New Jersey-based textiles manufacturer Congoleum Corp. is to exit Chapter Eleven bankruptcy, with a motions hearing on an exit plan to be heard by the U.S. Bankruptcy Court in Trenton, N.J.

Congoleum has been involved in thousands of asbestos-related lawsuits and has also sued a number of its own insurers for neglecting to provide coverage on the asbestos claims.

However, some of Congoleum’s insurers, including CNA Financial Corp. and Travelers Cos., object to the company’s proposed exit plan, saying that it goes against currently established bankruptcy law and unfairly favors asbestos claimants.

Congoleum, which manufactures various types of flooring products, manufactured certain asbestos-containing products, such as vinyl floor tiles, until 1983. As a result the company has often been named as a defendant in asbestos-related lawsuits.

In 2002 the company entered into a global settlement that was intended to result all of its current and future asbestos claims. As part of the deal Congoleum agreed to file Chapter Eleven bankruptcy.

In addition, Congoleum agreed to fund the settlement using insurance money, but neglected to consult with any of its insurers when making the deal. Because of this, some of the company’s insurers filed a declaratory judgment action in New Jersey’s state court to request that the court find the insurers’ policies didn’t cover the global settlement Congoleum was attempting.

However, once Congoleum filed for bankruptcy, the declaratory judgment action was automatically stayed, due to bankruptcy laws that prevent parties pursuing actions to obtain money or property from a company that has filed for Chapter Eleven.

In 2007, after a four year battle, the courts decided that the insurers did not have to pay the “prepackaged” insurance claims that Congoleum had negotiated.

These prepackaged deals are often advantageous for companies and attorneys, but are rarely so for genuine victims of asbestos-related disease. For the company negotiating the deal, the advantage is that they can control their exposure more easily than they might otherwise be able to.

Critics of these types of deals argue that they allow unscrupulous lawyers to conceal false claims in class action lawsuits that include hundreds or thousands of plaintiffs. The problems involved in these types of cases have also been highlighted this week by the Manhattan Institute’s report on class action asbestos suits.

Railroad giant CSX is again trying to uncover instances of whit is believes is fraud perpetrated by asbestos lawyers who have filed large numbers of claims.

CSX Corp. wants to file its Second Amended Complaint in federal court as part of its case against Pittsburgh law firm Peirce, Raimond & Coulter.

The case is connected to that against Bridgeport doctor Ray Harron, who was accused of falsely diagnosing asbestos-related diseases in people who did not have them.

CSX alleges that the falsely diagnosed people were then packaged with others in class action lawsuits with thousands of plaintiffs. CSX says that this method of filing meant the company was unable to properly investigate individual plaintiffs.

The complaint says, “CSXT’s proposed Second Amended Complaint is based on the same fraudulent scheme described in the Amended Complaint and reasserts claims based on the same legal theories.”

“Specifically, the proposed Second Amended Complaint alleges that Harron and the lawyer defendants fabricated and prosecuted objectively baseless asbestos claims against CSXT and seeks damages for injuries caused by 11 such claims.”

One of those eleven claims was a case of ‘mistaken identity’ that occurred after CSX employee Ricky May learned that the Peirce, Raimond & Coulter was conducting an asbestos screening. May had tested negative for asbestosis in a previous screening.

CSX alleges that a former employer, Robert Gilkison, had been hired by the law firm as a ‘runner,’ a person who was hired to convince former colleagues to initiate law suits against CSX. The company also alleged that Gilkison had suggested to May that he find someone who tested positive for asbestosis to impersonate him for the screening.

CSX’s complaint on the case says, “Defendant Gilkison suggested to Mr. May that he should get someone who had previously tested positive for asbestosis to set for his exam and thus be eligible to file a claim against CSXT.”

The railroad company then alleges that May enlisted CSX worker Danny Jayne, who had already been diagnosed with asbestosis, to pretend to be him for the exam. The suit also claims that Gilkison smoothed the process over, allowing May to complete the paperwork while Jayne completed the exam.

The x-rays were then sent to Ray Harron, who diagnosed asbestosis. May received a settlement of $8,000 from CSX.

CSX investigated the case and filed suit after a doctor verified that the x-rays taken of May and Jayne were in fact of the same person. After the company filed suit both men confessed to having taken part in the fraud.

Darlington, South Carolina - The South Carolina Department of Health and Environmental Control last week informed residents of Darlington of plans to demolish the abandoned Milliken mill located in the area. The facility was once a cotton mill, but has changed hands several times and since been out of operation for more than a decade. The mill is now contaminated with asbestos and toxic chemicals, and demolition requires caution.

According to DHEC spokesperson Adam Myrick, the mill has been a problem since the early 1990s. “That’s when we began our investigation. In terms of recent involvement, we’ve had a responsible party step to the forefront and begin discussing some of their plans for the site.”

The group that is responsible for the Milliken mill is Vishay GSI Inc. The company has called in WSP, Inc., an environmental clean-up company, to assist in the removal of hazardous materials and then help demolish the mill. WSP, Inc., a Virginia-based company, specializes in removal of hazardous materials and contaminants from such sites.

The meeting at which DHEC informed the community of its plans was attended by many locals, including Darlington Mayor Tony Wilkins and assistant city manager Howard Garland. City officials are particularly interested in the timeline the DHEC plans for debris removal and demolition of the mill.

Judy Canova, the DHEC manager of the Milliken mill project, said that the clean-up of the mill will include both interior and exterior portions of the site. Sediment at nearby Swift Creek will also be cleaned up, as well as ground water and soil beneath the mill, and sediment in drainage ditches and storm sewers.

In addition to asbestos, a number of toxic chemicals have been found to contaminate the site, including polychlorinated biphenyls (PCBs), perchloroethylene (PCE), and trichloroethane.

Locals had plenty of questions about the removal and demolition process, but few Darlington residents have any opposition to the demolition. Some people hoped that the DHEC would have been able to preserve the mill, however, due to its historic value.

Judy Canova said the clean-up and demolition of the building was expected to take around six months, but that time frame did not include clean-up of ground water and soil. DHEC officials will monitor the clean-up over the length of the project.

Fort Jackson, South Carolina - A recent inspection of the Fort Jackson barracks in South Carolina have turned up several environmental and health problems, including asbestos and mold.

According to officials, fixing the problems at Fort Jackson-and other locations across the country-would require a significant amount of money.

Last week, images of Fort Bragg were posted online by the parent of a soldier at the facility. The images showed unsanitary and uncomfortable conditions, including a major sewage backup at the camp.

The publication of the images prompted the U.S. Army to visit several bases across the country, including Fort Jackson. A local news service also visited Fort Jackson last week.

WIS News talked to Commanding General Jim Schwitters, who said of the facilities, “What you see here is 50 years old. We’re not proud of the floor covering, but it is sanitary, it is functional and it is healthy.”

Commanding General Schwitters did admit, however, that keeping the Fort Jackson barracks sanitary as well as functional is difficult.

The 1950s-era barracks have rusted tiles, chipped paint, and stained walls, and with 50,000 soldiers coming through each year it’s difficult to stay on top of maintenance problems.

“Keeping ahead of plumbing problems, we’ve all encountered overflowing toilets, blocked drains, we deal with that every day,” said Schwitters.

Drainage and maintenance problems, as well as asbestos issues, will cost a significant amount of money to fix, and until then it’s likely that conditions may get out of hand, as shown in the Fort Bragg photos that were published online. Those images showed bathroom drains clogged with sewage, as well as severe cases of mold.

The Fort Jackson barracks are of a similar age to those at Fort Bragg, but officials say that the Fort Jackson barracks will be replaced. Newer-style barracks include a central hub with barracks surrounding it.

In the meantime, however, soldiers are living in simple-but functional-conditions that occasionally become unsanitary.

Whitman, Massachusetts - Asbestos that was discovered during the demolition of a school has driven up the demolition costs by almost six times.

Demolition of the Holt School in Whitman, Massachusetts was to have cost around $300,000. However, after asbestos was discovered, the cost has gone up to more than $1.6 million.

Town Administrator Frank Lynam said asbestos was found in tiles, floor lining beneath the tiles, and in exterior bricks used in construction of the original school buildings.

Lynam also said that the pre-demolition asbestos survey which had been carried out was inadequate, as it had failed to find any of the asbestos that was discovered during the demolition.

The discovery of asbestos drives the cost of demolition up considerably for several reasons.

First is the fact that the asbestos must be removed before the school buildings can be demolished. Leaving the asbestos intact during demolition could potentially spread large clouds of asbestos dust into the environment, creating an environmental and health hazard.

Second, the asbestos removal must be carried out by professional contractors who are licensed to handle asbestos. In addition, special procedures must be used in removing the asbestos, to prevent the dispersion of asbestos dust.

These procedures include a process called wet removal, in which asbestos-containing materials are wetted down before they are removed, to prevent the release of dust and airborne fibers.

Finally, the cost of disposing of asbestos waste is significantly higher than disposing of non-hazardous material. Asbestos disposal is generally around three times more expensive than disposal of non-hazardous waste.

All of these are particularly important considerations that are necessary to prevent asbestos exposure to anyone involved in handling the substance. Even a small amount of exposure can cause a deadly cancer called mesothelioma. The health hazards of asbestos exposure have prompted most states to have strict regulations about handling the substance, as well as regulations governing demolition of buildings that contain it.

However, the very high cost of this abatement could have been at least partially avoided. Had the town known of the asbestos earlier, Lynam said, the cost for asbestos abatement would be lower, as the town would have been able to put the work out for contractor bids. Instead, the town has had to pay a higher cost to get the work done with minimum delay.

Sausalito, California ‘ Sausalito officials were forced to temporarily shut down a construction project situated near the Bay Model, after locals became concerned about asbestos exposure and dust created at the site.

The construction project is a $7 million rehabilitation of an old South Pacific Division Laboratory. The US Department of Veterans will convert the old site into a new research center.

The site was once the Marinship Ship Yard, which was was placed with the War Assets Administration in 1946 and converted to a geotechnical testing laboratory in 1950. Around ten years after the laboratory closed in 1997 ownership was transferred to the Department of Veterans Affairs.

Part of the work has involved asbestos abatement, and over the weekend contractors dressed in protective clothing began removing asbestos siding from the building.

During the course of the word wind began blowing dust from the construction site into nearby homes and boats. Concerned residents called police and firefighters to the scene, and the work was ordered to be stopped. Police Chief Scott Paulin said there was dust in the air and a layer of dust on nearby boats, and noted that arriving police cars also became covered in a dust layer.

On Monday May 5, city officials called the Bay Area Air Quality Management District to ask for the work site to be reviewed.

An inspector said that the work complied with the necessary building regulations and also said that the asbestos-containing siding was not being cut, broken, or crushed, so asbestos was not being released into the air. In addition, the inspector said it wouldn’t be possible to determine what was in the dust that was released during the weekend work.

The Bay Area Air Quality Management District will continue monitoring the site. Work may resume as early as Tuesday May 6.

Veterans Affairs spokesperson Judi Cheary said that all proper procedures were being followed at the construction site, but Sausalito Planning Director Jeremy Graves said that even if the dust was harmless, locals should still have been warned.

Before the site was cleaned, a study of groundwater and soil had shown concentrations of arsenic and polychlorinated biphenyls in addition to asbestos. The site should be safe post-cleanup, however.

The site construction will take two years to complete. Once the research center is open the VA plans to study post-traumatic stress disorder, HIV, liver disease, and other conditions.

Guadalupe County, Texas - Demolition work on Guadalupe County’s Justice Center was halted after the discovery of a small amount of asbestos in the building’s second floor.

The demolition work is being carried out prior to planned renovation activities. The discovery of asbestos in a small room on the second floor of the building means that the demolition must be halted so that the asbestos can be removed.

The asbestos was found in an adhesive that was used to glue linoleum wall tiles. Asbestos was commonly used in the twentieth century in many different types of construction materials, including many kinds of adhesives, so the discovery is not an uncommon or surprising one.

The schedule will be delayed for approximately two weeks so that the asbestos can be safely removed.

Asbestos abatement is expected to cost around $25,000. Commissioners have also voted to hire a company to monitor the building’s air quality during the abatement, at a cost of almost $7,000.

Asbestos removal is typically an expensive procedure: licensed contractors who are trained to work with asbestos must be used, and the process can be a lengthy one due to special safety procedures that must be carried out when removing asbestos. In addition, disposal of asbestos waste is around three times more expensive than disposing of non-hazardous waste.

Monitoring the air quality increases the cost of removal somewhat, but is important to help ensure that asbestos removal workers and the building’s employees are safe while the asbestos is removed. If any increase in airborne asbestos levels is noticed, steps can be taken immediately to prevent the spread of fibers.

Some county employees who work in the building-those who are situated close to the second floor removal area-will be relocated for the two days the project is expected to take.

According to County Judge Mike Wiggins, an asbestos survey that was previously carried out in the building, prior to the planned renovations, did not locate the asbestos adhesive, but that “fortunately it wasn’t a huge amount of asbestos.”

Once the asbestos removal is completed, demolition can continue, and then the planned renovations, which include upgrading outdated plumbing and replacing locks on prisoner cells doors, will be carried out.

Aspen, Colorado - Risk is all part of the job for rescue crews, but exposure to asbestos is one risk that most crews don’t expect to encounter during the course of their work. For the law enforcement, fire, and ambulance crews that responded to an emergency at Aspen Middle School this week, asbestos exposure became a risk.

The incident involved Denver man Juan Ruiz, who was killed in a construction site accident at the school. Ruiz was part of a demolition crew that was removing vermiculite from the school.

When the accident call went out, sheriff’s deputies, police officers, ambulance and fire crews responded.

Rescuers who were trying to locate Ruiz-who had been crushed by a free-standing cinder-block wall-had to enter an isolated construction zone where work crews were removing asbestos-contaminated vermiculite.

Pitkin County Sheriff’s Investigator Ron Ryan said that the responding crews had already entered the potentially contaminated area before they noticed that construction workers were wearing respirators and protective clothing. Aspen officer Joe Holman said “The guys in paper suits and aspirators surprised us, but once you’re in it, you’re in it.”

However, Ryan said that rescue workers were aware that the danger of asbestos exposure was minimal, and according to Deputy Adam Crider, who was coughing after the incident, the dust present at the site was mainly concrete dust.

City environmental health director Lee Cassin said that the vermiculite at Aspen Middle school may have contained asbestos but it was probably less harmful than most asbestos containing materials, such as the kind used in pipe insulation.

The crew members who responded to the incident filled out standard workers’ compensation and injury reports, and visited doctors to make sure there was no short-term damage to their health.

Aspen human resources director Rebecca Doane says that such follow-ups are standard procedure, especially in unusual situations, such as the exposure of officers to asbestos. She points out, however, that danger is part of the job for first-responder crews.

Officer Joe Holman said that for the rescue crews, helping the injured man was the biggest priority. Holman further said he wasn’t worried about the possibility of negative consequences, and that the priority of helping the injured man outweighed the potential risks.

Enoree, South Carolina - John Adams, of Enoree, South Carolina, is about to get a new neighbor: W.R. Grace & Company want to dig a six-acre vermiculite mine on land that borders his property.

John Adams and Larry Saylor, both of whom live adjacent to the land where the company hopes to dig the mine, are concerned because the presence of the mine will lower property values. More importantly, they’re concerned about the possible effects the mine might have on the health of people who live near it.

W.R. Grace & Company have already made one town sick with their vermiculite mining activities. More than 1,200 residents of Libby, Montana have developed asbestos-related diseases as a result of working in or living near the company’s vermiculite mine, which operated until 1990. The vermiculite mine in Libby is contaminated with asbestos.

The Libby vermiculite was marketed under the brand name Zonolite as an insulation, and under the name Monokote as a spray-on plaster coating. Both products were heavily used for decades. It is believed that asbestos-contaminated Zonolite insulation is present in millions of American homes.

The tragedy that occurred in Libby as a result of the asbestos contamination isn’t guaranteed to happen again. Not all vermiculite mines are contaminated with asbestos. But the devastating problems that have plagued that Montana town are serious enough to worry those who live near the planned mine site.

W.R. Grace & Company has been indicted by a federal grand jury for “knowingly endangering residents of Libby, Montana and concealing information about the health effects of its asbestos mining operations.”

The company already operates a vermiculite mine in Enoree, and has permission to dig in more than 30 other South Carolina locations. According to the SC Department of Health and Environmental Control, it’s not likely that vermiculite mines in the state are contaminated with asbestos because the geology is different from that in Libby.

A spokesperson for the agency said that they have told W.R. Grace & Company that they will need to test for asbestos at current and new vermiculite mining facilities to ensure there is no asbestos present.

W.R. Grace says the company is listening to residents who are concerned about health and safety issues. The company has an industrial hygiene program that involves testing vermiculite at three separate stages of production to ensure it’s safe for workers and the public.

April 16, 2008, North Platte, Nebraska - The Nebraska Department of Environmental Quality and the Environmental Protection Agency are both currently testing a downtown site in North Platte, Nebraska, for signs of asbestos and chemical contamination.

The land that is undergoing testing is the site of a former dry cleaning service which was torn down several years ago. The site is situated slightly west of the town’s 1913 Post Office building, which is also undergoing contamination assessment.

The 1913 Post Office building was recently purchased by the North Platte Creativity Unlimited Arts Council, which plans to use a combination of fund-raising money and grant money to renovate the abandoned building.

However, their plans could be delayed considerably if tests show the presence of contamination. NDEQ spokesperson Steve Kemp says the 1913 Post Office building may be contaminated with asbestos and lead-based paint, which may be costly and time-consuming to remove, depending on the extent of the contamination.

In addition, it’s thought that the parking lot behind the Post Office building may be contaminated with chemical left-overs from the dry cleaning business, including trichloroethene (TCE) and tetracholoroethene (PCE). Both chemicals are known cancer-causing agents, and they have been detected in groundwater thought to have run off from the dry cleaning business.

Even worse, with TCE and PCE running through groundwater beneath the city, it’s impossible to predict where the dispersion of the chemicals might end. However, EPA remedial project manger Melvin Brown says that the city’s drinking water is safe because the contaminants affect only shallow wells.

The good news for the Creativity Unlimited Arts Council, according to spokespeople from the EPA, is that the site can be cleaned up with federal grants.

Unfortunately, however, applying for EPA funds will almost certainly delay the project considerable. EPA attorney Robert Richards says it will take around a year to complete assessments of the contaminated properties and grant clean-up funds, if the CUAC chooses to apply for a grant.

One delaying factor is that due to the presence of TCE and PCE as well as asbestos and lead, surrounding properties must also be assessed for contaminants. Because the cancer-causing chemicals have found their way into groundwater, it’s likely that properties near the 1913 Post Office Building and the former dry cleaning site have also been contaminated.