Formaldehyde Concerns
“Only mobile homes and only park models that fell below (the state’s formaldehyde threshold) and validated through that testing were provided to the state of Iowa.”
—Assistant Administrator David Garratt responds to criticism from the governor and some legislators that mobile home provided by FEMA to Cedar Rapids, Iowa, residents had high levels of formaldehyde. Garratt said FEMA stands behind the tests and believes that those tests are again the most rigorous and accurate tests of formaldehyde over time in a mobile home or park model. Garratt added that trailers are tested before they’re occupied in order to get a consistent sample. He said actions by residents such as cooking, smoking and storing dry-cleaning products can elevate levels of formaldehyde. It’s not unusual that the levels in a mobile home will rise and fall as different variables are introduced into that, Garratt said.
AIG Fallout
“The RTA is working with other agencies to try to get the U.S. Treasury to guarantee AIG’s credit.”
—The Chicago Regional Transportation Authority is among about 30 transit agencies around the nation that could be on the hook for millions thanks to the bailout of AIG, the Associated Press reported. Executive Director Stephen Schlickman said on Oct. 23 that the RTA alone may have to kick in $105 million, but is working with the U. S. Treasury to guarantee AIG’s credit. According to Schlickman, the issue involves “lease-back” deals struck by the CTA and Metra in the 1990s. With the deals, transit agencies sold or leased assets like rail cars and facilities to investors, then leased them back. The agencies got the cash, and investors got a tax credit. These deals required a guarantee by another financial institution in most cases, AIG. But when AIG’s credit rating fell, it left the transit agencies obliged to pay back investors.
Another Asbestos Ruling
“Products containing asbestos have not been manufactured or sold for approximately 30 years … the time for making these products safer has come and gone.”
—Ohio Justice Evelyn Lundberg Stratton defends another ruling on asbestos litigation. The Ohio Supreme Court sent a message to people seeking damages in asbestos-related cases on Oct. 22, throwing out a widow’s claim that a company that insulated the pipes at her husband’s workplace shared responsibility for his death. In a 5-2 ruling, the court said that its 1977 decision extending liability for defective products from manufacturers to suppliers should not be applied to events that took place before the ruling. Justice Evelyn Lundberg Stratton said the U.S. Supreme Court laid out a three-prong test judging whether legal interpretations could be applied retroactively and this case failed the test. Imposing such a potential financial burden on these non-manufacturing suppliers years after the fact … not foreseeable at the time would result in a great inequity.
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