October 9th, 2006
Experts in the field have stated that James Hardie and some of its directors could end up escaping huge lawsuits simply through delays in finalizing its $1.5 billion dollar asbestos compensation fund. This is because the statute of limitation relating to litigation over the under funding of the trust fund means that plaintiffs only have until February of next year to take action.
It is estimated that the trust, which is the Medical Research and Compensation Foundation, will run out of money in December. The trust fund was set up in 2001 by the company, but is said to have been under-funded by $1 billion.
Officials state that the Australian Securities and Investments Commission is aware of the deadline relating to the statute of limitations, and will therefore take action before this time. However, legal experts state that the commission will not be able to seek financial compensation for plaintiffs, although it may be able to pose penalties against some of the company’s current and former executives.
One legal expert stated that the company could be creating the delays in order to get past the deadline of February, stating: "The clock is ticking. I'm cynical enough to say Hardie is doing it deliberately. After February, the incentive to complete the deal is diminished."
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