Document N24MVMaZL84pLkpaqq2n3EVQE

HTMOTES OP THE ANNUAL Mgg$KG> of the FRICTIOW MATERIALS STANDARDS INSTITUTE. INC. Wednesday and Thursday, Juno 16 and 17, 1962 at Ssvgrass, Ponta Vadra Baach, Florida CauT&s u ACTIVE MEMBERS PRESENT Abex Corporation Bandlx Corporation Brassbestos Manufacturing Corporation Certified Brakes, Lear Slegler Company Deleo-Horatna Division Guardian Corporation Nuturn Corporation P. T. Brake lining Coapaur, Inc. H. E. Porter Coopany, Inc. Raybestoa-Manhattsn, Zac. Reddaway Manufacturing Company, Inc. Thiokol Corporation vxrg&oia Triccloa Products S. K. Wellman Corporation Wheeling Brake Block Mfg. Co., Zne. OTHERS PRESENT Abex Corporation Bandlx Corporation Cougar Automotive Corp. (Regional) Dalco-Moralna Division H. C. Porter Company P. T. Brake Lining Cosyany Rsybestos-Msahattsn, Zne. Reddaway Manufacturing Company Wheeling Brake Block Aabeatoa Coapansatlon Coalition Legal Coonsal Friction Materials Standards Insdtuta REPRESEHTATZVES Robert E* Helsoo, Vice President Fronde E. Masalar willlan Simon, Treasurer Robert J. Anderson Donald L. Earlck Borman Morse Larry DaFranee Stuart Codas W. Max Slaeth David E. Cunningham John M. Moore John P. Callaghsr Thomas Kennedy Gordon A. Corrigan, President Lea Burgess (6/16) Philip H. Grim, Jr. James W. Armstrong Alex Tgboxl Fred Tost George J. Bohrer Steve Doyle Ben Kublln Donald J. Testa F. William Barton Rob Burgess (6/16) Dava Pullen (6/16) Dennis loss (6/16) Robert F. Gorman. Counsel Edward W. Drlelane, Secretary Mr. Corrigan, President, called the meeting to order et 1:30 PH, June 16, 1982. As the first order of business, Mr. Corrigan called for a roll call. U-/ (7) MAR 000175 Miputes of Annual, Mlnutas tune 10-4/( i?oi Mr. Robert Z. Nelson. Abtx\Corporation; "Mr. Gordon A. Carrlgan, S. k. Wellman Corporation'. Hr. 7,. William Bart6n,-Reddawsy Manufacturing.'Company '. . Mr. 'Dwrtd'E. Cunningham; 'R^rfbestoa-Manhattan,'Inc`..''j t. ' 1. "* _v Mr!' -Carrlgan,'President, called, for .nominations'! from"the'. floori Mr/* Corn!ns offered the' nama.o.f.Mrt'Norman Morsajof.Guardiah^Corporation. In nomination. Mr. Morse declined the nomination.`1 t *r w* " J p*. J ,** **"* * P" v* ;'`j Upon motion duly made,'seconded* and unanimously passed, * it' was: RESOLVED: That nominations for. the'Board. Sf_ -. ,.'t***....................... Directors be closed/ ' ' The Secretary was directed to--cast one ballot for-the election of Mr. Robert E. Nelson, Mr, .Gordon .A. Carrlgan, .Mr. F. William Barton, ... and Mr.'David E.'. Cunningham to the Board of* Directors, ^Thej.Secretary advised that, the ballots! had been so' cast.. .The'President' advised that with the election of. these four Directors'that, the Boardlhad the req^ uired seven. Mem b*e.r*s.."../. ":, '' , .. "* r-.-w.. 7:#:* -r* .t * ... * f * 4.W ' ; V J Mr. Messier advised this Membership that It was. the Consalttee's intention to recommend the following' slateiof'Offleers! for election.at .the,'Board , - of Directors meeting''following. thje.'first .'Membership session:^ !_!' * ~' .~ ..." ... .-r. " For President . - ' Mr. 'Robert Z. -Nelson " For Vice President 1 - ' Mr. Stuart Comlhs ` . For Treasurer..'.!,* ' - Mr. William Simon.. . For Secretary . '- Hr.' Edward W. "Drlslsne'.. *. ^HEALTH ACT) --E--N--VI^RONMENTAL A--F--F--AIRSC'OMMITTEE-- Mr. Armstrong, Chairman of the Health and Environmental Affairs Committee, presented this report.. Refer" to EXHIBIT 9. ., Mr. Armstrong noted actions taken by. the. Commit tee and'the Institute Office, since earlier meetings. - He'noted In particular, chat concern was rising relative to litigation In the asbestos area, 'and proposals, for Federal Legislation In' the Compensation-'area.- /.Based on this concern, the Committee 1 met with representatives of the Asbestos Condensation Coalition relative ' !_ to Its activities, and recoimnended that a representative of rhla Coalition' .! address the fell Membership at this Meeting. He else, noted the concern with landfill and waste disposal'-requirements'/ At Its meeting, this Committee asked that Che Board of Directors approve e. request to the Federal EFA on approved -landfills for friction materials . waste, snd'ssked that the Board suggest, the means for making such s request. Mr. Armstrong reviewed general OS&A and EFA activities In areas of concern to'frlction materials manufacturer* and noted that the Institute had written NIOSH for either s final report or a statua of tha NIOSH contract for "Health Hazards In Brake Lining Repair and Maintenance Workers Occupationally Exposed eo Asbestos." HI MAR 000176 ;. Hr. Armstrong discussed litigation and*it vas noted that'-if' an-.individual., was covered by workmens compensation, that.party then could become a plain tiff in a third party suit against a supplier of asSestos or asbestos . prod ucts. The problem with'landfills was'that".tKelTi.availabilipjr.yfa.'.iiryijgi up, and sites and vis tatrantporteta* ver-: less" acces siblit rjn#., considersb ly. more ex- . pensive. The waste1 problen'-ii) prob ably 'more'.irf. i chemical. problem with phenols,* I formaldehyde, solvents'.amd the'likiel" noted-tbmt..representatives ;of the Upon motion duly made, seconded', arid* unanimously .'passed,- it was; . * nw RESOLVED: ' To accept te.'-report df'.theiHealth and Ipyiropmental Affairs Committee as**written:"** **". "*.-* `':*'*'*-* .r" : **J * *-* ' -. f, -v, j :r 2 -*i. . . -A--S-B--E:-S--T-O--S----C--O--M-PmEr--NS:--A-T--I-O--N---C---OAUTION ** * . ... The President Welcomed Mr. 'OAve'PviilfenNof .the,Asbescos'.'Conpens'atira '.Coailtidn to the Meeting; noting, that' Mr i,;Puilen hail been^-Invited jtp address" tie^.liefl&ership after* earlier), contsCti'wit'iTMri.Atria ticng^s.He'altl^jind Spvl^'qcmentaj* Xifairs Committee.' Mrl 'Cardigan felt: it**wW-''t'ir^y*'that''the'^C{j|}^^J2 ^d)'ac*ciep.ted .this invitation to* our Meeting* because of- the increased. ctce^^n"tlitftafand' insurance relative tov asbestos exposure caaes^ _ Mr .JPulfap intro)ducejlJMr, Dennis Ross_ ijhp Isi * also With" the* Coalition.*, Both. MxV'Pullen Jtnd 'far'.J1SUies presented the Coalition's `.vjfjfite"Mo* the. co^'tosation* issuW and; jilternjaed^in this. pre sentation.* For ba5kgro`jibd*)''it* was noted Chat the'fpUfsSnglY|e'^imbe)rs df the Coalition: Celotek* Division.-'of, Jim Walter-,*.As.arco;/Eittpbnrg Cojhing^'tfnarco, Johns-Manvllle, Eaybestos-MujK'attan,''Amjate)c^ and Eagie Pitcher.' The earlier legislative initiatives were'noted including; the Hart Bil^'^the Femriek Bill and the Miller Bill. The Coalition sa-Taeris~ and shortcomings ip .e/ch of these, and felt that while they* did not-'have-a complete'packagejto .ofter at this time, they needed broader support- and would encourage, meaningful Input from Institute Members and odsers. It was stated that there are how* 18,000 lawsuits in the asbestos* ares, and there;jse more .asbestos-related lawsuits in .the courts, than -car accident suits*. ,,The allegatibas^'ara that 'asbestos -*products manufacturers* knew of the health "problem and. did not warn the. exposed worker, lately, die issue of "strict 11ablKty" has arisen WHete .it would hot matter if themaniifaeturer didn't incaT of the*health hazards--"he could-fee held liable ih spy fcyfflt.;^Stdxseqiient"-to the* Meeting, .ifor, instance,,pp-)luiy *7,)* 1982 the New* 'JerseyfSu^reme "Court -`-(ih Besh'sds vV;'Johns-Hravi'ilerrfrfluct^'CorpO ' ' The increase in litigation has several .roots. There* has'.$eeji*. ih.erosion in the.exclusivity of workmens compensation -as the'remedylncases' of`exposure. The plaintiff bar -firvdri this* activityras..the^feeir-^jje-.^op a contingent basis; Some*. State Vorip5ens'^3or^>cis>atitXiyEograt*.!.a'Ve-^l'i..nly--i:n.s3equstW requiring that claim# Se^fi/led -within 'tud.^or 'three..-years. *oi exposure; *' Sdne****Stite-plans r nntv n R ra >swniiwww ws.'a/' e < >^1 ^ . * > y, MAR -000177 Mr. Pullen suggested the poor distribution of funds to the Injured party vith distribution of .a typical $100,000 ward.. Such an award could go_up to $60,0OO'ln`feci/;S5,00OHu'costs,;$10,OOQ'to'repay -Workmens Compensation, iind the final7$25,000`to'the injuredparty for'lifetirae medical costa.^Counting the' costs' of The 'defehdint.parties7~and including-'the'-costs.of-'-'dbferidirig'success fully wherein? awiird^ii fnadev It "may cost'`$200,000 'to 'Bet' $lSr000 -to .the -inj ured party,'*'TMis"systnr of awards'is -^wasteful, and^it is'-iiiggested^that" sugges ted'' additionally'. t&ac^such-unifbra plans^ln* the;50'States 'do'hbEr bring the United' States Government in^iis'a^partlclpant 'when::tlie7GovernS&ent^run:iBlp- yards of World War.II. have been responsible for "a majority-of the caaei^In-^ litigation' today. '*Mr. 'Pullen.'and^Mr.r 'Rbssvsuggested that 'if afState^by-State approach is not the'solution^tdiit the'solution may 'be;the' Federal Government, acting on Four Principles: . ..Is L*fm* **. I * ^M,***4.3* -f'}- i n^rn/*cs.im .1. Settlenent be prompt, adequate and equitable 2 Proof'of'injury wbuld. be -oh' clearly'-defined medical ivU.uation- fell (avoiding"the:'"Black''tung,,. thebry^wherelany expos ure^L* suf- -ny^zr. ficient-proof)v=" 7-'-'^ ; - "lew fciuov ,r&SsiIi.; s/Js smis '-3: L-Costs'-woixld':nbc-be'dumped' on the taxpayers--the'buTden'(inst"be tor3 onrthose-respohs'ibTe'j - a rrrsasaeeaas asna 1*3on anv 4.' -Such settlement would provide - the' exclusIVe'-'remeby;*'prohibit-;:unr-^ ing third party litigation. .rrirocnl pnibcKc The Government''would- itself'-bear'50S-of the-? total costs;--as roughly50X?of i* exposure occurred1 in-shipyards at-`wartime' '" ' - - -- I'-iilr.:': ' - i !.: r.ti/--. .*:. c-; : ::-r.. Hr.-PuUen~note'd-the three %'arli'er -legislative initiatives on sasbestosteosp- ensation: S1643-- the Hart-Billy HR5224: - the- Fenwick Bill, and HRS7351- r; the Miller Bill-.'- Both-We*Barg Bill and the: Fenwick Bill:-are dead.T'.AThideb the Miller Bill Is -technically alive,.- it - is probably politically dead.*.'-z-: rr- -1:.-.- The 'Co'aUtrl'on-'ha's:`<t'e'Cbomehde'd'a':,new legislative approach;*''Among -the ad-., d: vantages would be^thet'-it'does*-not-federeUze-vorkmehs compensation, butcnz rather wbrks: wlthin--the; exfat:ihg''State-woricaens compensation: framework.' Jt. would safeguard the-funding, as the implementing resolutions would .have ;a .`3 limited life of five or ten years, and the entire resolution could be terminated -lf;:the -pay-out'-excaeded-itbe -funds; available,.'3ihichl6uld .rein- cl state' tort litigation' -as--the''-fea#dy-! : In"-.other iworda^ zthls would.-avoid.- s-.-, possible' unlimited funding which 'feould Tesulr' from zlegisiationtaofvitheK'lklack- lung" variety.': r. - c-.a s.-.-Ujti-;--.;. ,oi.r.-.. r.. t :-p y.-vti.. r-.r-J :i Copies-of a- -"Sunaary of xh- Occupational' Disease- -Compensation. Zmprovement->v Act and the -Inplementing.Xesolutlon'zfor -Ash.estos Related dHaeaaes" .-were .-.i.-lj distributed'.' ..Hie' Coalition'.-had-prepared these Summaries .'to.-descTibe.or zrc.: generally the legislative approach recommended.-;'-.The ;AeC:wouldrbe farrier generlc approach not limited to asbestos which could function for e range of .occupational:diieaaea...-i3hia-would'-kelate Jo -the-types ;of diseasesj the;, provision .'of benefits, lintersction between Federal and State -Programs .T-and-.1 financing .of rtherfund. j The proposed-Act-would.provide that,this remedy yaa the exclusive remedy^or choee *inj ured by .-the occupational disease.- The- -,i ' Act would provide-ior Implementing-Resolutions..for the different occupational diseases and.these resolutions'-would provide ;for;a limited life-qf. thgi-;... resolution .snd'-thet rthe resolution could be -.terminated J.f- theipey-rout ^exceeded available funds .absent enacting additional authorizations, n-j5:--' - ', " 4 * :* r- .- S:ii a. xi.; hr.z ^ ->* f.. * .. . e,t.. - .,c - -- .. - * -*..* -i.r~ V - ?1 _ . .. * `. r .. . MAR 000178 It was suggested that If the -existing system , .of ' tort liability-is not changed that there.will be bankruptcies within this industry.' There may even. bankruptcies by ;the. insurance .carriers, ..as there:now are' 400 '.to 500 .'' new cases being litigated monthly... It'was noted -that solutions to this'. problem -were.'complex; and that if-there.is no'solution many ''asbestos "products' manufacturers, may .go .-'out .of^business J _The .Coalition .at .this time 'requestd"'!' input from-any interested party'and ..that when a draf11 ofthe legislation'is" available, the .Institute, and'its .Members might help 'with constructive'..'. l.'.j criticism of the proposed'Act... -Now! is,.the'.time1 to discuss the plahV .and'as . nothing.is now cast in concrete,'this'.is-, tie best'time for input..-,.' It 'Was r . stated thafthe Coalition .should have- the- language .-ready in the next month', or so and would hope to have copies ready for the institute and other. ...it ' interested parties at that time. They would hope to haverthe proposed Act in the legislative hopper by late 1982. The Coalition's proposals were opened for questions and discussion. In' answer to a question on cooperation with the. Coalition, Mr..Pullen noted that the Coalition would welcome applications for Membership in .the Coalition from interested parties*. Questions were asked :on_ financing the fund ahd it was noted that assessments would be made on a formula baskd on-each manufacturer's, defendant settlements-and.-judgements and ..on the number of pending lawsuits." "'' J ... - "... Mr. Pullen noted that it was.possible that his company- (Johns-Manvilie) might end up being assessed a higher proportion-of the. costa-of - the 'fund, but .that such a program would compensate those funding it with injured parties giving up tort rights. The efficiency, of such a program would be-that up to 852,. of the costs now consumed in tort -litigation, could.be eliminated; He noted- that currently about 2Z of cases gotoverdict", and--about 652have befen . defendant verdicts;.' As some other than Johns-Manville cases have had 852 defendant verdicts, Johns-Manville may end up paying a higher percentage fee than others. -It was noted that one defendant had-won 16 -out of 18 cases,. ' and rthat the process of. settlement has. increased'.li.tigation./' Some defendants -. may reappraise their .-litigation, strategy and. prefer going, to verdict rather than settling; ;. It was noted-that 'D'r. SeUkbff had.-predicted-10,000 excess -lung .cancer'deaths . per year -from'asbestos exposure along with-2,500-asbestosls cases and'2,Q00- to 3,000 mesothelioma cases..-' While -most -observers ^ believe Dr..."Selikoff's - projections an too high, this is an indicator of the scope of possible ' litigation. One party questioned if an alleged victim of asbestos exposure, could readily make.;his. clalm .through .the -intended compensation fund,-.wouldn't - this open even more'clajpa than tort -Jitigati'Qn.'`*.-.:Ih;,.-response, :i.t was noted, that scot observers'`feel "the "jackpot-!1 settlement, x>f tort: li.tigation is. :more attractive to the alleged /victims* ; ' ! '- - With this open discussion concluded;-.Mr. Armstrong, Chairman of the Institute's Health and Environmental Affairs Committee, .-suggested that Mr.`Pullen's -and Mr. Ross's presentation had.given the Members a broader perspective on.the. issues, and he asked for more-participation -of -the "Members -isi the work of his committee.' It was 'stated that some Menhers may wish to participate as .in dividual Members 6$ the'Coalition, and that the-.Institute wished the Coalition, to maintain liaison with the Institute through its Health and'Environmental Affairs Committee. It was-asked-that thcvCoaUffon-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 ' ^ two or three weeks, and that a draft would be sent to MAR 000179 che Institute at thatutiinei.'-lin"'response'tova.'question; it was noted that there was no sponsor for such proposed legislation at this time. > i' ` "J-: - v r; ` '- .V/. ... 111>.. 1J The President thanked Mr. Pullen and Mt/'Ross""for"their'efforts on`thi3' presentation of position by the Asbestos .Compensation.Coalition. ... i. .Li... .`v'.vr '!./' l-S7t;.'tltost f 1 j rii.`I c . fll Upon motion :duly 'made,* 'seconded':rid7iniariitrou8iy 'passed^iLt^"wasp* V" = -- "i - :;srb3 .*:.:* i1.- i.-is sia ';f fcArf'yo.'v.firrE .RESOLVED:' ` To th'ahkrMr7'Pulieii''v'and^ry''.Ro's8 of ^thef? Asbestos 'Conirperis'at'ibiy 'to'alitkon'for '-fhM-f;; . .;.. >.j; :. ' presentation -at "this1 te'etinW' - f- _ ' - ` '.'O/z.- ..si*? 2~i.2n.tl isl'jp I ' : ~~ - - FEB'FORMULA COMMITTEE "<PARf"2r * .--....i..................... . iibci-rv'V:;V ! ' .be. tab led`'Until' after presentations by "the 'Health and `Environmental/ Affairs Committee and members of the Asbestos Compensation Coalition."" The'President called for additional discussion on this agenda item. .Lc.'tiixdnZ`hr-,m-:".,.'r.- `iVo.-;-;-' : .i>Z~r . .... :.o.Vr'.. c..'': The Board of Directors had voted to. Increase the annual fee by a change in the fee formula as followai'^'^ r<t- i~:' ' : i- .-2*'Vs^irr*.* ifc?nrrrnfrsr"*J -CJ'. -- Active Mender: Basic Pee Increase from $1,150-tcf"$l, 300, with no .change in the. category,assessment Regional Member with Active Member rights: Same fee ingrease __ ....... i <> - as'Tor'``Active Merfber^^ " :i r.: - 7 *1. r 3 3 j.iCTvl ;T^v Regional Member (Regular) Increase from $1,450 to $1,600 ,. . . u.c: * *v ' >'.- _... .".' .'V, ., .Zii ` Regibnai Member (Asso'ciafci'hrO 'Increase from ,$2r400 to-$2,6Qpr ;:'' fi:i 7? *. ;* l J'i -ui .. - -* ~'Z7- * *.- -* **" r, * - . - .*/ ;v/` Licensee:-" 'Increase "from $550 to $600 ` - " ' As indicated earlier,- 'the Board wished to "establish .;a ""reserve" -with the ; \ additional fee``payments tb"!plah` f6r that time when additional monies..mayc7> 'J. "have to be spent :ori consultants'-dr rith'e'r "Costs .to help solve ;.problams' iij the waste disposal' area, arid other' area?? 'of environmental concern., Sudr ^ reserves' -could only be built to"'a :cert'aih'''^ibint, arid if funds' were; notv*7:| expended the reserve fcould be -cloBed and ^faoriiea^ made 'available'-for. general, purposes--iri-effect reducing the'Tees."Conj^rn was expressed ^on creation..of such a reserve" when` the: Institute''"had been gerieraping~-ari: excess .of income..^, over expenses for the past several: yearri. ' - -' Upon motion duly'-made,'sVconded briid r pas Bed with ten iienhers'.. , - .!".. - in favor and*fiVe'Member's opposed,- i:t-was~ ; . ' '.' ../RESOLVED: -'"-'To.'adopt the 'follwirig fee fornmia forj'-' . -..'o.'- - :- 1982-83: "Active'Metiiefs' arid'-Regionals ~ -/ ; ' ' 'with: Active Mrinher-rights: "Basic -fee * - > $1,300; Category Fee'.$70(5;' Regional' ' ;'- Member'^Regular) Fee $l,6b0; 'Regional'.-"y.:i:.r Menbef-l(Associata.bn)i -Fee` $2,600;`:- 2 `- ~ " Licensee: Fee: $600, i' ` " `V MAR 000180 his suggestions for more participation! pr or to next year's meeting. The President thanked the Chairman foil hi work on .this year's Tournament, the presentation of awards, and his suggestions 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 rec ommended 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 information would have access to the Institute compiled list. The Board asked that this subject be an agenda item at the Membership Meeting. 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 Members generally concurred in an exchange of information 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 Member ship, upon motion duly made, seconded and unanimously passed, it was: RESOLVED: To Adj ourn Adjourned at 9:40 AM E. W. Drislane Secretary MAR 000181