Class Action Siding Settlement Proposed

Advisory Report - July 2000

Class Action Siding Settlement Proposed
Weyerhaeuser Company has agreed to take an after-tax charge of $82 million to cover the cost of a nationwide hardboard siding class action lawsuit and related claims.  The settlement is subject to court approval and other conditions in the agreement.

According to the Weyerhaeuser press release announcing the settlement (July 10, 2000), the settlement is claims-based; claims will be paid as submitted over a nine-year period.  Weyerhaeuser expects the court to complete its review of the settlement in the fourth quarter this year.

Weyerhaeuser Company, headquartered in Federal Way, Washington, grows and harvests timber; manufactures, distributes and sells forest products; and engages in real estate construction, development and related activities.

Hardboard is a material that has been used for a number of years, and it should be kept painted and sealed at all times. Hardboard material can follow any form--from a cardboard-type composition to the modern day pressed wood or particleboard sidings. When this type of material is not properly maintained, it deteriorates rapidly.  Hardboard, whether a cardboard variety, pressed board or particleboard, should be probed in suspect areas to ensure that the material is sound.  Manufacturer recommended installation details and clearances should also be inspected for compliance.