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was agreed that a continuing international bcdy representing the industry should be established. An Ad Hoc working group was formed to study the matter and, upon its recommendations, a standing Committee or International Conference of Asbestos Associations was established on July 9, 1975 with AIA/NA being a charter member, representing the U.S. Mr. Marsa then read excerpts from a report of the Standing Committee's activities in 1975 and 19VC and outlined future work of the Committee as presented at the Hanburg meeting. (Note: A report o:: the Hamburg meeting, including the foregoing report, was forwarded to members by AXA/NA Memo, of 11/24/76.)
Mr. Marsh reviewed actions taken at the Hamburg meeting affecting the newly defined International Asbestos Information Conference and distributed a pertinent report. (Copy attached for directors not present at meeting.) He spoke cf advantages to the industry that stem from the international organization and emphasized the "indivisibility of the industry problem," i.e., adverse situations occurring in one country invariably impact
on other countries . a discussion followed and Mr. Marsh-
provided further assessment of the work and importance of the international body. Mr.- Dougherty-expressed appreciation-to Mr. Marsh for his excellent report and thanked him for r.ss representation of AIA/NA in the deliberations of the in :ernationaI group. At the Hamburg Conference Mr. Marsh was designated a member of the IAIC Executive committee.
Association Captive Insurance Co.
Mr. Gabrielson invited attention to his letter tc Directors dated November 12 which addressed the concept of an AIA/NA captive insurance company. Ke spoke to problems confronting the industry in regard to cancellation, of product liability insurance coverage, increases in product liability insurance premiums and higher deductable features. He explained that there is reason to believe that some customers of Association members view the product liability problem as an indication that an impartial judge, i.e.,fthe insurance companies, has come to the conclusion that asbestos is a more hazardous material than industry has told them. Unavailability Of such insurance could also accelerate the search .for substitute materials.
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Mr. Gabrielson said the Executive Committee had ...oncludsd that it might be desirable to contract for a .feasibility study to further explore the concept of AIA/NA incorporating its own captive insurance company. He outlined the concept sntinc that he was not an expert in insurance matters and suggested the following questions for resolution by the Board: (1) would the Directors be interested in a captive insurance company for purpose:; of obtaining their respective company product liability insurance? (2) do director: think that creation of an AIA/NA captive insurance company would be of interest to their customers, slow the search for alternative materials, and thereby be of assistance in the market;-lace? He stated that the Exocutive Committee had rscossiendod that the Association retain a consultant to conduct a study covering the
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said the gathering of "his data was important to the industry as the results c:ould lend support to a recomtr.ende.tion forlimiting the applicability of an asbestos standard for the con struction industry. When data is obtained from contractors it should be telephoned to EEH, (Dr. Philip LeClare - (316) 36*18500).
Mr. Gabrielson then commented on cooperation received
by EEH with the manufacturing industry in gather-r.g essential information. He said a gap existed in data pertaining t.: the flooring industry. Mr. Gabrielson urged AIA/NA members .n this segment of the industry to supply EEH with the requester data at the earliest possible date, otherwise, the lack of da-a in
this area will have ar. adverse impact on the total effo
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Mr. Gabrielson said the Association is dsaply indebted to Dr. Rhodes, Union Carbide Coro, and co-chairman of the AIA/NA Ad Hoc Committee for Construction, for his selflsss and tirele contribution to this complex and demanding project. (D.:. Shod also serves as chairman of the AIA/NA Standcirds & Techn.-.cal Committee.)
A general discussion followed concerning treble:.- areas
and anticipated results of the EEH study.
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Revision of Association By-Laws
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Mr. Dougherty reviewed the background for which the Executive Committee felt revision of Association By-Laws v,-?.:, in order. He referred to consideration of this matter at the Jure
10 and September 3 Directors meetings. He said sene 'administrative corrections are necessary, ambiguities exist, and Association rsmbership is now restricted to- one class. A draft revision of the the By-Laws was forwarded to Directors by AIA/NA. Memo d^ted 10/2 2/76. AIA/NA Memo of Nov. 15 advised that a vote on revision of the 2y-Laws would be taken at the Dec.`9 meeting of directors. Following discussion, and on motion, the proposed revision to Association's By-Laws was unanimously approved, a quorum of Directors being present.
Legal-Medical Research Program
Mr. Gaorielscn reminded Directors that the primary rurpose or the Legal/Mtdical Research Program is to improve the quality
of defenses for asbestos companies involved in third party liability suits in tort. He explained briefly the specific research work now ongoing in the legal area by Cadwalader, Wickershan r. raft
and Philip Entsrline, Ph.D., University of Pittsburgh, in review of medical literature.
Wendell Alcorn, Esq., Cadwalader, Wickershan & Taft, special counsel to the Association was introduced. Mr. Alcorn reviewed hi3 background and interest in asbestos-related litiiga non cases. (1 , die said that the asbestos industry has served as a nu' ;*a pig
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of American jurispudence with respect to occupatioivil diseases. He spoke in detail to the liability problem
confronting the industry and the history of thi:s probl-i as it has evolved through the courts. Mr. Alcorn said he expected three or four additional memoranda of law pret ired by his office for members and associate members of the -egalMedical Research Committee would be available by Dec. ii. 'Two memoranda have already been distributed.) Reference was made to progress in developing a clearing house of in format:, on. on asbestos-related cases that have been litigated in the United States to date. Mr. Alcorn spoke to the interface of his work with- that of Dr. Enterline.
The Executive Director invited attention to th- lice of
members and associate ^members on the AIA/MA Lega./Merical
Research Committee and suggested that Association memoirs who
have not designated a committee member for purposes ei providing
a contact with special counsel should consider doing
by advising
the Executive Director who would notify special ccnnse, in turn.
In regard to Dr. Enterline's project, Mr. Gabr.elscn t iid vor;:
on the bronchogenic cancer portion of the literature ; :view is
complete with exception of about 20 German papers new ending
translation and review. A large segment of the mesoti ilic.-.a
literature review is also complete. Mr. Gabrislson explained
that a decision to. include asbestosis in the literatus rcvi& . had b
made to determine/when this disease was related tc different
products, industries or processes. In addition, the 'icisuor.
has been made to include literature review of other types of
cancer sometimes related to asbestos exposure, a.g., laryngeal
and gastrointestinal.. Mr. Gabrislson said Dr. Enter!: ne bus
completed most Of the literature review for the peric::. 1933-19 53
and that he estimates the total project is 50% complete. The final
product will consist of (1) complete file of all papers reviewed;
(2) critical quotations from each paper; (3) card file, index with
brief summary of each paper;, and (4) a scholarly pape r'.
Mr. Gabrislson said special counsel had coimms iced with ax interviews with various physicians suggested by Dr. -'sill for K recognized knowledge in asbestos-related disease who might qualify as expert witnesses in any injunctive proceeding initiated
bv the Association or in other litiqation. It was suggested that two types of witnesses may be required in court oases in order that both condition of plaintiff and stace of :he madictl art could be addressed.
1977 Proposed Budgat
Mr. Barge .reviewed in detail the Association s proposed
budget for fiscal (calendar) year 1977. He explains*! that' total
dues income for 1977 should be $370,000 to support r :qulcr
operating expenses plus special proiects now approve. 1 and under
way or proposed. (Legal-Medical Medical Research. ?s. rgrnm --
$25,000; EEH technological feasibility and economic innact
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intermediate product or a finsishad product
3) Consumer industries -- those industrial'that purchase a finished asbcstos-cov tc.ir.inp product and avply, install, erect yr consume the aabeaios-eor.taining product without furt \ar physical modification of the product. (By-Laws)
Following discussion and on motion, the clues fo rmula as proposed by Mr. Dougherty were approved.
Canadian Situation
Mr. Pilnier referred to a recent dxtermination l. the Vforkmen's Compensation Board in Ontario relating asbet. :os virh gastrointestinal cancer as a compensable disease. He suggested that this ruling might have a significant impart or. rkmsr.' ;
compensation boards elsewhere in Canada and the U.3.
Mr. Barge spoke to the recently published repo rt of tl- a Beaudry commission in Quebec. The three-member cormisj-on, hf-aied by Judge Rene Beaudry, was named to study health ccndir-ons ir. the asbestos industry. The impact that the report will r.nve or. legislation is not known. He said thus far no public staceif-nr has been made by the Government of Quebec as to its planned reaction to the Beaudry Report; however, the report h:*s been
used as a basis for extensive adverse reporting in th;: press regarding the industry. Among recommendations :n the Report are : (1) an average permissibly level of exposure to
tisbestos dust of 2fp/cc should be established, with certain qualifications pertaining to measuring methods, and employ ment in the asbestos industry be so rulad as to orchil:it tna hiring of people who are tobacco users. Mr. Large s.v d the
report concerns itself with exposure to chrysotile and the statement is made, "As far as crocidolita and amosite -- the committee is of the opinion that the use of these two types :f
fiber must b totally banned. Mo exposure should oe tolerated for any worker." Mr. Barge also spoke of the possibl : impact of recent elections in Quebec and concerns with "nationalization" of the asbestos industry.
Remarks of the Executive Director
In the interest of time, the Executive Director said would confine his remarks to a brief review of the a:;:>estos situtation v/ithin Federal regulatory agencies, excepting OSl.A which was reported on by Mr. Gabrielson.
In ERA, current emphasis is on implementation of the new Toxic Substances Control Act. It is not expected than '-revisions of Act will affect asbestos in the immediate future. Emohasin
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