Asbestos Information Association Board of Directors Minutes on a Captive Insurance Company (1976)

Eight pages of minutes of the Board of Directors of the Asbestos Information Association/North America, meeting at the Mayflower Hotel in Washington on December 9, 1976, signed by executive director R. H. Mereness. Guy Gabrielson of Nicolet described the loss of product liability insurance and rising premiums, and said that some customers saw this as a sign that "an impartial judge, i.e., the insurance companies, has come to the conclusion that asbestos is a more hazardous material than industry has told them." The board voted up to $11,200 for a consultant to study an association-owned captive insurance company, and Dimitry Poutiatine of Johns-Manville offered the help of J-M's insurance manager, Walter Curtner. Gabrielson also reminded the directors that the purpose of the Legal-Medical Research Program was to improve the defense of asbestos companies in third-party lawsuits.

What it shows

The minutes report the progress of Dr. Philip Enterline's review of the medical literature, done for the association's lawyers, Cadwalader, Wickersham & Taft, and the construction-industry study by Equitable Environmental Health, Inc., for which members were asked to have marketing staff phone contractor customers for data. Robert Pilmer of Garlock of Canada reported that Ontario's Workmen's Compensation Board had accepted gastrointestinal cancer from asbestos as compensable. George Barge of Atlas Asbestos summarized Quebec's Beaudry Commission report, which recommended a 2-fiber limit, barring tobacco users from asbestos work, and a total ban on crocidolite and amosite: "No exposure should be tolerated for any worker." The Executive Committee's minutes of the day before are Motley #627.

In Johns-Manville's index

Johns-Manville's legal department indexed the Motley 1,000 in 1984. Its index describes this document as follows:

AIA Meeting Minutes, 12/9/76 - Board of Directors. G. Gabrielson addresses the concept of an AIA captive insurance company. He speaks about problems confronting the industry in regard to cancellation of product liability insurance coverage, increases in product liability insurance premiums, and higher deductible features. He explains that there is reason to believe that some customers of AIA members view the product liability problem "as an indication that an impartial judge, i.e., the insurance companies, has come to the conclusion that asbestos is a more hazardous material than industry has told them." Unavailability of such insurance could accelerate the search for substitute materials. Gabrielson reports that the Executive Committee believes that a feasibility study should be conducted to further explore the concept of the AIA incorporating its own captive insurance company. The minutes indicate that a motion was passed to authorize Gabrielson to act as agent for the AIA and encourage the services of a consultant to study the feasibility and cost of establishing a captive insurance company. Mr. Poutiatine (J-M) reports that Walter Curtner (Insurance Manager, J-M) is available to assist the AIA on this project. Gabrielson, (Chairman, Asbestos Regulation Task Force) states that there is no change in the status of OSHA's proposed revision to the asbestos (manufacturing) standard. Gabrielson discusses the technological feasibility and economic impact study for an asbestos standard for the construction industry now being conducted for the AIA by Equitable Environmental Health (EEH). Gabrielson reminds the Directors that the primary purpose of the legal-medical research program is to improve the quality of defenses for asbestos companies involved in third party liability suits in tort. He briefly explains the specific research work now going on in the legal area by Cadwalader, Wickersham & Taft and in the medical area by Dr. P.E. Enterline, who is reviewing the medical literature on the subjects of asbestos and bronchogenic cancer/mesothelioma. Gabrielson explains that a decision has been made to include asbestosis in the literature review on asbestosis to determine when this disease was related to different products, industries and processes. In addition, Gabrielson states that a decision has been made to include literature reviews of other types of cancers related to asbestos exposure. Gabrielson states that Dr. Enterline has completed most of the literature review for the period 1933 through 1968 and that that the project is 50% complete. Gabrielson reports that Special Counsel has commenced interviewing various physicians suggested by Dr. Weill as expert witnesses. Robert Pilmer (Garlock of Canada, Inc.) refers to a recent determination by the workmen's Compensation Board in Ontario "relating asbestos with gastrointestinal cancer as a compensable disease." Pilmer suggests that this ruling may have a significant impact on Workmen's Compensation Boards elsewhere in Canada and the U.S. George Barge (Atlas Asbestos) discusses the recently published report of the Beaudry Commission in Quebec. This commission studied the health conditions in the asbestos industry. The report recommends the following: (1) an average permissible level of exposure to asbestos dust of 2 fpcc, (2) employment in the asbestos industry to be limited to nonsmokers, and (3) the banning of the use of crocidolite and amosite fiber.

Related documents

• Asbestos Information Association Executive Committee Minutes on the Legal-Medical Research Program (1976)

About this copy

This is document 733 of the Motley 1,000, from the set the Manville Personal Injury Settlement Trust's records facility certified as true copies, pages CRMC-Motley1000-Subj-003161 to CRMC-Motley1000-Subj-003168.