Weyerhaeuser is one company that made floor joists that contain formaldehyde, a known carcinogen. If you have floor joists that are made from Flak Jacket(r) material, contact a law firm today to discuss your situation. It is crucial to consult with an attorney before signing a release. Otherwise, you could be violating federal and state laws.
Weyerhaeuser has settled class action lawsuits
Weyerhaeuser has agreed to pay up to $2 billion to homeowners who were affected by its formaldehyde-based product. The company has been using a coating on joists that are meant to keep them from burning. However, the flak jacket coating is a formaldehyde-based resin that stunk up thousands of homes. This problem has led to dozens of class action lawsuits, and the company has voluntarily bowed to the demands of the public by spending $50 million to $60 million on re-framing homes.
The case involved claims made by former employees of Weyerhaeuser. The company filed a motion to compel arbitration and dismiss the case, but the plaintiffs disagreed. Weyerhaeuser argued that the insurance policy only required the insurance company to defend and indemnify the insured and that it was not obligated to pay third-party obligations. The court agreed, ordering the case to arbitration.
It is not named in the pleadings
A new lawsuit has targeted Weyerhaeuser’s TJI Joists, a fire-resistance coating applied to I-joists. It is present in basements of some 2,200 homes in limited markets. The company has suspended production and is collecting unused joists from customers. In response, the company has recorded a reserve and expects to incur costs of $50-60 million before tax. The company plans to record the reserve in the second quarter of 2017.
The insurance company argued that the Plaintiffs did not allege the product caused the damage and that Weyerhaeuser had no legal duty to compensate the injured soldiers. A negligence claim requires a legal duty to protect the injured party, a breach of that duty, causation, and damages. In contrast, a strict liability claim requires a physical defect in the product that could have been prevented through proper design or manufacture, as well as inadequate warnings.
It is not alleged to have participated in or funded the settlement
The formaldehyde-based product issue that has been plaguing Weyerhaeuser is now much more widespread than it was previously reported and may cost the company up to $2 billion. The Flak Jacket coating, applied to I-joists, prevents the wood from burning during construction, but the formaldehyde-based resin that the company used stunk up new homes. Weyerhaeuser recently said it would spend $50 million to $60 million to replace framing in homes that were affected by the product.
The defendants also argued that NR was an appropriate party in the underlying lawsuits and that subsequent pleadings should have been considered in the eight-corners analysis. However, this argument is not persuasive. Moreover, the plaintiffs did not identify NR as a party in the case. The parties in the case did not name the manufacturer, and Burlington failed to defend or indemnify Weyerhaeuser in the lawsuit.
It is not a defendant in the lawsuits
The Weyerhaeuser Flak Jacket isn’t a defendant in the lawsuits, but this doesn’t mean it’s not liable. The company can amend its pleadings to show that it is a third-party beneficiary, as a court in Louisiana has held. In the case of Ordonez v. W.T. Grant Co., an insurance policy required the company to defend and indemnify the insured.
According to a company spokesperson, the company has ceased production of Flak Jacket, which is a fire-resistant coating applied to I-joists. The company says all TJI joists that had Flak Jacket protection installed after December 2016 should be remedied. It has released a remediation solution known as W20115 Field Paint to reduce the off-gassing of formaldehyde. In addition, the company has set aside between $50-60 million to address the issue.
It has not been named in the pleadings
The lawsuit alleges that Weyerhaeuser’s Flak Jacket Protection – a coating applied to I-joists to increase fire resistance – is causing problems in many homes. The product is currently present in the basements of 2,200 houses in limited markets. In response to these problems, Weyerhaeuser has voluntarily ceased production and is collecting the unused product from its customers. The company expects before-tax costs of $50-60 million and the recording of a reserve in the second quarter of 2017.
Weyerhaeuser is a Washington company with headquarters in Seattle, Washington. The lawsuit alleges that Weyerhaeuser’s Gen-4 Flak Jacket contains formaldehyde, which is harmful to the body. The lawsuit also alleges that Weyerhaeuser failed to properly warn and instruct customers about the hazards of this product. The plaintiff, Boudreaux, wore a Gen-4 Flak Jacket while performing work for Weyerhaeuser in Louisiana. The company hired Simsboro Coating Services, LLC to coat the jacket. The lawsuit also alleges that exposure to formaldehyde from the Weyerhaeuser Flak Jacket was responsible for Boudreaux’s injuries.
It has not been alleged to have participated in or funded the settlement
The company has ceased producing Flak Jacket floor joists and is collecting the unused product from customers. While the company has not been alleged to have funded or participated in the settlement, it has sold $9 million worth of Flak Jackets since December 2016. In 2016, Weyerhaeuser had net sales of $6.4 billion. This lawsuit represents the largest class action settlement against a single company, and the company is unlikely to be able to settle the claim on its own.
Burlington maintains that the Manufacturing Agreement does not qualify as an insured contract. Weyerhaeuser argues that the Policy is a contractual liability coverage contract, and therefore provides indemnity and defense for Weyerhaeuser and NR. As such, the Manufacturing Agreement only covers claims arising out of Simsboro’s fault. In any event, this settlement is unfair to Burlington, as it has caused them more harm than good.