(TSX: SCL.A, SCL.B)
TORONTO, Nov. 1 /CNW/ - ShawCor Ltd. announces that a Mobile, Alabama
jury has reached a verdict of US$100 million for total compensatory damages
against Bredero Price Company, Bredero Shaw LLC, ShawCor Ltd. and Halliburton
Energy Services Inc. ("HESI"), as well as US$2.0 million per defendant for
total punitive damages of US$8 million. Each of ShawCor and HESI are
responsible for 50% of the total award.
The lawsuit was commenced by Dirt Inc, a Mobile based non-hazardous
landfill operator, which claimed that Bredero Price Company disposed of
hazardous solid waste from its Mobile pipe coating plant to the Dirt landfill.
The operations of Bredero Price Company were acquired by Bredero Shaw LLC on
October 1, 2002. At the time such disposal occurred, Bredero Price Company
believed that the solid waste was not hazardous under US environmental laws.
Subsequently, Bredero determined that the waste was hazardous and notified
Dirt and the Alabama Department of Environmental Management.
ShawCor is disappointed with the verdict and believes it has very strong
grounds for appeal which it expects to initiate as soon as possible.
When a decision respecting an appeal is finalized, ShawCor will assess
the adequacy of its current accrued liability. Any additional reserve
considered necessary will be recorded as a loss from discontinued operations
during the fourth quarter. This amount will not exceed $30 million, on an
after-tax basis, and any such amount is expected to be reduced as a result of
a successful appeal.
ShawCor Ltd. is an energy services company specializing in products and
services for the pipeline and pipe services and the petrochemical and
industrial segments of the oil and gas industry. The company operates through
six divisions with over sixty manufacturing and service facilities located
around the world.
This news release contains forward-looking information within the meaning
of applicable securities laws. Words such as "may", "will", "should",
"anticipate", "plan", "expect", "believe", "predict", "estimate" and similar
terminology are used to identify forward-looking information. This
forward-looking information is based on assumptions, estimates and analysis
made in light of the company's experience and its perception of trends,
current conditions and expected developments, as well as other factors that
are believed by the company to be reasonable and relevant in the
circumstances. Forward-looking information involves known and unknown risks,
uncertainties and other factors which may cause actual results, performance or
achievements to be materially different from those predicted, expressed or
implied by the forward-looking information. The risks and uncertainties
include, among other things, changes in global economic activity and changes
in energy supply and demand which impact on the level of drilling activity and
pipeline construction; political, economic and other risks arising from
international operations; compliance with environmental, trade and other laws;
liability claims; fluctuations in foreign exchange rates and fluctuations in
raw material prices, as well as other risks and uncertainties that are more
fully described in the company's current Annual Information Form, annual and
quarterly reports and in other reports and filings made with securities
regulatory authorities and available at www.sedar.com.
For further information:
For further information: ShawCor Ltd., Gary Love, Vice President,
Finance and CFO, Tel: (416) 744-5818, E-mail: email@example.com, Web site: