Judge dismisses hundreds of lawsuits against company
A Philadelphia judge has dismissed hundreds of asbestos-related lawsuits against the owner of a South Connellsville company, easing the threat of job loss for its employees. Philadelphia Court of Common Pleas Judge Allan L. Tereshko Jr. agreed to dismiss 376 summary cases filed against Crown, Cork and Seal, the owner of Anchor-Hocking.
“That’s great news,” said Fayette County Commissioner Sean Cavanagh. “The corporation, rank and file and Mayor Pete Casini are to be congratulated for their efforts. This is not only good news for South Connellsville, but also for Fayette County.”
Last year, Cavanagh, Casini, and county Commissioner Vincent Vicities, state Rep. Larry Roberts, D-South Union, state Rep. James Shaner, D-Dunbar along with about 30 Anchor employees traveled to Harrisburg to lobby legislators who were considering a bill aimed at limiting liability.
“I was glad to take part and will continue to support the Anchor-Hocking workers,” said Cavanagh.
Anchor Hocking employs over 250 workers at the South Connellsville plant with Crown employing nearly 1,000 throughout the state.
Anchor Hocking officials were not available for comment on Friday.
The lawsuits stemmed from the parent company’s ownership of Mundet Cork Co., a cork-lined bottle cap producer, that also operated an asbestos-insulation manufacturing firm.
Although Crown, Cork and Seal had only purchased the bottle cap division and the asbestos-insulation firm had shuttered its operation, more than 300,000 asbestos exposure claims were filed against Crown.
“Crown is simply in the bottle cap and can business,” said William Gallagher, general counsel for the company. “Yet, through the technical application of corporate merger successor liability law, thousands of asbestos claims have been filed against Crown because of its brief connection nearly 40 years ago with Mundet Cork Company. Crown’s investment of $7 million in Mundet has already resulted in our making more than $350 million in asbestos-related payments.”
Gallagher credited Pennsylvania legislators who earlier this year approved a bill limiting the company’s liability in the suits to the amount of its total assets.
“The legislature fairly and intelligently addressed the burden that unlimited liability for asbestos claims imposes on the ability of blameless successor companies such as Crown to operate profitably, expand employment opportunities, meet debt obligations and maintain benefits for employees and retirees,” he said.
“We are pleased that Judge Tereshko, in his well-reasoned opinion, has upheld the validity of the Pennsylvania and U.S. Constitutions of the recent changes to the Pennsylvania corporation law.”