Association & Industry
News
Legislative & Regulatory
Updates
Members
In The News
 2010
TCATA Conference Business Program Finalized
This
April 28-May 1, there is only one place to be - the TCATA Annual
Management & Educational
Conference in Charleston, South Carolina. If you've not attended
this meeting,
you are missing something special. With most of us overwhelmed
by demands on our time for various meetings, the TCATA Conference
stands out as one of the best, one for which your return on investment
is real.
Under the leadership of Lynn MacDonald of Tri-State Supply,
Conference Chair, and David Tingue of Tingue, Brown Co., Business
Program Chair, an outstanding business program is planned. Herb
Meyer, the former second-in-command at the CIA, will provide
a global briefing that will inform attendees about events and
trends worldwide that affect or will affect your business. Global
terrorist threats, key demographic trends and what is happening
in India and China are some of the topics he'll cover. He'll
provide practical information that will assist you in planning
the future of your business.
If
you are not "on the bus" with marketing your business
online, Bob DeStefano will help you get there. In a practical,
down-to-earth presentation, he'll show you why you cannot ignore
the new realities of online marketing and social media, and will
show you some "baby steps" you can take to get where
you need to be. As a special bonus, he'll offer attendees a free
analysis of their website, something that will save you significant
time and money.
Also
on the business program are Jade West of the National Association
of Wholesaler-Distributors, who will
bring attendees up to date
on important legislative/regulatory issues affecting their business.
She'll also provide information on how to communicate most effectively
with Congress. Consultant Bill Keene will provide an update on
the most important "need to know" issues on DOT, EPA
and OSHA regulations, as well as answer questions. He was retained
by TCATA last summer to advise members on these matters, and
Bill's attendance at this meeting will be a good opportunity
for members to meet him and to learn of the ways he can help
your business save money by complying with regulation. Click
here for a full description of the business
program and the conference
schedule.
College
Scholarship Applications due April 1
No
one need tell the parent of a child in college about the costs
of education today. TCATA members are
reminded that college
scholarship funds are available to your employees - and their
children - by virtue of your membership in TCATA. The Dean
Allen Educational Fund provides $1,000 per year for up to four
years of college. Applications for the
fall semester are due April 1, 2010. Please help us by publicizing the program within
your company by placing a scholarship poster in areas where
employees gather – let us know if you’d like one
sent to you. Please note that the scholarship is available
to companies who have been members of TCATA for at least three
years; the person applying needs to have been employed for
at least a year at the member company.
Click
on the Membership Info tab above, then “College
Scholarship Funds” to access full information. Please also
consider making a contribution to the fund, which is the only
way that this valued benefit can continue. Some members have
found that making a contribution in the name of someone in the
industry that has passed on is a nice way to remember that person.
Safety
Revision Process Begins
TCATA
recently began the process of revising the standard for safety
in drycleaning and laundry plants (ANSI Z8.1). The Safety Committee,
headed by Jim Moran of Pellerin Milnor Corp., will make recommendations
on changes to the standard. In particular, the revised standard
will reflect technological changes in the industry. The Committee
will then seek the input of TCATA members, end-users and government
agencies on these proposed changes before the standard is presented
for final approval.
Clean
Show Unveils New Website
The
Clean Show sponsors and management have announced an improved
and more user-friendly website for the Clean Show (www.cleanshow.com)
Both prospective attendees and exhibitors will find it easier
to learn about various aspects of the Show. It features separate
exhibitor and attendee sections, each containing full information
about the value of participating. The site also features timely
news bulletins to keep visitors up-to-date on the latest developments,
including a Facebook page. You can become a Clean Show fan
on Facebook by following the link in the bottom left corner
of the Clean Show home page. The next Clean Show will be held
June 6-9, 2011 in Las Vegas.
TCATA
to Increase Online Education Offerings in 2010
You
spoke, we listened. Many members have provided feedback that
they value the education TCATA has made available online -
particularly via webinars - where all you need is a phone and
a computer. No travel, no hotels and you can have as many people
as you wish attend for one fee. TCATA is offering another comprehensive
set of webinars throughout 2010 that will address areas that
members are interested in - sales, marketing, economic conditions
and social media. In conjunction with some sister associations,
we'll be delivering education right to your office! Be sure
to check the home page of the TCATA website periodically for
details.
Cotter
Assumes Leadership Positions
 TCATA CEO David Cotter was elected to two leadership
positions in January. He will serve as Vice Chairman of the Associations
Executive Council of the National Association of Wholesaler-Distributors
(NAW), assuming the position of chairman next year. The Council
is a group within
NAW composed of approximately 50 trade associations that represent
distributors from various industries. In that position, he will
also serve on the Board of Directors of NAW, a national association
comprised of direct member companies and a federation of national,
regional, state and local associations and their member firms
which collectively total approximately 40,000 employers, with
locations in every state in the United States. TCATA has worked
closely with NAW for many years, and they are widely recognized
as one of the most effective voices for business in Washington,
DC.
Mr. Cotter was also elected president of the Cleaning and Laundry
Association Executives Council (CLAE), a group comprised of the
national, state and regional association executives in the laundry
and drycleaning industry. The Council meets annually to share
information and discuss mutual challenges faced by the associations
and their members. Through this discussion, CLAE members are
able to combine their resources to best meet these challenges
and serve their respective members more effectively.
Coin
Laundry Association Celebrates 50th Anniversary
Congratulations
to the Coin Laundry Association (CLA),a sister association
and Clean Show partner, as it celebrates a significant anniversary
throughout 2010 – 50 years of service to the laundry
industry. Celebratory events include an anniversary blog with
contributions from early founders and association partners,
photographs and a few surprises along the way. CLA members
are invited to share their memories and photos on the anniversary
blog, contribute to podcasts and register for the 50th Anniversary
Celebration Cruise taking place in October.
 “We’re
excited to observe this momentous event with a year-long celebration,” said
CLA President and CEO Brian Wallace. “Fifty years is
a true testament to the leaders who not only formed the association,
but also all of those who have guided its growth.”
The
association was established by industry manufacturers and distributors
in October 1960 and incorporated in Chicago as the National
Automatic Laundry and Cleaning Council in January of 1961.
The Coin Laundry Association is a not-for-profit trade organization
with more than 2,500 members. The Coin Laundry Association’s
mission is to ensure a profitable and growing retail, self-service
laundry operation by providing superior education, products
and services to laundry owners.
TCATA
Introduces New Benefit - Consulting Services At No Cost
TCATA
is excited to inform you of a brand new benefit that is available
only to members of the Association, a benefit that will almost
assuredly save your company money, perhaps even thousands of
dollars. As a member, you may now consult with two top experts
on issues concerning DOT, EPA, OSHA, human resources and personnel
issues at no cost! You’ve worked hard to build your company
and you also need to work hard to preserve your assets. TCATA
can help you do that. Click
here for details.
Media
Overstates Risks, Toxicologists Say
In
a recent
survey, scientists specializing
in toxicology overwhelmingly agreed that the public does not
get a fair and balanced picture of chemical risk. The majority
of
members of the Society of Toxicology (SOT), a professional association
of the scientific discipline, believe that the media does a poor
job covering basic scientific concepts and explaining risks and
that environmental groups overstate chemical risks. Most of the
SOT members that participated in the survey rate government agencies
as accurately portraying chemical risks, except that only 40
percent of the toxicologists felt that the Environmental Protection
Agency (EPA) presents risk accurately.
According
to the survey conducted by George Mason University’s
Center for Health and Risk Communication, 9 out of 10 toxicologists
fault the media for not seeking out diverse scientific views
to balance stories. About 95 percent describe the media’s
performance as poor in distinguishing good from bad studies,
correlation from causation, and absolute from relative risk,
and in explaining the tradeoffs between costs and benefits, odds
ratios, and that “the dose makes the poison” - a
fundamental tenet of toxicology.
Public broadcasting
rated highest among the mainstream media with only 2 out of
3 toxicologists describing PBS and
NPR as
overstating chemical risk. Over 80 percent see America’s
leading newspapers and news and health magazines as overstating
risks; the percentage rises to over 90 for both broadcast and
cable television networks. Three-quarters of those surveyed indicated
that the media overplay individual studies relative to the overall
body of evidence and gives too much attention to the views of
individual scientists relative to those of the broader toxicological
community. Two out of three say there is too much attention given
to studies by scientists working with environmental groups.
In the most
surprising finding, two “new media” outlets
- WebMD and Wikipedia - are seen by the toxicologists as being
more reliable than traditional news sources for information about
chemical risks. For WebMD, 56 percent feel it accurately portrays
chemical risks; 45 percent say Wikipedia accurately portrays
the risks.
A majority of the SOT members participating in the survey rate
most government agencies as providing mainly accurate portrayals
of chemical risk. Increasingly large majorities see accurate
risk portrayals coming from such agencies as the Occupational
Safety and Health Administration (OSHA), Food and Drug Administration
(FDA), Centers for Disease Control (CDC), and National Science
Foundation (NSF) whose presentation of chemical risk is rated
as accurate by 85 percent of toxicologists. One glaring exception
is EPA which was rated as overstating risk by 41 percent, accurately
stating risk by 40 percent, and understating risk by 19 percent.
Fewer than 25 percent believe that regulation should be guided
by the precautionary principle, which mandates that a substance
suspected of harm should be banned in the absence of scientific
consensus. When asked about specific chemical risks, only 3 percent
of the nearly 1,000 toxicologists from academia and private industry
see Teflon and genetically modified organisms as presenting a
high degree of risk and only 12 percent see high fructose corn
syrup, used in soft drinks, as high risk. In contrast, 26 percent
rate sunlight as a high health risk as do 29 percent for aflatoxin,
a naturally occurring fungus in peanut butter.
The survey results can be viewed at the SOT web site (http://www.toxicology.org/pr/press.asp).
(reprinted
with permission from the Halogentated
Solvents Industry Alliance)
Jury
Issues Verdict in Long Running Modesto Pollution Case
(May
2009) The
decade-old lawsuit brought by the city of Modesto, California
against several manufacturers, distributors and drycleaners
over groundwater pollution by chemicals used in drycleaning
was concluded in May – at least for now. While the jury
cleared the chemical companies of most claims in the lawsuit,
Dow Chemical and PPG were found liable for compensatory damages
of approximately
$18 million (likely to be offset by prior settlements), with
no punitive damages assessed (the jury found that the defendants
did not act with malice). R. R. Street was found to have no
liability. Distributor Goss-Jewett, which is no longer in business
was also found not liable.
The city
of Modesto, which initiated this lawsuit in 1998, claimed that
multiple sites were contaminated by perc.
However, the judge
dismissed the majority of sites from the case, finding there
was no evidence of damage caused by the defendants’ products.
In 2006, the city won a $3 million verdict in an earlier phase
of the trial, an amount recovered from previous settlements.
Streets issued a statement that it was pleased and proper for
the jury to have vindicated the company from all liability. Dow
Chemical plans to appeal the verdict, and noted that Modesto
had failed to prove many of its claims. PPG issued a statement
disagreeing with the verdict.
TCATA
Acknowledges Contributors to Scholarship Fund
TCATA
wishes to acknowledge and thank the following members who
recently made contributions to the Association’s
scholarship funds: Milton Magnus, M & B Hangers, Leeds,
AL; David Tingue, Tingue, Brown & Co.,
Skokie, IL; and Dale Loomis, Loomis Brothers, Fenton, MO.
In
Memoriam
It
is with sadness that we report on the passing of the following
four members:
Harry
G. Campagna, of Qualitex Company in Chicago,
passed away in December surrounded by his family. Harry held
various positions at Qualitex over his more than 44 years with
the company and was also a co-owner a majority of those years.
Harry and his wife Fredi ( who passed away several years ago)
were strong supporters of not only TCATA but also our industries.
Ava B. Campagna, who joined the company in 1992, has been President
and General Counsel of Qualitex for several years and will continue
leading the company. Ava has served on the Board of Directors
and as Vice President of Supply Manufacturers of TCATA.
Don
Gwaltney of Mathews, Virginia on December
30, who retired in 2009 from Phenix Supply Company after a
50-year career in the textile care industry. Previously,
he served as
vice president of Sterling Supply, where he was named to the
Sterling Hall of Fame and was inducted into the Super Masters
Club for being a top salesman. Mr. Gwaltney also worked at
Wyandotte Chemical and as a general manager for several
drycleaning plants.
Don is the father of former TCATA Board member Dwayne Gwaltney.
He is survived by his wife Patricia, two children, eight grandchildren
and one great-grandchild. In lieu of flowers, donations can
be made to Central United Methodist Church, P.O. Box 297,
Mathews,
VA 23109.
Philip
Frank Costabile, Chairman of the Board
for PAC Industries, Harrisburg, Pennsylvania on December 14.
Under his leadership,
the company expanded its commercial laundry enterprise into six
states. A member of St. Theresa’s Parish in New Cumberland,
Philip was appointed to the Governor’s Early Learning Investment
Commission in 2008. Committed to fitness, he enjoyed exercise,
golf, the beach, and spending time with family and friends. The
same passion and energy that he brought to his family and business
prepared him for his most difficult challenge. In 1996, Phil
was forced on a health odyssey where he triumphantly overcame
the odds of a four-time transplant survivor. In lieu of flowers,
memorial contributions may be made to the Thomas E. Starzl Transplant
Institute, 3459 5th Avenue, 725N, MUH, UPMC, Pittsburgh, PA 15213.
 Ed
Kirejczyk, Jr., Chairman of the EDRO Corporation in East Berlin, Connecticut
on October 23. He was very involved in his community, including
work at the Red Cross, the Pulaski Club and the YMCA. He and
his wife Barbara attended a recent Conference where EDRO was
honored on the 50th anniversary of their membership in TCATA.
He is survived by his wife Barbara, his four children, including
Edward III who currently serves on the TCATA Board, and several
grandchildren. To share a memory with the Kirejczyk family,
please visit www.burritthill.com Contributions in his memory
may be directed to the Klingberg Family Center, 370 Linwood
St., New Britain, CT 06052 or the YMCA of New Britain, 50 High
St., New Britain, CT 06051.
TCATA's
Proposal to Change International Fire Code Adopted
(November
2009) At
the recent ICC Code Development Hearings in Baltimore,
the Code Council adopted a proposal submitted by TCATA,
in
cooperation with DLI, to conform the sprinkler requirements
in drycleaning plant occupancies with the requirements
of the NFPA32 Drycleaning Standard. Under the current
International Fire Code guidelines, drycleaners installing
Class IIIa or IIIb solvent machines are required to have
sprinkler systems. The new standard will omit the sprinkler
requirement provided that other specific fire prevention
features are in place. The proposed change in the IFC
code must still survive the Final Action Hearings to
be held in Dallas in May following a public comment period,
but once finalized will become part of the revised code
when published in April 2011. TCATA is very pleased with
this outcome on behalf of its members and drycleaners.
Industry
Fights for Cleaners in Philadelphia, Washington, DC
(February
2010) The future of more than 100 drycleaners
in Philadelphia remains uncertain as the Philadelphia Air
Pollution Control Board’s Ad Hoc committee continues
to consider a possible phase-out of perc in co-commercial
facilities. On January 20, several industry trade organizations
aired their views on this proposal and challenged some
of the data that is being presented by the committee prior
to making its final recommendation to the Board. Most of
the information being challenged by the drycleaning industry
association representatives concerns interpretation of
existing scientific data regarding exposure to perc. The
Board is due to meet next in March.
Industry
associations, including the Drycleaning and Laundry Institute,
also testified at an initial hearing in Washington, DC on a
proposed bill that would ban the use of perc in drycleaning
plants.
President
Obama Signs Tax Relief Into Law
(November
2009) President Obama signed a law which
includes Net Operating Loss (NOL) tax relief. This temporary
relief will
allow struggling companies to get quick cash refunds from the
IRS by using either their 2008 or 2009 losses to offset taxes
paid in the past five years. This temporary tax relief is available
to all size companies. There is a temporary limit in year 5
of the carryback: any refunds for taxes in the prior fifth
year would be reduced by 50%. There is no limit in the refunds
for taxes paid in the 4th, 3rd, 2nd or 1st year of carryback.
For more details about the New NOL tax law, including its impact
on multinational companies, financial statements, consolidated
returns, etc., see pages 3 and 4 of the Deloitte explanation
of the new law.
TCATA
Comments on New York City Council Proposals
(October
2009) The Sanitation Committee of New
York City Council has proposed two bills that would have
a significant impact
on drycleaners and several TCATA members. The first would
require that all plastic bags used by drycleaners contain
a minimum amount of recycled content; the second would
require that drycleaners take back hangers for recycling
and reuse.
TCATA
has been working with its partner organization the National
Cleaners Association (NCA) in educating the staff
and members
of the Sanitation Committee concerning the impact this would
have on cleaners and their suppliers. TCATA submitted written
testimony to the Committee and attended the initial hearing on
these proposals. Among key points made by TCATA and NCA were
that both cleaners and the allied trades have made significant
efforts over the years to initiate recycling programs, but that
most consumers choose not to participate; reuse of hangers can
be unsanitary; mandating a minimum amount of recycled content
in bags is an inefficient way to achieve a reduction in the use
of plastic, and this is not achievable if the plastic is to remain
clear; and that any mandated recycled content would likely be
unenforceable. Both TCATA and NCA emphasized that the industry
supports efforts to “go green” but that these efforts
often have detrimental, unintended consequences and must be thought
through carefully.
Proposal
On Form 1099 Will Add Administrative Burden
(November
2009) This proposal is gaining momentum
and we urge you to contact your Senators and Representatives
to tell them why and how this will hurt business.
Recently,
a Congressional proposal changing the regulations on issuing
1099 Forms has surfaced
that should
concern all businesses.
Under current
tax law, any business that pays an individual more than $600
annually for services provided
to the business,
issues a Form 1099 information report to the individual and to
the IRS. The Form 1099 lists the total amount of the payments.
Businesses are not required to issue Form 1099 to corporations.
A proposal has been made that would alter the requirement in
two ways. First, it would eliminate the corporation "exception." (In
the case of services, many corporate vendors provide common services
as overnight delivery, telephone, internet, banking, advertising,
technical, and financial.)
Second, it would require the business to issue a Form 1099 for
payments for goods it receives from any vendor. Basically, this
change would require a business to issue a Form 1099 to any of
its vendors to which payments of more than $600 annually are
made for goods or services. TCATA and its partner organizations
are concerned about the additional, significant administrative
burden that this proposal would create.
Proposed
Card Check Legislation Would Severely Impact TCATA Members
(September
2009) Because
so much attention has been focused on national health care
proposals in recent months, some have assumed that the
Employee Free Choice Act (EFCA), aka “card check” legislation,
has gone away. Be assured that it has NOT gone away, and
remains a major concern of TCATA’s and nearly every
other organization representing business. This legislation
remains a priority for defeat, and we urge members to stay
up on this important issue. Here is the latest:
- Labor’s
commitment to passing the Employee Free Choice Act (EFCA)
remains strong. Some 18,000 union members attended more
than 400 town halls throughout the August recess pushing
for health care reform and card check legislation.
- Labor
is moving away from firmly supporting the EFCA in its current
form to supporting a modified version of the bill based
on the principles of the current legislation that includes
binding arbitration.
Newly appointed Senate HELP Committee Chair, Sen. Harkin said recently
that a deal had been struck in July to move a modified version of the EFCA
forward and that he intends to use his new post to bring the EFCA up during “this
session of Congress.” However, the Senator had previously stated on
the record that “Nothing is happening on [the EFCA] right now”.
- Speaking
to the AFL-CIO’s Annual Convention this week, Sen.
Specter (D-PA) claimed that a deal had been “pounded
out” on the Employee Free Choice Act that would be “totally
satisfactory” to organized labor. Sen. Specter said
that framework of such a deal would embrace the core principles
of the original legislation, including quick certification
of labor unions and some form of binding arbitration for
union contracts. In his remarks, the Senator expressed
hope that such a deal could be passed by the Senate before
the end of the year.
- Labor
representatives continue to urge for a vote on the bill
this year. However, recent indications from Senate leadership
that the Senate’s current calendar would prevent
a vote in the coming weeks.
Many
in Congress have made passage of the misnamed "Employee
Free Choice Act" (aka card check legislation) bill a priority.
As you know, this legislation would, among other things, effectively
eliminate private ballot elections and stack the deck against
the employer during negotiations with unions. TCATA
and its business allies consider this legislation of the highest
priority for defeat. Businesses of all sizes are facing
serious detrimental consequences, but small businesses in particular
are being targeted by this legislation. Click
here for a brief summary of this bill's impact on small business. Previously,
it has not been cost effective for unions to organize small
business, but it will be under this legislation. We urge you
to contact your Senators soon (click
here for a sample letter you can use): Please
copy TCATA (info@tcata.org)
on any correspondence with your Senators so we can coordinate
efforts with our association partners. Click here to learn about Canada's experiences
with card check.
Business
Organizations Sue to Prevent OSHA’s Expanded Penalties
(September
2009) The National Association of Manufacturers (NAM), National
Association of
Home Builders and
the U.S. Chamber of Commerce have sued in D.C. Circuit Court
to prevent the Occupational Safety and Health Administration
(OSHA) from expanding the scope of its penalties without clear
statutory direction. In December 2008, OSHA published a rule
that permits OSHA to obtain multiple penalties against an employer
for providing incorrect personal protective equipment (PPE),
no PPE, or incorrect training to employees. The new principle
adopted in the rule is that the penalty is to be assessed for
each employee, rather than based on the single decision or failure
by the employer to use the proper training or PPE for all employees
or a group of employees. The rule applies even when the violation
is minor, not willful, and causes no harm or injury to employees.
For example, a $7,000 penalty for a “serious” violation,
for example, could now become a $700,000 penalty if 100 employees
are potentially affected, and OSHA could expand the per-employee
penalty rule to other cases, not just PPE or training cases.
The suit challenges the rule because Congress did not give OSHA
the power to address penalty issues in its standards.
House
Passes Sweeping “Cap and Trade” Legislation
(August
2009) The House of Representatives has passed
a sweeping cap and trade bill (The American Clean
Energy
and Security Act) by a very narrow margin. The planned reduction
in the supply and increase in the cost of the energy on which
American businesses
depend will increase the cost of doing business for everyone
in the supply chain, costs which businesses will have to – at
least to some degree – pass on to their customers. This
inevitable increase in the cost of consumer goods and services
was largely ignored by the Members of Congress who voted for
the legislation. The
bill will likely be considered in the Senate beginning in September.
You are urged to contact your Senator to express your
opposition to this bill (click
here for background information).
The
National Association of Manufacturers (NAM) and the American
Council for Capital Formation (ACCF) have just released an
important analysis of the economic impact of the climate change
legislation the House passed in June. This comprehensive study
demonstrates that enacting H.R. 2454, the American Clean Energy
and Security Act – commonly known as the Waxman-Markey
bill – will cause serious, long-term damage to U.S. growth
and jobs, with the manufacturing economy taking an especially
hard hit. The analysis also includes 15 state-by-state breakdowns, confirming
that states with large manufacturing sectors will suffer most
from the higher energy costs caused by Waxman-Markey. We will
release data for the remaining states in the coming weeks.
The key findings:
- Cumulative
loss in GDP up to $3.1 trillion (2012-2030)
- Employment
losses up to 2.4 million in 2030
- Manufacturing
output decreases from 5.3 percent to 6.5 percent by 2030
- Residential
electricity price increases up to 50 percent by 2030
- Gasoline
price increases (per gallon) up 26 percent by 2030
For
more information, please visit www.nam.org/climatechangereport.
California
Considers Additional Withholding For Independent Contractors
(June
2009) Like many states, California is having serious budget
problems and
is searching for new sources of revenue.
One of the most recent developments is a proposal to impose a
mandatory three percent withholding on all payments made to independent
contractors by the businesses that engage them. A major concern
will be for what could be millions of independent contractors
in California that will now be subject to an arbitrary state
withholding of amounts from payments they receive from out of
state companies that have engaged them to provide a service in
California.
California
already has a law that requires businesses that are service
recipients to report payments made to individual
independent
contractors – service providers (not corporate service
providers). This requirement mirrors Federal law and the requirements
for Form 1099.
The tricky question about the California law (there are a few
other states that have a reporting requirement too) is what businesses
(service recipients) have to withhold taxes from the payments
they make to independent contractors in California?
Click
here for the alert sent by the Direct Selling Association
that provides more information on this issue.
EPA
to Reconsider Proposed Drycleaning Regulations
(April
2009) The U.S. Environmental Protection Agency (EPA) recently
decided to reconsider its 2006 amendments to the drycleaning
NESHAP requirements. Those familiar with the situation state
that it is likely that the EPA does not think it can offer
a strong defense of these proposed regulations in court. Years
ago, TCATA joined with several other industry associations – with
Halogenated Solvents Industry Alliance taking the lead - in
suing the EPA over these amendments, arguing that EPA has neither
the supporting data nor the statutory authority to mandate
the phase-out proposed by EPA. Oral arguments in the lawsuit
brought by industry associations have been postponed pending
the outcome of EPA’s reconsideration.
Court
Cases Of Note
Taxation of Out-of-State Businesses
(June
2009) The U.S. Supreme Court decided not
to review a case involving state taxation and interstate business.
In April, several
business organizations supported an appeal to the U.S. Supreme
Court regarding a Supreme Judicial Court of Massachusetts’ decision
that would allow extensive taxation by states of out-of-state
businesses that have no physical presence in the taxing state – meaning
no employees and no operations.
This
is the second case in two years that the Supreme Court has
declined to hear regarding state taxation of out-of-state
companies. In response, TCATA and others join with the National
Association of Manufacturers in urging Congress to enact bipartisan
legislation (H.R. 1083), the Business Activity Tax Simplification
Act. The legislation would establish a bright-line test of physical
presence to determine whether a state can impose business activity
taxes, including state income taxes, on an out-of-state business
engaged in interstate commerce. Click
here for details on this issue.
Two Asbestos Cases
(June
2009) The state Supreme Courts of Washington
and Pennsylvania have handed down adverse rulings in two asbestos
cases. In the
state of Washington, Lunsford v. Saberhagen Holdings, Inc., the
National Association of Wholesaler-Distributors and other organizations
argued that a state appeals court’s ruling that strict
liability¹ may be retroactively applied should be overturned.
(Lunsford involved a plaintiff’s claim of asbestos-related
mesothelioma from household exposure to asbestos years before
strict liability was recognized in Washington.) The Washington
Supreme Court held that strict liability applies retroactively
to all claims that occurred before the adoption of strict liability
in that state. Strict liability was applied to manufacturers
in 1969 and to non-manufacturer product sellers in 1975. Interestingly,
in October of last year, the Ohio Supreme Court reached the opposite
conclusion on a similar issue.
In Pennsylvania, the issue in the Bugosh v. I.U.
North America case was whether to apply the old Restatement
(Second) of Torts
or the newer Restatement, Third of Torts: Product Liability,
which would allow defendants to introduce state-of-the-art evidence
as to what the defendant knew or should have known about the
dangers of the product in question at the time of the sale/exposure.
The Pennsylvania Supreme Court issued an opinion dismissing the
appeal as “improvidently granted.” Contact TCATA
if you wish more detail on either case.
¹ a
doctrine which holds that a party may be held liable for damages
regardless of the degree of culpability
Supreme
Court Limits Liability In Pollution Case
(May
2009) In
a very significant case for manufacturers, the Supreme Court
recently limited the liability of two major railroads for chemical
spills in California. The federal government wanted to apply
joint and several liability (meaning a party can be charged
100 percent of the cleanup cost even it is only responsible
for a small part of the problem) to several companies in this
case, but the Supreme Court chose instead to overrule lower
courts in holding companies responsible for only part of the
clean up. The railroad companies were found to have a limited
responsibility for clean up costs since only ten percent of
the contamination was attributable to them. The justices also
reasoned that while Shell Oil (one of the defendants, found
to have no liability) was aware of minor, accidental spills,
this knowledge was insufficient to conclude the company was
an “arranger” of the disposal and hence responsible
financially. This decision means that onerous joint and several
liability may be avoided if a percentage of liability can be
calculated.
Supreme
Court Rules Asbestos Fears Must Be Serious
(June
2009) The U.S. Supreme Court overturned
a Tennessee Court of Appeals Ruling that could have lead
to a major wave
of new, unwarranted
asbestos lawsuits. In CSX Transportation v Hensley, the Tennessee
court ruled that asbestos plaintiffs no longer need to demonstrate
that their fear about incurring injury or illness from asbestos
exposure is “genuine and serious,” contradicting
previous Supreme Court rulings. In this particular case, the
state court awarded the claimant $5 million in pain and suffering
based on thin evidence of any genuine fear.
The U.S. Supreme Court ruled that the jury should
have been given an instruction to find liability only if the
plaintiff’s
fear of getting cancer was genuine and serious. Juries, especially
in emotional cases, should be given clear guidance on the law
to provide the proper balance between plaintiffs and defendants.
This is an important decision that prevents state courts from
neglecting the rights of business to fair trials.
Illinois
Allows Evidence Of Third Party Liability
(May 2009) The
Illinois Supreme Court has overturned previous court decisions
that prevented a jury from hearing evidence that parties other
than the defendant manufacturer
may have caused the plaintiff’s asbestos injuries. Previous rulings led
the courts to prevent the defendant from submitting evidence that some other
party caused the plaintiff's illness. Until this decision, Illinois law had been
unique in excluding such evidence, and the decision will prevent lawyers from
unfairly singling out one defendant for liability. The outcome is welcome relief
because the previous rule invited claims against remote defendants, forcing unfair
settlements and feeding the asbestos litigation crisis.
Delaware
Rules Employer Not Liable For Secondhand Asbestos Exposure
(May
2009) The
Delaware Supreme Court has issued a favorable ruling for business
in Riedel v. ICI Americas, Inc., affirming the trial
court’s ruling that an employer is not liable for secondhand
asbestos exposure. The opinion follows the arguments made by
several business organizations in an amicus brief filed last
summer. In this case, the plaintiff alleged that she was exposed
to asbestos that was brought home on her husband’s work
clothes, which she laundered. The trial court assumed that
she was injured by the asbestos, but rejected the claim anyway.
The amicus brief argued that the mere foreseeability of harm
to third parties is not enough to extend the employer’s
duty of providing employees with a reasonably safe work environment
to potential harm outside the workplace.
Supreme
Court Rules On EPA Cost-Benefit Analysis
(April
2009) The
U.S. Supreme Court has ruled that the U.S. Environmental Protection
Agency may consider using
a cost-benefit analysis in determining the level of required
technology used in power plant cooling towers. While this
ruling does not mandate the EPA use a cost-benefit analysis,
it opens the door on using this in the future in other
mandated environmental actions.
EPA
Reinstates Toxic Release Reporting Requirements
(May
2009) EPA Administrator Lisa Jackson has signed a final rule
that will reinstate strict reporting requirements for facilities
that release toxic substances. This rule reinstates the toxics
release inventory (TRI) reporting requirements that had been
reduced in 2006. TRI is a publicly available database containing
information on toxic chemical releases and waste management
activities. Visit www.epa.gov/tri for more information.
President
Obama Signs Fair Pay Act Into Law
On
January 29, President Obama signed the Lilly Ledbetter Fair
Pay act into law. This bill amends various federal equal employment
opportunity laws and overturns a Supreme Court decision by
essentially holding that there is no statute of limitations
for an employee’s claim of pay discrimination. It says
that discrimination occurs every time a paycheck is issued
following a claim of discrimination. Because of the thresholds
of Title VII, the ADA and ADEA, the number of small businesses
affected is modest but, for larger companies, the burden will
be heavy, particularly as this opens new avenues for increased
litigation. TCATA members can click here for more information.
New
ADA Law Now In Effect
Legislation
the became effective on January 1, 2009 expands the scope of
the Americans with Disabilities Act (ADA), overturning several
Supreme Court decision which had narrowed the applicability
of the law. The new law dictates that people with ailments such
as epilepsy, cancer or multiple sclerosis that can be controlled
by medication
are protected under ADA. The courts, when deciding if a person
is disabled, should not consider the effects of mitigating
measures like prescription drugs and hearing aids. The bill
clarifies that an impairment that is episodic or in remission
is a disability if it would substantially limit a major life
activity when active.
ADA
cases are likely to move from “threshold” issues
(whether the person has a disability) to “liability” issues
(whether the person was actually discriminated against). Employers
defending such claims should understand that ADA claims are going
to be defended like many other types of discrimination claims:
by showing that the employer ahs a legitimate, non-discriminatory
reason for its decision.
Congressman
McHenry Visits Leonard Automatics on 40th Year Anniversary
 Leonard
Automatics was honored to host North Carolina Congressman Patrick
McHenry as part of the company’s 40th anniversary celebration.
McHenry was received by Jeff Frushtick, president / CEO of
Leonard Automatics and was given a tour of Leonard’s
new production facility. The tour was followed by lunch and
a brief speech by the Congressman where he congratulated Leonard
Automatics on reaching their 40th anniversary as a company
and presented Mr. Frushtick with a plaque commemorating the
milestone.
Diamond
Chemical Appoints Adam Meyers To The Position
of CFO
 Diamond
Chemical of East Rutherford, New Jersey has announced the appointment
of Adam Meyers to the position of CFO. Prior to joining Diamond
Chemical, Adam held various positions in different capacities
within the medical device, pharmaceuticals and financial services
industries. He will be assuming Bill Lovatt’s duties
upon his retirement and will be in charge of all finance related
activities. Adam has his MBA in Financial Management from the
Lubin School of Business at Pace University and is a Certified
Public Accountant.
Willer
Named Girbau Industrial National Sales Manager
 Continental
Girbau, Inc., Oshkosh, Wisconsin recently named Seth Willer
national sales manager,
responsible
for the Girbau
Industrial brand. Prior to taking on his new role, Willer served
four years as regional sales manager for the Continental Girbau
brand in the Central United States and Canada. In 2007, he received
the Continental Girbau Salesman of the Year President’s
Award for sales achievement.
In his new position, Willer will work closely with Continental
regional sales managers and staff to establish a professional
network of Girbau Industrial distributors and national accounts.
Additionally, he will manage Girbau Industrial distribution,
marketing, advertising and product development.
Fulton
Awarded Grant by New York State
|
(l
to r) Bram Palm, President & CEO; Kathy Sega, VP/Gen.
Mgr.; David Paterson, Governor of New York State; Mark
Hilton, VP of Mfg. & New Product Development; Kevin
LaMontage, Chief Financial Officer. |
The
Fulton Companies of Pulaski, New York, manufacturers of steam
and hot water products was recently awarded a $1.5 million
grant by New York States’ Upstate Regional Blueprint
Fund to expand its facilities. The expansion will add 125,000
sq. ft. to its plant, including a research and design center
to study alternative fuels.
Alliance
Receives Honor for Exports Success
Congratulations
to Alliance Laundry Systems of Ripon, Wisconsin, which recently
received the Wisconsin Export Achievement Award in the large
manufacturer category. This award honors companies in the state
that have successfully marketed their products internationally,
contributing to Wisconsin’s presence in the global market.
Kannegiesser
Announces Staff Changes
 Kannegiesser
of Grand Prairie, Texas, recently announced the hiring of William
Cox (left) as Director of Sales. He brings over 20
years of experience in the textile processing industry, with
a strong
focus on
sales success through professional representation and development
of new territory. Previously, he was an owner operator, which
will allow him to identify the complete needs of facilities. 
Kannegiesser
USA, Grand Prairie, Texas has announced the promotion of
W. Blaine Jackson (right) to Senior Vice President.
Blaine continues to
be active in supporting all laundry associations and is known
for his contributions to education and training seminars.
TCATA's
mission is to increase professionalism through business
operations and sales improvement education, provide forums
where business challenges are discussed and solved, generate
and apply business intelligence, and create a favorable
business climate by seeking fair regulation and legislation.
|
to
TCATA as it celebrates its 90th year of operation in 2010.
It may be trite
