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The Courier-News from Bridgewater, New Jersey • Page 4

Publication:
The Courier-Newsi
Location:
Bridgewater, New Jersey
Issue Date:
Page:
4
Extracted Article Text (OCR)

THE COURIER-NEWSThursday, December 20, 1984 A-7 Carbide tragedy prompts a look at Manville Corp. 'Sue City Sue" may continue to be the profitable love song of much of the U.S. legal profession, the time is here to seek other ditties on behalf of the nation at large, and specifically of those citizens who somehow failed to acquire a legal degree of their own. By LOUIS RUKEYSER One of the less savory aftermaths of Jhe gas-poisoning tragedy at Union Carbide's Bhopal, India, plant was the sight of lawyers swarming onto the scene in an orgy of self -promotion and -competitive bombast. By now, though, we should be used to the notion that whatever happens in 'this increasingly complicated and world, there is sure to be something in it for the lawyers.

As Union Carbide's able and chairman, Warren An- derson, prepares to defend his com-, party's future, while trying to do the right thing for the authentic victims of this shocking accident, the rest of us might find instructive a look at another recent product-liability case in which legal claims threatened to run into the billions that of the now-bankrupt Manville Corp. Many legal observers have become convinced that the Manville case represents the classic example of what's wrong with the U.S. justice system as it relates to the growing and often-legitimate concerns of product liability. I Clearly, up to now, the biggest winners in the scandal over asbestos-related diseases have been the attorneys on both sides. Consider: Manville has been assessed $82 -million in settlements and judgments 'on asbestos claims.

Taking the standard contingency fee for attorneys of '33 to 40 percent, a small number of ZZ if. would settle all claims over 20 years. The other would be the operating company, shielded from asbestos obligations. The necessary funding would come from periodic payments from insurance companies and corporate assets, including cash andstock. Plainly, the trial lawyers would be opposed to anything so neat and simple and beyond litigation.

But they are not alone. Manville's own top legal officer, G. Earl Parker, acknowledges that "as a society, we remain by and large rugged individualists" and that this philosophy encourages the idea of "each individual possessing a perceived right to separate redress of his grievances." But he maintains that the asbestos cases are a prime example of the present legal system "run afoul," adding that it "weighs heavily against victims" and is "inappropriate to the essentially social task confronting us today." There is, indeed, evidence that the existing system breeds unreasonable demands as Parker wryly notes, "There are simply not enough corporate resources to compensate all the present and future victims of occupa-tionallyrelated disease at the rate at which plaintiffs' lawyers seek" and erratic verdicts. There have been cases where plaintiffs with nearly identical work histories and exposures had juries award one worker $1 million and the other nothing. One apparently healthy large, and specifically of those citizens who somehow failed to acquire a legal degree of their own.

Louis Rukeyser is syndicated columnist. Birthday Mania the profitable love song of much of the U.S. legal profession, but as even the nation's chief justice has lately come to admit, the time is here to seek other ditties on behalf of the nation at New pereenellied tlrthdai cniid'i loth Ihi first nt if ill lotion game, Personal Games OiT.w (N.j. Tnipiriict airmail Spiclil Introductory for the ATARI (ATARI and 2100 lend Mill Co, name video gimt cartridge that puti till nam ngnt on trie i icre last mimi are Included. with alrtndai theme.

gun price 111.99. 2800 in rejlitered Trade Marki at Atari Inc.) completed form and a check or money order for AnalysisCommentaryOpinion Print the Name ae you want It re appear on the TV (croon. Happy Birthday to (flrit) 'Mall would be another forward SAVINGS AT I JEWELERS i -tXK? I Hours: 1 1 9 am to 8 pm am to 5 pm 1 Plainfield, N.J. 75S-6515 asbestos lawyers netted about $27 million to $33 million in fees, not including plaintiffs' litigation expenses. Manville filed for Chapter 11 reorganization in August 1982 because it estimated that asbestos-related lawsuits against it would cost more than $2 billion.

Accounting rules required the booking of a reserve that would have substantially eliminated Man-ville's net worth. Since then, Manville has continued to pay out about $1.5 million a month in attorneys' fees, including those of its own lawyers. In seeking to unravel the bankruptcy tangle, Manville has three announced aims resolving the litigation by finding an equitable and uniform means of compensation, providing for all valid present and future claims and emerging as a viable business. To accomplish this, Manville seeks agreement on a plan that would divide the company into two independent entities. One would be a trust that The people of Bridgewater are being "ripped off" at $2,800 apiece by Ernest Hahn.

That the land for the Bridgewater Commons could be valued at $1 million per acre. ($126 million for vacant land?) The De Lorean tract sold at $150,000 per acre (less than three months ago) with no road improvements required and a new building planned. The Commons property would, if sold, provide a "$3,900 tax relief" to Bridgewater taxpayers. The Commons land is "worth $30 million," and that Hahn is paying "only $8.75 million, or $69,000 per acre." 1 That "developers are customarily held responsible for the road work they necessitate." That Hahn "failed to meet virtually every commitment in the original contract." That the Bridgewater Redevelopment Agency "will be giving Hahn a $22 million Christmas present at the expense of Bridgewater's taxpayers." As someone who has tried to make sense out of a situation that will affect this community and all concerned for years to come, someone who hasn't any connection with Hahn, the Redevelopment Agency, the Planning Board, the Zoning Board or Township Council, I have tried to evaluate that information available to the public and make an educated and objective evaluation. What are the people of Bridgewater and surrounding towns getting for their money? I would say that the issue is: Has Bridgewater and the people it serves the right to finally become a town with a nucleus and not an object with particles headed in randum directions? I would like to comment on some points McNeil made in his article, For a limited time only! Present this ad you'll receive your first cut in our salon absolutely FREE.

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TekiMMl Vi By ROBERT J. HANLON i To live is to move forward. To give life meaning we must strive to make better the conditions under which we live, work and play. Americans have always worked hard to obtain the extras that our economy has to offer. They have through our history taken many prudent risks that other nations would not or could not attempt.

In doing so they put their hopes, fortunes and at times their honor on the line. Businessmen have invested mil- lions and earned millions in return for their ability to create products and to 1 give us a better way of life. A town, like any man or woman, cannot stand still; they must move in one of two directions. To move backward is to negate that which we all work to gain in our lives. To move backward is to wish your children to achieve less than what you have and a harder life.

You can pic- ture where, after a few generations, America would be. Bridgewater is moving forward. The schools, a post office, a senior citizen center, banks, a mental health center, good housing of all levels and i road improvements have moved us from a dependent community to one that is alive. i We have attracted businesses of 1 various types, size and structure. This was accomplished by well-planned and often hard decisions by many people looking to Bridgewater's future.

One of these ideas is the Bridgewater Commons a retail outlet that would not only serve the people of Bridgewater but the surround- ing areas of which Bridgewater is the hub. John McNeil (C-N, 126) stated that "the issue," of the mall, "is no longer pro-mall" vs anti-mall, but who is being "ripped off." McNeil stated the following: "New contract would pick taxpayers' pockets." First, McNeil has not clarified which figure he is using as a cost base for the 126-acre Commons tract. To save some calculations and time let us assume that, as is, the land is worth $200,000 per acre (the De Lorean tract is less than a half mile away). With a school budget of $30 million, that $25 million would not last very long. At a price of $25 million we can't expect any road improvements.

(Let's be fair.) The De Lorean tract owners are not paying for any road improvements to Route 206. Nor did Fisher Scientific on Route 202, nor did the medical clinic on Route 28. Nor did the housing project off Mllltown Road. Second, based on $25 or $30 million, the township could sell for and make the improvements to existing road conditions, a balance of approximately $8 million or less would be left. This would not leave much to increase any services needed or reduce taxes.

Third, Bridgewater is, if not the first, a town requiring some off-site improvements to be paid by the builder. This is the reason Bridgewater's development is so well respected throughout Somerset County and New Jersey. If and when the town requires a builder to do off -site improvements, it cannot expect full value for the land in cash. Cost of improvements must fall on the builder or the township (by way of the taxpayer) or must be reflected in the price of the land. Hahn is paying $8.75 million for the land, road improvements of $15 to 20 million, the cost of replacement and relocation of the state Department of Transportation building and the animal shelter, a community center in the Commons, plus taxes on the land and buildings as they are constructed.

Fourth, there were many major changes in the contract signed by 1 reuaenn aaa oit sales i ax P.O. Box 3219, Plainfield, N.J. 07063-3219 Irotei Zip- PRODUCE Emperor Red Grapes 2 $1 mm lbs. A Sweet ib. Carrots bag Western Anjou Pears Large Florida Beefsteak Tomatoes Broccoli Fresh Mushrooms 39jb.

Oltt! lit. Jr urn 7 lift! plaintiff was given $550,000 after his lawyer argued that there might possibly be a future problem, while another dying of asbestos- related disease lost out seemingly because the jury disliked his lawyer. Claims are further eroded by inordinate legal costs. The Rand Corp. found that injured asbestos workers received only 37 cents of every dollar spent on litigation.

And the Urban Institute concluded that the federal government itself could save at least $79 million if a no-fault, non- adversarial administrative mechanism for compensating asbestos victims were implemented. "Sue City Sue" may continue to be step Hahn and the Redevelopment Agency in 1979 that amounted to dates of completion, starting dates, title requirements, letters of credit, transfer restrictions, etc. This made not a weaker, but stronger control for Bridgewater. These changes amounted to a net gain to Bridgewater of $3.5 million up front, plus a $290,000 balance from a community center and a percentage of its rental receipts from tenants. With all that has been presented both pro and con on the Commons, I believe that for what Bridgewater put up in land and what we will receive desperately needed road improvements, elimination of severe traffic hazards, an even flow of traffic, our own downtown community center and shopping center, a much needed tax ratable and a development that by any conservative standard of value will be (not $20 or $50 or $100 million) worth $200 to $250 million when complete the township will receive the greater value.

With land purchases complete, road improvements complete, the stores, hotels and office complex in place, when Bridgewater is receiving its $2 million-plus per year in ratables along with 2.3 percent of the rental receipts, what will Hahn Co. receive for completion of a dream of the Bridge-water people for 20 years? A few million dollars is not really much in comparison to what the area will receive. Robert J. Hanlon is a resident of Bridgewater and active in local issues. Ingrown Nails Flat FeetToeing-ln Sports Injuries Foot Trauma Brook Road, N.J.

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About The Courier-News Archive

Pages Available:
2,000,923
Years Available:
1884-2024