Although the use of asbestos has been prohibited in most products since its inclusion in section 112 of the Clean Air Act (1970), it was not until December 31st, 2003, that use of the hazardous mineral group in any/all friction materials was prohibited. Friction materials are commonly used by automotive part manufacturers, especially in brakes and brake pad-related products.
Bendix Asbestos Brakes
Founded in 1924, Bendix is one of the more recognizable brand names in the automotive industry. Bendix became a cornerstone producer of brake pads and other brake-related auto parts. Recognizing the strength of the brand, Honeywell Consumer Products Group decided to buy Bendix; a decision that Honeywell might be wishing it never made.
Like most brake pad manufacturers, Bendix routinely used asbestos friction materials throughout its brake products. Although Bendix stopped using asbestos friction materials in compliance with the 2003 regulation, the company remains liable for any asbestos injuries caused as a result of exposure to their brake parts manufactured beforehand. Thus far, there are more than 47,000 such asbestos cases related to injuries caused as a result of exposure to asbestos friction materials.
In 2002, a wrongful death asbestos lawsuit was brought against Honeywell, GM, Chrysler and Ford. The family of the deceased was awarded a $53 million asbestos settlement.
Hoping to dodge additional liabilities, Honeywell has recently (January of 2006) been trying to sell off its Bendix brake products unit to another automotive-parts company, Federal-Mogul Corp. This move has come under intense scrutiny because Federal-Mogul Corp. has already filed for Chapter 11 protection because of its own asbestos-related liabilities. As such, Federal-Mogul Corp. is protected against excessive mesothelioma-related litigation costs associated with further asbestos litigation, potentially shielding the company from any transferred liabilities.
Liabilities for asbestos injuries would shift from the auto-part manufacturers like Bendix and Federal-Mogul onto the automakers themselves. It is not surprising, therefore, that Detroit's big three automakers (Ford, Chrysler and GM) have all filed suit against Honeywell International Inc. in order to prevent the "fraudulent transfer." The automakers claim that Federal-Mogul is hoping to use its Chapter 11 "immunity status" to take on the asbestos liabilities held by Honeywell; a move that could cost automakers billions of dollars.
The lawsuit and sale are being reviewed by all appropriate parties. In the interim, the 47,000 asbestos claimants are forced to sit and wait for restitution while multi-billion dollar corporations engage in the legal equivalent of "musical chairs."
Raymark Asbestos Liabilities
Raymark Industries was a large-scale producer of automotive parts from 1919 to 1989 through its 33-acre facility in Bountiful, Utah. Some of the automotive parts manufactured by Raymark included brake pads, disk brakes, drum brakes, brake linings and adhesives. Like most automotive manufacturers, Raymark used asbestos as a friction material in many of its brake products. The incorporation of asbestos materials put all those who came into contact with Raymark products at risk of developing an asbestos disease.
Raymark, however, is facing lawsuits of a different nature; state and federal. It has been determined by the Department of Environmental Protection that Raymark was responsible for the dumping of hazardous waste materials into a man-made "lagoon" located behind their facility. The hazardous waste materials included asbestos, phenol-formaldehyde and polychlorinated biphenysl (PCBs). To compound the issue, Raymark allowed their hazardous sludge to be made available (free-of-charge) to the general public to be used as fill material. A 1997 lawsuit against Raymark sought $20 million to pay the state's clean-up costs.
Over the course of the company's 70 years of operation, employees were routinely exposed to dangerous combinations of toxic materials, making Raymark liable for any asbestos diseases or other hazardous waste material-related injuries that past employees or their family members developed. Those who used the toxic sludge as fill material are also entitled to file a lawsuit against Raymark Industries if exposure to the waste caused them to develop a related disease of any kind. All those presumed to have come into contact with the Raymark site or hazardous waste materials are advised to visit a doctor for a checkup.
Paul and Hanley, LLP
If you believe you are suffering from an asbestos-related disease, please contact Paul & Hanley LLP to discuss your legal options.