Court Grants Preliminary Approval To $75 Million Settlement In American Cemwood Roofing Shakes Class Action
The Record - Business Section
August 12, 2003
Settlement is in Addition to an Earlier Approved Partial Settlement of $65 Million.
Stockton, California, August 12, 2003 - San Joaquin County, California Superior Court Judge Carter P. Holly has granted preliminary approval to an $75 million settlement in the American Cemwood roofing shakes national class action litigation. This amount is in addition to a $65 million partial settlement Judge Holly approved in May 2000.
Commenting on the settlement, liaison counsel for the class, James Brown of the Stockton, California, law firm Herum Crabtree Brown, stated, "This settlement comes on the eve of trial after 5 years of expensive, hard fought litigation. It represents a remarkable result because for several years American Cemwood has been an insolvent and defunct company whose only assets are its insurance policies."
The litigation involves American Cemwood's manufacture and sale of roofing shakes that are composed of approximately 2/3 cement and 1/3 wood fiber. The shakes were marketed under various brand names including, among others, Cemwood Shakes, Permatek Shakes, Permatek II Shakes, Royal Shakes, Cascade Shakes, Trieste Tile, and Pacific Slate. Plaintiffs contend that the shakes are inherently defective. As a result, tens of thousands of class members allegedly have roofs that are prematurely curling and cracking thereby causing damage to the underlying structures. Defendants deny the allegations. Under the settlement, there is no admission of liability.
Weyerhaeuser Company Limited and MacMillan Bloedel (U.S.A.), Inc., the parent companies of American Cemwood, settled in 1999 for $65 million. This second $75 million settlement resolves claims against the remaining defendants: American Cemwood Corporation., American Home Assurance Company, Commerce & Industry Insurance Co., Commerce & Industry Co. of Canada, and XL Insurance (Bermuda) Limited. As with the 1999 settlement, the new settlement provides those class members who have verified claims and qualifying damage with cash payments at a rate of $150 per roof field square. $48,704,742 has already been paid to class members under the 1999 settlement. Although the settlements cover consumers in thirty-eight states, the vast majority of class members live in California, Washington, Oregon, Hawaii, Texas or Utah.
A program to provide notice of the settlement to class members will shortly commence. Class members can also visit http://www.cemwoodclaims.com/ for further information.
Representing class members in the litigation are the law firms of Herum Crabtree Brown, of Stockton, Lieff Cabraser Heimann & Bernstein, LLP, of San Francisco and New York, Law Offices of David M. Birka-White, of San Francisco, Tousley Brain Stephens PLC, of Seattle, Alexander Hawes & Audet, LLP, of San Jose and San Francisco, Levy Ram & Olson, LLP, of San Francisco, Farella Braun & Martel, LLP, of San Francisco, and Sandler Ahern & McConaughy, PLLC, of Seattle.
Source/Contact (media only)
Attorney for Plaintiffs
James Brown
Herum Crabtree Brown
2291 West March Lane, Suite B100
Stockton, CA 95207
Tel: (209) 472-7700 (Office)
(209) 481-7104 (Cell)
(209) 931-5543 (Home)
Email: jimbrown@herumcrabtree.com
Attorney for Defendant American Cemwood Corporation
Margot Metzner
David F. McDowell
MORRISON & FOERSTER, LLP
555 West Fifth Street, Suite 3500
Los Angeles, CA 90013-1024
Tel: (213) 892-5200 (Office)
(213) 892-5454 (Fax)