DealeFs neruous after mold settlement

Dealers throughout the West are jittery, wondering if they could be next, following a multi-million dollar settlement in a toxic mold case against a fellow retailer.

Thelawsuit was filedby a Southern California couple who alleged that toxic mold on improperly stored framing lumber caused their infant son's brain damage. Nearly five weeks into the trial. the insurance carrier for Crenshaw Lumber Co., Gardena, Ca., settled for more than $13 million.

According to Crenshaw owner Larry Olson, the insurer and its lawyer had made procedural errors during the trial that resulted in the judge barring its expert witnesses. including a toxicologist and microbiologist, from testifying. Since Crenshaw's policy left the insurance company exposed for as much as $50 million. the firm decided to settle. "We were a bystander to the process," said Crenshaw's Ed Wyche.

None of the companies involved in the case admitted any wrongdoing.

Olson insists the case had no merit and that the jury would have vindicated his company had it been given the chance to defend itself.

"Barring the experts would have proved fatal to the defense," agreed construction law attorney Thomas S. Salinger, Costa Mesa, Ca. "It's tantamount to not having a jury hear both sides of the story."

Dana and Gary Gorman filed the lawsuit after they were told that the mold that seeped through the walls and floors of their custom home came from some of the lumber used in its construction. Their son, Kellen, was born three months after they moved into the house in September 1999. The family moved two years later.

The Gormans had originally tried to sue Crenshaw for construction defects, along with the general con- tractor and l5 other subcontractors and material suppliers. The other l6 defendants settled for $11.5 million, but Crenshaw was released from the case because it wasn't involved in the construction. Instead, the plaintiffs went after Crenshaw for personal injury.

Olson said the plaintiffs erroneously claimed black stain on the lumber was toxic and alleged it was caused by the dealer not adhering to proper storage standards. "They took WWPA guidelines out of context and applied them in a totally absurd way," Olson noted. He said Crenshaw was not affected financially by the settlement and has not changed how it stores lumber, because "we weren't doing anything wrong."

To help educate the public, he said, "Crenshaw has begun working with industry associations at the state and national level to assemble the existing research on the safety of the product, s a leader in the wood products distribution industry, Weber Plywood & Lumber is dedicated to making a material difference in your business. We are committed to delivering excellence in quality and service.

Whatever our customers need, whenever they need it, we anticipate their requirements and strive to exceed their expectations. From inventory to service, we go the extra mile to make the process as efficient and cost effective as possible.

Weber is committed to providing the highest quality hardwood lumber and plywood products available.

We understand that for our customers to be competitive, we have to be competitive and deliver products to meet their needs. Not only delivering quality, but value. We go beyond inventory, supply and distribution by sharing our vast knowledge of wood and our customers' requirements, adding value to every product. Our customers count on us to be their partner, and it's a commitment we take very seriously.

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so other lumberyards and builders will not be subjected to the same type of unfounded claims."

Though mold-related lawsuits have increased over the past several years, this case reportedly was the first of its kind because it targeted suppliers, not contractors. As a result. dealers are wondering what the future will bring.

Because the case was a settlement, it does not set legal precedent, according to Jim Taft, president of the Lumber Association of California & Nevada and general manager of Ganahl Lumber, Anaheim, Ca. "However, the reality is that it has increased public concern about mold and has caught the attention of plaintiff attorneys," said Taft. "Science supports our claim that the product we sell is safe, but the media tends not to let facts get in the way of a story."

Taft said that producers and a grading agency have agreed to review the need for updated storage and handling guidelines. Scientists would also be involved, he said, to give the recommendations more weight. "I don't see this as just a dealer problem and will try to involve others in the industrv." he said.

LACN is working on new mold and unseasoned framing lumber guidelines, but as Taft noted, "change in an association requires consensus and time." To fill the gap, he developed the following "talking points" for the salespeople at Ganahl Lumber.

"This $13 million settlement." Taft said, "will put all of us in a position to defend the safety ofour product."

What did Crenshaw Lumber do wrong?

Absolutely nothing. The mold in the home was caused by numerous leaks over the years, not by the wall studs.

Could this happen to our company?

Someone could file suit for anything, including mold, but the outcome would probably be different. The house in question was built seven or eight years ago, was poorly constructed, it leaked badly and the leaks weren't fixed, and the house sat vacant for the last several years.

My customer said there is mold on the lumber we just shipped. What can I tell him?

Our lumber is free from the kind of toxic mold the media is talking about, and always has been. There are thousands of species of mold, yeast, lichen and mushroomsand most are benign or even beneficial. Only a few are suspected of causing health problems.

Stachybotrys chartarum is the one most publicized when toxic mold is discussed, but there is still debate about whether it can cause health problems beyond allergic reactions. Stachybotrys is also very rare, only appears when there is a severe moisture problem, and normally appears on drywall. It would be difficult to ship this kind of mold on lumber even if you wanted to.

What is the black mold I have seen on some lumber?

There are different kinds of nontoxic molds that are associated with unseasoned framing lumber. The most common one is called Ceratocystis, and it has never been found to cause any health problems.

My customer is still concerned that it (Continued on page 44)

Carl Liliequist has resigned as executive v.p. of Huttig Building Products effective Dec. 3l to join Honsador Holding LLC, Honolulu, Hi., as c.e.o., overseeing divisions Honsador Lumber LLC. Honolulu Wood Treating LLC,and Ariel Truss LLC. He assumes the position vacated when James A. Pappas sold the company last year to Key Principal Partners.

Sean Fogarty and Tommy Fogarty have rejoined the sales department at Osborne Lumber, Newark, Ca.

Chuck Frerichs is mgr. of the new 84 Lumber in Chandler. Az.

Rick Kellso is new to the import department of Buckeye Pacific, Portland, Or.

Jerry Harrington has retired after 20 years as mgr. of Sierra Pacific's sawmill in Anderson, Ca. Greg Sinclair has joined the millwork sales department in Redding, Ca.

Jim Salo, c.f.o., Fremont Forest, Whittier, Ca., has taken on the added responsibilities of v.p.-sales for subsidiary Railway Express, Mira Loma. Ca. Fremont harbor mgr. Alex Delgado is also serving as lOth Avenue terminal mgr. at the Port of San Diego and operations mgr. for Railway Express. Linda Avila is now credit mgr. for Railway Express. New to sales are Lori Parker, Matthew Parker, Bruce Kelly, Richard Carleton and dispatcher John Lanning.

Bill McCombs is the new branch mgr. at Meek's Lumber, Grass Valley, Ca.

Fred Scott, ex-Stringham Lumber, is now a sales coordinator at Capital Lumber Co., Salt Lake City, Ut. Ray Romero, ex-Weyerhaeuser, is the new EWP sales and marketing mgr. for Capital's Chino, Ca., division.

Wade Gregory has been promoted to president of SierraPine Ltd., Roseville, Ca. He replaces Bill Black, who remains on the board of directors.

Virginia Aulin has been named v.p. of communications, performance management & organizational development for Boise Cascade, Boise.Id.

Rod Bruce, ex-Amsco Windows, has joined Hy-Lite Products, Beaumont, Ca., as v.p. of sales and marketing.

Bob Murphy, ex-Foxworth-Galbraith Lumber, has joined Do it Best Corp. as home and hardware department merchandise mgr. Liisa Heddens has joined the Temperate Forest Foundation, Beaverton. Or.. as office mgr. John Georgelis has been promoted to v.p. for Weaber, Inc.'s flooring division.

Richard George, R.G. Trends Inc., was appointed to the board of True Value to replace Laurence Anderson. who retired as a director in October.

Mike Kennedy has joined Correct Building Products as v.p. of sales. Mike Descoteaux is the new marketing mgr.

Jon P. Vrabely has been promoted to v.p.-chief operating officer for Huttig Building Products.

James R. Storey has joined Bluelinx Holdings Inc. as v.p. of investor relations.

Jeff King, ex-Black & Decker, has joined Strauss Lock Distributors as v.p. of national sales & marketing.

David Tawney has been promoted to western regional sales manager for Klein Tools, overseeing California, Nevada, Arizona and New Mexico.

M. Richard Warner will step down as president of Temple-Inland at year's end. working as a senior advisor until retiring late next year.

Steven R. Rogel, chairman, president and c.e.o., Weyerhaeuser Co., Federal Way, Wa., spoke at the l0th annual Citigroup Global Paper & Forest Products Conference Dec. 1 in New York City.

W. Henson Moore will retire in Aug. as president and c.eo. of the American Forest & Paper Association.

Matthew V. Hollifield has been promoted to senior v.p. and chief accounting officer for Lowe's Cos. He succeeds Ken Black, who has resigned to pursue other interests.

Paula Erickson has been promoted to director of corporate communications & public relations for Ace Hardware Corp. Michael Elmore is new to the co-op as v.p.-information technology.

Phillip M. Martineau was named president, c.e.o., and chairman of Pittsburgh Corning Corp., succeeding Don Schlegel, who retired.

Denny Milstein, Westmark Products, Tacoma. Wa.. has been elected chairman of the Architectural Woodwork Institute' s development council.

Alan Arbiso, Highland Lumber, Anaheim, Ca., is the new president of the Los Angeles Hardwood Lumberman's Club.

Austin Tacious is redecorating the corporate offices of MungusFungus Forest Products, Climax, Nv., report owners Hugh Mungus and Freddy Fungus.

llews Briefs

( C ontinued from page 22 )

... all regions dropped, with the West falling 10.8Vo ... permits were down 3.77o

Do it Best Corp. recognized Stanley Works as its Vendor of the Year; departmental award winners included Hood Industries, TempleInland, Tallant Industrie s, Genova Building Products, DeWalt and Kwikset ...

KraftMaid Cabinetry has broken ground on an 840,000-sq. ft., $106 million manufacturing plant on 76 acres in West Jordan. Ut.. to begin production in January 2007 (Paul Shamrock, director of operations for the facility)

Ace Hardware was named the 4th largest franchise operation in the world in Franchise Times' 6th annual survey ...

American Archite ctural Manufacturers Association has broken off talks over a proposed merger with the Window & Door Manufacturers As sociation.

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