\~ Licensee:.:: ,~. ~Increase ~from $5so .t~ $600 .. ~- ._:::. ~,:. ::.:. _. ~ - As indicated earlier; :tile ''Bba:rd wishea to :~.~8b tish .:a. 1'reserv~i, :;,1th. ~he :. : :;_ ..additional fee :payments tO"p'laii- f6r th.at' -;::!-~ when additioria1 :..n~~e ~Yi[~':: ~ bave tO 'be Speilt :ott Cbtts'\il.t.antfi cQ"f at~16i!'J;: :~(!~StS ;tO help 'SOlVe ~:prob~JI!S' _:y}_'_;~ L.f the waste dispos8.1 area, arid other atetiS' "(if envirrinmental conceni.. ~uch . 1':.~ ~. resenies' >Could only be built to~~.rt'B;l~=~~~~t, ::m.td ~.. ~un.d.&:!ere..not'~'- ~::] expended the reserve 'Coti1d l>e cl.osed BI!-d_~mciriies made a:vai~le._"for _genera,. purposes--'iti e~feet: redu~g :the"~e~;-J "P~~f~ ~~ :eXpz:~s_s.~~;:im c~~~ti~: ~f such a reserve when the1 Institute: had been 'g'enera~ing "1Ul' ex'*"'s .of inco:me~~ over expenses for the past several yelirii'. :. :~ L:.:L ': :: .::-...:;:'!{1 :.....:: ,... . .:: Upon motian- aul.y. -maae;'~e~~ontiea caita ~ pa&~e~- with ten .Me~~is.: ,. - <>.i.' _;:.i _,-.: ..:-~ . _,,. . .: . :.. . ...._: !:.-1.n fav.ar and~fiV'e"Members opposbi:i~- itwas_:~ . . ~ ~_,. ;_-:~: ..:.:~- ,.:-:.:~.... ~.~~t.. .:: ......... -~-~ . ' -.:....... ~ .. ' ., ..... ~:! :'--,.~ for, .. , REsoLVED: .'..~TtLaaopt the Joll~ihs fee t'ormu:ta :. ,._ ~<. . .- . :~ ,..:.:.;,.:.:.:. 1982.:..83: :.Acd.ve~'MetWet's and:-=Regi.ooals.J',, :: .".. :.~:- :.:... i:' :" ,.~ :-.:~ >.: <.:.:. --Witi{ActiveMeiizberrights;~ "B'asic -F~e=::,::~ . : -~' ~..-:: '~-<- ~ .:::; ~ .. ' $1'300 Member cate. go-rri '(Regn1ai): F. eFee:e.$.$170;06Po.;ol;-t~Jgiieo-ig.iioan1al_-;~::::~:.~":;--;;;~,_~.L..:..~.:.->.:.: ... I. 'Member-' (Assodatlann Fee: $2,600{ j'.':- ' -: -- :.;~ ' Licensee: Fee: $600. FMSI 07159 . ..... Minutes of Annual Meeting <I - ' II his suggestions for more participatio June 16-17, 1982 or to next year's meeting. The President thanked the Chairman fo work on.this year's Tournament, the presentation of awards, and his su stions for increased participation in the golfing. Upon motion duly made, seconded and unanimously passed, it was: RESOLVED: To accept the report of the Golf Tournament Committee as read. CREDIT REPORTING SERVICE The Board of Directors considered a suggestion for a credit reporting service at its earlier meeting. After discussion at the Board meeting, it was recommended that Members individually list the individuals at their companies who should be contacted for credit information. This list would include name, address and telephone number, and those submitting this informatioD would have access to the Institute compiled list. The Board asked that this subject be an agenda iten at the Membership Ueeting. Mr. Comins was asked to present background on this concept. He indicated that since Institute Members dealt with the same customers and were aware of the credit capabilities of these parties, that it would be advantageous to those extending credit to have access to this information. The idea of a service such as that provided Members of MEMA or CFS was discussed. The original suggestion was for the Institute to set up a credit reporting system for its Members similar to the MEMA and CFS plans. Some possible shortcomings of such a plan were noted should the plan send out information on a customer which turned out to be incorrect. One party asked what was wrong with Dun & Bradstreet and it was indicated that was a good service but when someone is going under, it is usually too late with the information. The Ne~ers generally concurred in an exchange of infornation on who should be contacted in their organizations for credit information. This would be done with a filing of information with the Institute as to who should be contacted for credit information giving name, address and telephone number. The Institute would ask for this information and would then distribute a "master list" to those who provided the information. The Institute Office was instructed to review this with Legal Counsel before proceeding ***** There being no additional business brought to the attention of the Meni>ership, upon motion duly made, seconded and unanimously passed, it was: RESOLVED: To Adjourn Adjourned at 9:40 AM E. W. Drislane Secretary FMSI 07160