Thursday, July 23, 2009

Eternit Asbestos Defendants Set for Criminal Trial in Italy in December 2009

News articles here (best one), here and here are out with news from Italy that the criminal and civil trial for the Eternit asbestos defendants is to start December 10, 2009. The date was set after the trial court denied objections by the defendants, including objections to the location of the trial. The trial will not end quickly - Italian trials in some ways move slowly and include a variety of procedures not directly comparable to American trials.

The criminal and civil claims arise from something around 2,500 injuries and deaths alleged to arise from Italian manufacturing operations of the global Eternit businesses. For more background, a prior post here described the criminal and civil claims being pursued in Italy against former officers of Eternit, and includes links to background articles. There are myriad Eternit entities around the world, and they are not all part of one corporate family. However, most have some roots in manufacturing asbestos-cement products.

The claims and attendant publicity are noteworthy for a variety of reasons. One is that the US media now has company with other global media that devote articles, blogs and websites to "asbestos exposure" and "the dangers of asbestos. " To test the point, try Google searches on "eternit," "schmidheiny" (the last name of one of the defendants) or "amiante" (asbestos). Publicity and fear tend to lead to increased tort litigation.

Another point is that it is increasingly easy for claimant's group to disseminate information that may damage corporate reputation in general and reduce the overall enterprise value. Consider, for example, this website that provides a basic account of the Eternit proceedings and seeks to heap shame on Eternit. Considered in the light of the events of the past year, and this type of an event, one can readily grasp why the SEC has made statements to the media and proposed new rules (go here) regarding public disclosure of the board's role in risk management and the overall corporate risk management strategy.

Wednesday, July 22, 2009

Asbestos - London Delays (Again) On Providing a Formal Position on Pleural Plaques Compensation But Offers Some Hints as to What's Ahead

Contrary to prior statements, Lord Chancellor Jack Straw of the Ministry of Justice said yesterday in Parliament that the government's formal follow up on the pleural plaques consultation will be provided "after" the summer recess. He indicated the response will include steps aimed at improving tracking of records that will assist plaintiffs, which are records regarding employment locations and employer insurance. He also intimated plans to have the UK lead the way on asbestos-related medical research. Specifically, he said:

"Jack Straw (Lord Chancellor, Ministry of Justice; Blackburn, Labour)
On 30 June, the Government published to the House two reports on the medical aspects of pleural plaques, one from the chief medical officer's expert adviser and a second from the Industrial Injuries Advisory Council. The Government will give further consideration to the issue of compensation for people diagnosed with pleural plaques before publishing a final response after the recess.

In addition, we are actively considering measures to make the United Kingdom a global leader in research on the alleviation, prevention and cure of asbestos-related diseases, and to help speed up compensation claims for those who develop serious asbestos-related diseases such as mesothelioma. The latter includes examination of the process for tracking and tracing employment and insurance records, as well as looking into the support given to individuals who are unable to trace such records." (emphasis added)

Further discussion was as follows, or read it online here at the website of "They Work for You."

Stephen Hepburn (Jarrow, Labour)

Will the Secretary of State assure us today that pleural plaques sufferers will not be treated any differently in terms of compensation regardless of whether they lodged their claim prior to the 2007 Law Lords judgment or after it and of whether live in Scotland, England, Wales or Northern Ireland?

Jack Straw (Lord Chancellor, Ministry of Justice; Blackburn, Labour)

As I said, we are giving active consideration to that. I understand my hon. Friend's concern, but we have to make our own decisions in this jurisdiction. I am sure that, in turn, my hon. Friend will wish to pay very careful attention to the conclusions of the expert appointed by the chief medical officer and to IIAC; they came to unanimous conclusions, including those backed by the three trade union representatives.


Nigel Dodds (Belfast North, DUP)

Following on from the Scottish Government's decision to legislate in this area, did the Secretary of State note the recommendation of the relevant Department in the Northern Ireland Assembly that there should be a change in legislation to allow those with pleural plaques to sue in the courts and get compensation? Also, following on from what Mr. Hepburn said, whereas the regions of devolved government will have taken action to redress this terrible injustice to those who suffer from pleural plaques, will it not be perverse if the only area where people cannot claim is England and Wales?



Jack Straw (Lord Chancellor, Ministry of Justice; Blackburn, Labour)
As I said, or implied, in answer to my hon. Friend, it is the essence of devolution that different decisions can be made. It would be very curious indeed if the result of devolution was that each jurisdiction had to follow the decisions of the other. We are seeking to consider the evidence very carefully, and I commend the evidence of the chief medical officer's expert's report and IIAC to all hon. Members, whichever constituency they represent.

Sunday, July 19, 2009

China Cracking Down on Civil Rights Lawyers

This article reports that China is taking away law licenses from and fining lawyers who have been filing civil rights claims and claims for victims of the "tainted milk" scandal. Reading this type of news certainly provides a moment to pause and reflect on how lucky we are in the US, and the great value of a free press able to report on developments and occurrences in our legal system.