Silica Risk Could Be Declining: Guy Carpenter
NU Online News Service, Feb. 22, 10:04 a.m. EST?Court rulings concerning silica injury claims may keep such lawsuits from matching the explosive growth of asbestos litigation, according to a report released by reinsurance intermediary, Guy Carpenter & Company Inc.[@@]
Silica is essentially a compound of the elements silicon and oxygen, which occurs naturally in crystalline and non-crystalline forms. The crystalline form has given rise to lawsuits brought by workers who worked with silica sand. They allege that small particles they inhaled during abrasive sandblasting and other operations have caused a variety of lung ailments, including silicosis.
In the Guy Carpenter report, which updates the New York-based firm's 2004 report, "Silica?A Litigation Sandstorm," the authors review two recent developments in silica litigation which prompted their expression of "some cautious optimism" with respect to comparisons of silica and asbestos litigation.
In particular, they point to a Sept. 2004 Texas Supreme Court ruling on the "bulk supplier doctrine" in the case Humble Sand & Gravel Inc. vs. Gomez. The defense arises from the idea that sand suppliers can't label sand with a warning because they're supplying it in bulk.
Essentially, the court considered the issue of whether a supplier of a potentially dangerous product must warn a customer's employees of the hazard. A lower appeals court had found that suppliers have such a duty, but the Texas Supreme Court ordered a new trial, holding that a duty to warn hinged on the ability of suppliers to reach their customer's employees.
Guy Carpenter also noted the consolidation of 71 cases filed in 55 Texas district courts as a positive sign for the future of silica litigation, noting that consolidation allows for a more informed decisions on the part of an experienced jurist.
The report also looks at health data and reviews the silica liability issue in Europe.
"A review of health data?suggests that silica-related deaths are declining while a similar review of health data suggests that asbestos deaths remain on the rise," said Sean Mooney, Guy Carpenter's chief economist, in a statement announcing the report.
The updated report, "Update #1: Silica?A Litigation Sandstorm," is available for download on the Guy Carpenter website, www.guycarp.com.
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