$20.5 Million Welder Verdict Worries Insurers

Toxic exposure claims from welders became a bigger factor for insurers when a federal jury in Ohio returned a $20.5 million verdict for a welder who said he was made ill by the fumes from his work.

The recent verdict illustrates that welder claims "belong on the emerging risk radar scope as something insurers have to be aware of," said Robert P. Hartwig, president of the Insurance Information Institute.

A statement for the five welding rod manufacturers who were defendants in the case said they would appeal and defend themselves against "baseless claims" and expect to be successful. But David Shelton, a lawyer for the plaintiff--Jeffery Tamraz, 51, of Grant's Pass, Ore.--characterized the case as a breakthrough and a turning point for such suits.

The nine-member jury in Cleveland made its award against Lincoln Electric, Hobard Brothers Company, ESAB Group Inc., TDY Industries and BOC Group Inc., finding they had failed to properly warn against the danger of manganese in their products.

In addition to the $17.5 million in compensatory damages for Mr. Tamraz, the jury awarded another $3 million to his wife, Terry, for loss of consortium. The defendants were not found liable for punitive damages or fraudulent concealment.

David Shelton, one of the attorneys representing the couple, said Mr. Tamraz--who worked for 27 years as a welder and ironworker in California--had suffered "basically brain damage," with symptoms akin to Parkinson's disease arising from manganese fumes. He said a key point in the trial came when a defense expert--Dr. Anthony Lang, a Toronto neurologist--"admitted it was proven that welding fumes can cause brain damage."

According to Mr. Shelton, who is with the Scruggs Law Firm in Oxford, Miss., the admission is significant because it means "plaintiff welders in this trial have crashed through the bogus medical arguments" of the defense.

The case was tried before Judge Kathleen M. O'Malley, who is presiding over thousands of fume cases as part of a multidistrict litigation--for which the Tamraz case is a bellwether, according to said Mr. Shelton.

In a statement issued by the Welding Rod Litigation Network, the companies pointed to the fact that thousands of fume cases have been withdrawn and there have been few plaintiff victories.

While the companies "would like to win every case, and believe that their overall success in this litigation will continue, it is unrealistic to believe they will never lose a case," the statement said, adding the companies are confident they "will ultimately prevail in these cases..."

Mr. Shelton said he thought it was significant the plaintiffs had won the verdict in Cleveland, "the backyard" of Lincoln Electric, which is based in nearby Euclid. "It was tried on their home field and we won."

Mr. Hartwig said while welding fume cases are an emerging risk, they do not "appear to be anywhere in the category of asbestosis. At the end of the day, most people aren't welders."

Additionally, he noted, "there is protective equipment that can be worn to prevent dangerous levels of exposure."