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MONDAY MORNING MESSENGER

Message Prepared For Home Inspectors and Especially for Members of the

American Institute of Inspectors®

August 23, 1999

GOOOOOD MORNING, A.I.I.™

It's a great day at Michael Leavitt & Co Home Inspections. The Leavitts are once again all under the same roof. This week will bring the start of another school year..... and of course we are not quite ready. Jessica will be entering the 4th grade and Adam will be entering Kindergarten. Traditionally it will also be a slow inspecting week. Today is no real indicator, but while you are reading this, I will be performing three full inspections and one FHA moisture intrusion appraisal follow-up inspection. After Monday I am currently unemployed.... What a strange feeling! I look forward to reading your MMM feedback when I finally get back home in the evening


POLYBUTYLENE PIPING (PB)

I received a call from a good friend and past client a day or so ago and he related a common story.....

"Michael, do you remember when you pointed out the piping in the home we were buying was Polybutylene (PB)? You told us that there had been some class action lawsuits and that it was prone to leakage. You also pointed out that our system had the copper crimp rings and the plastic fittings. Well, since we moved in we have had two separate leaks that we had to call a plumber out to repair it each time. Well, it turns out that we qualify for the PB class action settlement."

Our conversation continued regarding the details as he knew them regarding the settlement, but my mind kept racing as to how I had been handling the PB issue. Was I "Chicken Little" enough in my warnings to my clients, and was I adequately informed about the PB lawsuit settlement. The answer is a resounding "NO" on both accounts. I had never read the class action settlement and I had already come to my own conclusions about the piping in my own mind (careful when you do this). I was nowhere near the thought process that PB is not an issue unless it leaks. Then again, I was not like a lot of people who just say "PB is BAAAD! It is not IF it leaks, but WHEN it leaks." Instead, I have felt that I was pretty informed on the topic.

So how do you as an Inspector report on Polybutylene? The hand writers out there are probably pretty brief in their comments.

I wonder if the simple.... "Polybutylene piping was observed = Recommend further evaluation by a licensed Plumber" is the best reporting method. I personally think that it is an inferior way (a cop out) to handle the topic. I view our role as Home Inspectors as being much more important than we probably really are, but that is to give myself a feeling of self-worth and purpose in the great cosmos. I view us as being the great information disseminators. I believe that we have the responsibility to direct our clients to the best and most complete information. This is a side tangent, but many Inspectors I have encountered live by the Inspecting philosophy that the less we say, the better off we are. I can see where this is sometimes useful, I believe that the opposite is true most of the time. I believe that it is better to give and direct people to as much information possible. I feel that this eliminates the excuse that I didn't properly inform/warn them.

To continue with the side tangent of informing people: We live in an age of USA TODAY where people want just the quick facts. "Give me the Reader's Digest" version. Most published Home Inspector information is in the same fashion.... Quick & easy information..... Don't waste my time, they say. As long time readers of the MMM know, I operate on a different philosophy. I try to provide the in-depth meat, instead of light weight baby formula. I feel that Inspectors are intelligent enough that they can take a large dose of information and create their own Reader's Digest version on the topic. I believe that if you have never eaten the meat, then your opinions are based only on the fluff. Fluff foundations are difficult to defend in a court of law...... "So Mr. Inspector, how did you form your opinion on the Polybutylene piping." "Well, I had read a few fluff filled articles on the topic and I heard a plumber say once that it was a pretty good pipe, but the joints sometimes leak."

So how do you report on the PB pipe??? Are your comments adequate??? There are several different computerized systems being used by Inspectors that have pre-canned comments on the topic. I wonder how Inspectech, Brick Kickers, and Amerispec handle the PB topic. Some of you use Borealis, ITA or 3D based softwares. What do their canned comments say? How have you modified the comments??? I know that some of the franchisees are not allowed to modify the canned comments for legal reasons. I know that I created my own comments..... Comments that I am changing as a result of my recent re-investigations on the topic.

I currently have the following pre-made comments.....

PB - Polybutylene Supply Lines. Note: Supply lines which are not visible are not part of these conclusions.

After clicking that selection I can select the following....

Aluminum - This system utilizes aluminum crimp rings that have been known to fail = Recommend further evaluation of the system's integrity by a licensed Plumber.

CopPlastic - This system utilizes the newer copper crimp rings, but plastic type splices and elbows were used that have been known to fail nationwide = Monitor and/or have a licensed Plumber upgrade to copper/brass splices and fittings.

CopperCopp - This system utilizes both copper fittings and copper crimp rings. They are considered much more reliable than the earlier aluminum crimp rings and plastic fittings.

Manifold - This system utilizes a manifold set-up. This allows for individual hot and cold lines to run to each fixture. This reduces the amount of splicing and increases the reliability of the system.

Notice that there is no mention of the lawsuit or settlement..... I honestly thought that I had some canned comments pertaining too it. I will have to remedy this and add some additional comments. Notice also that my comments are geared towards.... Pipe = GOOD, Fittings/Crimp Rings = BAD. This method of reporting is WRONG, WRONG, WRONG!!!. The pipe has been known to spring leaks far away from the nearest fitting/crimp ring.


PB CLASS ACTION & PROPOSED SETTLEMENT

I searched the internet for information and came across two class action settlements. The first was the Spencer suit. It only offers a 10% coverage on system replacement. Information on the 10% coverage Spencer settlement was found at http://www.napsnet.com/safety/43401.html, but can also be found directly at www.spencerclass.com.


Plastic Pipes May Earn Replacement And Repair

(NAPSI)-It may pay to check the pipes in your home. If you own a home or other structure that has inside polybutylene (PB) plumbing pipes connected with gray acetal plastic insert fittings, you may be eligible to receive partial reimbursement for the cost of replacing the plumbing system and repairing damages resulting from leaks.

Property owners with homes that were plumbed inside using PB pipes connected with acetal plastic insert fittings may be eligible for a ten percent reimbursement for the cost to replace the plumbing system along with a ten percent reimbursement for unreimbursed costs to repair any past damages resulting from leaks.

Polybutylene is a plastic material that was used in homes beginning in the late 1970s. The pipes were used in many different types of structures and homes, including town homes, apartments, condos and mobile/manufactured homes.

How to identify polybutylene pipes covered by Spencer:

The possible reimbursement is a result of the Spencer national Class Action settlement. To receive information about the settlement, property owners should contact the Spencer Class Facility at 1-800-490-6997 or write to them at P.O. Box 81448, Atlanta, Georgia 30366. Spencer Class Facility Representatives are available from 9 a.m. to 4 p.m. EDT to assist
property owners with claims and questions regarding terms. Messages can be left 24 hours a day, seven days a week.

Deadlines are approaching. To determine your eligibility for the partial reimbursement, you can also visit the Web site at www.spencerclass.com.


COX PB SETTLEMENT

 

The second settlement is much more favorable to homeowners because under the right circumstances it will cover 100% of system replacement. It is known as the Cox Settlement, or the Consumer Plumbing Recovery Settlement. I found the Consumer Plumbing Recovery Settlement at this website..... http://www.kinsella.com/pbpipe/propset.shtml. I recommend that you read it carefully and in its entirety. Much of it is laborious and downright long, confusing, and boring, but it is worth reading to get to the good details. I am sharing the proposed settlement in full here in the MMM, but I recommend that you refer clients to the Kinsella website noted above.


IN THE CHANCERY COURT FOR OBION COUNTY, TENNESSEE UNION CITY, TENNESSEE

TINA COX, CHARLES HOMER CLOAR, MARY H. CLOAR, Civil Action No. 18,844

MELODY ALFORD, COUNTRY VILLAGE MOBILE HOME PARK, and PHYLLIS BIRMINGHAM on behalf of themselves all other persons similarly situated,

NOTICE OF CLASS ACTION AND PROPOSED SETTLEMENT vs. SHELL OIL COMPANY, D/B/A SHELL CHEMICAL COMPANY, and HOECHST CELANESE CORPORATION, DEFENDANTS.

TO OWNERS OF HOUSES, MOBILE HOMES AND OTHER STRUCTURES WITH POLYBUTYLENE PLUMBING:

THIS NOTICE MAY AFFECT YOUR RIGHTS. PLEASE READ IT CAREFULLY

THIS NOTICE ANSWERS THESE IMPORTANT QUESTIONS:

1. WHY SHOULD I READ THIS NOTICE?

Your rights may be affected by the proceedings in the lawsuit known as Cox, et al. v. Shell Oil Company, d/b/a Shell Chemical Company, and Hoechst Celanese Corporation, Civil Action No. 18,844, pending before Judge Michael Maloan, in the Chancery Court for Obion County, at Union City, Tennessee ("the Court"). This notice is given pursuant to Rule 23 of the Tennessee Rules of Civil Procedure and the order of the Chancery Court of Obion County, Tennessee.

The purpose of this Notice is to inform you (1) that there is now pending in this Court an action brought as a class action on behalf of owners and past owners of structures (including houses, commercial properties and mobile homes) and other improvements to real property with a certain type of plumbing; and (2) that there has been a settlement of this action ("Settlement"), pursuant to a written agreement among the parties ("Settlement Agreement"), which has been preliminarily approved by the Court. Although nothing in this Notice alters or is intended to alter the terms of the Settlement Agreement, the Notice sets forth essential information concerning the Settlement and your potential rights under that Settlement.

2. WHAT IS THE LAWSUIT ABOUT?

Plaintiffs Tina M. Cox, Charles Homer Cloar, Mary H. Cloar, Melody Alford, Country Village Mobile Home Park and Phyllis Birmingham on behalf of themselves and all persons similarly situated, brought the above-referenced class action alleging that, among other things, Shell Oil Company ("Shell") and Hoechst Celanese Corporation ("Celanese") ("Defendants") supplied raw materials used by other entities in the manufacture of polybutylene plumbing. Plaintiffs further allege that this plumbing is defective. The action seeks monetary relief including the cost of plumbing system replacement and the cost of repair of property damage associated with any leaks. The Defendants deny any liability relating to polybutylene plumbing, and further deny that any Plaintiff or Class Member is entitled to damages or any other relief from the Defendants. The Court has not made any rulings on the merits of Plaintiffs' claims or of the defenses of Shell and Celanese.

3. WHAT IS POLYBUTYLENE PLUMBING?

Polybutylene plumbing inside a structure ("PB In-House Plumbing") is a potable water supply system containing polybutylene ("PB") pipe and either acetal (plastic) or metal insert fittings (such as tees, and elbows). PB pipe is a non-rigid, sometimes curved, usually gray (or possibly silver or black) plastic pipe. When used in the underground service from the water company to a structure (a "Yard Service Line"), PB pipe is blue, gray or black. PB pipe is not used for drains, waste or vent piping. Also PB pipe is not PVC or CPVC, which is a rigid white or off-white plastic pipe. "PB Plumbing" refers to both PB In-House Plumbing and Yard Service Line. "PB Plumbing" does not include yard sprinkler systems, irrigation systems, fire sprinkler systems, sewer lines, faucets or fixtures.

Insert fittings are used to join pieces of polybutylene pipe. The insert fitting is inserted into the pipe and clamped with a metal (aluminum or copper) crimp ring over the outside of the pipe. Metal insert fittings are either copper or brass. Acetal insert fittings are hard gray or white plastic. They are not black. Insert fittings are not grabber, flare or compression fittings which are often threaded and use a plastic or metal nut to secure the seal.

4. WHO IS IN THE SETTLEMENT CLASS?

On June 13, 1995, the Court certified a nationwide plaintiff class. Thereafter, the parties reached their Settlement, and on July 31, 1995, the Court granted preliminary approval of the Settlement Agreement. The benefits of the Settlement Agreement are summarized in Section 5 of this Notice. The Settlement Class is currently composed of those who meet the following criteria:

You may be a part of this Class if you:

The Class definition excludes:

The Settlement does not settle or release any claims for bodily injury, wrongful death, or associated emotional distress and mental anguish. The Settlement provides a program to Eligible Claimants for polybutylene plumbing replacements, and payment for repair costs and/or damage to tangible personal property caused by qualifying leaks.

5. WHAT ARE THE TERMS OF THE PROPOSED SETTLEMENT?

On July 31, 1995, the Court granted preliminary approval to the Settlement Agreement subject to final approval following the Hearing described in Section 10 below.

The essential terms of the proposed settlement are as follows:

A. The Settlement Fund

The Settlement Agreement requires the Defendants to commit $850 million to a Settlement Fund. Up to $75 million of the Settlement Fund will be allocated to pay for past expenses incurred as a direct result of qualified leaks in PB Plumbing. If you make such a claim but the $75 million is inadequate to pay fully all such past expenses, you will have the right either to receive a pro rata portion of the $75 million or to exclude yourself from this portion of the Settlement, although you will still be governed by the Settlement for all other purposes, including claims for replacement for your PB Plumbing. The balance of the Settlement Fund will be allocated to pay for replacement of PB Plumbing, and payment for future expenses and damages to tangible property, related to qualified leaks, to which Class Members may be entitled under the Settlement Agreement and for administrative expenses. If the Settlement Fund is exhausted before all Class Members have received the relief to which they are entitled under the Settlement, the Defendants may (a) provide additional funds for the continuation of the Settlement or (b) provide no additional funds, in which case Class Members who would still be entitled to relief under the Settlement may pursue their unpaid claims against the Defendants.

B. Eligible Claimants

All Class Members who are Eligible Claimants may participate in the recovery program established by the Settlement Agreement. Several factors determine whether a Class Member is an Eligible Claimant:

You may be an Eligible Claimant under the Settlement Agreement and entitled to relief if you are a Class Member and:

(1) you have had one or more past Qualifying Leaks or Qualifying Yard Service Leaks and incurred, by reason of such leakage, any cost or expense or damage to tangible property from the repair or removal of all or any portion of your PB Plumbing; or
 
(2) you have one or more future Qualifying Leaks or Qualifying Yard Service Leaks

You are not an Eligible Claimant under the Settlement Agreement if, with respect to PB Plumbing, you have previously entered into any other settlement agreement, are covered by a settlement agreement with the Defendants, signed a release in favor of the Defendants, been part of a trial and subject to a judgment rendered in such trial, or by the operation of accord and satisfaction.

To be a Qualifying Leak or Qualifying Yard Service Leak,2/ the leak must occur within the time periods set forth above and must be the result of a failure in the PB In-House Plumbing or Yard Service Line which results in an unwanted discharge of water, but excludes:

If a leak occurs within any of these time periods in a Unit not owned by a Class Member, and which causes damage to tangible property in the Class Member's Unit, or to the Unit itself, the Class Member may be an Eligible Claimant with respect to such damage.

C. Recovery Program Eligible Claimants will be entitled to receive payment for their previously unreimbursed and documented costs of repairing. Qualifying Leaks or Qualifying Yard Service Leaks in their Units and physical damage to their tangible property resulting from these Leaks, except to the extent that such damage results from their failure to make reasonable efforts to mitigate. Class Members are not entitled to receive payment for repairs or other work the member did not pay for or for repairs, other work or property damage to the extent such cost or loss was reimbursed by insurance carriers or other persons.

In addition to receiving payment for repairs and damages as described above, an Eligible Claimant may be entitled to receive a replumb or Yard Service Line replacement (depending on whether the Qualifying Leak(s) have been in the PB In-House Plumbing or Yard Service Line), at no cost to the Claimant, under the following circumstances:

Replumbs and Yard Service Line replacements shall consist of replacing the PB In-House Plumbing or Yard Service Line with a non-polybutylene system of the Claimant's choice. All Qualifying Leaks or Qualifying Yard Service Leaks must occur within the time frames specified under the definition of "Eligible Claimant," in Section 5B, above.

D. Deadlines for Claims

All claims for reimbursement of expenses, damage to tangible property, or replumbs or Yard Service Line replacements resulting from Qualifying Leaks or Qualifying Yard Service Leaks occurring before August 21, 1995, must be filed no later than August 21, 1996. All claims for reimbursement of expenses, damage to tangible property, or replumbs and Yard Service Line replacements resulting from Qualifying Leaks or Qualifying Yard Service Leaks that occur after August 21, 1995, must be made by the following deadlines:

A blue postcard titled Request For Claim Form is enclosed for your use in order to commence the claim process. Claim forms will be mailed to those who have requested them after Court approval of the claim form and claim process, which has not yet occurred.

E. Allocation And Priority

Except with respect to the $75 million that is allocated for past expenses as described in Section 5.A., the Settlement Fund shall be allocated to Eligible Claimants in the order received. Once 80% of the Settlement Fund has been expended, replumbs and Yard Service Line replacements shall take priority over cash payments to Eligible Claimants.

F. Releases And Assignment

In exchange for the ability to participate in the Settlement, Class Members agree to release, all claims against the Defendants relating to any defects or alleged defects in PB Plumbing, other than claims for bodily injury, wrongful death, or associated emotional distress and mental anguish.

Section 15 of the Settlement Agreement provides that Class Members also assign to the Defendants certain claims the Class Members may have against certain entities, relating to any defects of PB Plumbing, including all claims against E.I duPont deNemours & Co.

G. Attorney Fees And Costs

In addition to the Settlement Fund, Defendants have agreed to pay the reasonable fees and expenses of Class Counsel, in such amount as may be approved by the Court pursuant to Class Counsel's application for award and reimbursement, and to pay each single Representative Plaintiff or Representative Plaintiff married couple $3000 in recognition of their efforts on behalf of the Settlement Class, subject to Court approval. The attorney fee and costs application shall be in the combined amount of $45 million.

6. DO I NEED TO DO ANYTHING IN ORDER TO PARTICIPATE IN THE CLASS
AND SETTLEMENT?

NO. IF YOU WANT TO REMAIN A MEMBER OF THE CLASS AND PARTICIPATE IN THE SETTLEMENT DESCRIBED HEREIN, YOU NEED DO NOTHING AT THIS TIME.

If you remain a member of this Class, then:

(1) The Plaintiffs and Class Counsel listed in this Notice will act as your representatives and counsel for the presentation of the charges against the Defendants. If you desire, you may also appear by your own attorney, at your own expense.

(2) You may make a claim to recovery from the Settlement Fund, and you may participate in the benefits of the Settlement. If the Settlement is not approved you will be bound by that result also.

7. HOW DO I MAKE A CLAIM?

If you believe you are an Eligible Claimant, as defined in Section 5.B, in order to share in the Settlement Fund, you must make your claims by the applicable deadlines described in Section 5.D, and follow any procedures set by the Court and provide the information requested to support and verify your claim. To start your claims procedure, you should complete, sign and return the enclosed blue post card titled "Request for Claim Form."

8. WHO REPRESENTS THE SETTLEMENT CLASS?

A. Class Representatives.

Plaintiffs Tina Cox, Charles Homer Cloar, Mary H. Cloar, Melody Alford, Country Village Mobile Home Park, and Phyllis Birmingham have been designated as Class Representatives by the Court.

B. Class Counsel.

In its June 13, 1995 Order of Nationwide Class Certification, the Court appointed the following Class Counsel: Don Barrett, Esq., Barrett Law Offices, Lexington, Mississippi; Michael D. Hausfeld, Esq. and Gary E. Mason, Esq., Cohen, Milstein, Hausfeld & Toll, Washington, D.C.; and Bruce Conley, Esq. and Damon E. Campbell, Esq., Conley, Campbell, Moss & Smith, Union City, Tennessee. For purposes of prosecuting class claims, representing the Class throughout the settlement approval process and administering any settlement approved by the Court, the following firms have been appointed to serve as additional Class Counsel: Gordon Ball, Esq.; Michael A. Caddell, Esq.; David H. Weinstein, Esq.; Trial Lawyers for Public Justice, P.C.; Lieff, Cabraser, Heimann & Bernstein; Hagens & Berman; Heins Mills & Olson, P.L.C.; Jackson, Taylor & Martino; Patrick Pendley, Esq.; Phillip Feliciano, Esq.; Moore & Brown; Thomas Jessee, Esq.; Carey & Danif, L.L.C.; Levin, Fishbein, Sedran & Berman; Moriarty & Associates, P.C.; Caddell & Conwell, P.C.; Weinstein Kitchenoff Scarlato & Goldman Ltd.; Kohn, Swift & Graf, P.C.; Law Offices of Marc D. Murr, P.C.; Bristow, Hackerman, Wilson & Peterson, P.C.; Law Offices of Dennis C. Burns; and Law Offices of Charles E. Dorr, P.C.

These attorneys represent the interests of the Class, and you will not be charged for their services. You also have the right to hire your own attorney. If you hire your own attorney, you will be responsible for paying that attorney's fee. You also have the right to represent yourself before the Court.

9. HOW CAN I EXCLUDE MYSELF FROM THE SETTLEMENT?

If you do NOT want to remain a Class member and participate in the proposed Settlement, and wish to exclude yourself, that is, to "opt out" of this lawsuit, then you must personally sign and return the enclosed orange Exclusion Request postcard or other personally signed written exclusion request to In re Cox v. Shell, P.O. Box 175, Minneapolis, Minnesota 55440-0175, postmarked by not later than October 20, 1995. Unsigned forms will not be accepted. No one else can sign your Exclusion Request for you. If you send in an exclusion request, you may not also send in a blue Request for Claim Form postcard.

By electing to be excluded from the Class (i) you will not share in any recovery that may be paid to Class Members as the result of the Settlement; (ii) you will not be bound by any further orders or judgments entered for or against the Class; and (iii) you may present any claims you have against Defendants by filing your own lawsuit at your own expense, or you may seek to intervene in this lawsuit as an individual plaintiff at your own expense.

10. WHAT IS THE SETTLEMENT APPROVAL PROCEDURE?

The Court will hold a formal Fairness Hearing on November 8, 1995, at the hour of 9:00 a.m., in the Courtroom of Judge Michael Maloan, Chancery Court, Court House, Union City, Obion County, Tennessee. At the Fairness Hearing the Court will consider whether the above-described Settlement should be granted final approval as fair, adequate, and reasonable and in the best interests of the Class as a whole. You may attend this hearing if you wish, but you are not required to do so in order to participate in the Settlement. The Court reserves the right, without further notice to the Class, to adjourn or continue the Fairness Hearing from time to time thereafter, and to approve changes to the Settlement Agreement, as long as such changes do not change the Agreement's essential terms and are agreeable to the settling parties.

If you decide to opt out of the Class (as described in Section 9 above), then you are not entitled to comment on the proposed Settlement or be heard at the Fairness Hearing. If you decide to remain in the Class, and you wish to comment in support of, or in opposition to, the Settlement described in Section 5 of this Notice, you may do so, provided that you submit your comments, in writing, to In re Cox v. Shell, P.O. Box 175, Minneapolis, Minnesota 55440-0175, postmarked not later than October 20, 1995. If you wish to appear at the Fairness Hearing and be heard orally, in support of or in opposition to the Settlement, you may do so if you file with the Clerk of the Court, at the Union City, Tennessee address indicated in Section 11 below, a written notification of your desire to appear personally, indicating (if in opposition to the Settlement) briefly the nature of your objection. Such notice must be postmarked not later than October 20, 1995, and a copy of it must be sent, by the same postmark date, to In re Cox v. Shell, P.O. Box 175, Minneapolis, Minnesota 5440-0175. If you do not comply with the procedure and the deadlines stated herein, you may not be entitled to be heard at the Fairness Hearing or to otherwise contest the approval of the Settlement, or to appeal from any orders or judgments of the Court entered thereon.

The Court's determination on the final approval of the proposed Settlement will be binding on all Class Members (except for those who timely opt out of the Class in the manner described above). If the Court grants approval of the Settlement, the judgment will release and dismiss all Class Members' settled claims. This release and dismissal will bar any further suit by or on behalf of the Class Members on settled claims. Instead, Class Members will obtain the rights accorded them under the Settlement.

If the Settlement is not approved by the Court, the case will remain in Court, and will proceed as active litigation. If there are further actions that are taken in this lawsuit that affect your rights, you will receive notice.

11. WHERE DO I GET ADDITIONAL INFORMATION?

Current information is available by calling 1-800-876-4698. A regularly updated recorded message provides current information. If you decide to remain a member of the Class and you wish to communicate with Class Counsel, you may do so by writing to In re Cox v. Shell, P.O. Box 175, Minneapolis, Minnesota 55440-0175.

PLEASE DO NOT CONTACT THE COURT.

The foregoing is only a summary of the circumstances surrounding the litigation, the claims asserted, the settlement proposed, and the matters related thereto. You may seek the advice and guidance of your own private attorney, at your own expense, if you desire. For more detailed information, you may review the pleadings, records, and other papers on file in this litigation, which may be inspected during regular business hours at Clerk & Master, bion County Chancery Court, Union City, Tennessee 38261. Copies of the complaint, the Settlement Agreement and the papers filed in support of approval of the proposed Settlement are available upon written request to Class Counsel, In re Cox v. Shell, P.O. Box 175, Minneapolis, Minnesota 55440-0175.

Dated: August 24, 1995 - Hon. MICHAEL MALOAN - Chancellor

REMINDER:

Important Dates and Deadlines

"Opt Out" Postmark Deadline: October 20, 1995
Comment/Objection Postmark Deadline: October 20, 1995
Fairness Hearing Date: November 8, 1995
Time: 9:00 a.m.
Place: Court House
Union City, Tennessee

FOOTNOTES:

1/A "Unit" is any real property or structure situated in the United States with PB Plumbing installed between January 1, 1978 and July 31, 1995. A "Type I Unit" is a single-family residence, and each part of a commercial or other structure occupied by a single tenant or tenant group. A "Type II Unit" means a mobile home (exclusive of recreational vehicles, boats and travel trailers).

2/An otherwise Qualifying Leak or Qualifying Yard Service Leak does not apply towards a "replumb" ("replumb" means replacement of PB In-House Plumbing) or Yard Service Line replacement, respectively, when the leak:


PB OBSERVATIONS

So what did you think???.... I know that it was overwhelming. First things first...... Did you notice all of the time restraints in the Cox settlement? At first I thought they were very limiting, but in reality, they leave the door open for payout to as far as the year 2007. It looks to me like they give the pipe a 15-year overall lifespan and then shut the door. Did you also notice that you have had to been damaged in some way. If the system has not leaked then don't expect a system upgrade. They also give very little credence to leaks that are either out in the open, or within 6 feet of the water heater. You must have documented leaks to qualify. Documentation is easy because a homeowner does not have the needed repair equipment and therefore has to provide the plumbing repair receipts.

I was intrigued with my friend/client's position. They have had two leaks, with one of them being right next to the water heater. When they called the phone number for the Cox Settlement they were greeted with nothing but a positive attitude. After answering the questions and explaining their previous two leaks they were assured over the phone that they would be receiving a new supply system at no cost to them. The home is a 2-story with a basement and about 4500 square feet. Most of the system is concealed, so it will be interesting how the upgrade will be performed.

The first leakage occurred within 6 feet of the water heater and is a very common leak area. I was not previously aware of this. From what I have learned on the internet, it is obvious that the heated water makes the PB become brittle and is very susceptible to leakage near the water heater. This confirmed my encounter on last Thursday's condominium inspection. I was on the first floor of a three story building and noticed a wet wall on the back of the service closet. It just so happened that the Plumber was making a repair on the third story water supply. You guessed it.... The Plumber had to patch the hot water line about 18 inches away from the water heater. His response was simple.... "Yeah, they leak all the time close to the water heaters." He commented on how the leakage on the third floor was not from a joint or bad fitting. Instead, it was from the piping itself, far from any splices or fittings. He felt that the leak was high heat related and not a water quality or a high acidic water condition. The leak that he was repairing was a pinhole leak that was spraying a fine stream of water onto the wall for a long period of time. Water runs downhill and it eventually made it to the lowest level of the building.

I liked this Plumber's opinion found at http://www.theplumber.com/faq.html#Water although he refers to all types of plastic pipe including PVC.

Copper Water Pipe Vs Plastic ? IMHO copper rules! Over time, the plastic will *sag* and will get brittle. If it needs to be repaired or altered in any way, the pipe will have to be glued and you will have no water 'til it dries. Copper-you can solder, turn it on, test it and know that all is well. Any plastic to metal connection is weak, such as where the HWT connection is made. Mice and rats love plastic. They chew on it to keep their teeth from growing through their lower jaw.


REPORTING CHANGES

To bring this topic full circle, how am I going to change and/or improve my PB reporting style? I do not think that I have been giving my clients enough information. Now that I understand the settlement, I think that I need to be much more open with where to find the class action settlement information. I have mistakenly downplayed systems using the copper crimp rings and bras/copper fittings as being good systems. I fell prey to the fallacy that PB had just gotten a bad rap from the weaker/inferior earlier systems. The fact is that PB systems are very prone to leaks and damage. This does not mean that a client should run away from the home's I inspect with PB. If they did so in my area, they would be running away from the cheapest mobile homes to the most elaborate of mansions.

I still question the blanket disclaimer.... "We recommend further evaluation of the system's integrity by a licensed Plumber." I feel this is weak disclaimer because we are able to tell if there are obvious signs of current or past leakage. Calling upon a Plumber is really just an added wasted expense for our clients if there are no visible signs of leaks. The issue isn't that we are presuming that there are current concealed leaks that maybe a Plumber could find. Instead, the issue is that PB piping is extremely prone to leakage. The client needs to know that it may happen. There is no track record that I know of that says that every home will experience leaks. Afterall, their home may not ever have a leak. But if it does, there is a source of financial relief....... That is the key. I do not think that having a Plumber come out is important unless you encounter current/previous leak repair/damage, or you encounter an aluminum crimp ring system.

NOTE: The aluminum crimp rings are a known LOSER system, and that is why I recommend the Plumber and a possible system upgrade when I encounter them (Usually found on older Mobile Homes).

The information about the class action settlement is really a blessing. It now gives us an easy way to break the news to our clients..... "Polybutylene water supply systems are prone to leakage. If leakage does occur, then you could qualify for system upgrading through a class action settlement. I recommend that you visit the kinsella website for further information on the Class Action Lawsuit Settlement at ......"

For those of you that doubt this approach, I would refer you back to the possible asbestos containing sprayed-on acoustical ceiling topic discussed on May 10, 1999, in the MMM. This used to be a huge obstacle with buyers and agents in my area. Once I started referring clients to the State of Utah website on the topic, it quickly became a non-issue.

The same was true of the Lennox Pulse heater safety inspections. When I provided the full information, all of the parties were grateful. I would provide my client with a full 2-page printed information sheet that gave them the information and the contact numbers for the free safety inspections. I have found that access to the source information softens the blow to the consumer..... Seek and obtain the truth and the truth will set you free.


NEWSFLASH FOLLOW-UP

Last week I shared with you the death of my Grandmother's sister in a fire. The only additional facts were that she was out in the workshop and a gallon of gasoline exploded. They are not sure how it exploded, but it did and the damage was quick. Her husband sustained burns to his hands as he attempted the rescue from the fully engulfed workshop.


QUOTABLE QUOTES: "Don't part with your illusions. When they are gone you still exist, but you have ceased to live." Mark Twain


HAVE A GREAT WEEK! =:-)

Michael Leavitt & Co Home Inspections

The Most Qualified Inspector in Northern Utah!


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