-Caveat Lector-

Dow Seeks To Ban Punitive Damages

By DEE-ANN DURBIN
.c The Associated Press

BAY CITY, Mich. (AP) - A federal bankruptcy judge said Friday he will focus
on whether Dow Corning Corp.'s corporate parents should remain immune to
lawsuits as part of a $4.5 billion settlement over silicone breast implants.

Dow Corning is owned equally by Dow Chemical Corp. and Corning Corp. Judge
Arthur Spector said the heart of the settlement is the question of immunity
for the two.

``This plan is illegal, it's unconstitutional, it's unauthorized and it's in
bad faith under the (bankruptcy) code,'' attorney Geoffrey White, an attorney
for several Nevada women, said during the last day of a hearing into the
settlement.

Spector also requested lawyers to submit more briefs on the question of
punitive damages.

``If the debtor's product didn't cause these people's diseases ... then they
shouldn't have to pay anything,'' he said. ``If they did cause diseases or
syndromes, then until they have no more money they should pay.''

The Midland-based company filed for bankruptcy in 1995 after thousands of
women started suing, claiming breast implants of Dow Corning silicone caused
a variety of diseases.

Spector didn't say when his ruling might come. If he doesn't confirm the
plan, a new settlement would have to be drafted.

Under the proposed settlement, women who blame illnesses on implants could
get $12,000 to $300,000 each. They could also receive up to $25,000 for
ruptured or leaking implants, and up to $5,000 for implant removal.

It provides $3.2 billion to settle claims from women with implants and an
additional $1.3 billion to settle other claims, including claims from
creditors and health-care organizations. The company would set aside up to
$400 million to cover any costs of defending lawsuits by women who reject the
settlement.

Nearly 113,000 women voted on the settlement terms earlier this year, and 94
percent approved.

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