ASBESTOS LITIGATION: Allegheny Co. Reveals Latest Asbestos Stats
----------------------------------------------------------------
Published October 03, 2003


Allegheny Generating Co. reports in its latest regulatory filing 
that as of September 19, 2003, its unit, Monongahela has been 
named as a defendant, along with multiple other corporate 
defendants, in asbestos complaints filed on behalf of 5,624 
plaintiffs, with each complaint naming one or more plaintiffs.

The suits have been brought primarily in the state courts in 
West Virginia, particularly in the Circuit Courts of Brooke, 
Hancock, Harrison, Kanawha, Marshall, Mason, Monongalia, 
Pleasants, and Putnam counties.  Suits regarding alleged 
asbestos exposure at Allegheny-owned facilities began to be 
brought in the early 1990s, and new suits continue to be filed. 

Potomac Edison and West Penn have been named as defendants along 
with multiple other defendants in around one-half of those 
cases.   

Because these cases are filed in a "shotgun" manner, in which 
multiple plaintiffs file claims against multiple defendants in 
the same case, it is currently impossible to determine the 
actual number of cases in which plaintiffs make claims against 
the Distribution Companies.  Based upon past experience and 
available data, it may be estimated that about one-third of the 
total number of cases filed actually involve claims against any 
or all of Allegheny.  All complaints allege that the plaintiffs 
sustained unspecified injuries resulting from claimed exposure 
to asbestos in various generating plants and other industrial 
facilities operated by the various defendants, although all 
plaintiffs do not claim exposure at facilities operated by all 
defendants.

With very few exceptions, plaintiffs claiming exposure at 
stations operated by Allegheny were employed by third-party 
contractors, not by Allegheny.  Generally, the operating legal 
presumption provides that an employee may recover damages 
against his or her direct employer through a worker's 
compensation claim, but not a tort claim. 

Three plaintiffs are known to be either present or former 
employees of Monongahela, but have asserted that they are 
nonetheless eligible to assert tort suits.  Each plaintiff 
generally seeks compensatory and punitive damages against all 
defendants in amounts of up to $1 million and $3 million, 
respectively.  In those cases, which include a spousal claim for 
loss of consortium, damages are generally sought against all 
defendants in an amount of up to an additional $1 million.  

The majority of cases against the Allegheny has previously been 
dismissed or settled for an amount less than the anticipated 
cost of defense.  While the company believes that all of the 
cases are without merit, it cannot predict the outcome nor is it 
able to predict whether additional cases will be filed. 

A recent US Supreme Court decision could have the effect of 
increasing the value of asbestos claims.  Settlement values 
could also be affected by federal legislation currently being 
drafted.



-----------------------------------------------------------
LitigationDataSource.com