Document MEZ4nD4gQ2ZG4RV3qmrq8LBx

FILE NAME Reichhold REI DATE 2012 DOC REI011 DOCUMENT DESCRIPTION Legal - Excerpts from Testimony of TR Madden- pg 125-164 Page 1 1 IN THE SUPERIOR COURT 2 OF THE STATE OF DELAWARE 3 IN AND FOR NEW CASTLE COUNTY 4 IN RE Asbestos Litigation 5 Limited to Case No 01-021 6 Raymond Attwood Duane Weaver 8 Alyce Riess 9 Anna Hartgrave Case No Case No Case No 2-063 04-087 07-303 10 11 12 12 Videotaped Deposition of Thomas R. Madden 13 February 14 2012 At 10:00 a.m. 14 15 Taken At Sheraton Charlotte Airport 16 Charlotte North Carolina 17 18 19 20 21 Corbett Reporting - A Veritext Company 300 Delaware Avenue - Suite 815 22 Wilmington DE 19801 23 24 Reported by LeShaunda Byrd CSR RPR VERITEXT NATIONAL COURT REPORTING COMPANY 888-777-6690 ~ 215-241-1000 ~ 610-434-8588 ~ 302-571-0510 Page 4 INDEX TO EXAMINATION By Mr. Thompson By Ms. Spardone By Mr. Thompson By Ms. Spardone INDEX TO EXHIBITS 13 223 307 336 NO DESCRIPTION PAGE Exh 1 Plaintiff's Second Notice of Videotaped Deposition Decus Tecum of 10 Defendant Reichhold's Representative 11 Pursuant to Superior Court Civil 12 Rule 30 6 13 Exh. 2 Documents Reviewed by Tom Madden 14 For HIS 2/14/12 Deposition 28 15 Exh P By Gum Article 39 16 Exh 4 Reichhold Chemicals Inc. Safety 17 Bulletin 71 18 Exh P Reichhold Chemicals Inc. 19 Interoffice Communication 77 20 Exh P Reichhold Chemicals Inc. 21 Interoffice Communication 87 22 Exh 7 Reichhold Chemicals Inc. 23 Interoffice Communication 95 Exh 8 Union Carbide Shipment Invoices 99 VERITEXT NATIONAL COURT REPORTING COMPANY 888-777-6690 ~ 215-241-1000 ~ 610-434-8588 2 302-571-0510 Page Exh 8A Handwritten Notes Exh 9 Union Carbide Sales Log Exh 10 Exh By Gum Article Union Carbide Invoices Exh 12 RCI Material Safety Data Sheet Exh 12A RCI Material Safety Data Sheet Exh 13 Memo from Stephen Meacham Exh 14 Reichhold Chemicals Inc. Interoffice Memorandum 10 Exh Reichhold Chemicals Inc. 11 Interoffice Memorandum 12 Exh 16 Letter to D.S. Bellis from 13 J.I. MacKenzie 14 Exh 17 Asbestos Sampling Survey 15 Exh 18 Letter to Raymond Clark from 16 Hartford Group 17 Exh 19 Letter to Raymond Clark from 18 Hartford Group 19 Exh 20 Letter to Raymond Clark from 20 Hartford Group 21 Exh Letter to Raymond Clark from 22 Hartford Group 23 Customer Call Report 24 Analyses of Three Air Samples 307 119 121 124 160 142 144 149 183 183 183 183 167 188 VERITEXT NATIONAL COURT REPORTING COMPANY 888-777-6690 ~ 215-241-1000 ~ 610-434-8588 ~ 302-571-0510 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Page 6 Exh 23 Notice of Prosecution 194 Exh 24 Reichhold Chemicals Inc. Interoffice Memorandum 194 Exh 25 1593 Raw Material Standard 209 Exh 26 RCI Cost Standard 209 Exh 26A Process Engineering News titled Asbestos Is Nearing Its Last Days In Phenolics Exh RCI Raw Material and Container Exh Exh Exh Exh Exh Exh Exh Exh Standard Cost Master By Gum Document By Gum Document Safety Bulletin Safety Bulletin Memo to R.E. Byrne from H.B. Rhodes Memo to E.W. Jansen Report of Call Asset Purchase Agreement between Reichhold Chemicals Inc. And 324 244 256 265 266 294 296 303 Exh BTL Specialty Resins Corp. 338 Reichhold's Objections to Plaintiffs Notice of Deposition of Reichhold Inc. Pursuant to Superior Court Civil Rule 30 6 VERITEXT NATIONAL COURT REPORTING COMPANY 888-777-6690 ~ 215-241-1000 2 610-434-8588 ~ 302-571-0510 10 11 12 13 14 15 16 18 19 20 21 22 23 24 Page 125 identification Q. By Mr. Thompson This is a copy of a Material Safety Data Sheet that we received from Reichhold It's BR 000015 through 16. And when you have had an opportunity to take a look at it just let me know A. That is 000015 -- < Correct A. -- and through 00016 Q. Right A. Witness complies Yes sir Yes sir I'm seeing the document MS SPARDONE What number are we on I'm sorry what number MR THOMPSON That is 12 MS SPARDONE Okay Q. By Mr. Thompson Now you have seen Exhibit 12 before have you not A. Yes sir I have Q. That is a Material Safety Data Sheet for Reichhold Chemicals phenolic molding compounds and carries a date of January 1980 correct A. Yes Q. And specifically it's a Materials Safety VERITEXT NATIONAL COURT REPORTING COMPANY 888-777-6690 ~ 215-241-1000 - 610-434-8588-302-571-0510 610-434-8588-302-571-0510 610-434-8588-302-571-0510 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Page 126 Data Sheet for asbestos phenolic molding compounds sold by Reichhold correct A. containing phenolic molding compounds yes Q. Reichhold Chemicals phenolic compounds that contain asbestos in their formulation correct A. Correct And those numbers are listed on this MSDS Q. I see that and they are -- the copy I have I don't know whether you've got a better copy than I do -- A. No. Q. correct -- but we'll just run through those These are product numbers of Reichhold A. Correct Q. And the first one is 25310 A. Yes Q. And sometimes I see them written where they are all written together with no hyphens but here we have hyphens so -- A. Well correctly when -- if it was a generated document it should be -- it should be hyphenated The phenolic molding people VERITEXT NATIONAL COURT REPORTING COMPANY 888-777-6690 ~ 215-241-1000 ~ 610-434-8588 2 302-571-0510 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Page 127 hyphenated theirs Some of the other divisions just ran their product group together So either way it's correct but for this group they seem to use the hyphen Q. More often A. More often yes Q. You are not saying people involved with the phenolic molding operation did not run all of the numbers together at times A. They did at times but it would be the same number We -- like 25310 sometimes it would be 25-310 It's the same product Q. Right In other words 25310 and 25-310 is the same product A. To the best of my knowledge Q. All right These are containing phenolic molding compounds correct A. Yes Q. 25310 correct A. Yes Q. 25346 A. Yes Q. 25347 A. Yes VERITEXT NATIONAL COURT REPORTING COMPANY 888-777-6690 ~ 215-241-1000 ~ 610-434-8588 ~ 302-571-0510 Page 128 Q. A. read -Q. A. Q. A. 25398 Okay It was either 398 or 388. I can't There's 388 first and then there is 25398 Yes I see it Yes And then 25397 Yes Q. And 25506 A. Yes 10 Q. And it says all colors because these were 11 manufactured in different colors so that they would 12 reflect when made into parts by the customer different 13 colored parts is that basically right 14 MS SPARDONE Object to form 15 THE WITNESS Yeah The colored 16 portion of it normally these would be 17 just -- just black The colored portion 18 would be at the request of the customer I 19 want a colored compound or a compound 20 that when it cured was green or orange or 21 whatever 22 Q. By Mr. Thompson And this Material Safety 23 Data Sheet or MSDS if we can refer to it that way 24 sometimes covers a number of product formulations VERITEXT NATIONAL COURT REPORTING COMPANY 888-777-6690 ~ 215-241-1000 ~ 610-434-8588-302-571-0510 610-434-8588-302-571-0510 610-434-8588-302-571-0510 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Page 129 which would include asbestos as one of the raw materials and ingredients in those products A. That is correct Q. This sheet states that quote The compound may contain up to 51 percent by weight bound asbestos fibers unquote True A. Correct Q. So Reichhold's asbestos phenolic molding compound had up to 51 percent asbestos is that correct MS SPARDONE Object to form THE WITNESS Okay You're talking about a wide variety of these and so when they did this MSDS rather than say okay 310 had X quantities at lower material charge and 25346 had Y they just lumped it together and said that the high -- apparently reading from this that it's -- that one of these products may have had 51 percent by weight bound asbestos Q. By Mr. Thompson And in fact this document says that quote Fine dust may occur when handling the asbestos phenolic molding compounds VERITEXT NATIONAL COURT REPORTING COMPANY 888-777-6690 ~ 215-241-1000 ~ 610-434-8588 ~ 302-571-0510 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Page 130 unquote True A. Are you reading from Section 5 Q. Does that not say fine dust where it talks about fine dust on Page 2 of the document may occur when handling Find dust Do you see that A. Yes Q. And then it says Use a respirator at all times when handling to avoid breathing dust Do you see that That is the next sentence A. Yes I'm sorry Yes I do Q. Wear gloves when handling that correct It also says A. Yes Q. correct Wash before smoking or eating is that A. Yes Q. And then where it says spill or leak procedures it says Vacuum or sweep up compound to avoid generating dust Use sweeping Did I read that correctly A. Yes VERITEXT NATIONAL COURT REPORTING COMPANY 888-777-6690 ~ 215-241-1000 2 610-434-8588-302-571-0510 610-434-8588-302-571-0510 610-434-8588-302-571-0510 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Page 131 Q. How would you vacuum it up to avoid dust MS SPARDONE Object to form THE WITNESS The standard says that they want you to vacuum up any materials containing asbestos as a -- as a raw material Q. By Mr. Thompson It says vacuum or sweep up and then it says Use sweeping compound to avoid generating dust Do you see that A. Yes Q. And the sweeping compound would only be applicable if you were sweeping it up right A. Yes Well perhaps you could 11 you could mean put that on -- I you can put that on and then go ahead and vacuum it up Q. It says Ventilate area well -- or areas well I think it's area It's kind of hard to wear Wear respirator if dust is generated Do you see that A. Yes Q. Did I read those correctly A. Yes you did Q. And then under Section 8 it says Special VERITEXT NATIONAL COURT REPORTING COMPANY 888-777-6690-215-241-1000-610-434-8588-302-571-0510 88-77-690-215-241-100-610-434-858-302-571-0510 888-777-6690-215-241-1000-610-434-8588-302-571-0510 88-77-690-215-241-100-610-434-858-302-571-0510 888-777-6690-215-241-1000-610-434-8588-302-571-0510 88-77-690-215-241-100-610-434-858-302-571-0510 888-777-6690-215-241-1000-610-434-8588-302-571-0510 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Protection Information A. Yes Page 132 Q. Do you see that on Page 2 of the document A. Yes Q. It says Respirator for nuisance dust and if asbestos fibers released Did I read that correctly A. Yes Q. Now I read some of your other testimony and I believe you've testified in the past that the only -- this is the only Material Safety Data Sheet relating to phenolic molding compounds manufactured by ~- that contained asbestos that were made by Reichhold Chemicals that you've read is that right A. This is the only one I have read that has been produced as part of this document group Q. Well have you ever -- okay Are you able to produce another Material Safety Data Sheet relating to containing phenolic molding compounds other than this one dated January 1980 A. No I'm not able to do that tell you that I -- But I will Q. No just -- VERITEXT NATIONAL COURT REPORTING COMPANY 888-777-6690 ~ 215-241-1000 ~ 610-434-8588 ~ 302-571-0510 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Page 133 MS SPARDONE It's okay Q. By Mr. Thompson Thank you I know you have an explanation and I trust that you will work it in But I -- you've answered my question You have testified in the past that you remember seeing and reading Material Safety Data Sheets for asbestos phenolic molding compounds made by Reichhold back in the day -- to use your phrase -- or back in you know maybe even the early 70s Is that your testimony A. Yes Q. Okay You haven't seen one of those documents for many years have you A. No sir I haven't Q. In fact did you ever even really see documents like that A. I drafted them MS SPARDONE Object to form Q. By Mr. Thompson You drafted them A. I certainly did Q. And you drafted them at company headquarters in White Plains New York A. Yes Q. Because that is what you were doing back VERITEXT NATIONAL COURT REPORTING COMPANY 888-777-6690-215-241-1000 888-777-6690-215-241-1000 888-777-6690-215-241-1000 ~ 610-434-8588 ~ 302-571-0510 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Page 134 then you were working in safety and hazardous material issues correct A. Correct Q. Now the White Plains New York corporate headquarters was not sold in 1986 was it A. No sir Q. In fact is Reichhold still based in White Plains New York A. No sir Q. A. Carolina Where is it based RTP Research Triangle Park in North Q. Okay Is that near us now A. Oh it's about a four ride Q. Okay When did Reichhold move its corporate headquarters from White Plains New York A. They started that transition in '88 or '89 and it was over a period of I think two years perhaps even three years Q. Now when you drafted these Material Safety Data Sheets back in the 70s as you say you were working within the legal department of Reichhold Chemicals correct A. Yes I was VERITEXT NATIONAL COURT REPORTING COMPANY 888-777-6690 ~ 215-241-1000 ~ 610-434-8588 ~ 302-571-0510 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Page 135 Q. Do you have any explanation today as to why the legal department of Reichhold Chemicals would not have retained these Material Safety Data Sheets if they really did exist MS SPARDONE Object to form THE WITNESS As of -- well you know this division was sold in 1986 and so everything that Reichhold had my understanding went to the purchaser which I believe was BTL And if you've sold a division and you no longer have that business there is no reason to retain documents unless they are required by law Q. By Mr. Thompson Well Reichhold Chemicals company headquarters in White Plains New York where you worked from late 1971 to early 1972 onward until June of 1984 was corporate headquarters for all divisions of Reichhold Chemicals correct A. It changed over a period of time And let me explain that a little bit We went through a phase -- Reichhold Chemical when I say we I mean Reichhold Chemicals -- went through a phase where we separated the product lines and created divisions and the VERITEXT NATIONAL COURT REPORTING COMPANY 888-777-6690 ~ 215-241-1000 ~ 610-434-8588 ~ 302-571-0510 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Page 138 A. Yes sir Q. And there was only one unit that was responsible for health and safety that reported to this general counsel correct A. Yes Q. All right And you say that you drafted these Material Safety Data Sheets back in the early 70s A. Yes Q. today A. And yet nobody can seem to find them Don't you find that strange Not after -- MS SPARDONE Object to form THE WITNESS Not after 38 years no Selling a division and the multiple moves with corporate headquarters no I don't find that -- I'm totally surprised the number of documents that were produced obviously from White Plains and from different parts of the company and obviously some from suppliers or whomever I think it is quite an accomplishment to have all these documents after this period of time the ones that we see VERITEXT NATIONAL COURT REPORTING COMPANY 888-777-6690 ~ 215-241-1000-610-434-8588-302-571-0510 215-241-1000-610-434-8588-302-571-0510 215-241-1000-610-434-8588-302-571-0510 215-241-100-610-434-858-302-571-0510 215-241-1000-610-434-8588-302-571-0510 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Page 139 Q. By Mr. Thompson And I'm going to ask you this Was Exhibit 12 which is Bates stamp Pages 000015 and 16 -- A. Yes Q. -- was that even drafted in January of 1980 or was that drafted later on to somehow assist Reichhold Chemicals in litigation MS SPARDONE Object to form argumentative assumes facts MR THOMPSON question I'm asking him a MS SPARDONE Same objection THE WITNESS Well I take this on its face that this was an existing Material Safety Data Sheet and it was published if that is a of 1/80 I represent that Q. By Mr. Thompson Well I think in other places you've testified January 1980. be 31 So would that A. January '80 1/80 yes Q. 1/80 A. Yes January 180 yes Q. Okay Now January of 1980 you are working under the general counsel in White Plains New VERITEXT NATIONAL COURT REPORTING COMPANY 888-777-6690 ~ 215-241-1000 ~ 610-434-8588 ~ 302-571-0510 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Page 140 York at corporate headquarters right A. Yes MS SPARDONE Asked and answered Q. By Mr. Thompson Now you say you drafted these Material Safety Data Sheets in the early 70s Did you draft this Material Safety Data Sheet in January of 1980 A. No probably someone in my group did Q. So you don't really know who did this correct -- A. We -- MS SPARDONE Object to form Q. By Mr. Thompson -- who drafted Exhibit 12 MS SPARDONE Object to form THE WITNESS It would be someone in my group Q. By Mr. Thompson Okay Now -- MR THOMPSON Take a short break THE VIDEOGRAPHER We are going off the record The time is 2:06 p.m. A recess was taken THE VIDEOGRAPHER The time is 2:14 p.m. We are on the record VERITEXT NATIONAL COURT REPORTING COMPANY 888-777-6690 ~ 215-241-1000 ~ 610-434-8588-302-571-0510 610-434-8588-302-571-0510 610-434-8588-302-571-0510 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Page 141 Q. By Mr. Thompson Okay Mr. Madden We have taken a short break So looking at Exhibit 12 A. Oh 15 and 16. Yes sir I see 15 and 16 Q. That is dated January 1980 as we have stated correct A. Yes sir Q. And that is some nine years after or more after the 1971 memo from your boss was sent around with regard to asbestos hazards and the use of asbestos in Reichhold Chemicals manufacturing processes correct A. Correct Q. Now during this time this nine years Reichhold determined that the economic advantages of asbestos were greatly outweighed by any problems caused by its use correct MS SPARDONE Object to form Q. By Mr. Thompson And by problems I mean problems with the regulatory agencies A. Not problems Just the -- what it would take to comply with the regulations as they were issued and -- over the years MR THOMPSON It's going to be VERITEXT NATIONAL COURT REPORTING COMPANY 888-777-6690 ~ 215-241-1000 2 610-434-8588 2 302-571-0510 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Page 161 formulation correct A. Correct Q. So if we look at the products at the top reference in the boxes in the upper right part it says Phenolic molding compound numbers -- and then we are dealing with hyphens again -- 25000 through 25-799 except Nos 25-310 25-346 25-347 25-388 25-398 25-197 and 25-506 Do you see that A. Yes I do Q. And those would be the products those ones we just listed after the word except are the ones -- are the containing ones that are listed on Exhibit 12 correct A. Seem to be yes Q. All right And they do not include the additional containing phenolic molding compounds that are listed on Exhibit 15 correct A. Let me just see 15 again real quick Q. Sure A. I'm sorry Q. The first paragraph of the second page A. Yes Q. Those 90 prefix VERITEXT NATIONAL COURT REPORTING COMPANY 888-777-6690 ~ 215-241-1000 ~ 610-434-8588 ~ 302-571-0510 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Page 162 A. Right Okay That is what I thought they are not listed there No Q. Okay So if we take a look back at Exhibit 12A it says This applies to phenolic molding compound numbers 25000 through 25799 correct A. Correct Q. And those would be the containing phenolic molding compounds right A. Should be correct Q. As made on January 1980 -- in January 1980 Now if we look back at Exhibit 16 and I will pass this to you Q. By Mr. Thompson 25170 correct Those refer to 25158 and A. Yes they do Q. And those are numbers between 25000 through 25799 correct A. Yes Q. So Exhibit 12A conveys a full suppression that all of these product numbers between 25000 and 25-799 were nonasbestos when we clearly know there were some products that came within that product -- that number range that were asbestos correct VERITEXT NATIONAL COURT REPORTING COMPANY 888-777-6690-215-241-1000-610-434-8588-302-571-0510 88-77-690-215-241-100-610-434-858-302-571-0510 888-777-6690-215-241-1000-610-434-8588-302-571-0510 8-7-690-215-241-0-610-43-858-302-571-0510 888-777-6690-215-241-1000-610-434-8588-302-571-0510 88-77-690-215-241-100-610-434-858-302-571-0510 888-777-6690-215-241-1000-610-434-8588-302-571-0510 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Page 163 MS SPARDONE mischaracterizes -- Object to form MR THOMPSON I'll have it reread if you want MS SPARDONE -- prior testimony assumes facts overbroad and vague THE WITNESS No I think they're -- I think they're definitely consistent and I will tell you why Again I mentioned this before you know products come and products go Likewise just for lack of customer you know acceptance or you know you really can't manufacture them on a commercial scale Plus they may have very well been superceded by asbestos reformulations So no I would take these documents to be consistent with each other Q. By Mr. Thompson Well okay A. Are you talking June -- I mean you're talking June 4 1973 and January 1980 Q. Well we can agree on this at least that as of January 1980 any products that previously contained asbestos that came within that range would VERITEXT NATIONAL COURT REPORTING COMPANY 888-777-6690-215-241-1000 888-777-6690-215-241-1000 888-777-6690-215-241-1000 ~ 610-434-8588-302-571-0510 610-434-8588-302-571-0510 610-434-8588-302-571-0510 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Page 164 not be referred to by -- or encompassed by 12A right MS SPARDONE Object to form THE WITNESS Well the numerical block goes from 25000 through 25799. So I think it's consistent otherwise you'd have except hypothetically 25 -- you know 25158 which we no longer make or 25170 which is now asbestos free So I think they're consistent If they're -- Q. By Mr. Thompson You don't know that 25170 is asbestos free as of that date do you A. No I do not Q. giving That was just an example that you were A. Yes Q. Okay So if a product was containing a phenolic molding compound product that had asbestos in its formulation prior to January 1980 we wouldn't be able to determine that from looking at either Exhibit 12 or Exhibit 12A right A. Q. correct That is correct And -- or Exhibit 15 for that matter COMPANY VERITEXT NATIONAL COURT REPORTING 888-777-6690 ~ 215-241-1000 ~ 610-434-8588-302-571-0510 610-434-8588-302-571-0510 610-434-8588-302-571-0510