Johns Manville

Johns Manville was a top marketer and manufacturer of insulation for more than a century when, in the mid-1950′s, it became involved in litigation. Research showed mesothelioma, a cancer, occurred frequently among its workers. Although it may take tens of years to appear, mesothelioma destroys the protective body lining. The average survival rate after diagnosis is one year. Workers claimed they suffered from exposure to asbestos products.

Manville’s defense was vigorous. It cited contributory negligence. Plaintiffs countered that no warning labels were used. The case went on for almost four decades as workers began filing workman’s compensation claims. As the general public became aware of research studies through extensive news coverage, warning labels were placed on asbestos products in 1964. They read, “inhalation of asbestos in excessive quantities over long periods of time may be harmful.”

Meanwhile the American Medical Association findings estimated that 100,000 U.S. workers and family member would die from diseases associated with asbestos in the 20th Century. As courts continued to decided against Manville, its lawyers filed on August 26, 1982, for protection under Chapter 11 of the U. S. Bankruptcy Code. The public and the stockholders all had lost faith. Sales were poor. Eventually Manville emerged, reexamined its business practices, and restructured.

Johns Manville was eventually sold to Berkshire Hathaway, Inc. The purchase orchestrated by CEO Warrem Buffett in 2001, put it on solid ground. I wonder how much consolation that is to the loved ones of all those diagnosed with this terrible killer. The company survived but they didn’t.