George W. Hatch of Travelers Insurance to Jack C. Else of Marsh and McLennan on Asbestos Cancer Claims and the Sullivan Case (1966)

A six-page letter of December 21, 1966, from George W. Hatch, an assistant secretary in the claims department of the Travelers Insurance Company, to Jack C. Else of Marsh and McLennan, J-M's insurance brokers. It reports on a meeting in Hartford on November 1, 1966, attended by J-M's insurance manager Fred Ingham and C. L. (Cliff) Sheckler, about "claims that cancer allegedly is caused by exposure to asbestos." The discussion centered on the claim of James Sullivan, an insulator and pipe coverer for some 18 years who died of colon cancer in 1964, which the New York Workmen's Compensation Board had held compensable. Sheckler "expressed grave concern that a large number of such claims could now be anticipated" and said he thought they were without merit.

What it shows

The letter quotes at length the testimony of Dr. Irving J. Selikoff of Mount Sinai for the claimant, including his finding of 14 mesothelioma deaths among 307 consecutive deaths in the insulators' union, and the weaker testimony of the insurer's own doctor. Travelers' medical department told Hatch "we have nothing to categorically contradict the testimony of Doctor Selikoff" and found the literature linking asbestos and some cancers "quite impressive." Hatch concluded that "until medical research provides data with which to disprove the premises propounded by Doctor Selikoff," such testimony would "invariably" win, and he listed ways to limit claims. Six weeks after J-M's position paper called the cancer link unproved, J-M's own insurer could find no answer to it.

In Johns-Manville's chronology

Johns-Manville's own chronology of what the company knew describes this document as follows:

Letter dated 12/21/66 from George W. Hatch of Travelers to Jack C. Else of Marsh & McLennan referencing a meeting that took place on 11/1/66 discussing claims that cancer allegedly is caused by exposure asbestos. Discussion centered on Travelers Claim File B-740121, Ventnore Asbestos Company, Inc. RE: James Sullivan. This claim was held compensable by the New York Workmen's Compensation Board.

Cliff Sheckler expressed grave concern that a large number of such claims could now be anticipated and emphasized his opinion that such claims were without merit. Travelers agreed to reexamine the situation with a view toward the possibility of improving the defense to such claims and to report back.

James Sullivan worked for some 18 years as an insulation mechanic and pipe coverer, using magnesia block. He died 05/26/64 of adenocarcinoma of the sigmoid colon with extensive metastasis. Special microincineration technique, combined with electron microscopy was reported as demonstrating the presence of asbestos fibers in the lungs and colon.

Dr. Irving Selikoff was produced to testify on behalf of the claimant and expressed the opinion that it was highly probable that there was a causal relationship between the deceased's occupational exposure to asbestos and the adenocarcinoma of the colon. Selikoff stated that we was able to demonstrate the presence of asbestos fibers in the gastrointestinal tract, and went on to state how the fibers got there. His opinion was based on "(1) suggestive medical statistics, (2) a prolonged and intimate asbestos exposure, (3) histological diagnosis of carcinoma, (4) verified presence of asbestos in lung and colon."

Travelers produced Dr. William J. Hoffman of New York City to testify on their behalf. He testified that there might be an indirect relationship between the deceased's exposure to asbestos and the adenocarcinoma of the colon.

The referee was confronted with the categorical opinion of Dr. Selikoff in support of the claim and Dr. Hoffman's testimony which did not categorically deny causal relationship or attribute the development of cancer to some other cause. The best Dr. Hoffman could do was to suggest that the evidence of causal relationship is only such as to warrant further research. Dr. Dun of Traveler's Medical Department reported that the medical literature suggesting a relationship between asbestos and some varieties of cancer is quite impressive and listed three opinions.

Travelers stated that "until medical research provides data with which to disprove the premises propounded by Dr. Selikoff, we can expect that invariably his type of testimony will result in a favorable finding for claimants." Dr. Dun did suggest five different opinions with which Travelers could limit claims.

Finally, Travelers stated the report was not very encouraging, and they would welcome any material that Marsh and McClennan or their insured may receive.