Volume 37, Issue 2, February 2002


Marvin Awarded $136 Million in Suit; PPG to Appeal Federal Court Decision

A federal jury has awarded Marvin Windows and Doors of Warroad, Minn., $136 million in a breach-of-warranty suit against PPG Industries of Pittsburgh. PPG says it will appeal the decision.

In the original suit, filed in 1994, Marvin had alleged that PILT, a wood preservative from PPG, failed to prevent rot in its wood windows manufactured during the late 1980s. (See January 2002 USGlass, page 22, and the premiere issue of Door & Window Maker, page 24, for related stories.) PPG continues to maintain that PILT is not defective.

In 1999, a district judge threw the case out, a decision that Marvin appealed. The Eighth Circuit U.S. Court of Appeals dismissed 12 of the 13 claims, including fraud. However, the appeals court allowed Marvin to move forward with a jury trial on a breach-of-contract claim. 

At press time, no comment was available from PPG.

Lisa O’Connor Named Associate Publisher of USGlass Magazine
Key Communications Inc. of Stafford, Va., publisher of USGlass magazine, has announced that Lisa Naugle O’Connor has been named associate publisher.

For the past six years O’Connor has represented USGlass and its sister publications, AGRR, Window Film and Door & Window Maker, as Midwestern sales manager. Previously, she spent five years in direct marketing production sales in Chicago, and ten years selling advertising space for consumer magazines in New York City.

LISA PIC Lisa O' Connor

Flour City Receives NASDAQ Determination
Flour City International has reported it received a NASDAQ staff determination indicating that it “failed to comply with Marketplace Rule 4310 (c) (14),” failure to file its form 10-K for the period ending October 31, 2001. In order for Flour City to continue listing its securities, filing form 10-K is a requirement. “Failure to do so will subject Flour City’s securities to de-listing from the Nasdaq National Market,” stated a news release provided by the company.

CNA Agrees To Pay $18 Million
CNA Insurance, headquartered in Chicago, has agreed to pay $18 million to the family of Ana Flores, a 36-year-old woman who was killed in 1999 by a shard of glass that fell from the building’s 29th floor. (See October 1999 USGlass, page 13, for related story.

In addition, CNA agreed to pay a $250,000 fine to the city, and also to replace about 3,000 windows in the 45-story skyscraper. The cost to replace the windows is estimated to be $9 million, according to a news report.

According to building experts, the CNA building’s windows were subject to cracking “because of the stresses caused by differences in temperature.”

Glasstech Files for Bankruptcy
Glasstech Inc. of Perrysburg, Ohio, filed for bankruptcy January 30, 2002, the second time the company has filed for bankruptcy in ten years. The filing comes just months after Glasstech announced it would begin using contractors for some assembly work and that 28 employees would, in turn, become employees of the contractors.

Glasstech and its parent company, Glasstech Holding Co., filed for Chapter 11 financial reorganization in U.S. Bankruptcy Court in Wilmington, Del. The companies listed less than $100 million each in assets and debts.

Glasstech president and chief executive officer Mark Christman released the following statement about the company’s decision to file for bankruptcy. “The note-holders know the company is sound and that it is a good business with good management. Glasstech expects to promptly emerge from these proceedings a much stronger company financially,” said president Mark Christman.
John Baxter, vice president of marketing and sales, echoed his comments.

“We feel very good about our general business, and we intend to stay in business for a long time and think this will help us,” Baxter said. “We [did file for protection] with a particular aim in view, and that aim is to ensure that the company survives and strengthens.” 


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