ALG » Topics » Item 3. Legal Proceedings

This excerpt taken from the ALG 10-K filed Mar 15, 2010.

Item 3. Legal Proceedings

      The Company is subject to various legal actions which have arisen in the ordinary course of its business. The most prevalent of such actions relate to product liability, which is generally covered by insurance after various self-insured retention amounts. While amounts claimed might be substantial and the ultimate liability with respect to such litigation cannot be determined at this time, the Company believes that the ultimate outcome of these matters will not have a material adverse effect on the Company’s consolidated financial position or results of operations; however, the ultimate resolution cannot be determined at this time.

 

      The Company knows that its Indianola, Iowa property is contaminated with chromium which most likely resulted from chrome plating operations which were discontinued before the Company purchased the property. Chlorinated volatile organic compounds have also been detected in water samples on the property, though the source is unknown at this time. The Company voluntarily worked with an environmental consultant and the state of Iowa with respect to these issues and believes it completed its remediation program in June 2006. The work was accomplished within the Company’s environmental liability reserve balance. We requested a “no further action” classification from the state.  We received a conditional “no further action” letter in January of 2009.  When we demonstrate stable or improving conditions below residential standards by future monitoring of existing wells, an unconditional “no further action” letter will be requested.

 

      At December 31, 2009, the Company had an environmental reserve in the amount of $1,608,000 related to the acquisition of Gradall’s facility in New Philadelphia, Ohio.  Three specific remediation projects that were identified prior to the acquisition are in process of remediation with a remaining reserve balance of $143,000.  The Company has a reserve of $277,000 concerning a potential asbestos issue that is expected to be abated over time.  The balance of the reserve, $1,188,000, is mainly for potential ground water contamination/remediation that was identified before the acquisition and believed to have been generated by a third party company located near the Gradall facility. 

 

      Certain other assets of the Company contain asbestos that may have to be remediated over time.  Management has made its best estimate of the cost to remediate these environmental issues.  However, such estimates are difficult to estimate including the timing of such costs.  The Company believes that any subsequent change in the liability associated with the asbestos removal will not have a material adverse effect on the Company’s consolidated financial position or results of operations.

 

      The Company knows that Bush Hog’s main manufacturing property in Selma, Alabama is contaminated with chlorinated volatile compounds which most likely resulted from painting and cleaning operations during the 1960’s and ‘70s.  The contaminated areas are primarily in the location of underground storage tanks and underneath the former waste storage area. Under the Asset Purchase Agreement, Bush Hog’s prior owner, agreed to remove the underground storage tanks at its cost and is liable for remediating the identified contamination in accordance with the regulations of the Alabama Department of Environmental Management. An environmental consulting firm has been retained by the prior owner and is administering the cleanup.

 

These excerpts taken from the ALG 10-K filed Mar 11, 2009.

Item 3. Legal Proceedings

      The Company is subject to various legal actions which have arisen in the ordinary course of its business. The most prevalent of such actions relate to product liability, which is generally covered by insurance after various self-insured retention amounts. While amounts claimed might be substantial and the ultimate liability with respect to such litigation cannot be determined at this time, the Company believes that the ultimate outcome of these matters will not have a material adverse effect on the Company’s consolidated financial position or results of operations; however, the ultimate resolution cannot be determined at this time.

 

      The Company knows that its Indianola, Iowa property is contaminated with chromium which most likely resulted from chrome plating operations which were discontinued before the Company purchased the property. Chlorinated volatile organic compounds have also been detected in water samples on the property, though the source is unknown at this time. The Company voluntarily worked with an environmental consultant and the state of Iowa with respect to these issues and believes it completed its remediation program in June 2006. The work was accomplished within the Company’s environmental liability reserve balance. We requested a “no further action” classification from the state.  We received a conditional “no further action” letter in January of 2009.  When we demonstrate stable or improving conditions below residential standards by future monitoring of existing wells, an unconditional no further action letter will be requested.

 

      At December 31, 2008, the Company had an environmental reserve in the amount of $1,607,000 related to the acquisition of Gradall’s facility in Ohio.  Three specific remediation projects that were identified prior to the acquisition are in process of remediation with a remaining reserve balance of $143,000.  The Company has a reserve of $276,000 concerning a potential asbestos issue that is expected to be abated over time.  The balance of the reserve, $1,188,000, is mainly for potential ground water contamination/remediation that was identified before the acquisition and believed to have been generated by a third party company located near the Gradall facility.  Certain other assets of the Company contain asbestos that may have to be remediated over time.  Management has made its best estimate of the cost to remediate these environmental issues.  However, such estimates are difficult to estimate including the timing of such costs.  The Company believes that any subsequent change in the liability associated with the asbestos removal will not have a material adverse effect on the Company’s consolidated financial position or results of operations.

 


Item 3. Legal Proceedings



      The Company is subject to various
legal actions which have arisen in the ordinary course of its business. The
most prevalent of such actions relate to product liability, which is generally
covered by insurance after various self-insured retention amounts. While
amounts claimed might be substantial and the ultimate liability with respect to
such litigation cannot be determined at this time, the Company believes that the
ultimate outcome of these matters will not have a material adverse effect on
the Company’s consolidated financial position or results of operations;
however, the ultimate resolution cannot be determined at this time.



 



      The
Company knows that its Indianola, Iowa property is contaminated with chromium
which most likely resulted from chrome plating operations which were
discontinued before the Company purchased the property. Chlorinated volatile
organic compounds have also been detected in water samples on the property,
though the source is unknown at this time. The Company voluntarily worked with
an environmental consultant and the state of Iowa with respect to these issues
and believes it completed its remediation program in June 2006. The work was
accomplished within the Company’s environmental liability reserve balance. We
requested a “no further action” classification from the state.  We received a conditional
“no further action” letter in January of 2009.  When we demonstrate stable or
improving conditions below residential standards by future monitoring of
existing wells, an unconditional no further action letter will be requested.



 



      At December
31, 2008, the Company had an environmental reserve in the amount of $1,607,000
related to the acquisition of Gradall’s facility in Ohio.  Three
specific remediation projects that were identified prior to the acquisition are
in process of remediation with a remaining reserve balance of $143,000.  The
Company has a reserve of $276,000 concerning a potential asbestos issue that is
expected to be abated over time.  The balance of the reserve, $1,188,000, is
mainly for potential ground water contamination/remediation that was identified
before the acquisition and believed to have been generated by a third party
company located near the Gradall facility.  Certain other assets of the
Company contain asbestos that may have to be remediated over time.  Management
has made its best estimate of the cost to remediate these environmental
issues.  However, such estimates are difficult to estimate including the timing
of such costs.  The Company believes that any subsequent change in the
liability associated with the asbestos removal will not have a material adverse
effect on the Company’s consolidated financial position or results of
operations.



 



These excerpts taken from the ALG 10-K filed Mar 12, 2008.

Item 3.  Legal Proceedings

      The Company is subject to various legal actions which have arisen in the ordinary course of its business.  The most prevalent of such actions relate to product liability, which is generally covered by insurance after various self-insured retention amounts.  While amounts claimed might be substantial and the ultimate liability with respect to such litigation cannot be determined at this time, the Company believes that the ultimate outcome of these matters will not have a material adverse effect on the Company’s consolidated financial position or results of operations, however, the ultimate resolution cannot be determined at this time. 

 

      The Company knows that its Indianola, Iowa property is contaminated with chromium which most likely resulted from chrome plating operations which were discontinued before the Company purchased the property.  Chlorinated volatile organic compounds have also been detected in water samples on the property, though the source is unknown at this time.  The Company has been voluntarily working with an environmental consultant and the State of Iowa with respect to these issues and believes it completed its remediation program in June 2006.  The work was accomplished within the Company’s environmental liability reserve balance.  We requested a “no further action” classification from the state.  The State of Iowa asked for some additional testing information which the Company has provided.  We expect to receive a qualified no further action letter that will require only that we monitor the site in the future.  Monitoring will continue until enough data is collected to demonstrate stable or improving conditions, at which time an unconditional no further action letter will be requested.

 

      The Company also preliminarily established an environmental reserve in the amount of $1,913,000 related to the acquisition of Gradall’s facility in Ohio.  Three specific remediation projects that were identified prior to the acquisition are in process and estimated to cost $400,000.  The Company has also identified and established a reserve of $325,000 concerning a potential asbestos issue at the Gradall facility which is being evaluated.  The balance of the reserve, $1,188,000, is mainly for potential ground water contamination/remediation that was identified before the acquisition and believed to have been generated by a third party company located near the Gradall facility.    Certain other assets of the Company contain asbestos that may have to be abated in the future.  The estimated timing and the fair market value of removing or disposing of existing asbestos cannot be reasonably estimated at this time, however, the Company believes the liability associated with the asbestos removal will not have a material adverse effect on the Company’s consolidated financial position or results of operations.

 


Item 3.  Legal Proceedings




     
The Company is subject to various
legal actions which have arisen in the ordinary course of its business.  The
most prevalent of such actions relate to product liability, which is generally
covered by insurance after various self-insured retention amounts.  While
amounts claimed might be substantial and the ultimate liability with respect to
such litigation cannot be determined at this time, the Company believes that
the ultimate outcome of these matters will not have a material adverse effect
on the Company’s consolidated financial position or results of operations,
however, the ultimate resolution cannot be determined at this time. 



 




      The
Company knows that its Indianola, Iowa property is contaminated with chromium
which most likely resulted from chrome plating operations which were
discontinued before the Company purchased the property.  Chlorinated volatile
organic compounds have also been detected in water samples on the property,
though the source is unknown at this time.  The Company has been voluntarily
working with an environmental consultant and the State of Iowa with respect to
these issues and believes it completed its remediation program in June 2006. 
The work was accomplished within the Company’s environmental liability reserve
balance.  We requested a “no further action” classification from the state. 
The State of Iowa asked for some additional testing information which the
Company has provided.  We expect to receive a qualified no further action
letter that will require only that we monitor the site in the future. 
Monitoring will continue until enough data is collected to demonstrate stable
or improving conditions, at which time an unconditional no further action
letter will be requested.



 




      The
Company also preliminarily established an environmental reserve in the amount
of $1,913,000 related to the acquisition of Gradall’s facility in Ohio.  Three specific remediation projects that were identified prior to the acquisition
are in process and estimated to cost $400,000.  The Company has also identified
and established a reserve of $325,000 concerning a potential asbestos issue at
the Gradall facility which is being evaluated.  The balance of the
reserve, $1,188,000, is mainly for potential ground water
contamination/remediation that was identified before the acquisition and
believed to have been generated by a third party company located near the Gradall
facility.    Certain other assets of the Company contain asbestos that may have
to be abated in the future.  The estimated timing and the fair market value of
removing or disposing of existing asbestos cannot be reasonably estimated at
this time, however, the Company believes the liability associated with the asbestos
removal will not have a material adverse effect on the Company’s consolidated
financial position or results of operations.



 



This excerpt taken from the ALG 10-K filed Mar 14, 2007.

Item 3.  Legal Proceedings

      The Company is subject to various legal actions which have arisen in the ordinary course of its business.  The most prevalent of such actions relate to product liability, which is generally covered by insurance after various self-insured retention amounts.  While amounts claimed might be substantial and the ultimate liability with respect to such litigation cannot be determined at this time, the Company believes that the ultimate outcome of these matters will not have a material adverse effect on the Company's consolidated financial position or results of operations, however, the ultimate resolution can not be determined at this time. 

      The Company knows that its Indianola, Iowa property is contaminated with chromium, which most likely resulted from chrome plating operations which were discontinued several years before the Company purchased the property.  Chlorinated volatile organic compounds have also been detected in water samples on the property.  The Company has been voluntarily working with an environmental consultant and the state of Iowa with respect to these issues and believes it has completed its remediation program in June 2006.  The work was accomplished within the Company's environmental liability reserve balance.  We have requested a "no further action" classification from the state.  The State of Iowa has asked for some additional testing information which the Company has provided.

      The Company also preliminarily established an environmental reserve in the amount of $1,939,000 related to the acquisition of Gradall's facility in Ohio.  Three specific remediation projects that were identified prior to the acquisition are in process and estimated to be $400,000.  The balance of $1,539,000 is mainly for potential ground water contamination/remediation that was identified before the acquisition and believed to have been generated by a third party company located near the Gradall facility.  The Company has also identified and established a reserve of $350,000 concerning a potential asbestos issue at its Gradall facility which is in the process of being evaluated.  Certain other assets of the Company contain asbestos that may have to be abated in the future.  The estimated timing and the fair market value of removing or disposing of existing asbestos cannot be reasonably estimated at this time.  The Company believes the liability associated with the asbestos removal will not have a material adverse effect on the Company's consolidated financial position or results of operations.

This excerpt taken from the ALG 10-K filed Mar 16, 2006.

Item 3.  Legal Proceedings

      The Company is subject to various legal actions which have arisen in the ordinary course of its business.  The most prevalent of such actions relate to product liability which is generally covered by insurance.  While amounts claimed might be substantial and the ultimate liability with respect to such litigation cannot be determined at this time, the Company believes that the ultimate outcome of these matters will not have a material adverse effect on the Company's consolidated financial position.

      The Company's Indianola, Iowa property is contaminated with chromium which likely resulted from chrome plating operations which were discontinued several years before the Company purchased the property.  Chlorinated volatile organic compounds have been detected in water samples on the property.  The Company has been voluntarily working with an environmental consultant and the state of Iowa with respect to these issues and will take appropriate measures to remediate the property if necessary.  The amount of potential liability has been estimated by an independent environmental engineering company to be between $100,000 and $250,000 and the Company has an environmental reserve of $194,000 as of December 31, 2005.

This excerpt taken from the ALG 10-K filed Mar 11, 2005.

Item 3.  Legal Proceedings

      The Company is subject to various legal actions which have arisen in the ordinary course of its business.  The most prevalent of such actions relate to product liability which is generally covered by insurance.  While amounts claimed might be substantial and the ultimate liability with respect to such litigation cannot be determined at this time, the Company believes that the ultimate outcome of these matters will not have a material adverse effect on the Company's consolidated financial position.

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