Marcus N. Brooks and A. S. Johnson on a Health Agreement for Asbestos Fiber Sales (1976)

Five pages from J. H. Marsh's files at Raybestos-Manhattan, marked "New File Asbestos Corporation." In a letter of June 24, 1976, Marcus N. Brooks of Raybestos-Manhattan offered A. S. Johnson, vice president of Asbestos Corporation Ltd., the same health clause it had agreed with Cassiar: a buyer facing injury claims waives its rights against the seller "but not as against claimants," and undertakes to warn and protect its workers. Johnson replied on August 6 that this did nothing to protect Asbestos Corporation "for claims made directly against" it "by third parties." The file also holds part of Asbestos Corporation's sale agreement, with a hold-harmless clause, and a paper of March 16, 1976, "Why Cassiar Indemnity is Inadvisable."

What it shows

The March 1976 paper gave Raybestos-Manhattan's reasons for refusing to indemnify Cassiar, its fiber supplier. First among them: "Potential plaintiffs, rather than Cassiar, would be the principal beneficiaries," because joining the employer would bring "the degree of care which the employer exercised in protecting his employees" into issue and "transform a weak case into a much stronger one." It also said an indemnity would hurt the Canadian mining industry's hopes for laws blocking American judgments against Canadian producers. The papers show buyer and miners each trying to shift the cost of future injury claims onto the other.

In Johns-Manville's index

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

Document entitled "Memo from the Desk of J.H. Marsh" on which is written the words "New File Asbestos Corporation." Marcus N. Brooks (R-M) letter to A.S. Johnson (Vice-President, Asbestos Corporation), 6/24/76, entitled "Health Agreement." Brooks discusses the special provisions relating to health in R-M's agreement for the sale of asbestos fiber with Cassiar. The agreement provides that in the event of claims for personal injuries, diseases or death related directly or indirectly to Cassiar's acquisition of asbestos fiber from R-M, Cassiar waives any of its rights against R-M, but not as against claimants, with respect to such claims. The agreement also provides that Cassiar will undertake a program to protect its employees and agents who handle asbestos fiber or asbestos-containing products of Cassiar from health hazards. Brooks states that R-M is willing to make the same agreement with Asbestos Corporation. Portion of an agreement for the sale of asbestos fiber which contains clauses relating to potential health claims and providing protection to the health of persons who may be exposed to the asbestos dust. A.S. Johnson letter to M.N. Brooks, 8/6/76, entitled "Health Agreement" which responds to Brooks' letter of 6/24/76. Johnson states that although R-M's agreement with Cassiar does provide protection to the buyer for claims arising against R-M, it does not protect the buyer from claims made directly against the buyer by third parties, which is what Asbestos Corporation is trying "to cover in the light of our experience to date in this area." Document entitled "Why Cassiar Indeminity is Inadvisable," dated 3/16/76. Several reasons are given; one is that potential plaintiffs, rather than Cassiar, would be the principal beneficiaries of the indemnity.

About this copy

This is document 635 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-002196 to CRMC-Motley1000-Subj-002200.