Paint Industry Needs Global Lead Settlement Quickly

Implications: "Son of Asbestos" claims may sound extreme; but the lead paint makers would be prudent to collectively negotiate and fund a 50-state settlement that follow the tobacco companies' model and avoids the bankruptcy model of the asbestos-using firms. Lead injury awareness has increased and demands for public protection will escalate. Paint and related product industries knew of risks long before the warnings and bans, so their parallels to asbestos defendants are likely to bring juries to similar sized awards. Lobbyists can buy time but not buy peaceful continued business operations. As author of studies on building safety, toxic torts and on product warnings liabilities, I see only a matter of a few years before asbestos-like liabilities will inevitably crush those who don't choose a global settlement of the lead legacy.

Analysis: Paint and indoor decorating companies grew larger by mergers, as did asbestos using companies, so the lead legacy will hit hardest those who acquired old line traditional names. Sears and JC Penney, among other retailers with own-brand paint over many generations, are among the retailers who may also be hit by the need to fund a global settlement trust.