$500 million class action lawsuit alleges the Government of Canada was negligent in licensing inspectors who recommend RetroFoam be used to meet the requirements of Natural Resources Canada's Eco-Energy Retrofit program

    Federal program provides financial support to homeowners to help them
    implement energy efficient products

    TORONTO/WINDSOR, ON, Feb. 17 /CNW/ - A proposed $500 Million Class Action
lawsuit was announced today alleging that inspectors who were licensed by
Natural Resources Canada (NRCAN) performed energy audits on properties and
recommended installers who used RetroFoam to insulate properties in accordance
with Natural Resources Canada's Eco-Energy Retrofit Program. According to a
Health Canada advisory released on February 3, 2009, Retrofoam contains
urea-formaldehyde ("UFFI") which has been banned in Canada since 1980 under
the Hazardous Products Act.
    According to the lawsuit, which is brought on behalf of persons who
owned, had an interest in, or occupied a property in which RetroFoam was
installed; the defendants The Attorney General of Canada (as the
representative of the Minister of Natural Resources), RetroFoam of Canada
Incorporated., RetroFoam Holdings Inc., RetroFoam Windsor Inc., RetroFoam of
Southern Ontario Inc., RetroFoam of Eastern Ontario Ltd., Enerliv Inc., and
John Paul Weigel should have known that RetroFoam contains UFFI. The suit
alleges that the Defendants, with the exception of the Minister of Natural
Resources, were negligent when they manufactured, distributed and/or installed
RetroFoam in at least 700 properties in Canada. The suit alleges that the
Minister of Natural Resources was negligent in the licensing of energy
inspectors and knew or ought to have known that they were recommending and
approving Retrofoam as eligible for grants under the Eco-Energy Retrofit
    In this proposed class action, the class asserts that a property
containing RetroFoam, and thereby UFFI, is stigmatized and that the property
value has been substantially reduced and may not be capable of being mortgaged
and/or sold. This proposed class action seeks recovery of the reduction in
property value, among other claims.
    "This is an important economic issue," said Sharon Strosberg of Sutts,
Strosberg LLP, one of the lawyers representing the plaintiffs. "We allege that
NRCAN financed, in part, the installation of Retrofoam into the class members'
homes under the auspices of the Eco-Energy Program. The 700+ homeowners who
participated in the program will now have to incur the additional expense and
inconvenience of removing the insulation from their homes."
    NRCAN's Eco-Energy Retrofit Program is a Federal Government program
instituted by the Minister of Natural Resources. The Federal Government
appoints inspectors to perform energy audits on properties. If insulation is
required, and installed, a Federal Government grant is given to the property
owners. Some inspectors recommended installers who contracted with property
owners to insulate their properties. The installers used RetroFoam.
    For more information visit www.retrofoamclassaction.com.

    About Sutts, Strosberg LLP

    Sutts, Strosberg LLP has offices in Windsor and Toronto and is one of the
leading class action law firms in Canada. Sutts, Strosberg LLP has recovered
more than $1 billion for its clients. Its lawyers have been involved in some
of Canada's most important class actions in Canada including the Walkerton
class action, the Money Mart class action and the Hepatitis-C class action
against the Federal and Provincial governments.

For further information:

For further information: Sharon Strosberg, Sutts, Strosberg LLP, (519)
561-6291, sharon@strosbergco.com

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