The Australian Securities and Investments Commission is seeking civil penalties against the directors of James Hardie in a landmark case it hopes will set a precedent governing the actions of all company directors.
ASIC alleges those directors and executives mislead investors as to the size of a compensation fund for asbestos sufferers to allow it to spinoff off the part of the company which had an obligation to pay sufferers.
Lawyers for ASIC told the court that several public announcements released by James Hardie regarding its ability to meet compensation payments were “not accurate, were misleading and were deficient”.
The courtroom where the case was heard was overflowing with victims of asbestos-related diseases and their family members.
“We’re here because we want to see justice to be done,” mesothelioma sufferer Brian Burrows, 82, told The Australian outside the court.
“Many of the ladies here have lost partners years ago to asbestos, they want to see justice being done,” Mr Burrows said, referring to rows of visibly upset and predominately female, elderly attendees.
Mr Burrows said he had been diagnosed with mesothelioma – a cancer of the lung caused by exposure to asbestos – about six years ago. He believes he was exposed to asbestos dust during years of work installing lifts.
It’s an interesting concept; holding company executives personally responsible for corporate actions. In the United States in 2005, W.R. Grace & Co. and seven of its current or former executives were indicted on federal charges that they knowingly put their workers and the public in danger through exposure to vermiculite ore contaminated with asbestos from the company’s mine in Libby, Montana.
