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Berkshire Hathaway Subsidiary Settles Insurance Dispute With Ford

Kiewit Tower, the location of Berkshire's corporate offices in Omaha, Nebraska

Kiewit Tower, the location of Berkshire’s corporate offices in Omaha, Nebraska

Kazan Law has just learned that in a surprise twist to asbestos litigation news we recently reported, a Berkshire Hathaway subsidiary has suddenly settled a major outstanding insurance claim. The unexpected settlement follows in the wake of a wave of negative publicity and lawsuits surrounding Berkshire Hathaway-owned companies’ alleged intentional delay in paying insurance claims including those to asbestos victims.

“Even (Warren) Buffet reacts to press coverage,” J. Robert Hunter, head of the Consumer Federation of America’s insurance division and former Texas insurance commissioner, was quoted as saying in a Scripps News update of its original coverage of the famous philanthropist’s apparent profiteering at the expense of victims waiting to be compensated for corporate wrongdoing.

Famous tycoon and philanthropist Warren Buffet heads the Omaha-based Berkshire Hathaway. As the chairman, CEO and largest shareholder of Berkshire Hathaway, he is consistently ranked among the world’s wealthiest people.

Although the only settlement publicly announced at this time is with Ford Motor Co. for unpaid claims over rollover deaths, it can be hoped that resolution for mesothelioma-stricken victims of asbestos exposure will follow.

Scripps previously obtained sworn testimony from a former Berkshire claims executive who criticized Berkshire subsidiary National Indemnity and its claim-handling arm Resolute Management Inc. for reportedly delaying and denying claims to asbestos-caused cancer sufferers and others.

National Indemnity, according to Scripps’ coverage, agreed to take on tens of billions of dollars in “so-called long-tail insurance risk” from major insurers including Lloyds of London and American Insurance Group (AIG).

“The long-tail policies cover asbestos and other health hazards that might take years or decades to develop into illness or a covered claim,” the report states.

Berkshire was entitled to invest the money until it had to pay out a claim but sought, according to allegations, to extend its ‘float” of the funds to boost its bottom line instead of paying on claims, including those of asbestos victims.

Ford announced that it received two million more than it had asked for in its settlement, walking away with $22.1 million.  Representatives for National Indemnity disputed Ford’s claim but would not reveal any settlement figures. The case had been set for trial later this month in the United States District Court for the Eastern District of Virginia.

Asbestos Industry Funds Allegedly Biased Scientist’s Research

Mcgill_BuildingAsbestos regulation and legal cases often rely on testimony from expert witnesses who are supposed to provide factual impartial evidence.  Typically these expert witnesses are medical professionals and scientific researchers who can influence decisions because of their knowledge of asbestos and how it affects human health at various exposure levels.

But what if the experts who are supposed to be the ultimate authority on asbestos allow their opinions to be swayed by the business interests of whoever is funding their research?  What if the entity funding the research sees it as a business investment with an expected return instead of a philanthropic use of funds to advance scientific knowledge to help all humankind?

This is what a professor from Ivy League Brown University is alleging about a professor at Canada’s prestigious McGill University.

David S. Egilman, MD, MPH, a clinical professor of family medicine at Rhode Island’s Brown University suggests impropriety in his presentation at an asbestos industry conference held at McGill University last week.  Entitled “The Past is Prologue, Universities in Service to Corporations:  the McGill QAMA Asbestos Example.”

In his presentation, Dr. Egilman questions the accuracy of the conclusions of research on asbestos miners by McGill’s Prof. J.C. McDonald.  Prof. McDonald’s research was reportedly financed with one million dollars by the Quebec Asbestos Mining Association (QAMA).

“The available published data shows that the data reported does not support the conclusions,” Dr. Egilman says in the presentation.

The controversy was reported by Kathleen Ruff in an e-bulletin produced by the nonprofit Rideau Institute based in Ottawa.  Ruff, one of the Institute’s founders, is noted for her advocacy to end Canada’s export of asbestos.

“Prof. McDonald used his research to promote the use of chrysotile asbestos around the world. His research continues today to be used by the global asbestos industry to promote the sale and use of chrysotile asbestos. It was used, for example, by the global asbestos lobby at the May 2013 Rotterdam Convention conference to help defeat the listing of chrysotile asbestos as a hazardous substance,”  Ruff states.

Dr. Egilman and other scientists, according to Ruff, asked McGill to conduct an official investigation under the university’s research integrity regulations. McGill has refused and instead carried out an internal review which, according to Ruff, was “flawed by bias, lack of transparency and misinformation.”

Italian Asbestos Victims Ask Yale to Revoke Convicted Eternit CEO’s Honorary Degree

Casale MonferratoMention the Piedmont region of Italy and most people think of a glamorous vacation destination with picturesque villages and castles framed by the Alps.  But behind the tourist façade, it is an asbestos-infested valley of the shadow of death.

More than 2,000 people have died from mesothelioma just in Casale Monferrato, a town that has been around since the days of the ancient Roman Empire. By the dawn of the 20th century, it became known as a cement producing capital because of a factory built there in 1906 by Eternit, a company based in neighboring Switzerland.  Founded in 1903, Eternit produced asbestos-containing cement until 1997.

Headed by the Schmidheiny family since 1933, the company flourished during the post World War II rebuilding boom throughout Europe.  Besides Italy, Eternit also had factories in the Netherlands, France and Brazil. But amid a growing scandal about asbestos, Eternit’s four Italian factories closed in 1986 and the company was sold to an Austrian bank in 2003.

In 2009, following five years of investigation, billionaire former CEO Stephan Schmidheiny , 65, and major shareholder Louis de Cartier Marchienne were accused of criminal neglect . Both men were found guilty in February 2013 and sentenced to 16 years in prison.  You can learn more about this important asbestos trial in a free ebook  co-edited by my sister Laurie-Kazan Allen and her husband David Allen, asbestos victim advocates in their own right.

Marchienne died at age 91 on May 21, 2013 during the appeal of his sentence. Charges against him were dropped in June. But Schmidheiny’s sentence was increased to 18 years. He is appealing the case to Italy’s highest court.

Now, a group of mesothelioma sufferers and their families in Italy are seeking to have Yale University, an elite American college in New Haven, Connecticut, take back an honorary degree it presented to Schmidheiny in 1996.  A New Haven attorney representing the Italian group sent a petition to Yale officials this week.  Yale has never revoked an honorary degree and has expressed support for Schmidheiny .   Ironically, Schmidheiny’s Yale honors were conferred on him for his environmental activities, which cynically could be seen as an attempt to distance himself from the environmental and human disasters his company created.

Kazan Law Pro Bono Attorney Frances Schreiber Fights to Protect Workers


Fighting for mesothelioma patients who were exposed to asbestos at work is what we do at Kazan Law. Seeing first-hand every day the senseless tragedy of honest hard-working people facing death because of neglect and carelessness by those who manufactured, designed, sold and installed asbestos- containing products inflames our sense of justice.  Our outrage inspires us to work not only to seek justice for our clients coping with asbestos-caused mesothelioma but also to strive to prevent other people from dying or ever becoming afflicted with work-related injuries or illnesses.

Frances Schreiberg is how we do that. Fran is a brilliant attorney who just happens to be passionate about workers’ rights, specifically their right to a safe and healthy workplace, and who also has an impressive track record in working with both the legislative and executive branches of California state government to protect workers from safety and health work place hazards of all kinds. Fran provides free advice to unions and other worker organizations that might not be able to afford an attorney of her experience and caliber.  We pay Fran so they don’t have to.  We let Fran work for them for free also known as pro bono.

In 1980, during Governor Jerry Brown’s first administration, the Governor asked the Director of the Department of Industrial Relations who then asked Fran to find out why the Division of Occupational Safety and Health better known as Cal/OSHA was not bringing criminal cases against companies killing workers as a result of exposure to toxic materials. Fran accepted the challenge.

“Once I became involved,” Fran recalls, “I found it very compelling.”

While working at Cal/OSHA Fran looked into every fatality that occurred in California. Fran recalls, “I reviewed those reports.  Always someone on that jobsite knew that so-called “accident” was going to happen. But either they spoke up and were told to shut up or they didn’t say anything because they didn’t want to lose their job.”

I first met Fran in 1985 when she asked me to provide supporting exhibits for a legislative proposal being authored by then Assembly Member – later to become Governor – Gray Davis to protect workers from asbestos.

In 1987 when powerful industry interests succeeded in having Governor George Deukmejian eliminate Cal/OSHA, I was honored to be a part of a group that banded together to fight back.  We called ourselves WORKSAFE!  and supported an initiative to restore the Cal/OSHA program, Prop 97. It was a tough fight but we succeeded. Cal/OSHA was restored.  WORKSAFE continues to advocate for worker safety and health and to this day our law firm supports their work with annual grants and significant in-kind contributions of office space.  Fran continues to work closely with the organization she helped found.

When Fran left the State Building Trades in 1991, I realized Fran needed to focus full-time on work designed to prevent folks from dying.  I invited her to work for Kazan Law.

“This firm tries to do everything possible to prevent people from ever having to come to see us in the first place,” Fran comments. “So I do trainings for legal services programs, worker centers, unions, and even for businesses.  I give workers and their representatives the tools they need to speak up for a safe place to work and to fight retaliation.”

Fran also spends a lot of time in Sacramento on policy work.  This year she’s worked on three bills to protect workers.  One is SB 193. It would permit the California Department of Public Health to require manufacturers and others to provide information about toxic materials being shipped into California workplaces so that the Hazard Evaluation System & Information Service (HESIS), when there is new scientific or medical information, can assist both employers and employees in protecting against the risks from those chemicals.

“We are hopeful we can get it out of the Assembly Appropriations Committee early next year.  We need to overcome the pressure being exerted by various companies – members of the American Chemistry Council – who see it as interfering with their business – their right to make money,” Fran says.

Every year over 66,000 American workers are injured or die from preventable workplace hazards or exposure to toxic chemicals.

“And Cal/OSHA cannot do it all, nor can they do it alone,” Fran acknowledges. “Cal/OSHA only has 146 inspectors for 18 million workers. Who are we kidding?  It’s a constant struggle.  So laws that facilitate prevention, such as SB 193, are critical.”

“I’m very proud of the bill by which that and numerous other changes were achieved. That’s why I keep doing this,” Fran says.

And that’s why Kazan Law keeps Fran doing this important work.  Thank you, Frances Schreiberg.

Asbestos Attorney Carole Bosch Joins Kazan Law

Carole Bosch

Carole Bosch

I am pleased to announce that Carole Bosch has joined our firm as an associate asbestos attorney.

Carole has successfully represented plaintiffs in personal injury, civil rights, prescription drug, and toxic exposure cases.  Since 2007, she has been litigating cases on behalf of numerous plaintiffs affected by asbestos exposure, including construction workers, drywallers, plumbers, pipefitters, insulators, pump mechanics, plant maintenance persons, matchplate makers, as well as their wives and children who were exposed to asbestos unwittingly brought home.

You can read her complete bio here.  For now, I’d like to share what Carole had to say when I asked her about her work.

How does your work as an asbestos attorney at Kazan Law help mesothelioma victims?

A lot of people have been and continue to be exposed to dangerous toxins in the work environment.  What we do serves a dual purpose.  It  serves to compensate victims and their families who develop illness through no fault of their own as a result of their exposure to asbestos without any knowledge or protection.  Often their families are also victims through secondary take home exposure.

Our work at Kazan Law also serves to deter companies from doing today what companies in the 50s and 60s did. Asbestos is more regulated today but still many workers are exposed to other lethal toxins in the workplace.

How do you approach working with mesothelioma victims and their families?

I bring both a personal touch and an expertise.  I develop a close bond with my clients and I am very familiar with the products they used and the work they did.  These are wonderful people who took a lot of pride in their work. We give them an opportunity to talk to someone who understands what they did.

It is important for these people who are suffering to know that their attorneys care.  We really do care about them, we care about their families. And we care about their families’ future.

What do you like most about your work as an attorney in asbestos and mesothelioma litigation?

Helping people.  It sounds cliché but that is what we do here at Kazan Law. We help people. We make a difference in their lives and we make a difference in the workplace.

Now that you are part of the team of asbestos attorneys at Kazan Law what do you hope to do?

I really want to contribute to what it is that Kazan Law does best.  Kazan Law has a reputation for doing high quality work for their clients.  That is something I share and want to continue.  It is what sets us apart from the many firms that do volume work as opposed to quality work.

Asbestos Roof Materials Can Put Workers at Serious Risk

asbestos exposureWhether you’re a carpenter or a do-it-yourself enthusiast around the house, you need to know how to protect yourself from asbestos exposure. If you’re working on an older building, you may not know that the material can be found in insulation products, vinyl flooring and other items.

We know all about these hidden dangers at Kazan Law. We once represented a mesothelioma patient who worked hard during the 1970s, buying “fixer-upper” type houses and renovating them with his own hands. What he didn’t know was that many of these properties were tainted with asbestos-containing products.

Roofing materials can be especially worrisome because they’re among the many products that, to this day, are still allowed to include asbestos in the manufacturing process.

What items contain asbestos?
For hundreds of years, people have used asbestos because of its physical properties, which make it strong and resistant to heat and friction. This led to the use of asbestos in the manufacturing of several products used in construction. Roofing materials seemed like a natural fit, as a roof protects a building’s occupants from the elements and, in some cases, retards the spread of a dangerous fire. Buildings that were erected before the 1980s may have roofs with asbestos-tainted asphalt shingles, cement shingles, sealants, flashing and underlayment.

There are several roofing products today that are still allowed to contain asbestos, including felt, coating and cement shingles.

Why is asbestos still allowed?
For more than 70 years, scientists have linked asbestos to several deadly diseases, including asbestosis, lung cancer and malignant mesothelioma. Given those facts, it’s natural for one to wonder: If asbestos is so dangerous, why is it still allowed in the manufacturing process of certain products?

The answer is quite complex, but basically, the asbestos lobby has fought tooth and nail against government efforts to curb use of the material. For example, during the 1970s, federal agencies such as the Environmental Protection Agency began forbidding the use of asbestos in certain types of insulation. The big crackdown, though, came in 1989, when the EPA proposed what was essentially an all-out ban on asbestos use. However, the asbestos industry took this law to court and successfully reversed most of its power.

Today, asbestos is still banned from products such as flooring felt and commercial paper, as well as any new uses. However, it’s still allowed in the manufacturing of many products that have always used it, including roofing materials.

Protection is possible during projects
The most definitive way to tell whether a roofing item contains asbestos is to read the original product label. If that’s unavailable, the determination of asbestos roof content, as well as its removal, are best left to a specially trained professional.

When someone is working on a roof that may contain asbestos, there are several measures that can help minimize exposure to the material. First, it’s important to keep all unnecessary personnel out of the area. Also, workers need to be sure they’re wearing respirators with P100 cartridge filters, because ordinary dust masks won’t help. Single-use disposable clothing that can be discarded at the end of the day is also advisable.

Plastic drop cloths around the house will help collect debris. Any materials that contain asbestos should be kept wet at all times. If anything has to be removed from the asbestos roof, it’s important to work slowly in order to minimize the amount of breaking and airborne mineral fibers. Materials that need to be thrown away should be lowered carefully to the ground rather than dropped down.

Once the waste is collected, it should be sealed in leak-tight bags, drums or 6-mil polyethylene sheeting.

At the end of the workday, clothes should be discarded and never reused. Both the exposed skin and the tools need to be washed carefully. Also, workers need to be careful not to track any dust or dirt with them into the house on which they’re working.

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