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Owens-Illinois, Honeywell to appeal asbestos verdict

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BLOOMINGTON, Ill.—Owens-Illinois Inc. said it plans to appeal a $40 million punitive damages award that an Illinois jury levied against it in an asbestos liability case.

Owens-Illinois was one of several defendants in a case involving a man who had never worked for the company or in any of its facilities. The plaintiff, Charles Gillenwater, suffered from mesothelioma, which he alleged he contracted as a result of being exposed to asbestos while working as a pipefitter in several locations.

He alleged that Owens-Illinois, Honeywell International Inc. and Pneumo Abex conspired to conceal information about the health risks posed by asbestos. Late last week, a McLean County, Ill., jury in Bloomington awarded Mr. Gillenwater more than $9 million in compensatory damages and $80 million in punitive damages—$40 million from Owens-Illinois and $20 million each from Honeywell and Pneumo Abex. The jury levied only compensatory damages against a fourth defendant—John Crane Inc.

In a statement earlier this week, Perrysburg, Ohio-based Owens-Illinois said it is “disappointed” in the verdict.

“Owens-Illinois did not conspire with anyone concerning asbestos health hazards, continues to deny these conspiracy claims, and will challenge this verdict, if necessary, in the Illinois appellate courts,” the company said in the statement. “The company has successfully defended its position in similar cases and is confident of a successful outcome in this matter as well. Owens-Illinois does not anticipate any changes to its 2011 financial outlook as a result of this case.”

Morris Township, N.J.-based Honeywell said it also intends to appeal the award.

“We will appeal the decision and continue to vigorously defend our position,” said the company in a statement. “We are confident that we will ultimately prevail as have other defendants in similar cases.”

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