WY » Topics » Hardboard Siding Claims

This excerpt taken from the WY 10-Q filed May 8, 2009.

Hardboard Siding Claims

This is a nationwide claims-based settlement of hardboard siding class action cases against us.

Under the settlement – which we entered into in June 2000 – all persons who own or owned structures in the United States on which our hardboard siding had been installed from January 1, 1981, through December 31, 1999, can file claims.

An independent adjuster reviews claims submitted and determines payment. Claims are paid as submitted over a nine-year period. The right to file claims expires in three six-year increments and claims for the first two periods may no longer be filed. The expiration dates are:

 

 

2003 – persons who had our hardboard siding installed from 1981 to 1986.

 

 

2006 – persons who had our hardboard siding installed from 1987 to 1993.

 

 

2009 – persons who had our hardboard siding installed from 1994 to 1999.

Status. Total claims paid through March 31, 2009, were $112 million. The reserve for future claim payments was $5 million as of March 31, 2009. We have recovered a total of $52 million through negotiated settlements with our insurance carriers.

We have no litigation pending with any persons or entities that have opted out of the class. However, it is possible that persons or entities that have opted out may file claims in the future.

We believe our reserve balance is adequate. However, determining reserves required to fund any future claims involves judgments and projections of future claims rates and amounts. At this time, we are unable to estimate the amount of additional charges – if any – we may need for these claims in the future.

This excerpt taken from the WY 10-K filed Feb 27, 2009.

Hardboard Siding Claims

This is a nationwide claims-based settlement of hardboard siding class-action cases against us.

Under the settlement – which we entered into in June 2000 – all persons who own or owned structures in the U.S. on which our hardboard siding had been installed from January 1, 1981, through December 31, 1999, can file claims.

An independent adjuster reviews claims submitted and determines payment. Claims are paid as submitted over a nine-year period. The right to file claims expires in three six-year increments and claims for the first two periods may no longer be filed. The expiration dates are:

 

 

2003 – persons who had our hardboard siding installed from 1981 to 1986;

 

2006 – persons who had our hardboard siding installed from 1987 to 1993; and

 

2009 – persons who had our hardboard siding installed from 1994 to 1999.

Status. Total claims paid through the end of 2008 were $111 million. The reserve for future claim payments was $6 million at the end of 2008. Based on our experience with actual claims and litigation, we reduced our reserve by $13 million in the third quarter of 2008. We have recovered $52 million through negotiated settlements with our insurance carriers.

We have no litigation pending with any persons or entities that have opted out of the class. However, it is possible that persons or entities that have opted out may file claims in the future.

We believe our reserve balance is adequate. However, determining reserves required to fund any future claims involves judgments and projections of future claims rates and amounts. At this time, we are unable to estimate the amount of additional charges – if any – we may need for these claims in the future.

This excerpt taken from the WY 10-Q filed Nov 7, 2008.

Hardboard Siding Claims

This is a nationwide claims-based settlement of hardboard siding class action cases against us.

Under the settlement – which we entered into in June 2000 – all persons who own or owned structures in the U.S. on which our hardboard siding had been installed from January 1, 1981 through December 31, 1999 can file claims.

An independent adjuster reviews claims submitted and determines payment. Claims are paid as submitted over a nine-year period. The rights to file claims expire in three six-year increments and claims for the first two periods may no longer be filed. The expiration dates are:

 

 

2003 – persons who had our hardboard siding installed from 1981 to 1986,

 

 

2006 – persons who had our hardboard siding installed from 1987 to 1993 and

 

 

2009 – persons who had our hardboard siding installed from 1994 to 1999.

Status. Cumulative payments against the reserve through September 28, 2008 were $110 million. Based on our experience with actual claims and litigation, we reduced our reserve by $13 million in the third quarter of 2008. As of September 28, 2008, the reserve for future claims was $7 million. To date, we have recovered a total of $52 million through negotiated settlements with our insurance carriers.

We have no litigation pending with any persons or entities that have opted out of the class. However, it is possible that persons or entities that have opted out may file claims in the future.

We believe our reserve balance is adequate. However, determining reserves required to fund any future claims involves judgments and projections of future claims rates and amounts. At this time, we are unable to estimate any additional adjustments we may make in future periods.

This excerpt taken from the WY 10-Q filed Aug 8, 2008.

Hardboard Siding Claims

This is a nationwide claims-based settlement of hardboard siding class action cases against us.

Under the settlement – which we entered into in June 2000 – all persons who own or owned structures in the U.S. on which our hardboard siding had been installed from January 1, 1981 through December 31, 1999 can file claims.

An independent adjuster reviews claims submitted and determines payment. Claims are paid as submitted over a nine-year period. The rights to file claims expire in three six-year increments and claims for the first two periods may no longer be filed. The expiration dates are:

 

 

2003 – persons who had our hardboard siding installed from 1981 to 1986.

 

 

2006 – persons who had our hardboard siding installed from 1987 to 1993.

 

 

2009 – persons who had our hardboard siding installed from 1994 to 1999.

Status. Cumulative charges to the reserve through June 29, 2008 were $110 million. The reserve for future claims was $20 million as of June 29, 2008. To date, we have recovered a total of $52 million through negotiated settlements with our insurance carriers.

We have no litigation pending with any persons or entities that have opted out of the class. However, it is possible that persons or entities that have opted out may file claims in the future.

We believe our reserve balance is adequate. However, determining reserves required to fund any future claims involves judgments and projections of future claims rates and amounts. At this time, we are unable to estimate any additional adjustments we may make in future periods.

This excerpt taken from the WY 10-Q filed May 9, 2008.

Hardboard Siding Claims

This is a nationwide claims-based settlement of hardboard siding class action cases against us.

Under the settlement – which we entered into in June 2000 – all persons who own or owned structures in the U.S. on which our hardboard siding had been installed from January 1, 1981 through December 31, 1999 can file claims.

An independent adjuster reviews claims submitted and determines payment. Claims are paid as submitted over a nine-year period. The right to file claims expire in three six-year increments and claims for the first two periods may no longer be filed. The expiration dates are:

 

 

2003 – persons who had our hardboard siding installed from 1981 to 1986.

 

 

2006 – persons who had our hardboard siding installed from 1987 to 1993.

 

 

2009 – persons who had our hardboard siding installed from 1994 to 1999.

Status. Total claims paid through March 30, 2008 were $109 million. The reserve for future claim payments was $21 million as of March 30, 2008. To date, we have recovered a total of $52 million through negotiated settlements with our insurance carriers.

We have no litigation pending with any persons or entities that have opted out of the class. However, it is possible that persons or entities that have opted out may file claims in the future.

 

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We believe our reserve balance is adequate. However, determining reserves required to fund any future claims involves judgments and projections of future claims rates and amounts. At this time, we are unable to estimate the amount of additional charges – if any – we may need for these claims in the future.

This excerpt taken from the WY 10-K filed Feb 28, 2008.

Hardboard Siding Claims

This is a nationwide claims-based settlement of hardboard siding class action cases against us.

Under the settlement – which we entered into in June 2000 – all persons who own or owned structures in the U.S. on which our hardboard siding had been installed from January 1, 1981 through December 31, 1999 can file claims.

An independent adjuster reviews claims submitted and determines payment. Claims are paid as submitted over a nine-year period. The right to file claims expire in three six-year increments and claims for the first two periods may no longer be filed. The expiration dates are:

 

 

2003 – persons who had our hardboard siding installed from 1981 to 1986.

 

2006 – persons who had our hardboard siding installed from 1987 to 1993.

 

2009 – persons who had our hardboard siding installed from 1994 to 1999.

 

Status. Total claims paid through the end of our fiscal year 2007 were $109 million. The reserve for future claim payments was $21 million at the end of fiscal year 2007. We have recovered $52 million through negotiated settlements with our insurance carriers.

We have no litigation pending with any individuals or entities that have opted out of the class. However, it is possible that individuals or entities that have opted out may file claims in the future.

We believe our reserve balance is adequate. However, determining reserves required to fund any future claims involves judgments and projections of future claims rates and amounts. At this time, we are unable to estimate the amount of additional charges – if any – we may need for these claims in the future.

This excerpt taken from the WY 10-Q filed Nov 9, 2007.

Hardboard Siding Claims

In June 2000, the company entered into a nationwide settlement of hardboard siding class action cases and created a reserve of $130 million before taxes to cover the estimated cost of the settlement and related claims. In the third quarter of 2001, the company reassessed the adequacy of the reserve and increased the reserve by $43 million. The settlement class consists of all persons who own or owned structures in the United States on which the company’s hardboard siding had been installed from January 1, 1981 through December 31, 1999. This is a claims-based settlement, which means the claims are paid as submitted over a nine-year period. The right to file claims expires in three six-year increments. The first six years of claims expired in 2003. In September 2004, the reserve was reduced $20 million based on less than anticipated claim and litigation activity. At the end of 2006, the right to file claims for the second six-year period expired, leaving only claims from 1994 through 1999 which will expire in 2009. Another reserve reduction of $23 million was recognized in September 2006. An independent adjuster reviews claims submitted and determines payment under the terms of the settlement agreement. Reserves for future claims settlements relating to hardboard siding cases require judgment regarding projections of future claims rates and amounts. Cumulative charges to the reserve through the third quarter of 2007 were $108 million. The company believes the reserve balance of $22 million as of September 30, 2007, is adequate, but is unable to estimate at this time the amount of additional charges, if any, that may be required for these matters in the future.

The following table presents an analysis of the claims activity related to the hardboard siding class action cases:

 

    

THIRTY-NINE

WEEKS

   FIFTY-THREE
WEEK PERIOD
   FIFTY-TWO
WEEK PERIOD
     SEPTEMBER 30, 2007    2006    2005

Number of claims filed during the period

     1,180      2,200      765

Number of claims resolved

     1,500      1,420      640

Number of claims unresolved at end of period

     1,165      1,485      705

Number of damage awards paid

     860      675      270

Average damage award paid

   $ 2,225    $ 3,478    $ 4,100

The lower average award in the first three quarters of 2007 was due primarily to a lower number of awards for multi-family structures in 2007 than in 2005 or 2006.

The company has received $52 million in recoveries from its insurance carriers by way of negotiated settlements.

The company currently has no litigation pending with any person or entity that has opted out of the settlement. Individuals and entities that have opted out of the settlement may file lawsuits against the company in the future.

This excerpt taken from the WY 10-Q filed Aug 9, 2007.

Hardboard Siding Claims

In June 2000, the company entered into a nationwide settlement of hardboard siding class action cases and created a reserve of $130 million before taxes to cover the estimated cost of the settlement and related claims. In the third quarter of 2001, the company reassessed the adequacy of the reserve and increased the reserve by $43 million. The settlement class consists of all persons who own or owned structures in the United States on which the company’s hardboard siding had been installed from January 1, 1981 through December 31, 1999. This is a claims-based settlement, which means the claims are paid as submitted over a nine-year period. The right to file claims expires in three-year increments. The first six years of claims expired in 2003. In September 2004, the reserve was reduced $20 million based on less than anticipated claim and litigation activity. At the end of 2006 the right to file claims for the second six-year period expired, leaving only claims from 1994 through 1999. Another reserve reduction of $23 million was recognized in September 2006. An independent adjuster reviews claims submitted and determines payment under the terms of the settlement agreement. Reserves for future claims settlements relating to hardboard siding cases require judgment regarding projections of future claims rates and amounts. Cumulative charges to the reserve through the second quarter of 2007 were $107 million. The company believes the reserve balance of $23 million as of July 1, 2007, is adequate, but is unable to estimate at this time the amount of additional charges, if any, that may be required for these matters in the future.

The following table presents an analysis of the claims activity related to the hardboard siding class action cases:

 

     TWENTY-SIX
WEEKS
   FIFTY-THREE
WEEK PERIOD
   FIFTY-TWO
WEEK PERIOD
     JULY 1, 2007    2006    2005

Number of claims filed during the period

     570      2,200      765

Number of claims resolved

     775      1,420      640

Number of claims unresolved at end of period

     1,280      1,485      705

Number of damage awards paid

     300      675      270

Average damage award paid

   $ 2,485    $ 3,478    $ 4,100

The lower average award in the first two quarters of 2007 was due primarily to a lower number of awards for multi-family structures in 2007 than in 2005 or 2006.

The company has received $52 million in recoveries from its insurance carriers by way of negotiated settlements.

The company currently has no litigation pending with any person or entity that has opted out of the settlement. Individuals and entities that have opted out of the settlement may file lawsuits against the company in the future.

This excerpt taken from the WY 10-Q filed May 10, 2007.

Hardboard Siding Claims

In June 2000, the company entered into a nationwide settlement of hardboard siding class action cases and recognized a charge of $130 million before taxes to cover the estimated cost of the settlement and related claims. In the third quarter of 2001, the company reassessed the adequacy of the reserve and increased the reserve by $43 million. The settlement class consists of all persons who own or owned structures in the United States on which the company’s hardboard siding had been installed from January 1, 1981 through December 31, 1999. This is a claims-based settlement, which means the claims are paid as submitted over a nine-year period. The right to file claims expires in three-year increments. The first six years of claims expired in 2003. In September 2004 the reserve was reduced $20 million based on less than anticipated claim and litigation activity. At the end of 2006 the right to file claims for the second six-year period expired, leaving only claims from 1994 through 1999. Another reserve reduction of $23 million was recognized in September 2006. An independent adjuster reviews claims submitted and determines payment under the terms of the settlement agreement. Reserves for future claims settlements relating to hardboard siding cases require judgments regarding projections of future claims rates and amounts. Cumulative charges to the reserve through the first quarter of 2007 were $106 million. The company believes the reserve balance of $24 million at April 1, 2007, is adequate, but is unable to estimate at this time the amount of additional charges, if any, that may be required for these matters in the future.

The following table presents an analysis of the claims activity related to the hardboard siding class action cases:

 

     

THIRTEEN
WEEKS

ENDED

   FIFTY-THREE
WEEK PERIOD
ENDED
   FIFTY-TWO
WEEK PERIOD
ENDED

DOLLAR AMOUNTS IN MILLIONS, EXCEPT PER-SHARE FIGURES

  

APRIL 1, 2007

  

2006

  

2005

Number of claims filed during the period

     370      2,200      765

Number of claims resolved

     395      1,420      640

Number of claims unresolved at end of period

     1,460      1,485      705

Number of damage awards paid

     150      675      270

Average damage award paid

   $ 1,695    $ 3,478    $ 4,100

The lower average award in the first quarter of 2007 was due primarily to a lower number of awards for multi-family structures in the quarter than in 2005 or 2006.

The company has received $52 million in recoveries from its insurance carriers by way of negotiated settlements.

The company currently has no litigation pending with any person or entity that has opted out of the settlement. Individuals and entities that have opted out of the settlement may file lawsuits against the company in the future.

This excerpt taken from the WY 10-K filed Feb 22, 2006.

Hardboard Siding Claims

The company announced in June 2000 it had entered into a proposed nationwide settlement of class action suits relating to sales of hardboard siding and, as a result, took a pretax charge of $130 million to cover the estimated cost of the settlement and related claims. The court approved the settlement in December 2000. An appeal of the settlement was denied in March 2002, and the settlement is now binding on all parties.

 

The company reassessed the adequacy of these reserves and increased its reserves by an additional $43 million during 2001. Claims and related costs in the amount of $5 million in 2005, $7 million in 2004 and $11 million in 2003 were paid against the reserve. In the third quarter of 2004, an adjustment was made to reduce the reserve by $20 million based upon a review of the activities and trends over the preceding four years.

 

The company has negotiated settlements with its insurance carriers for recovery of certain costs related to these claims. As of the end of 2005, the company had received payments from insurance carriers in the amount of $52 million. For further discussion regarding this matter, including claims data, see Note 15 of Notes to Consolidated Financial Statements in “Financial Statements and Supplementary Data” below.

 

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This excerpt taken from the WY 10-K filed Mar 3, 2005.

Hardboard Siding Claims

The company announced in June 2000 it had entered into a proposed nationwide settlement of class action suits relating to sales of hardboard siding and, as a result, took a pretax charge of $130 million to cover the estimated cost of the settlement and related claims. The court approved the settlement in December 2000. An appeal of the settlement was denied in March 2002, and the settlement is now binding on all parties.

 

The company reassessed the adequacy of these reserves and increased its reserves by an additional $43 million during 2001. Claims and related costs in the amount of $7 million in 2004, $11 million in 2003 and $11 million in 2002 were

 

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paid against the reserve. In the third quarter of 2004, an adjustment was made to reduce the reserve by $20 million based upon a review of the activities and trends over the last four years.

 

The company has negotiated settlements with its insurance carriers for recovery of certain costs related to these claims. As of the end of 2004, the company had received payments from insurance carriers in the amount of $52 million. For further discussion regarding this matter, including claims data, see Note 14 of Notes to Financial Statements in “Financial Statements and Supplementary Data” below.

 

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