EXHIBIT 10(ad)
UNITED STATES OF AMERICA
CONSUMER PRODUCT SAFETY COMMISSION
---------------------------
In the Matter of
CENTRAL SPRINKLER CORP.,
and CPSC DOCKET NO. 98-2
CENTRAL SPRINKLER CO.,
Respondents
---------------------------
CONSENT AGREEMENT
This Consent Agreement is made by and between the staff of the Consumer
Product Safety Commission and Respondents, Central Sprinkler Corp. and Central
Sprinkler Co., to settle the above-captioned administrative action. The parties
agree as follows:
Parties
1. The "staff" is the staff of the United States Consumer Product
Safety Commission ("CPSC" or "the Commission"), an independent regulatory agency
of the United States, established by Congress pursuant to Section 4 of the
Consumer Product Safety Act ("CPSA"), 15 U.S.C. Section 2053.
2. Respondents Central Sprinkler Corporation and Central Sprinkler
Company (hereinafter collectively "Central") are corporations organized and
existing under the laws of
Accepted and Approved: Accepted and Approved:
--------------------------- --------------------------------
CPSC Office of Compliance Respondents Central Sprinkler Co.
and Central Sprinkler Corp.
the Commonwealth of Pennsylvania, with their principal place of business at 000
Xxxxx Xxxxxx Xxx., Xxxxxxxx, XX 00000.
Subject Matter
3. From 1982 to July, 1998, Central manufactured and sold and/or
distributed between 9 and 10 million "Omega" brand automatic fire sprinklers. On
March 3, 1998, the staff of the Consumer Product Safety Commission filed an
Administrative Complaint ("Complaint") against Central, seeking recall and
replacement of Central's Omega fire sprinklers pursuant to 15 U.S.C. Section
2064. The Complaint alleges that Central's Omega sprinklers are defective and
will not function in certain fire situations, creating a substantial risk of
bodily injury and/or death.
4. To date, the staff has received reports that from 1990 to the
present, Omega sprinklers did not function in 20 fires.
5. Central has filed an answer to the Complaint in which it avers, inter
alia, that its Omega sprinklers are not defective within the meaning of 15
U.S.C. Section 2064.
6. The staff also contends that Central obtained information which
reasonably supported the conclusion that Omega sprinklers contained a defect or
defects that could create a substantial risk of injury to the public but failed
to report such information in a timely manner pursuant to 15 U.S.C. Section
2064(b). Central denies any wrongdoing under 15 U.S.C. Section 2064(b).
Agreement of the Parties
Accepted and Approved: Accepted and Approved:
--------------------------- --------------------------------
CPSC Office of Compliance Respondents Central Sprinkler Co.
and Central Sprinkler Corp.
2
7. It is the express purpose of the parties in entering into this
Agreement to protect the public safety by carrying out the recall and
replacement of Omega sprinklers.
8. The parties intend for this Consent Agreement and the attached Order
(hereinafter "Order" or "the Order"), which is hereby incorporated by reference,
to resolve all allegations and requests for relief set forth in the
Administrative Complaint in this proceeding and to bar the initiation or
referral by the CPSC of any administrative, civil, or criminal claims within the
CPSC's jurisdiction arising from the conduct of Central, its officers, directors
and/or employees regarding Omega sprinklers. This resolution shall not apply to
any actions arising from non-compliance with or disputes pertaining to this
Agreement or the Order.
9. For purposes of this settlement only, Central admits that "Omega"
fire sprinklers are "consumer products" under Section 3 of the CPSA, 15 U.S.C.
Section 2052, subject to the jurisdiction of the Consumer Product Safety
Commission.
10. For purposes of this settlement only, Central agrees not to contest
the allegations in the Complaint that "Omega" fire sprinklers contain a "defect
which creates a substantial product hazard," as those terms are defined in
Section 15(a) of the CPSA, 15 U.S.C Section 2064(a). Central has agreed not to
contest these allegations in order to avoid the expense, inconvenience and risks
associated with further litigation, and the parties recognize that this
resolution and this Consent Agreement may not be used or introduced as evidence
of defect or hazard against Central in other litigation not involving the
Commission or its staff. Entry of the Order will neither impair nor assist the
bringing of any other action.
Accepted and Approved: Accepted and Approved:
--------------------------- --------------------------------
CPSC Office of Compliance Respondents Central Sprinkler Co.
and Central Sprinkler Corp.
3
11. As Part of the amounts referenced in 1.a and 1.b of Appendix C of
the Order, Central shall deposit, without any adjudication or admission of fact
of law, $1.3 million into the Trust established in Appendix C of the Order, in
settlement of the staff's contention that Central failed to report to the
Commission problems with the Omega pursuant to 15 U.S.C. Section 2064(b).
Central has agreed to do so solely to avoid the inconvenience and burden of
litigation of this issue.
12. Upon acceptance by the Consumer Product Safety Commission of this
Consent Agreement, and entry of the Order, Central knowingly, voluntarily and
completely waives and relinquishes any past, present and/or future right or
rights in this matter: (1) to an administrative or judicial hearing and to all
further procedural steps, including findings of fact, conclusions of law and/or
further determination of whether Omega sprinklers contain a defect which creates
a substantial product hazard within the meaning of Section 15 of the CPSA; (2)
to seek judicial review or otherwise contest the validity of this Consent
Agreement and/or Order as issued and entered, and (3) to seek judicial review of
this or any past orders, findings and/or determinations of the Commission or the
Presiding Officer in this matter, except as set forth in the provisions
regarding review in Paragraph 28 of this Agreement.
13. Central agrees to fulfill all requirements of the Order.
14. Central agrees to immediately cease and desist manufacturing,
selling, distributing, marketing, exporting, importing, and/or attempting to
distribute or sell any
Accepted and Approved: Accepted and Approved:
--------------------------- --------------------------------
CPSC Office of Compliance Respondents Central Sprinkler Co.
and Central Sprinkler Corp.
4
Omega sprinkler, whether by itself or through its subsidiaries. affiliates,
Central-owned distribution centers, or any other persons or entities over whom
Central has control, whether in the United States or any other foreign state,
country, or territory.
15. Central shall request that Underwriters Laboratories, Inc. withdraw
its listing of approval for all Omega sprinklers.
16. Central shall provide the staff with thirty days written notice of
any transfer of property rights it holds in the following U.S. Patents:
4,465,141; 4,491,182; 4,508,175; 4,553,602; 5,094,298; 4,619,327; 3,734,191,
3,802,510; 3,877,527, 3,911,940; 3,991,829, and 4,359,098.
17. A violation of this Consent Agreement or the Order is a prohibited
act within the meaning of Section 19 of the CPSA, 15 U.S.C. Section 2068.
18. The Commission or Central may disclose terms of this Consent
Agreement and Order to the public.
19. This Consent Agreement shall take effect upon its final acceptance
by the Consumer Product Safety Commission.
20. This Consent Agreement and Order shall be binding upon the parties
hereto and their successors, assigns, and receivers. If, prior to the
termination of this Consent Agreement and Order, Central merges with any other
corporation or sells, assigns, or otherwise transfers substantially all of its
assets, Central shall provide reasonable prior notice to the surviving
corporation or, in the case of an asset sale, assignment, or transfer, the
Accepted and Approved: Accepted and Approved:
--------------------------- --------------------------------
CPSC Office of Compliance Respondents Central Sprinkler Co.
and Central Sprinkler Corp.
5
purchaser, transferee, or assignee of substantially all of Central's assets, of
this Consent Agreement and Order, and of its binding effect upon said surviving
corporation, purchaser, assignee, or transferee. The existence of this Consent
Agreement and Order and their binding effect shall be noted in any agreement
between Central and such surviving corporation, purchaser, transferee, or
assignee. It shall be a condition of any such merger, sale, assignment, or
transfer that the surviving corporation or, in the case of an asset sale, the
purchaser, assignee; or transferee, execute a document agreeing to be bound by
the provisions of this Consent Agreement and Order and to submit to the
jurisdiction of the Commission for purposes of enforcement of this Consent
Agreement and Order. In the event of any merger or sale, transfer, or assignment
of substantially all of Central's assets, notice shall be provided to the staff
no later than 15 days prior to any such merger or asset sale, transfer, or
assignment.
21. This Consent Agreement and Order have been negotiated by the
parties. Central is not relying on the advice of the staff, nor anyone
associated with the staff, as to legal, tax, or other consequences of any kind
arising out of this Consent Agreement and Order, and Central specifically
assumes the risk of all such legal, tax and other consequences.
22. For all purposes, this Consent Agreement and Order shall constitute
an enforceable judgment obtained in an action or proceeding by a governmental
unit to enforce its police or regulatory power. Central acknowledges and agrees
that this Agreement and Order are pursuant to the Commission's police or
regulatory power to remedy the risk
Accepted and Approved: Accepted and Approved:
--------------------------- --------------------------------
CPSC Office of Compliance Respondents Central Sprinkler Co.
and Central Sprinkler Corp.
6
created by and protect the public from a substantial product hazard which the
Commission believes is presented by Omega sprinklers, and that the Agreement and
Order are not subject to an automatic stay if Central becomes the subject of a
bankruptcy proceeding.
23. If all of the Replacement Sprinklers are not listed or approved by
Underwriters' Laboratories Inc. ("UL") and all of the exclusively
non-residential Replacement Sprinklers are not listed or approved by Factory
Mutual Research Corporation ("FMRC") by November 1, 1998, or if the listing or
approval of any of the Replacement Sprinklers by UL or FMRC is withdrawn,
discontinued or modified at any time, for any reason whatsoever, the Commission,
at its sole discretion and upon reasonable notice to Central, may void, suspend,
or rescind all or any part of this Consent Agreement and Order.
24. The Commission at its sole discretion and upon reasonable notice
to Central, may void, suspend, or rescind all or any part of this Consent
Agreement and Order if Central has made material misrepresentations regarding
its current financial condition, manufacturing and shipping costs for
Replacement Sprinklers and Replacement Parts, the number of Omega sprinklers
remaining to be remediated (approximately 8.4 million), and/or the projected
costs of administering the recall and replacement program in this Agreement and
Order, and the staff has relied on those misrepresentations in entering into
this Agreement. Appendix D of the Order lists those documents containing
representations deemed material by the parties.
Accepted and Approved: Accepted and Approved:
--------------------------- --------------------------------
CPSC Office of Compliance Respondents Central Sprinkler Co.
and Central Sprinkler Corp.
7
25. Beginning 3 months after the effective date of the Commission's
Order, and for every 3 months thereafter until the expiration or final
determination of the Claims as defined in Paragraph 1.c, of Appendix C of the
Order, Central shall provide to the staff a full report on the progress and
status of the Claims as defined in Paragraph 1.c of Appendix C of the Order, and
the progress and status of the remediation program set forth in this Agreement
and Order, including but not limited to the payments made to the Trust as
defined in Appendix C of the Order, and the expenses paid and/or incurred for
notice and administration of the remediation program set forth in this Agreement
and Order. Central shall provide, with these reports, the daily timesheets, with
descriptions of all work performed, of each Central employee involved in
administration of the remediation program, for the time period since the last
report date. At any time, upon reasonable written notice, the Commission may
require Central to submit to an independent or Commission review and/or audit of
the remediation program set forth in this Consent Agreement and Order, and/or
any Claims as defined in Paragraph 1.c of Appendix C. Central shall provide the
staff with a copy of every audit report of its financial condition within 5
business days of the date the report is prepared.
26. If, after the effective date hereof, any provision of this Consent
Agreement and Order is held to be illegal, invalid, or unenforceable under
present or future laws effective during the terms of this Consent Agreement and
Order, such provision shall be fully severable. The rest of the Agreement and
Order shall remain in full effect, unless the
Accepted and Approved: Accepted and Approved:
--------------------------- --------------------------------
CPSC Office of Compliance Respondents Central Sprinkler Co.
and Central Sprinkler Corp.
8
Commission determines that severing the provision materially impacts the
remediation program set forth in this Agreement and Order.
27. Central acknowledges that this Consent Agreement and Order have
been negotiated between unrelated, sophisticated and knowledgeable parties
acting in their own self-interest and represented by counsel, and the provisions
of this Consent Agreement and Order shall not be interpreted or construed
against any person or entity because that person or entity or any of its
attorneys or representatives drafter or participated in drafting this Consent
Agreement.
28. The provisions of this Consent Agreement and Order shall be
interpreted in a reasonable manner to effect its purpose to remedy the alleged
hazard that Omegas pose. In the event of a dispute between the parties arising
under this Consent Agreement and Order, the parties agree to submit the issue
for determination by the Commission. Except as stated to the contrary in
Paragraph 7 through 10 of Appendix C of the Order, Central shall have the right
to seek judicial review of the Commission decision, such review to be based upon
the record of any such Commission proceeding and according to law.
29. The existence of a dispute shall not excuse, toll, or suspend any
obligation or deadline imposed upon Central under this Consent Agreement and
Order.
30. This Consent Agreement and Order shall not be waived, changed,
amended, modified, or otherwise altered, except in writing by the party or
parties against
Accepted and Approved: Accepted and Approved:
--------------------------- --------------------------------
CPSC Office of Compliance Respondents Central Sprinkler Co.
and Central Sprinkler Corp.
9
whom such amendment, modification, alteration, or waiver is sought to be
enforced, and approved by the Commission.
Dated: October 1, 1998
/s/ Xxxx xxxxxxxxxx /s/ J. Xxxxxx Xxxxxx, Xx.
--------------------------------------- -------------------------------------
Xxxxxxx X. Xxxxxx, Esq. J. Xxxxxx Xxxxxx, Xx., Esq.
Xxxx X. Xxxxxx, Esq. Xxxxx X. Xxxxxxxx, Esq.
Xxxxxx X. Xxxxxxx, Esq. XXXXXX, XXXXX & BOCKIUS LLP
Complaint Counsel 0000 Xxx Xxxxx Xxxxxx
X.X. Consumer Product Safety Commission Xxxxxxxxxxxx, XX 00000
Office of Compliance (000) 000-0000
0000 Xxxx Xxxx Xxxxxxx
Xxxxxxxx, XX 00000
(000) 000-0000
Of Counsel Xxxxxxx X. Xxxxx, Esq.
Xxxx X. Xxxxx XXXXXX, XXXXX & BOCKIUS LLP
Director, Legal Division 0000 X Xxxxxx, XX
Xxxx X. Xxxxxx Xxxxxxxxxx, XX 00000-0000
Assistant Executive Director (000) 000-0000
Office of Compliance
Xxxx X. Xxxxxxxxxx, Esq.
Complaint Counsel CORR, XXXXXXX & XXXXXXXXXX
Five Xxxxxxxxx Xxxxxxxxx, Xxxxx 000
Xxxxxxx, XX 00000
(000) 000-0000
Counsel for Respondents
/s/ X. Xxxxxx Xxxxxxxx
-------------------------------------
X. Xxxxxx Xxxxxxxx
CEO, Central Sprinkler Corp. and
Central Sprinkler Co.
Accepted and Approved: Accepted and Approved:
--------------------------- --------------------------------
CPSC Office of Compliance Respondents Central Sprinkler Co.
and Central Sprinkler Corp.
10
APPENDIX
A
Appendix A
Central Sprinkler Omega Notification Plan
Central's Efforts to Generate Editorial Coverage of Program - ongoing efforts
by Xxxxxxxx and Associates
Local Print Advertising (Newspapers)
o Proposed notice is set out in Exhibit I
o Eighty-seven 3-column x 7.5" ads will appear in 79 newspapers in each of the
68 targeted counties (Exhibit 2). The newspaper coverage will include the
Arizona Republic, Los Angeles Times, (2 x), San Francisco Chronicle, Denver
Post, Washington Post, Atlanta Journal, Chicago Tribune (2x), New York Times,
Philadelphia Inquirer (2x), and Dallas Morning News, as well as other papers
noted in Exhibit 3. The notices will appear in the front section of the
national news by November 1, 1998.
o Repeat notice - Central to place at least one ad in one local/regionalized
paper in each of the 68 targeted counties on or around May 1, 1999. Such
notice to only include information about the recall. This notice must be
approved by CPSC staff.
Trade Publication Advertising
Paid Ads Using Exhibit I to be purchased for the following publications for the
next available issue within 8 business days of CPSC press announcement
o Buildings Magazine
o Building Operating Management
1
o Commercial Property News
o National Real Estate Investor
o Journal of Property Management
o Facilities Design and Management
o Fire Protection Contractor (FPC)
o Sprinkler Age
o NFPA Journal
National Print Advertising
(Using Exhibit 1 and purchased for publication within 8 business days of CPSC
press announcement)
o 2/5th page ad in Parade Magazine
o Digest size ad in USA Weekend
o Full-page ad in Reader's Digest
o Full page ad in seven local editions of TV Guide
2
Direct Notice Communications
o First class letter with appropriate outer signal words as attached hereto
including the following documents in the following order: letter to consumers
(Exhibit 4), Proof of Claim, Waiver and Release of Claims, Request for
Exclusion, Verification Forms, product identification information, and long
form class action notice. This notice will be mailed to the identified
consumers set forth below within 8 business days of CPSC announcement (where
applicable).
o All individuals who filed claims against Central Sprinkler for Omega
Series Sprinklers.
o All individuals who called the toll free Central Sprinkler Omega
information line regarding Omega Series Sprinklers.
o All individuals who call the 1-800 automated telephone number or write
requesting the Class Notice or Recall as a result of seeing the published
notice.
o Within 30 days of CPSC press announcement, subject to availability of mailing
lists, mailing of first class letter, with appropriate outer signal words
substantially in the form set out in the attached letter to AHJs (Exhibit 4)
including Proof of Claim, Waiver and Release of Claims Form, Request for
Exclusion, Verification Forms product identification information, and long
term class notice to:
o Authorities having jurisdiction in counties with sprinkler laws,
regulations or ordinances.
o Within 30 days of CPSC press announcement, subject to availability of mailing
lists, mailing of first class letter, with appropriate outer signal words, in
the form substantially set out in consumer letter and Proof of Claim, Waiver
and Release of Claims, Verification Forms and product identification
information to:
o Organizations identified through purchased mailing lists for:
3
Hospitals
Nursing and Convalescent Homes
Hotels & Motels
School Districts
Colleges & Universities
Approximately 14,334 U.S. members of the Building Owners and Managers
Association (BOMA).
o Within 30 days of CPSC press announcement, subject to availability of mailing
lists, mailing of first class letter, with appropriate outer signal words,
substantially in the form set out in the attached letter to AHJs, with
product identification information to:
Insurance-Homeowners
Insurance-Property & Casualty
Authorities Having Jurisdiction known to Central Sprinkler in counties
without sprinkler laws, regulations or ordinances
Distributors, Contractors, and End-users known to Central Sprinkler
Member of American Fire Sprinkler Association, National Fire Sprinkler
Association, and Home Inspectors Associations
o Within 30 days of CPSC press announcement, subject to availability of mailing
lists, mailing of first class letter, with appropriate outer signal words,
substantially in the form set out in the attached letter to AHJs, including
Proof of Claim, Waiver and Release of Claims and Verification Forms, long
form class notice and product identification information to the executive
directors of:
National Association of Homebuilders
Home Fire Sprinkler Coalition
Fire Marshals Association of North America
Fire Sprinkler Education Foundation, Inc.
International Association of Fire Chiefs
National Fire Protection Association
Operation Life Safety
4
Consumer Federation of America
Consumer Information Center
Consumer Union of United States
National Consumer League
o Written letter by first class mail to members of the American Waterworks
Association in 68 targeted counties to provide notice of the corrective
action either as part of water bills or consumer newsletters. CPSC to approve
language for letter.
Computer Posting
o A public service announcement will be posted on appropriate legal, consumer,
fire safety and related bulletin boards on Usenet News groups (Exhibit 5) and
major online services (i.e., America Online, etc.) directed to professionals
and consumers. In addition to any other contact information, the online PSA
will include a link to the Central Omega program website.
o The notices of Recall and Settlement, Proof of Claim, Verification and
Waiver and Release of Claims forms will be posted on the Omega website to
provide access to the notice and other pertinent information. The website
will be listed with major search engines.
o In addition, hyperlinks may be established with other websites, including
CPSC's, related to fire safety, legal and construction-related issues to
allow access to the class action and recall notice.
Telephone Support
1-800 REQUEST-LINE
All print advertising will direct the reader to call a 1-800 telephone number,
to write to an address or to go to the website in order to receive the Notice of
recall and settlement and related forms.
5
A 0-000 000-0000 interactive telephone number will be utilized. A pre-recorded
message will welcome callers to the line. Callers will be directed through a
series of steps that will allow the system to capture their names, mailing
addresses and phone numbers.
Names and addresses will be downloaded and transcribed within 48 hours.
Consumers will be mailed class action notice/recall package within 8 business
days of consumer call until November 15, 1998 and thereafter within 5 business
days.
1-800 OMEGA INFORMATION LINE
The Notice of recall and settlement will include Central Sprinkler's toll-free
Omega information line. If potential Class Members have questions after
reviewing the Notice of recall and settlement, they will be able to speak with a
Central customer service representative. All customer service representatives
will be trained by Central Sprinkler. A question and answer document
incorporating a list of commonly asked questions is being drafted in advance so
that customer service representatives will be prepared with scripted answers.
The script will be updated periodically to include new information and answers
to added questions. Central intends to dedicate 20 customer service
representatives staggered throughout the operational period for the first 6
weeks from the date of the Notice of recall and settlement. The Omega
information line will operate from 7:00 a.m. until 9:00 p.m. Monday through
Friday for the first six weeks. Staffing for the Omega information line
thereafter will be assessed after week 6.
Accepted and Approved: Accepted and Approved:
/s/ /s/
-------------------------- ---------------------------------
CPSC Office of Compliance Respondents Central Sprinkler Co.
and Central Sprinkler Corp.
6
EXHIBIT 1
--------------------------------------------------------------------------------
IMPORTANT SAFETY RECALL
AND CLASS ACTION SETTLEMENT
--------------------------------------------------------------------------------
FOR HOME OWNERS/BUILDING OWNERS WITH OMEGA BRAND
FIRE SPRINKLERS MANUFACTURED BY CENTRAL SPRINKLER CO.
--------------------------------------------------------------------------------
Central Sprinkler Company ("Central") and the United States Consumer Product
Safety Commission are announcing a settlement involving the recall and
replacement of approximately 6.4 million Omega brand fire sprinklers
manufactured since 1982 by Central. Plaintiffs in two suits representing a
nationwide class have preliminarily settled their suits and are also announcing
the suitability of a remedy. Omega fire sprinklers are installed in homes,
offices, hospitals, schools and other buildings around the country.
OMEGA FIRE SPRINKLERS COULD LIKELY FAIL IN A FIRE, WHICH COULD RESULT IN BODILY
INJURY OR DEATH.
IDENTIFYING SPRINKLERS
Numerous models of the Omega fire sprinklers are involved. On most models,
consumers will be able to see one to three flat round metal disks attached one
above the other with a small space between each disk. However, because it may be
difficult to determine whether Omegas are installed, consumers are encouraged to
call the toll free number below for product identification or contact their
architect, builder, sprinkler contractor, plumber, homeowners' association or
property manager to determine if Omegas are installed in their residence or
facility.
Building owners and consumers are urged to take immediate action and call the
Omega information line to learn more about the recall, how to identify Omega
sprinklers, obtain a Proof of Claim form, and obtain further information about
the settlement, including how to participate in the settlement and how the
settlement may affect their legal rights.
SPRINKLER REPLACEMENTS
For consumers to get replacement sprinklers and any reimbursement towards
installation costs, they must submit the Proof of Claim and Release Forms to
Central postmarked by August 1, 1999. Consumers submitting Proof of Claim and
Release Forms postmarked after August 1, 1999 but before November 1, 2001 all
qualify to receive replacement sprinklers (though not reimbursement).
Until free replacement sprinklers are provided, consumers need to protect
themselves against fire, have working smoke detectors and have adequate escape
plans.
CLASS ACTION
If you are an owner or operator of a building that is or was equipped with Omega
fire sprinklers, your legal rights may be affected by the proposed class action
settlement which, if approved by the court, will result in the release of
certain claims.
Complete information about your rights as a class member, the settlement
approval process, how to exclude yourself from the settlement class, how to
object or comment on the settlement, and how to make a claim for replacement
sprinklers and costs, including important dates and deadlines, is available in
the Full Notice of Settlement.
--------------------------------------------------------------------------------
FOR FURTHER INFORMATION AND A COPY OF THE RECALL
AND FULL NOTICE OF CLASS ACTION SETTLEMENT,
CALL: 0-000-000-0000
OR WRITE: X.X. XXX 0000; XXXXXXXX, XX 00000-0000
OR VISIT: xxxx://xxx. xxxxxx.xxx/xxxx
PLEASE DO NOT CONTACT THE COURT.
DATED: March XX, 19xx COMMISSIONER XXXXX X. XXXXXXXX
The lawsuit and settlement are under consideration in
Hail x. Xxxxxx Sprinkler Corp. No. SCI, 78727 (Cal. Super Ct).
It is pending before
Commissioner Xxxxx X. Xxxxxxxx in the Los Angeles County Superior Court.
--------------------------------------------------------------------------------
CENTRAL SPRINKLER NOTICE PLAN
NEWSPAPERS ADVERTISING IN 68 TARGETED COUNTIES
--------------------------------------------------------------------------------------------------------------
STATE CITY NEWSPAPER CIRCULATION INSERTIONS
--------------------------------------------------------------------------------------------------------------
AZ Phoenix Arizona Republic, Gazette 581,337 1
--------------------------------------------------------------------------------------------------------------
CA Los Angeles Times 1,400,397 2
--------------------------------------------------------------------------------------------------------------
CA San Francisco Chronicle, Examiner 639,719 1
--------------------------------------------------------------------------------------------------------------
CA San Diego Union-Tribune 452,980 1
--------------------------------------------------------------------------------------------------------------
CA Orange County Register 416,071 1
--------------------------------------------------------------------------------------------------------------
CA Sacramento Bee 350,345 1
--------------------------------------------------------------------------------------------------------------
CA San Xxxx Mercury News 347,275 1
--------------------------------------------------------------------------------------------------------------
CA Los Angeles/Torrance Daily Breeze 218,427 1
--------------------------------------------------------------------------------------------------------------
CA Los Angeles Daily News 218,427 1
--------------------------------------------------------------------------------------------------------------
CA Oakland Alameda-Oakland Metro Group 194,240 1
--------------------------------------------------------------------------------------------------------------
CA Freemont-Newark Argus - 1
--------------------------------------------------------------------------------------------------------------
CA Xxxxxxx Review - 1
--------------------------------------------------------------------------------------------------------------
CA Plessanton Tri-Valley Herald - 1
--------------------------------------------------------------------------------------------------------------
CA San Maleo County Times - 1
--------------------------------------------------------------------------------------------------------------
CA Fresno Bee 188,793 1
--------------------------------------------------------------------------------------------------------------
CA Riverside Press-Enterprise 173,533 1
--------------------------------------------------------------------------------------------------------------
CA Los Angeles Press-Telegram 128,106 1
--------------------------------------------------------------------------------------------------------------
CA Walnut Creek Contra Costa Times Combo 106,140 1
--------------------------------------------------------------------------------------------------------------
CA Antooh Ledger/Dispatch - 1
--------------------------------------------------------------------------------------------------------------
CA Plessanton Valley Times - 1
--------------------------------------------------------------------------------------------------------------
CA Richmond West County Times - 1
--------------------------------------------------------------------------------------------------------------
CA Ventura County Star 103,069 1
--------------------------------------------------------------------------------------------------------------
CA Santa Xxxx Press Democrat 102,745 1
--------------------------------------------------------------------------------------------------------------
CA San Bernadino County Sun 94,288 1
--------------------------------------------------------------------------------------------------------------
CA Ontario-Inland Valley Bulletin 83,388 1
--------------------------------------------------------------------------------------------------------------
CA Stockton Record 82,144 1
--------------------------------------------------------------------------------------------------------------
CA Santa Xxxxxxx News-Press 51,421 1
--------------------------------------------------------------------------------------------------------------
CA Palm Springs The Desert Sun 50,725 1
--------------------------------------------------------------------------------------------------------------
CA Marin County Independent Journal 42,772 1
--------------------------------------------------------------------------------------------------------------
CA Redding Record Searchlight 39,667 1
--------------------------------------------------------------------------------------------------------------
Xxxxxxxx Communications, Ltd.
Page 1
----------------------------------------------------------------------------------------------------------------
STATE CITY NEWSPAPER CIRCULATION INSERTIONS
----------------------------------------------------------------------------------------------------------------
CA Monterey County Herald 39,238 2
----------------------------------------------------------------------------------------------------------------
CA San Xxxx Oblapo Telegram - Tribune 33,722 1
----------------------------------------------------------------------------------------------------------------
CA Santa Xxxx County Sentinel 29,829 1
----------------------------------------------------------------------------------------------------------------
CA Salnas Californian 21,096 2
----------------------------------------------------------------------------------------------------------------
CA Vallejo Times-Herald 20,477 1
----------------------------------------------------------------------------------------------------------------
CA Napa Napa Valley Register 19,639 1
----------------------------------------------------------------------------------------------------------------
CO Denver Post 456,237 1
----------------------------------------------------------------------------------------------------------------
CO Denver Rocky Mountain News 422,601 1
----------------------------------------------------------------------------------------------------------------
CO Fort Xxxxxxx Coloradoan 35,165 1
----------------------------------------------------------------------------------------------------------------
DC Washington Post 1,129,519 1
----------------------------------------------------------------------------------------------------------------
DE Wilmington News Journal 150,287 1
----------------------------------------------------------------------------------------------------------------
FL Orlando Sentinel 388,722 1
----------------------------------------------------------------------------------------------------------------
FL Tampa Tribune 350,539 1
----------------------------------------------------------------------------------------------------------------
FL West Palm Beach Post 224,211 1
----------------------------------------------------------------------------------------------------------------
FL Fort Xxxxx News-Press 103,367 1
----------------------------------------------------------------------------------------------------------------
FL Naples News 62,183 1
----------------------------------------------------------------------------------------------------------------
FL Bradenton Herald 49,545 1
----------------------------------------------------------------------------------------------------------------
GA Atlanta Journal-Constitution 701,982 1
----------------------------------------------------------------------------------------------------------------
GA Savannah News & Press 77,070 1
----------------------------------------------------------------------------------------------------------------
GA Lawrenceville Gwinnett Daily Post 12,799 1
----------------------------------------------------------------------------------------------------------------
HI Honolulu Advertiser & Star-Bulletin 193,318 1
----------------------------------------------------------------------------------------------------------------
IL Chicago Tribune 1,074,814 2
----------------------------------------------------------------------------------------------------------------
IL Chicago Sun-Times 466,116 2
----------------------------------------------------------------------------------------------------------------
IL Chicago Daily Herald 153,081 2
----------------------------------------------------------------------------------------------------------------
IL Chicago Southtown 65,167 2
----------------------------------------------------------------------------------------------------------------
MD Baltimore Sun 471,637 1
----------------------------------------------------------------------------------------------------------------
MD Annapolis Capital 83,507 1
----------------------------------------------------------------------------------------------------------------
NJ Newton New Jersey Herald 35,714 1
----------------------------------------------------------------------------------------------------------------
NY New York City Times 1,644,128 1
----------------------------------------------------------------------------------------------------------------
NY White Plains Gannett Suburban Newspapers 185,843 1
----------------------------------------------------------------------------------------------------------------
NY Poughkeepsie Journal 58,126 1
----------------------------------------------------------------------------------------------------------------
OH Cleveland Plain Dealer 513,045 1
----------------------------------------------------------------------------------------------------------------
OH Columbus Dispatch 383,829 1
----------------------------------------------------------------------------------------------------------------
OH Delaware Gazette 8,038 1
----------------------------------------------------------------------------------------------------------------
Xxxxxxxx Communications, Ltd.
Page 2
----------------------------------------------------------------------------------------------------------------
STATE CITY NEWSPAPER CIRCULATION INSERTIONS
----------------------------------------------------------------------------------------------------------------
PA Philadelphia Inquirer 901,891 2
----------------------------------------------------------------------------------------------------------------
PA Pittsburgh Post Gazette 424,431 1
----------------------------------------------------------------------------------------------------------------
PA Philadelphia Greater Philadelphia Newspapers 173,421 1
----------------------------------------------------------------------------------------------------------------
PA York Dispatch Record News 92,682 1
----------------------------------------------------------------------------------------------------------------
PA Wilkse-Barre Times Leader 67,763 1
----------------------------------------------------------------------------------------------------------------
PA Chester Delaware County Times 50,127 1
----------------------------------------------------------------------------------------------------------------
PA West Xxxxxxx Local News 32,920 1
----------------------------------------------------------------------------------------------------------------
PA Wilkse-Barre Citizens' Voice 29,476 1
----------------------------------------------------------------------------------------------------------------
TX Dallas Morning News 800,308 1
----------------------------------------------------------------------------------------------------------------
UT Salt Lake City Tribune & Deseret News 230,259 1
----------------------------------------------------------------------------------------------------------------
VA Virginia Beach Virginian-Pilot 235,480 1
----------------------------------------------------------------------------------------------------------------
WA Seattle Times/Post-Intelligencer 502,134 1
----------------------------------------------------------------------------------------------------------------
WA Bellevue Eastside Journal 48,284 1
----------------------------------------------------------------------------------------------------------------
WA Port Angeles Peninsula News 27,464 1
----------------------------------------------------------------------------------------------------------------
WI Madison Capital Times 161,562 1
================================================================================================================
TOTALS 79 Newspapers 19,488,570 87
Xxxxxxxx Communications, Ltd.
Page 3
Central Sprinkler
Reach and Frequency by County
State County Reach Freq.
--------------------------------------------------------------------
WA Clallam 99.9% 2.7
--------------------------------------------------------------------
CA Shasta 99.7% 2.4
--------------------------------------------------------------------
GA Gwinnett 99.7% 2.3
--------------------------------------------------------------------
CA Marin 99.3% 3.0
--------------------------------------------------------------------
CO Xxxxx 99.3% 3.0
--------------------------------------------------------------------
FL Seminole 99.2% 2.3
--------------------------------------------------------------------
WI Dane 99.2% 2.1
--------------------------------------------------------------------
CA Sonorna 99.1% 2.5
--------------------------------------------------------------------
FL Hillsbourgh 99.1% 2.1
--------------------------------------------------------------------
CA Fresno 99.1% 2.1
--------------------------------------------------------------------
PA Xxxxxxxxxx 98.9% 3.0
--------------------------------------------------------------------
CA Yolo 98.9% 1.9
--------------------------------------------------------------------
TX Dallas 98.8% 2.1
--------------------------------------------------------------------
CA Orange 98.7% 2.9
--------------------------------------------------------------------
MD Baltimore 98.4% 2.1
--------------------------------------------------------------------
CO Larimer 98.3% 2.8
--------------------------------------------------------------------
WA King 98.3% 2.2
--------------------------------------------------------------------
PA York 98.3% 2.1
--------------------------------------------------------------------
CA Sacramento 98.3% 2.1
--------------------------------------------------------------------
FL Orange 98.2% 2.0
--------------------------------------------------------------------
HI Honolulu 98.0% 2.0
--------------------------------------------------------------------
CA Ventura 97.9% 2.8
--------------------------------------------------------------------
AZ Maricopa 97.4% 2.0
--------------------------------------------------------------------
CA Riverside 97.3% 2.6
--------------------------------------------------------------------
MD Xxxxxx 97.3% 2.2
--------------------------------------------------------------------
MD Xxxxxxxxxx 97.2% 1.9
--------------------------------------------------------------------
CA Napa 97.1% 2.6
--------------------------------------------------------------------
VA Fairfax 97.1% 1.9
--------------------------------------------------------------------
UT Salt Lake 96.9% 2.0
--------------------------------------------------------------------
MD Prince George's 96.9% 2.0
--------------------------------------------------------------------
GA Xxxx 98.8% 2.1
--------------------------------------------------------------------
IL Du Page 96.7% 3.1
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OH Delaware 96.7% 1.7
--------------------------------------------------------------------
PA Bucks 96.5% 2.8
--------------------------------------------------------------------
FL Manatee 95.2% 2.3
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GA Chatham 96.2% 1.9
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Xxxxxxxx Communications, Ltd.
Page 1
State County Reach Freq.
--------------------------------------------------------------------
CA Contra Costra 96.1% 2.4
--------------------------------------------------------------------
VA Virginia Beach 95.9% 1.9
--------------------------------------------------------------------
CA Santa Xxxxx 95.8% 1.9
--------------------------------------------------------------------
PA Delaware 95.8% 2.7
--------------------------------------------------------------------
CO Boulder 95.2% 2.4
--------------------------------------------------------------------
PA Chester 95.1% 2.8
--------------------------------------------------------------------
FL Xxx 94.8% 1.7
--------------------------------------------------------------------
CA San Xxxx Obispo 94.7% 2.2
--------------------------------------------------------------------
MD Xxxx Arundel 94.6% 2.4
--------------------------------------------------------------------
DE New Castle 94.5% 1.9
--------------------------------------------------------------------
CA San Diego 94.4% 2.0
--------------------------------------------------------------------
CA San Mateo 94.1% 2.0
--------------------------------------------------------------------
FL Palm Beach 94.1% 1.9
--------------------------------------------------------------------
CA San Francisco 93.9% 1.8
--------------------------------------------------------------------
IL Lake 93.4% 2.9
--------------------------------------------------------------------
FL Colliar 93.3% 1.7
--------------------------------------------------------------------
NY Dutchess 93.3% 1.6
--------------------------------------------------------------------
NJ Sussex 93.0% 2.4
--------------------------------------------------------------------
CA Santa Xxxxxxx 93.0% 2.3
--------------------------------------------------------------------
CA San Xxxxxxx* 92.9% 2.2
--------------------------------------------------------------------
CA Santa Xxxx* 92.4% 2.4
--------------------------------------------------------------------
PA Allegheny 92.1% 1.8
--------------------------------------------------------------------
CA Alameda* 91.9% 2.4
--------------------------------------------------------------------
CA San Bernardino* 91.4% 2.8
--------------------------------------------------------------------
NY Westchester* 91.0% 2.0
--------------------------------------------------------------------
CA Xxxxxx* 90.7% 2.4
--------------------------------------------------------------------
PA Luzerne 90.6% 2.2
--------------------------------------------------------------------
CA Los Angeles* 90.3% 2.4
--------------------------------------------------------------------
OH Cuyahoga* 90.1% 1.3
--------------------------------------------------------------------
CA Monterey* 89.9% 2.5
--------------------------------------------------------------------
PA Philadelphia* 89.7% 2.3
--------------------------------------------------------------------
IL Xxxx* 89.6% 2.7
--------------------------------------------------------------------
*Includes Reach from TV Guide Local Edition
Xxxxxxxx Communications, Ltd.
Page 2
EXHIBIT 4
(Final Versions of Consumer Letter and
AHJ Letter to be Provided by CPSS)
IMPORTANT SAFETY INFORMATION
RECALL OF CENTRAL SPRINKLER'S OMEGA BRAND FIRE SPRINKLERS
To Consumer/Homeowner:
The Consumer Product Safety Commission (CPSC) and Central Sprinkler
recently announced the recall of all Omega fire sprinklers. According to the
CPSC, these sprinklers are defective and could likely fail in a fire, which
could result in bodily injury or death.
Please read the entire attached packet of information carefully. It is
very important for you to determine if Omega sprinklers are installed in your
home or building. The notice contains product information regarding the recall
with the CPSC, as well as the preliminary settlement Central has reached with
several private class action lawsuits. Please refer to the product information
sheets which explain how to identify Omega sprinklers. Because sprinklers can be
difficult to identify, we urge you to check with your architect, builder,
sprinkler contractor, plumber, homeowners, association or property manager.
This recall is available to all owners of Omega fire sprinklers. To
participate in the recall you must complete the enclosed Proof of Claim Form and
Waiver and Release of Claims Form as soon as possible and return them to Central
Sprinkler at the address indicated in the Proof of Claim Form. Central Sprinkler
will mail you a free replacement sprinkler for every Omega sprinkler owned.
In order to receive replacement sprinklers and to qualify for
reimbursement toward installation costs, you must complete the Proof of Claim
Form and the accompanying Waiver and Release of Claim Form and return them to
Central Sprinkler, postmarked by August 1, 1999. Although it is important to
provide complete information, please submit your Proof of Claim Form postmarked
by August 1, 1999, even if you can not provide complete responses to all the
questions. In order to receive reimbursement toward installation costs, you
must complete and return the Verification Form within 365 days after you receive
your replacement sprinklers. Those owners filing a Proof of Claim and Waiver and
of Release of Claims Forms postmarked after August 1, 1999 but before November
1, 2001, still qualify to receive replacement sprinklers (though not
reimbursement). The recall terms may also provide benefits to those who have
already replaced Omegas between May 1, 1996 and the effective date of the
Commission's Order.
Please read all of this information carefully, as it explains your
legal rights and obligations. If you have any questions about how to complete
the forms or how to identify an Omega sprinkler, please call the Omega Hotline
at 0-000-000-0000.
Do not delay! Take action today. Until you receive your free
replacement sprinklers, you should have a well-defined and rehearsed escape
plan, an alternate plan and working smoke detectors on every floor of your home,
especially near bedrooms.
IMPORTANT SAFETY INFORMATION
RECALL OF CENTRAL SPRINKLER'S OMEGA BRAND FIRE SPRINKLERS
October x, 1998
Dear Authority Having Jurisdiction:
I am writing to share with you urgent news regarding Omega fire
sprinklers that may well be installed in your area. If you are not already, you
must become aware of and familiarize yourself with this situation, the new steps
being taken to correct it, and the vital role you play by your action in
protecting consumer safety.
In cooperation with the United States Consumer Product Safety
Commission (CPSC), Central Sprinkler is recalling approximately 8.4 million
Omega series sprinklers now in service. According to the CPSC, these sprinklers
are defective, and could likely fail in a fire.
The recall is comprehensive and fundamentally different from our prior
remediation and notice efforts over the past three years. We are recalling all
Omega sprinklers in service, including Omegas containing an EPDM o-ring made
before June, 1996 and Omegas that contain a silicone o-ring made after June
1996. The recall encompasses Omegas from all dates of manufacture that are
installed in all piping systems -- not simply steel, but polybutylene, CPVC, and
copper, including those Omegas made after 1991. The recall involves no removal
and testing of Omega field samples, upon which remediation was previously
conditioned. The recall is not site-specific. It is total. As part of the
recall, Central will provide to all Omega owners -- free of charge -- an
approved Quick Response GB sprinkler as a replacement. The company has also
established a special Trust to help building owners and homeowners defray the
costs associated with replacing the sprinklers. The recall terms may also
provide benefits to those who have already replaced Omegas between May 1, 1996
and the effective date of the Commission's Order.
The first order of business is to help identify locations containing
Omega sprinklers and to help owners and residents of sprinklered properties
determine whether they have Omegas. The attached Notice includes product
identification to help you and property and homeowners in your area determine
whether they have Omega sprinklers on their premises, and if they do, which
model they have. As you may know, on all models of Omega sprinklers, you will
see a heat collector assembly, comprised of one to three flat metal disks or
fins and inside of which sit a plunger and fusible link. On some Omega models,
the word "Central" or the letters "CSC" may be visible on the deflector shield.
Building and homeowners who have Omegas installed in their buildings should call
0-000-000-0000 as soon as possible to request a Proof of Claim Form and Waiver
and Release of Claims Form, which must be completed in order to receive free
replacement sprinklers. In order to receive any reimbursement for replacement
costs, owners must submit a completed Proof of Claim Form and a Waiver and
Release of Claims Form to Central Sprinkler by August 1, 1999. Details on
completing the forms are included in the enclosed Notice packet. Please feel
free to distribute copies of this letter to owners of Omegas in your
jurisdiction. Those owners filing a Proof of Claim and Waiver and Release of
Claims Form postmarked after August 1, 1999 but before November 1, 2001, still
qualify to receive replacement sprinklers (though not reimbursement).
We are utilizing advertising, direct mail notices and news stories to
inform consumers about the recall. However, in identifying buildings and
residences that contain Omegas there is no substitute for personal intervention
from fire protection leaders such as yourself. Along with the CPSC, we encourage
you to help us spread the word about this recall to protect the public health
and safety.
Please keep these two phone numbers handy when you and your
constituents need further assistance:
- Call the Omega Information Line - 0-000-000-0000 to learn more about how to
identify an Omega sprinkler and to obtain a Proof of Claim Form. This is the
first number consumers should call to initiate the replacement effort.
- If you have any questions about the recall and replacement effort that are not
answered by the Omega Information or the Notice packet, you may call Central
Sprinkler's Omega Hotline at 1-800-xxx-xxxx.
On behalf of all of us who are committed to fire prevention and
protection, we thank for your support in this effort.
IMPORTANT SAFETY INFORMATION
RECALL OF CENTRAL SPRINKLER'S OMEGA BRAND FIRE SPRINKLERS
October x, 1998
Dear Authority Having Jurisdiction:
I am writing to share with you urgent news regarding Omega fire
sprinklers that may well be installed in your area. If you are not already, you
must become aware of and familiarize yourself with this situation, the new steps
being taken to correct it, and the vital role you play by your action in
protecting consumer safety.
In cooperation with the United States Consumer Product Safety
Commission (CPSC), Central Sprinkler is recalling approximately 8.4 million
Omega series sprinklers now in service. According to the CPSC, these sprinklers
are defective, and could likely fail in a fire.
The recall is comprehensive and fundamentally different from our prior
remediation and notice efforts over the past three years. We are recalling all
Omega sprinklers in service, including Omegas containing an EPDM o-ring made
before June, 1996 and Omegas that contain a silicone o-ring made after June
1996. The recall encompasses Omegas from all dates of manufacture that are
installed in all piping systems -- not simply steel, but polybutylene, CPVC, and
copper, including those Omegas made after 1991. The recall involves no removal
and testing of Omega field samples, upon which remediation was previously
conditioned. The recall is not site-specific. It is total. As part of the
recall, Central will provide to all Omega owners -- free of charge -- an
approved Quick Response GB sprinkler as a replacement. The company has also
established a special Trust to help building owners and homeowners defray the
costs associated with replacing the sprinklers. The recall terms may also
provide benefits to those who have ' already replaced Omegas between May 1, 1996
and the effective date of the Commission's Order.
The first order of business is to help identify locations containing
Omega sprinklers and to help owners and residents of sprinklered properties
determine whether they have Omegas. The attached Notice includes product
identification to help you and property and homeowners in your area determine
whether they have Omega sprinklers on their premises, and if they do, which
model they have. As you may know, on all models of Omega sprinklers, you will
see a heat collector assembly, comprised of one to three flat metal disks or
fins and inside of which sit a plunger and fusible link. on some Omega models,
the word "Central" or the letters "CSC" may be visible on the deflector shield.
Building and homeowners who have Omegas installed in their buildings should call
0-000-000-0000 as soon as possible to request a Proof of Claim Form and Waiver
and Release of Claims Form, which must be completed in order to receive free
replacement sprinklers. In order to receive any reimbursement for replacement
costs, owners must submit a completed Proof of Claim Form and a Waiver and
Release of Claims Form to Central Sprinkler by August 1, 1999. Please feel free
to distribute copies of this letter to owners of Omegas in your jurisdiction.
Those owners filing a Proof of Claim and Waiver and Release of Claims Form
postmarked after August 1, 1999 but before November 1, 2001, still qualify to
receive replacement sprinklers (though not reimbursement).
We are utilizing advertising, direct mail notices and news stories to
inform consumers about the recall. However, in identifying buildings and
residences that contain Omegas there is no substitute for personal intervention
from fire protection leaders such as yourself. Along with the CPSC, we encourage
you to help us spread the word about this recall to protect the public health
and safety.
Please keep these two phone numbers handy when you and your
constituents need further assistance:
- Call the Omega Information Line - 0-000-000-0000 to learn more about how to
identify an Omega sprinkler and to obtain a Proof of Claim Form. This is the
first number consumers should call to initiate the replacement effort.
- If you have any questions about the recall and replacement effort that are not
answered by the Omega Information or the Notice packet, you may call Central
Sprinkler's Omega Hotline at 1-800-xxx-xxxx.
On behalf of all of us who are committed to fire prevention and
protection, we thank for your support in this effort.
