Document zB49MOKDn8gn6bKpR2OrxNj7

FRICTION MATERIALS STANDARDS INSTITUTE, INC., E-210 ROUTE 4, PASAMUS, N.J. 07652 MINUTES OF THE ANNUAL MEETING of th FRICTION MATERIALS STANDARDS INSTITUTE. INC. Wednesday and Thursday, June 16 and 17, 1982 at Sawgraas, Ponte Vedra Beach, Florida ACTIVE MEMBERS PRESENT Abex Corporation Bendlx Corporation . ' Brassbeatoa Manufacturing Corporation Certified- Brakes* Lear Slegler Coopany Delco-Moraina Division Guardian Corporation Nutum Corporation P. T. Brake Lining'Coapany, Inc. H. K. Porter Coopany, Inc. Rayb es toa-Manhattan, Inc. - Reddaway Manufacturing Company, Inc. Thlokol Corporation ' Virginia Friction Products S. K. Wellaan Corporation Wheeling Brake Block Mfg. Co., Inc. OTHERS PRESENT ' Abex Corporation . Bendlx Corporation . Cougar Automotive Corp. (Rsglonsl) Dalco-Moralna Division H. K. Porter Coapany-r. P. T. Brake lining Company Roybestoe-Manhattan, Inc. Reddaway Manufacturing Company ^ Wheeling- Brake -Block Aabeatoe Compensation-Coalition . Legal Counsel : . Friction Materials Standards Insti REPRESENTATIVES Robert E. Nelson, Vice President Francis B. Messier William Slnod-, Treasurer - Robert J. Anderson - Donald L. Emrlck Homan Morse Larry DeFrance Stuart Conlna W. Max Slaeth David E. Cunningham John M. Moors JofanP. Gallagher Thomas Kennedy Gordon A. Carrigan, President Lae Burgess (6/16) Philip H. Grim, Jr. JaneS'.W. Armstrong AlexTgborl Fred Tost George J. Bohrer Steve Doyla . Ben Kubltn . Donald J. Teats P. William Barton ' Rob Burgase (6/16) Dave Pullen (6/16) Dual* Ross (6/16) Robert P. Gorman* Counsel Bdwexd W. Drlelene, Secretary Mr. Carrigan, President, -celled the meeting to-order at 1:30 PM, Jane 16, 1982. As the drat order of business, Mr. Carrigan called for a roll call. FMSI-0372 FMSI 02084 x Minute* of the Annual Meeting -2- June 16-17, 1982 MINUTES OF MEETING OF JUNE 17-18. 1981 The minutes of the Membership Meeting held June 17-18, 1981 hed been distributed. No corrections were suggested. A motion was requested to accept the minutes as written. - Upon motion duly made, seconded and unanimously passed. It west RESOLVED: To accept the minutes of the June 17-18, 1981 Membership Meeting as written.. . PRESIDENT'S REPORT Mr. Carrlgan*.President, presented his report. Refer to EXHIBIT 1. Mr. Cdrrlgan noted that his. service began in February 1980 and that this would be his lest tens, as president. He Advised that he would not seafct another terra. He noted some of ihe highlights of Committee- reports, and advised that die new consolidated catalbg would net be iready ,for distribution . until Jyly 1982. Mr.Csrrlgau thanked the Officers, Directors and' Committee ChalrneafoT tfaslr afforts on bshalf of ths Institute. Upon motion, duly, .made, seconded end unanimously passed, it.was: . RESOLVED: To accept ths President's Report as written. REPORT CM ACTIONS TAKEN BT THE BQARDOF DIRECTORS- . The Secretary prepared-and reads report on actions taksn by ths Board . of Directors sines ths Juna l981Meetlng. . * By mall ballots, ths Board approved an increase In the retainer for Legal Counsel from $5,500 to $6,500 per year. They voted to terminate the Lesco Menbershlp in the Institute because of Its failure to pay the annual faa. The Board voted several times on selection of an Institute logo, but failed to make a final selection. , ..... ... ... ... Ths only Board Masting sines Jana 1981 waa that held earlier .this weak on June 15, 1982. The Board heard and) approved the reports.ofvthe President and Treasurer. They approved the application filed for licensee Meabershlp filed by Brenler Corapsny, Inc. " Ths Board voted Co terminate Borg A Beck de Mexico, S. A. ar e Regional' Meaber for failure to.,pay Its annual menbershlp fas. The report of the Investment Advisory Comlttea wss . approved which lndudaden investment plan for Shout 7SZ iof..funde . la. D.St Treasury obllgstltios with the balance In the Vanguard Money Market TrustFederal Portfolio. - The Board approved the report of the Budget Cooadctee calling for an Expense Budget of $l07,500. Rued on a Director's motion . to Increase the fee schedule to create a reserve for contingent expenses In ths environmsntsl arsa, ths Board tabled action on the Fee Formula Committee report until the' conclusion of Its nesting.. The report of. tha F.ublic* Relations Committee was accepted, and the Directors recommended that conalderatlon of an Institute- logs design be referred to the' Maabsrshlp at j.cs masting. FMSI 02085 Minutes of the Annual Meeting -3- June 16-17, 1962 The Board approved the report of the Data Book & Technical Committee and added a special vote of thanks for the Committee's work on the new consolidated catalog. The Board approved the report of the Brake Performance Study Committee and that of the Health and Environmental . Affairs Committee. Litigation in the asbestos area was discussed, and the. Committee Chairman noted that the Asbestos Compensation Coalition would shed some light on this subject during Its presentation. The Directors asked Legal Counsel to write Federal and applicable State agencies on-availability of landfills for friction materials waste. The Committee was asked to draft a letter for Members to send to resin/chemical suppliers to secure their assistance In the waste disposal problem'. - It also suggested contact with associations in the chemical field for suggestions and Input on waste disposal. Any question on coordination of activities or assistance to the Asbestos Comp ensation Coalition was referred' to- the new Board of Directors who would be elected at the Membership Meeting for the 1982-83 year. The Board approved the report of the Annual Meeting Committee to return to Sawgrass In 1983, go to LaCosta In 1984 and to ask that Sawgrass do a better job of locating meeting villas: In one area In 1983. The Board voted to continue the Historical Sales reporting program without change. The Board suggested a direct payment plan for Miss Duschek's pension payments. The Board considered a credit- reporting plan suggested by one Director, and referred this to the Membership at its meeting. The general recommendarlon was that Members list who In their company should be contacted when making credit Inquiries, and that those who provided the name and telephone number of this person would be sent the master list of contacts. Any such plan would ba reviewed by Legal Counsal before action Is taken. The Board voted, with six In favor and one opposed to Increase the annual fee as follows: Active Members Basic Fee from $1,150 to $1,300; Category Fee unchanged; Regional Members with Active Member rights, the same fee formula as for Active Members; Regional Menbers (regular) from $1,450 to $1,600; Association Regional Members from $2,400 to $2,600; Licensees from $550 to $600. This Item raised a question, but It was asked that discussion be held until the agenda item was called at this Membership Meeting. This report Is strictly a report on activities of the Board since last meeting and report. Upon motion duly made, seconded and unanimously passed. It was: RESOLVED: 'To accept' the Secretary's report on action taken by the Board of Directors as read TREASURER'S REPORT Mr. Simon, Treasurer reported on financial activities during the 1981-82 fiscal year. Refer to EXHIBIT 3. Mr. Simon's report projected an excess of Income over expenses of near $10,000 for 1981-82, based on a trial balance of accounts at April 30, 1982. His report compared projected expense Items to June 30 with the budgeted figures, and noted that while there were some significant variations, actual expenses will come out quite close to budgeted expenses. Upon motion duly made, seconded and unanimously passed, it was: RESOLVED: To accept the Treasurer's Report as written. FMSI 02086 T Minutes of Annual Meeting -4- June 16-17, 1982 MEMBERSHIP COMMITTEE REPORT Mr, Stuart Comlns, Chairman of the Membership Committee, reported. Refer to EXHIBIT 2. Mr. Comlns noted the relative stability of the Membership during 1981-82. Among the changes noted were the additions of Cougar Automotive, and Frlcdon, S.A. . He advised that Lasco was dropped as a Meaber and that Borg and Beck de Mexico, S.A. was delinquent In payments of Its annual fee. Mr. Comlns noted that an application had been received from the Brenler Company, Inc., a manufacturer of insulators, for Licensee Member ship in the Institute. Upon motion duly matte, seconded and unanimously passed, it was:, . ; , . RESOLVED: TO accept the report-of the Membership Committee as written. The Secretary advised that the Board of Directors had unanimously voted acceptance of the Brenler Company application for Licensee Membership. Upon motion duly made, seconded and unanimously passed. It was: RESOLVED: To accept the application of Brenler Company, Inc., for Licensee. Membership in the Institute. INVESTMENT ADVISORY COMMITTEE REPORT Mr. Barton, Chairman of the Investment Advisory Committee, presented this report. Refer to EXHIBIT 4. In summary, Mr. Barton projected the Investment balance to June 30, 1982 at over $180,000, an Increase of nearly $15,000'over that at the start of the year. Projections were made for this year's Investment income, and for the 1982-83 fiscal year. At the conclusion of the report, Mr. Barton recommended that about 75Z of Institute funds be in U.S. Treasury, or Agency obligations, and that the remainder be in the Vanguard Money Market Trust-Federal Portfolio. A Yield Analysis of Institute Investments In U.S. Government Obligations was appended to the report which Indicated yields to maturity In excess of 13X for all obligecions maturing after this coming fiscal- year. It la anticipated that the yields on U.S. Government Obligations will be in the 13-to 141 range over the next several months. Upon motion duly made, seconded and unanimously passed, it was: . RESOLVED; To accept the Treasurer's Report ss written. - BUDGET COMMITTEE REPORT Mr. Sleeth, Chairman read the report of his Budget Committee. Please refer to EXHIBIT 5. ' FMSI02087 Minutes of Annual Meeting -5- June 16-17, 1982 The Chairman proposed ah Expease Budget of $107,500, a 6-1/2X increase over the 1981-82 Expense Budget. The principal items of inctease were in Salary and wage related costs such as payroll taxes and pension expense. A line by line comparison was shown for 1981-82 Budget Figures with the pro posed 1982-83 figures< - Upon motion duly made seconded and-unanimously passed, it was: RESOLVED:. To accept the report of the Budget Committee " as written. ` ' : FEE FORMULA COMMITTEE REPORT. Mr. David Cunnlnghari, Chairman of the Fee Formula Committee, read this report. Refer to EXHIBIT 6. Mr. Cunningham's report balanced projected expenses frost the Budget..Comm ittee report, and projected Investment; income from the report of the Invest ment Advisory Conmlttee, and-recommended that the. Fee Formula used ip the past three years (1979-80, 1980-81, 1981-82) be maintained for the 1982-83 fiscal year. Based on the Expense Budget and the projected Investment In come, income in excess of $6,000 over expenses was projected for 1982-83'. As noted earlier In the report on actions taken by the Board of Directors, the Board had voted to Increase the fees by a change In the fee formula. These Increases were to be as follows: . Active Member: Basle Fee Increase from $1,150 to $1,300, with no change In the category assessment; Regional Meraber with Active Member rights: Same fee Increase as for Active Menber. Regional Member (Regular) Increase from $1,450 to $1,600 - Regional Member (Association) Increase from $2,40Q to $2,600 Licensee: Increase from $550 to $600 , The justification for such an Increase was to establish a reserve for anticipated future costs associated with environmental concerns. It was suggested that the Fee Formula^.recommendatlons could be discussed further after the reports of the Health and Environmental Affairs Committee and the presentation by representatives of the Asbestos Compensation Coalition. Upon motion duly made, seconded and unanimously passed. It was: RESOLVED: To table discussion of the report on the Fee Formula"Committee until after the report an the Health and Environmental Affairs Committee and the presentation by representatives of the Asbestos' Compensation Coalition. ' FMSI 02088 T Minutes of Annual Meeting -6- June 16-17, 1982 NOMINATING COMMITTEE REPORT Mr. Ftiaaicls 8.- Messier} Chairman of the Nominating Committee, presented _ this report. The Nomlnatlhg Committee's recommendations had been ' ' ' forwarded by the Institute Office to the Delegates add Alternates .. on May 14, 1982. Ho comments or additional nominations hadbean suggested in the interim period. For background, Mr. Messier noted that the following three Directors would be completing the first year of their two year terms as of June 30, 1982: ... , . Mr. John P. Gallagher, Thlokol Corporation :- ... Mr. Francis B. Messier, Bendix Corporation Mr, Robert J. Anderson, Certified Brakes, hear Slegler Company - This committee reeosmended placing the following names in nomination ' ' ' for the Board, of Directors. If elected, they would serve two year terms, the first year starting on July 1, 1982: .. 1 '- ... Mr. Robert B. NAlson, Abex Corporation' . Mr. Gordon A. Carrij^si, S. K. Uallaen Corporation Mr. F. William Barton, Beddaway Manufacturing Company Mr. David E. Cunningham, Raybestoa-Manhattan, -Inc. ' '' ' '' . .. . . - . . i. '' Mr. Morse askad Why the Constitution and By-Laws had been amended last year to broaden participation In the Institute whan the Committee recommended a nominee who would serve as f Director, and most likely as President. This was with :reference to amendment of the Constitution ARTICLE V - OFFICERS, Section 2, Election and Term of Office. -This amendment in effect permitted the Institute,to have.a;President and Vice President who were not also Directors of the institute. The Secretary . advised that while this amendment permitted the Institute to have a President and Vice President who were hot also Directors, it did not require it. Mr. Morse also asked _ why the committee did'not`recommend '. the nomination of a President and Vice President who were not also Directors. (The Committee wee recommending the nomination of Mr. Nelson as President and to sarva as a Director. The suggested Vice President, Mr. Comlna, would not be serving as i Director if ..the Committabs' nominees were selected). i: ' ./ t - - ' ' The Chairman of thr Nominating Committee asked for a recess to review - . - ' these coumnts* The Chairman, after recess, .advised that the Committee sslections were made with consideration that Board Mashers ace permitted to serve as Officers, that e^arisnca was.a deciding criteria, and that experience included service on Institute Coemittees and long term service* to and attendance at Institute Meetings. With these critsriain mind, the Committee recommended a change in the nomineea. And suggested Mr. W. M. Sleath for the Board position qarlimr- elAted for Mr,t #alsiu> Mr. Slaeth advised that he could n^t accept-a. position as a Dirsctor of the Institute, and asked that his hams bs.vitbdrawn. Thai Chairman with draw the suggested nomination of Mr. Sleath. At this point, in order to keep with the planned program at this Meeting, the President asked that the Nominating Coinlttae report be tabled. After an additional recess end nesting, Mr. Messier placed the following names in nomination for the two year terms as Directors for the Period from July 1, 1982 to June 30, 1984: FMS1 02089 Minutes of Annual Minutes -7- June 16-17, 1982 Mr. Robert E. Nelson, Abex Corporation Mr. Gordon A. Carrlgan, S. R. Wellman Corporation Mr. F. William Barton, Reddaway Manufacturing Company Mr. David E. Cunningham, Raybestoa-Manhattan, Inc. Mr. Carrlgan, President, called for nominations from the floor. Mr. Comins offered the name of Mr. Dorman Morse of Guardian Corporation In nomination. Mr. Morse declined the nomination. Upon motion duly made, seconded and unanimously passed, it was: RESOLVED: That nominations for the Board of 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. The Secretary advised that the ballots had been so cast. The President advised that with the election of these four Directors that the Board had the required seven Members. Mr. Messier advised the Menfcership that it was the Committee's intention to recommend the following slate of Officers for election at the Board of Directors meeting following the first Membership session: For President For Vice President For Treasurer For Secretary Mr. Robert E. Nelson Mr. Stuart Comins Mr. William Simon Mr. Edward W. Drlslane HEALTH AND ENVIRONMENTAL AFFAIRS COMMITTEE Mr. Armstrong, Chairman of the Health and Environmental Affairs Committee, presented this report. Refer to EXHIBIT 9. Mr. Armstrong noted actions taken by the Committee and the Institute Office since earlier meetings. He noted In particular that concern was rising relative to litigation In the esbeatos area, and propoaals for Federal Legislation In the Compensation area. Based on this concern, the Committee mat with representatives of the. Asbestos Compensation Coalition relative to Its activities, and recommended that a representative of this Coalition address the full Membership at this Meeting. He also noted the concern with landfill and waste disposal requirements. At Its meeting, this Committee asked that the Board of Directors approve a request to the Federal EPA on approved landfills for friction materials waste, and asked that the Board suggest the means for making such a request. Mr. Armstrong reviewed 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 "Health Hazards In Brake Lining Repair and Maintenance Workers Occupationally Exposed to Asbestos." FMSI 02090 T Minutes of Annual Meeting -8- . June 16-17, 1^82 Mr. Armstrong discussed litigation and it was 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 asbestos, or asbestos prod ucts. The problem with landfills was that their availability was/drying up, and sites and waste transporters.were less accessible, and considerably more ex pensive. The waste problem is probably more of 4 chemical problem with'phenols, formaldehyde-, solvents .and-the like, . .It was noted that representatives of the Asbestos Compensation Coalitiop. were at the Weting, and their presentation might answer questions in the litigation' andinsurance areas.. ' ' Upon motion duly'madej seconded and unanimously passed, it was: ' ` ' * - V . *. RESOLVED: To accept the rep.prt of the Health and Environmental Affairs Committee as written. .' * ` ' '. . ASBESTOS COMPENSATION COALITION The President welcomed Mr,. Dave.Pullen of the Asbestos .Compensation Coalition to the MC'etlng, hoting that Puileh'fiad been invited to address the Member ship after eatlier contacts with Armstrong's Health apd Enyircfitaental 'Affairs Committee. Mr. Carrlgan felt it was ti'meiy that'the Cdalitipn had accepted this invitation to our Meeting because of the Increased concern on lltightlbn and insurance relative t4 asbestos exposure cases. Mr. Pullen Introduced Mr. Dennis Ross who'is also with the; Coalition. Both Ht'.' Pullen aind Mr. ROss presented , the Coalition's up-date on thecompensation iss.be and alternated, in'this pre sentation. For background, it was noted thit thevfolliowing were meiifiers'of the Coalition: Celotex Division of Jin Walter, Asarco, Pittsburg Corning, Unarco, Johns-Manvilie, Raybestos-Manhattan, Amdtex,'aind Eagle Pitcher. The earlier legislative Initiatives were noted including '.the Bart ,ilJL, the Fehtfiek Bill and the Miller Bill. The Coalition saw'merit4 and shortcomings in each of these, and felt that while they'did hot'have"'a complete package to offer at this time, they needed broader support and would encourage me&rtihgful input from Institute Members and others.'- It.'wai. stated that there are new 18,000 lawsuits'in thfeiasbeatos area, apd there are more asbestos-related lawsuits in the courts than car accident suits."'^ThA allegations are that asbestos products manufacturers knew of the health problem- and did not warn 'the exposed worker. Lately, the .Issye of. "strict liability" has arisen whe're it'would not matter'll the manufacturer didn' t know'of the health, hazards--he could be held liable in' any event. (Subsequent to the Meeting j for. instancepti July '7, 1982 the Mew-Jersey'Supreme Court fin' BeshadS' v..-. Johns-Manvl lie Products' Corp.) held manufacturers .in- th^t State strictly Liable fnraeb/estds-inducedHarm regardless that due hq -the limited state'of bhfe apt .. they .could not; then- have known of the health hazards posed by Asbeseoe. ) . , ' / ' / ' -y * . V ,. . ` *' y t; i V * * . V The increase in -litigation has several roots. There has been 'a& erosion in the exclusivity of workmens compensation as the remedy incases of exposure. THie plaintiff bat favors'.this ac^iVity -as the feep are on a'contingent basis. Some State Workmens .Cqm^.enaatiqn 'Program* are plainly inadequate- requiring that claims be..filed^witfiln 'two or three years of expqsdre;' Some State plans ate now moving, ttov.pequir.eriencd'of two'tofjthree.yesys after manifestation ' ; of the'diseasei:- ' :i . . . ' ' ' ' ; ....' ; r FMSl 02091 Minutes of Annual Meeting -9- June 16-17, l^fiZ Mr. Pullen suggested the poor distribution of funds to the injured party with distribution of a typical $100,000 award. Such an award could go up to $60,000 in fees, $5,000 in costs, $10,000 to repay Workmens Compensation, and the final $25,000 to the injured party for lifetime medical costs. Counting the costs of the defendant parties, and including the costs of defending suc cessfully where no award.is made, it may cost $200,000 to get $15,000 to the injured party. This1system.of awards is wasteful, and it is suggested that some other system should be better. A suggestion that there be fifty uniform laws in this area for the 50 States is both unrealistic and costly. It is suggested additionally that sudh uniform plans in the 50 States do hot bring the United States Government in as a participant when the Government-run ship yards of World War II have been responsible for a majority of the cases in litigation today. Mr. Pullen and Mr. Ross suggested that if a State-by-State approach is not the solution, that the solution may be the Federal Government, acting on Pour Principles: 1. Settlement be prompt, adequate and equitable 2. Proof of injury would be on clearly defined medical evaluation (avoiding the "Blaick/Lung" theory'where any exposure is suf ficient proof). . 3. Costs-would not be dumped on the taxpayers--the burden must be on those responsible. 4. Such settlement would provide the exclusive remedy, prohibit- tag third party litigation. The Government would itself bear 50" of the total costs, as roughly 50% of exposure occurred in shipyards at wartime. Mr. Pullen noted the three earlier legislative initiatives on asbestos comp ensation: S1643 - the Hart Bill, HR5224 - the Fenwick Bill, and HR5735 the Miller Bill. Both the Hart Bill and the. Fenwick Bill are dead. While the Miller Bill is technically alive, it is probably politically dead. The Coalition has recommended a new legislative approach. Among the ad vantages would be that It does not federalize workmens compensation, but rather works within the existing State workmens compensation framework. It would safeguard the funding, as the implementing resolutions would have a . limited life of five or ten years, and the entire resolution could be terminated if the pay-out exceeded the funds available, which would rein state tort litigation as the remedy. In other words, this would avoid possible unlimited funding which could result' from legislation of the "black lung" variety. Copies of a "Summary of-the Occupational Disease Compensation Improvement Act and the Implementing Resolution for Asbestos Related Diseases" were distributed. The Coalition had prepared these Summaries to describe . generally the legislative approach recommended. The Act would be a generic approach not limited to asbestos which could function for a range of occupational-diseases. This would relate to the types of diseases, the provision of:benefits, interaction between Federal and State Programs, and financing of the fund. The' proposed) Act would provide that this remedy was the exclusive remedy for those injured by the occupational disease. The Act would provide for Implementing Resolutions for the different occupational diseases and these resolutions'would provide for a limited life of the resolution and that the resolution could be terminated If the pay-out exceeded available funds absent enacting additional authorizations. FMSI 02092 Mlnutes of Annual Meeting -10- June 16-17, 1982 It was suggested that If the existing system of tort 11ability is aot changed that there will'be bankruptcies within this Industry, There may even be 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. The Coalition at this time requests input from any Interested party and that when a draft of the legislation is available, the Institute and Its Members might help with constructive criticism of the proposed Act. How is the time to discuss the plan, and as nothing is now cast in concrete, this Is the best time for Input. It was stated that the Coalition should have the language ready In the next month or so and would hope to have copies ready for the Institute and other Interested parties at that time. They would hope to have the 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 die. Coalition, Mr. Pullen noted that the Coalition would welcome applications for Meobarship in the' Coalition from Interested parties. Questions wsre asked on financing ..the fund and It was noted that assessments would be msde on a formula based on each manufacturer's defendant settlements and judgements and on the number of pending lawsuits. Mr. Pullen noted that It was possible that his company (Johns-Manville) might end up being asseseed e higher proportion of the costs 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 85Z of the costs now consumed In tort litigation, could be eliminated. He noted that currently about 2Z of cases go to verdict, and about &5Z have, been defendant verdicts. As soon other than Johns-Manville cases have had 85Z defendant verdicts, Johns-Kanvllie may end up paying e higher percentage fee than others. It was noted that one defendant had won 16 out of 18 cases, and that the process of. settlement has Increased litigation. Sops defendants may raappraids their litigation strategy and prefer.going to verdict rather ` than settling. ,. . It was noted that Dr. SeUkoff had predicted 10,000 excess lunjg cancer deaths per year from asbestos exposure along with 2,500 asbestosls esses and 2,000 to 3,000 mesothelioma cases. Mills most observers believe Dr. Sellkoff's projections are 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 hla claim through the Intended, compensation fund, wouldn't this open even mors claims than tort litigation. In response,. It was noted that same observers feel the "jackpot" settlement of tort litigation 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 this Mahers e broader perspective on the Issues, and he asked for more participation of the Members.in the work of his committee. It was stated that some Members.may wish to participate as in dividual Members of the Coalition, and that the Institute wished the Coalition to maintain liaison with the Institute' through; Its Health and Environmental Affairs Coomittee, It was asked thatthe Coalition place the Institute on Its mailing list, and that the Institute would forward date an to Its Members. Mr. Pullen and Mr. Rose projected that the draft of the proposed new legislation would be avallble 1 two or three weeks, and that a draft would be sent to FMSI 02093 Minutes of Annual Meeting -11- June 16-17, 1982 the Institute at that time! In response to a question, it was' noted that there was no sponsor for such proposed legislation at this tine. The President thanked Mr. Pullen and Mr. Ross for.their effortson this presentation of position by the Asbestos Compensation CoaUflon. . : Upon notlon duly.madet seconded andunanimously passed,it was: . . ; " .. .. .. ' RESOLVED: fo thank Mri Pullen andMr.'Ross of the v Asbestos Conpensatlon Coalltion for. their- . presentation at this masting. . . . ' >. 1 FEE FORMULA COMMITTEE (PART 2) , :' * / * . . %' * Earlier In the.neetlng,the Meubsrs discusAed a.proposed increaselnthe annual fee with q change ln the fee formula. ' It was mowed thrfct this' item be tabled until after presentation* by the Health and Environmental Affairs Committee and members of the Asbestos Compensation Coalition. `''-'The President celled for additional discussion on this agenda item. - The Board of Directors had voted to increase the annual, fee by a change in the fee formula as follows: '" ; : - Active Menfcer: Basic Fee Increase from $1,150. to $1,300, with no change in the Category assessment Regional Member with Active Member rights: Same fee Increase as for Active Menber ' Regional Member (Regular) Increase from $1,450 tp $1600 r >i Regional Member (Association) Increase from $2,400 to $2,600 . / . .... ** v .S' License*: ' .. Inersese from $550 to $600 ; * _ ; . . m. + **.*'** As indicated earlier, the- Boifrd Wished to establish a ''reserve" with 'rhe additional fee peymaats to pliin fpr thet time whea pddltionel monies mpy,, < have to be spent on - consultants' 6'E oeher costs to'hfIp solve problem^ fn the meets'disposal .area, ind.other, areas of environmental concern/ SUch ..... reserves couldpplybe built ltoacertalnpalnt',and if funds wsre'ntit' | expended the .reserve -could-be 'closed and noriiesmade ayallsble fbr general* purposes--In effect reducing'thfs. Concern was . expressed on' creation of such a reserve whan the Institute had bean* generating an excess of income over expenses for the pest several years. .. . ' .' . . Upon motion dulymsde, seconded snd passed with ten Members in favor and five Meoberd opposed, it was; ,v' / , , ' ; ` RESOLVED: ,To adopt' the1 following feefiormuIAfor 1982-83: Active Members- and Rsgionals , vlth Active'ttdsbfer rights.1: Basi'd'Pes . $1,300; Category'-Fee $700; Regional .Member (Regular): Fee.$I,&00; Regional ' Mesber (Association): Fee $2,600; Licensee: Fee: $600. ; .5 ' ' _ , > ; \ ' . FMSI 02094 Minutes of Annual Meeting -12- June 16-17, 1982 BRAKE PERFORMANCE STUDY COMMITTEE REPORT Mr. Nelson, Chairman of the Brake Performance Study Committee, presented this report. Please refer to EXHIBIT 7. Mr. Nelson's report noted that activity in the brake'regulation area affecting brake lining manufacturers had been limited. The Institute activity had been In the area of amending Vehicle Equipment Safety Commission Regulation V-3. The Institute had petitioned VESC for amendment of this regulation, and had attended meetings and a hearing in the Washington ares concerning this amendmentT The specific problem had to do with intended original equipment linings with reduced friction on the drum rears on the new front wheel drive cars. In order to get balance, friction levels had heen dropped to a point where the original material might not conform to Regulation V-3 as now written--particularly for the Normal Friction coefficient. The VESC Committee hes proposed modifying V-3 per the Institute recommendations, and final vote on such a change will come at a full meeting of the VESC later this Simmer. Upon motion duly made, seconded and .unanimously passed. If Was: RESOLVED: To accept, the report of .the Brake Performance Study Committee am '. written. DATA BOOK AND TECHNICAL COMMITTEE REPORT : Mr. Phil Grim, Chairman of the Dete Book end Technical Committee presented his Committee report. Refer to EXHIBIT 8. Mr. Grim reported on several areas of Committee action and concern* Among these were the addition of off-highway - coverage in the Date Book, postponement of any action on e new Brake Block Identification Catalog until later in 1982, and specific questions that had bean referred to the Committee. Mr. Grim*e report emphasised the work done on-consolidation of the Brake Lining and Clutch. Feeing information in. the Automotive Data. Book with the Brake Shorn information in the Brake Shoe Identification Catalog. The general style, layout and consolidation patterns were worked an by the Committee and at a maetlng prior to the Coandttee: meeting by Mr. Grim, Mr. Drialane and Mr. Hudson of Abex. The rules for ills consolidation, general Instructions and other considerations for the new catalog were worked out and put into final form. These then formed, the structure of the new catalog which was submitted to printers for bid In January 1982. The Chairmen had hoped to have copies of the new "1982 Automotive Data Book" on hand for the meeting, but actual typesetting of the catalog has been slow. The contract for the catalog had been awarded to Corley Printing Company of St. Louis, who had printed three earlier Institute Supplements, but who had never before printed full catalog. That award, in retrospect, wee probably faulty. While it might be assumed that e newly designed catalog with considerably more pages than earlier catalogs, would take a longer period to be prepared, this catalog Is now running nearly two months late. Mr. Grim projected that the new catalog should be printed about July 1, 1982. FMSI 02095 Minutes of Annual Meeting -13- June 16-17, 1982 On review of Mr. Grim's report It was noted that one paragraph was missing from the original draft. This was Paragraph C - use of the designations "DA" to designate air actuated disc brakes. Upon motion duly made, seconded and unanimously passed. It was: RESOLVED:. To accept the report of the Data Book and Technical Conmlttee as written and express appreciation to the Committee. One Member asked that his appreciation be deferred until after he had received copies of the new catalog. PUBLIC RELATIONS COMMITTEE REPORT Mr. Simon, Chairman of the Public Relations Committee, reported for this Committee. Refer to EXHIBIT 11. Mr. Simon reported that the only press release in 1981-82 was that on the election of Officers at the June 1981 Meeting. This was released to the automotive trade press and appeared In several trade publications. An item of larger concern for the Committee was the work on an Institute logo. The Members were advised that the Board of Directors had taken several . ballots during the year on selection of a logo. The Directors were unable to select a logo and on a few occasions decided on "None of the above." The Directors reviewed this question at the- June 15, 1982 meeting ot the Board and were again unable to make a selection, and asked that this question be referred to the Membership at this Meeting. Copies of the logos which had survived the earlier selection process were circulated to the Menfcershtp. After several comments and suggestions, the , Men&ership was asked to ballot. Logos F and H were favored about equally by the Members. The Secretary was directed to have Logos F and H cleaned up and presented by a professional artist, after which the Directors will be asked again to ballot. Upon motion duly made, seconded and unanimously passed, It was: RESOLVED: To accept the report of the Pi*lie ' Relations Committee as written. HISTORICAL SALES REPORTING The Secretary reported on the Historical Sales Program for the calendar year 1981. Refer to EXHIBIT 12. His report noted the participation during calendar year 1981. The Secretary . advised that because of some "in-and-out" participation, the program had . been criticised by a few Members. One Member noted constructively that the reports for the fourth quarter contained about 402 of the sales for all classes for the full year. As- a result, the Accountants ware asked to review the results, which they did. They noted that If five respondents who re ported for the fourth quarter, who had not reported earlier, had not reported at year-end, that quarter would have taken the more nearly expected 252 of sales for the year. This was reported to the Meafeezs, but this did not satisfy two Members. One indicated that It would withdraw from the program If FMSI 02096 Minutes of Annual Meeting , -14- ' ' June 16-17, 1982 all participants did not participate- for each quarter; Suggestions were made for withholding tha .assembled information from respondents-who did not . respond'each quarter**.- - ' - '' ' ' . _ .. The Directors had earlier reviewed these crltlirais of the program.. The general response was that it is known that this program is not all-inclusive and the Members will have to project the possible losses when one Menber or another does not report; With its deficiencies, the historical sales reporting program^ too meaningful to be discontinued. The Members concurred and it was agreed that the program would be .-continued without change. . . .. . '' _ ..... ' " ' " " " Upon :motion duly made , seconded and unanimously passed, it was: .... -.vj--.-1 ... .' RESOLVED: To accept the report on Historical Sales. Reporting as written. - . ... : ' 4 ' ANNUAL MEETING COMMUTES REPORT . - Mr. John M. Moore, Chairman of the Committee, delivered this'report. . Please -refet to .EXHIBIT 13; . . . 1: ' - -' In summary, Mr.; Moore recommended that the Institute return to Sawgrass. in 1983, im-' continuance of the Institute's pbllty of attandlng -the same sits ' for two years if the first year is satisfactory.. For 1984, Mr. Moors * - recommended LsCbata,. in Carlsbad,' California, ln the San Diegtr ares* Aa .. back-ups^ his- Committee recommended.Sandpiper Bajr.and Grenelefe, bothjin - Florida.-- .'. . .. ' " ' The Board had earlier voted to accept the Committee's recommendations and . asked the Secretary to contact LaCoa.ta to see if space was available for the Institute inJqly 1984. - Mr. "brisiane advised, that he and Mr; Moore - had talked wlthJLsCosta on Juda 15,1982,. and apace would be available at ' that time. '"'The'^Scratary was askad to proOeedwith tjie return to Savgrasa in 1983 and mseting at .LaCbsta in 1984. . The Secretary was; farther asked to request SawgrAas to locate those attending next year's mating in .villas - near one another. Several Members were dissatisfied^wlth the spread out locations of the villas assigned tq, the Institute. ' ` . ...... f. . I i s' \ ` " ` . *. Upon motion duly made, seconded and unanimously passed, it wasY . ' \ ` v '- ' ' RESOLVED: To accept the report of the Annual , Meeting Com mitte1e ee"wrlct"ecu... . ^ *;.> .x..- .' \ ` GOLF TOURNAMENT ICOWttTlfEB - \' Mr. Ben Kublih, Chairman of the Golf Tournament Committee, addressed the - Members on this Committee'e suggestions. ;He nbted'.tbat .only eight Mashers ' participated in this year's Golf Toumaqehtw- -The Membership was asked if ' " ' ' changing tha Tourpament to .: an afternoon match alght help lncseese participation. Several Members f^ltthis would be unsatisfactory because tha'meeting itself j might suffer an attendance loss, and that, the- morning format was particulary " welcome in the Sunbelt ..-locations where the Institute plana to meat. Mr.Kublin asked if .a ravisad mat(fe w!th a mixing of . tha. good golfers and tha occasional: golfer into tatiaa with aachgolfer hittingtha next ballwould-be of.interest.' '' ' It was suggested ^hgt i(tha\ aubjict could -not be resplved. at this - Meeting, and - that the Golf TourYupasnt CseacLttea^Chairman decide'oh the format, or offer FMSI 02097 Minutes of Annual Meeting -15- June 16-17, 1982 his suggestions for more participation prior to next year's meeting. The President thanked the Chairman for his 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 vast 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 Menbers 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 lten at the Mecbershlp Meeting. Mr. Comina was asked to present background on this concept. Re 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 KEMA 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 s 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 Meribera 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 Menbershlp, upon motion duly made, seconded and unanimously passed, it was: RESOLVED: To Adjourn Adjourned at 9:40 AM E. W. Drislane Secretary FMSI 02098