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MANUFACTURING CHEMISTS association MINUTES OF MEETING Executive Committee of LEGAL ADVISORY COMMITTEE Conference Room of Wiimer, Cutler > Pickering 1666 K Street, N. W. , Washington, D, C. December 1, 1977 LAC 23-1 PRESENT James I, Wyer, Chairman Leon C. Holt, Jr. , Vice Chairman Charles E. Welch Bruce M. Barackman, Secretary John H. Pickering American Cyanamid CompanyAir Products and Chemicals, Inc. E. I. du Pont de Nemours Companv Manufacturing Chemists Association Wiimer, Cutler Pickering ABSENT Brian D. Forrow James H, Hanes v Allied Chemical Corporation Dow Chemical USA GUESTS Karl R. Barnickol Ray W. Brown Howard Fashbaugh Edmund B. Frost Bernard J. McNamee William M. Stover S. Maynard Turk Donald P. Walsh John A. Wilson Monsanto Company Mobay Chemical Corporation Virginia Chemicals Inc. MCA's General Counsel designee Hooker Chemicals & Plastics Corp. Manufacturing Chemists Association Hercules Incorporated Shell Oil Company Diamond Shamrock Corporation The meeting convened at 12:23 p.m. with chairman Wyer presiding. 1 Minutes of the November 3, 1977 LAC Meeting The minutes were approved as distributed. In regard to item 7, Mr. Wyer reported discussing the matter with Mr, Gray and deciding to wait be fore taking further action. CMA 086483 LAC 23-2 2. MCA Special Committee on Product Liability Mr. MeNamee reviewed the activities of the committee to date. He said the sur vey of member companies by the insurance consultant resulted in little meaningful data. The consultant is now talking in more depth to 20 se lected companies including several of the smaller ones, in an effort to produce more useful data. Mr. Mitchell, the committee chairman, re ported to the Board in November, stating that with regard to liability insurance, his committee is considering the possibility of Federal legis lation on tax relief for funds set aside to pay claims. Regarding changes in tort law, it is questionable whether Federal statute should be sought; there is some feeling that developing a model law might be useful. The committee is reserving judgment on workmen's compensation law as the sole remedy since that surely would be very expensive. Attention was invited to the efforts of Dow and others to modify the Ohio product liability bill which would exclude certain classes of chemicals from proposed exceptions to the existing twoyear statute of limitations. The Secretary will distribute copies of the bill. During the ensuing discussion grave concern was ex pressed in the matter of product liability; it was noted presently there is little prospect for a Federal tort reform bill; action must be focused at the state level -- individual member companies supplying the effort with support from MCA as feasible. It was recommended that MCA investigate availability and cost of state legislative reporting services; consider best method of disseminating information obtained on state legislative activity; and prepare report for consideration of the Special Committee on Product Liability. In further support of the special committee, an LAC Task Group on Product Liability was established. It will be chaired by Mr. McNamee and will include lawyers to be named from Du Pont, Air Products, Shell, and outside counsel. The Task Group will pre pare a draft containing the priorities of concern to the chemical in dustry in the area of tort law reform together with a supporting paper giving background and rationale for the provisions. This material will be made available to interested firms, organizations, and individ uals for use in legislative activity at the state level. 3. Other Matters Noting the absence of insurance cov erage on MCA safety publications, the Executive Committee requested the LAC to review the matter and make a recommendation within a rea sonable period concerning continuation of the program (1) without errors and omissions coverage and (2) with coverage at a higher deductible level. The Secretary stated that MCA already has initiated inquiries CMA 086484 LAC 23-3 concerning coverage with $1 million deductible. Following discussion it was agreed to consider the matter farther after MCA had received replies. 4. Next Meeting The next meeting of the LAC will be a luncheon meeting at 12:00 noon at the law offices of Wilmer, Cutler & Pickering, 1666 K Street, N. W. Washington, D. C. , Januarv 5, 1978, Minutes subject to approval December 13, 1977 BMBtjb Bruce M. Barackman SecretaryLegal Advisory Committee CMA 086485