Massive Asbestos Fraud Gharged

Owens Corning has filed suit accusing medical testing laboratories of trying to defraud the company in connection with asbestos litigation cases,

The suit, filed in U.S. Distict Court in Louisiana, claims that the operators of three facilities created fraudulent medical documentation to make healthy or mildly afflicted individuals appear to suffer from serious asbestosrelated pulmonary impairment.

According to the suit, the labs generated false test results involving tens of thousands of claims over several years to defraud Owens Corning out of tens of millions of dollars.

Named as defendants were Glenn

E. Pitts, Brandon, Ms., and his cousin, Jewel D. "Ierry" Pitts, Grand Bay, Al., at varioirs times owners. officers or consultants of Pulmonary Advisory Services, Inc., Pulmonary Advisory Services of Louisiana, Inc., and Pulmonary Testing Services, Inc.

Also named were Larry M. Mitchell, M.D., who oversaw administration of the labs from 1990 through early 1995, and Leon Hammonds, chief test operator for the labs from 1990 through January 1994.

The lawsuit is part of a larger investigation, which may affect 40,000 cases and includes the filing of a RICO (Racketeer Influenced and Comrpt Organization Act) complaint.

Canadian Trade Pact Signed

The U.S. and Canada have finally signed their much-anticipated agreement to limit softwood imports.

The agreement, signed May 29 but retroactive to April 1, permits Canada to export 14.7 billion bd. ft. of lumber each year from four provinces (British Columbia, Alberta, Ontario and Quebec) free oftariffs. In a single quarter, Canada can ship up to 28.75Vo of the annual total-or 4-226bilhon bd. ft.without penalty. Shipments exceeding that total will be subject to an export tax of $50 or $100 per thousand board ft., depending on the volumes.

The pact allows for an exfra 2.5Vo of the quota to be shipped without penalty if a "trigger price' is maintained for a full quarter.

Canada must still work out numerous details, especially regarding determination of individual company quotas. Until such details are finalized, current quarter exports are being handled on a first-come, first-served basis.

Individual Canadian mills appear to be continuing regular shipping patterns, although some have tried to lessen their tax exposure by temporarily holding lumber in rail cars and reloads.

Call

Gedar Mill Forgery Exposed

The former general manager of a Eugene, Or.-based cedar products mill and brokerage has been convicted of using counterfeit inspection labels, according to the Cedar Shake & Shingle Bureau.

Dennis Douthit was fined $20,000

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