Wednesday February Amazon Web Services by jolinmilioncherie


									                                      THE AWARD WINNING HOUSTON CHAPTER
                                                Chapter of Distinction
                                         Outstanding Chapter Programming
                                      Advancing the Risk Management Profession
                                      February 2009
In This Edition:
 Chapter President Message
 Meeting Notice and Topic
 Legal Insights
 Legal Decision Discussion            FROM THE DESK OF THE CHAPTER PRESIDENT…
 RIMS on the Hill – Austin
                                      Hi Everyone,
 National RIMS Conference
 Chapter Membership Directories      Are you linked in to your RIMS Chapter? Are you the strongest or
 Professional Development Schedule   the weakest link? The Board met February 7th to discuss the
                                      plans for the year. Our theme for this year will be “Linked In”.
 Welcome New Members                 We are exploring ways to get everyone “linked in” to the Chapter
 Job Postings                        and will present them throughout the year.
 Chapter Meeting Place
                                      The programs planned for this year are interesting and are
                                     designed to be of interest to a wide variety of industries. We
                                      would love to hear more from you about the Chapter. Do you
    2009 Houston Chapter Board        have ideas about how the meetings can be improved? The
       Members and Advisors           evaluation sheets provided at each meeting provide the perfect
                                      venue for you to let us know what we do right and what you
President                             would like changed. If you are interested in volunteering your
Nancy Stucky                          time, there is a place on the evaluation sheets for you to choose
GPM, Inc.                             any area where you’d like to work. Do you have an idea for a new
                                      project area? Put it on the sheet. We love volunteers!!!
First Vice President
                                      Have you made your plans to attend the RIMS National
Victor Pivetta
Key Energy Services, Inc.             Conference? It starts Sunday, April 18th in Orlando, Florida. The                theme this year is Challenge Your Risk IQ. There are some
                                      great speakers lined up and the Exhibition Hall is a great place to
                                      find the right vendors for your Company’s needs. This is a
Treasurer                             wonderful place to learn and network with your peers.
Stephanie Degreve
Swift Energy                          Shawn Pickens with Deloitte Financial Advisory Services, LLP has
                                      graciously agreed to be our Webmaster! The RIMS National
Assistant Treasurer                   website was redesigned and all Chapters were encouraged to use
Michelle Wilkerson                    the new design with Chapter news and information included for
Newfield Exploration Company          their members. Shawn is diligently working on our new website               to get it up and going, so please be patient if you are having
                                      trouble getting on the site. We’d like to make the Houston
                                      Chapter site the best of all chapter sites, so please give us your

                                                                                              Page 1 of 10
Vice President/Secretary         ideas on what we can include to make it relevant to you.
Sondra K. Faul, CIC              For our February 18th meeting our speaker is Derek Regier, Vice
The University of TX HSC-H       President of Riskonnect, Inc., who will speak to us about ERM.        Have you wondered just exactly what ERM means to you and your
                                 company? Do you need an ERM program? Do you know how to
Vice President/Asst. Secretary
                                 get started? If not, this is the meeting for you. In today’s
Cynthia Vickers, ARM
                                 environment, ERM could be an essential part of keeping your
El Paso Corporation       company viable. Derek is an expert in mapping technology
                                 solutions to unique market and customer requirements. Come
Membership/Attendance            join us Wednesday to see how you can start or improve an ERM
Jennifer Howard                  program at your company.
The Blood Bank            See you there!

Associate Director/Membership    Nancy Stucky
Terry Owens
Goodman Global, Inc.
                                    February Meeting Topic and Speaker
Public Relations/Newsletter
John Lawson, ARM
Goodman Global, Inc.
                                              Wednesday, February 18, 2009                        11:30 AM – 1:00 PM
Job Placement                        Topic: Steps to a Simplified, Sustainable
Barbara Lewis
Jacobs Engineering Group                    and Mature ERM Program
                                 There is much confusion around Enterprise Risk Management
Chapter Liaison                  (ERM) in terms of expectations, internal and external needs,
Jo Anne Lancaster                how to realize value with an ERM program and how to get an
Westlake Chemical Company        ERM program started. This session will educate the audience
                                 about the current ERM environment, why an organization
Education                        needs to define its ERM program and goals, and most
Sharon Guillory                  importantly, how to get started. Organizations without an
Rain CII Carbon, LLC             enterprise-wide view of its risks, an understanding of its risks,            and without the ability to visualize and communicate the
                                 interconnectedness of its risks, are in danger of catastrophic
Associate Director/Education
                                 failure. Shareholders deserve more and demand more. This
Shona Bascon
Shell Oil Company                session will illustrate how to get started and get on track for a           sustainable, mature ERM program that delivers value to your
                                 organization and your shareholders.
Nikolas G. Kapatos               Derek Regier is a subject matter expert (SME) in the emerging
Sterling Bancshares, Inc.        enterprise risk management (ERM) technology space with a    proven track record in mapping technology solutions to unique
                                 market and customer requirements. Throughout his career, he
RIMS Delegate
Ella Andrews
                                 has been successful in marketing and servicing enterprise-wide
Friedkin Companies, Inc          performance management solutions across multiple industries            leveraging both direct sales and broad distribution channel

                                                                                       Page 2 of 10
Past President                  With experience in multiple levels of management, sales and
Ginny Penzell, ARM              executive leadership, including general management, sales and
El Paso Corporation             global marketing management, go-to-market development,
                                strategic account management, direct sales and channel
Web Master                      development, and fundraising (angel and private equity),
Shawn Pickens                   Regier brings a breadth of knowledge related to critical
Advisory Services, LLP          operational functions at both early stage start-ups and Fortune           500 companies combined with strategic, consultative ERM
                                technology solutions.
ARM Instructor
Jim Drew
Bowen Miclette and Britt, LLC
                                                       Legal Insights
  Meeting Dates for 2009        Construction
                                A Win for General Contractors and Construction
        February 18, 2009
                                Pelletier v. Sordoni/Skanska Construction Company
         March 18, 2009
    Joint Meeting with CPCU     A recent decision by the Connecticut Supreme Court represents an
                                important victory for general contractors and construction managers
        hosted by RIMS
                                in Connecticut.

          April 15, 2009        Product Liability
                                New Jersey Supreme Court Sounds The Death Knell For
 47th Annual RIMS Conference    Consumer Fraud Claims In Personal Injury Product Cases
       April 19 - 23, 2009      and Severely Limits Medical Monitoring Damages; Appellate
        Orlando, Florida        Division Follows Suit, Limiting Availability of Punitive
          May 20, 2009          McDarby v. Merck & Co., Inc.

          June 17, 2009         In a huge win for manufacturers of pharmaceuticals, medical devices,
                                and other consumer products, the New Jersey Supreme Court held
          July 15, 2009         on June 4, 2008, in Phyllis Sinclair v. Merck & Co., Inc.,1 that: 1)
                                personal injury Consumer Fraud Act (“CFA”) claims are entirely
                                subsumed by the New Jersey Products Liability Act (“PLA”); and 2)
         August 19, 2009
                                plaintiffs who do not allege a present physical injury may not sue for
                                medical monitoring.
      September 16, 2009
                                Public Nuisance
      Houston Chapter Fall      Rhode Island Supreme Court Rejects Use of Public Nuisance
       Conference – TBA         Theories For Allegedly Defective Products

                                State of Rhode Island v. Lead Industries Association, Inc.
       November 18, 2009
                                In this case, the Attorney General on behalf of the State of Rhode
        December 9, 2009        Island filed suit against various former lead pigment manufacturers
                                and the Lead Industries Association, a national trade association of
                                lead producers formed in 1928, for the use of lead paint in buildings
                                throughout Rhode Island, which has resulted in high rates of lead
                                poisoning in Rhode Island children. Id. at 1 (slip op.).

                                                                                           Page 3 of 10
                           Toxic Tort
                           Mississippi Affirms Reversal of Multimillion-Dollar Benzene
                           Suit Based on the Absence of Any Causation Evidence

                           Watts. v. Radiator Specialty, Co.

                           In a recent decision that provided a thoughtful Daubert analysis on
                           admitting expert opinion testimony, the Mississippi Supreme Court
                           recently affirmed the reversal of a multimillion-dollar benzene case
                           based on the absence of any causation evidence.

                           Product Liability
                           Similar Incident Evidence May Be Admissible To Prove
                           Design Defects

The Houston Chapter RIMS   Croskey v. BMW of North America
    mailing address is
                           Applying Michigan law, the Sixth Circuit Court of Appeals has recently
                           held that similar incident evidence may be admissible to prove design
5090 Richmond Ave. #86     defects in a product liability action, Croskey v BMW of North America,
Houston, TX 77056-7402     et al.

                           Premises Liability
                           Court Ruling May Significantly Limit Premises Liability Claims
                           Against Landlords

                           Allison v. A.E.W. Capital Management

                           Anyone who has the potential to handle a premises liability case in
                           Michigan against a landlord has been waiting for Michigan's Supreme
                           Court to issue an opinion in the Allison v A.E.W.

                           Contractual Indemnification
                           California Supreme Court Upholds Contractual Duty to
                           Defend; Despite Jury Finding Subcontractor Work Not

                           Crawford v. Weather Shield Manufacturing

                           J.M. Peters Co. (J.M. Peters) entered into a contract with Weather
                           Shield Manufacturing Co. ("Weather Shield") whereby Weather Shield
                           agreed "to indemnify and save [J.M. Peters] harmless against all
                           claims for damages . . . loss, . . . and/or theft . . . growing out of the
                           execution of [Weather Shield's] work," and "at [its] own expense to
                           defend any suit or action brought against [J.M. Peters] founded upon
                           the claim of such damage[,] . . . loss or theft."

                           Torts - Peculiar Risk - General Contractor Not Liable For
                           Failing To Place Protective Railing on Patio.

                           Madden v. Summit View, Inc.

                           We periodically report on cases interpreting Privette v. Superior Court
                           (1993) 5 Cal. 4th 689.
                                                                                         Page 4 of 10
                                          Securities Litigation
                                          Second Circuit holds that a plaintiff may plead corporate
              NOTICE:                     scienter in securities fraud suit without pleading scienter of
                                          any specific individual defendant
Effective January 1, 2008, the RIMS
Society has changed their method of       Teamsters Local 445 Freight Division Pension Fund v. Dynex
collecting Local Chapter Dues. In the     Capital, Inc.
past there were two deputies
included with the membership, then        In June, the United States Court of Appeals for the Second Circuit
a charge for each additional deputy       released its long-awaited opinion addressing the standard for
                                          pleading scienter of a corporate defendant in securities fraud actions.
added. Under the new structure they
will begin collecting chapter dues on     Dram Shop
a per deputy member basis. The new        Texas Supreme Court Interprets Dram Shop Act
structure for the Houston Chapter
Dues is $55 per deputy member. The        20801, Inc. v. Parker
change will be reflected on the
renewal invoice. The dues structure       The Texas Supreme Court recently interpreted the Texas Dram Shop
for associate membership has not          Act in an opinion that will affect lawsuits against sellers of alcoholic
changed.                                  beverages brought by persons who claim their injuries resulted from
                                          alcohol having been served to an obviously intoxicated person.
  Please see our Chapter Website for
        additional information:                Legal Decision Discussion

                  or                      Sixth Circuit Refuses To Vest Health Care Benefits Before
                                          Active Union Workers Actually Retire
WWW.RIMS.ORG – Chapters – Houston
                                          In a rare Sixth Circuit retiree benefits decision favorable to
                                          employers, the Court refused yesterday to find that a long-expired
                                          labor contract (CBA) between Caterpillar Inc. and the United
                                          Automobile Workers of America (“UAW”) vested (i.e., guaranteed)
                                          lifetime retiree health care benefits for active workers when they
                                          became eligible for pensions and years before they actually
                                          retired. Winnett v. Caterpillar Inc., 2009 WL 170598 (6th Cir.

                                          The lower court denied a motion to dismiss, finding that a 1988
                                          CBA demonstrated the parties’ intent to vest lifetime retiree health
                                          care benefits for UAW-represented active employees while they
                                          continued to work for Caterpillar. On interlocutory appeal, the
                                          Sixth Circuit reversed and directed the lower court on remand to
                                          dismiss any claims that turned exclusively on the theory that
                                          retiree health care benefits vested before actual retirement. Since
                                          most of the 4000-member plaintiff class became pension-eligible
                                          before the CBA expiration but retired after the CBA expiration, the
                                          Sixth Circuit’s ruling should dispose of the claims of the vast
                                          majority of the Winnett plaintiffs. The ruling should also affect the
                                          scope of the preliminary injunction issued by the lower court in
                                          the belief that plaintiffs would likely succeed on the merits of their

                                                                                                       Page 5 of 10
Plaintiffs claimed that the 1988 CBA provided all employees with
lifetime retiree health care benefits as soon as they became
eligible for pensions, even as to those who chose to remain
employed by Caterpillar, were represented by the UAW in
subsequent labor contract negotiations, and were covered under
subsequent labor contracts affording different retiree benefits.
Documents accompanying the 1988 CBA stated that the employer
would provide retiree health care benefits at no cost to a “retired
employee” if the employee had at least five years of credited
service under a pension plan and was eligible for commencement
of a pension. After the expiration of the 1988 CBA, Caterpillar
subsequently implemented health care network provisions for
retired employees and instituted caps on the amount that
Caterpillar would pay for retiree health coverage for employees
who retired after January 1, 1992. A new CBA entered into
between Caterpillar and the UAW in 1998 did not grant the same
retiree medical benefits as the 1988 CBA.

Caterpillar and its amici argued that the Sixth Circuit should not
extend its so-called “Yard-Man presumption” of vested lifetime
retiree benefits to workers who chose to remain employed, rather
than retire, at labor contract expiration. In UAW v. Yard-Man,
Inc., 716 F.2d 1476 (6th Cir. 1983), the Sixth Circuit became the
first federal appeals court to infer that the parties to a labor
contract intended retiree health care benefits to vest at the levels
set forth in the contract upon retirement before the contract had

Rejecting the lower court’s contractual analysis, the Sixth Circuit
held in Winnett that the plain language of the controlling
documents did not vest retiree health care benefits while the
individuals remained in active employment and still represented
by their union. The documents provided that retiree health care
benefits would be provided to “retired employees,” not to current
employees contemplating retirement at some point in the future,
even if those employees were currently eligible to retire. The
distinction in labor law between retirees and employees in active
employment who were “contemplating retirement” informed the
Court’s refusal to extend the Yard-Man inference of lifetime retiree
health care benefits to pension-eligible active employees before
they actually retired. Still, under the Court’s decision, a particular
CBA could vest health care benefits before actual retirement
absent any inference of vesting, if the plan language so compelled
that conclusion. Employers should review each and every
collectively bargained benefit agreement, and plans providing
retiree health care and other welfare benefits, in consultation with
experienced ERISA and labor law counsel, before reaching any
conclusion about pre-retirement vesting.

Contributed by Seyfarth Shaw LLP

                                                          Page 6 of 10
                                                    2009 RIMS on the Hill - Austin
  Educational and Associations
           Websites:                      On January 13, 2009, the 81st regular session of the Texas
                                          Legislature convened in Austin Texas. Currently, there are no less
American Institute for CPCU and           than 57 pieces of insurance related legislation being considered by
 Insurance Institute of America           the House of Representatives and/or Senate during the upcoming                     session.
    Charter Property Casualty             The Risk & Insurance Management Society and the Houston
      Underwriters Society
                                          Chapter support activities that encourage chapter members to
                                          become knowledgeable regarding the legislative process within
       Institutional Risk                 their respective states. Additionally, state politicians and their
      Management Institute                various staff members, need to understand the role Risk                     Managers serve, among the buyers of business insurance within
                                          their constituencies.
       The National Alliance
                    There is a tentative plan for interested members from all RIMS
                                          chapters from Texas, to gather in Austin between March 1st and
      Construction Risk and               3rd, for the first joint Texas RIMS On the Hill. Look for information
       Insurance Specialist               to be posted regarding legislative activity and our chapter plans                  for making RIMS position(s) known on current and future risk
                                          management related legislation.           In the meantime, visit
     For further Educational    , to learn more about our Texas state
     Opportunities Forms or               government and the upcoming 81st regular session.
   Information, please visit the
       Chapter website at:
                                          You may also contact Nick Kapatos, Director of Legislation at 713-
                                          507-2005 or for more
        RIMSChapter.cfm?CID=328           information.

                                                  2009 National RIMS Conference
                                          Amidst the recent turmoil in the financial markets, the risk management
                                          industry has been placed into the spotlight and risk practitioners are
                                          being asked to re-evaluate their risks and exposures. The Risk and
                                          Insurance Management Society (RIMS) 2009 Annual Conference &
                                          Exhibition, taking place April 19 -23 in Orlando, Florida will provide risk
                                          managers and other executives charged with risk management
                                          responsibilities with proven leadership strategies and techniques to
                                          successfully navigate this time of economic uncertainty, and the
                                          surfacing global threats.

                                          Registration for RIMS 2009 Conference & Exhibition is now
                                          open! - Learn how to navigate the complexities of risk at RIMS 2009
                                          Annual Conference & Exhibition in Orlando on April 19-23.

                                          With 120+ sessions offered at all experience levels and presented by
                                          400 industry experts, you'll find the instruction you need to strengthen
                                          your risk program. Browse the Exhibit Hall and find hundreds of
                                          companies offering the latest innovations and breakthrough solutions.
                                          And be ready—you'll experience networking opportunities at every turn.

                                                                                                          Page 7 of 10
        2008 – 2009 Houston Chapter
          Membership Directories
The 2008 – 2009 Houston Chapter Membership Directories
are available. The directory may be picked up at the monthly

  Professional Development Workshops
Errors and Omissions (E&O) and Professional Liability
February 19 - 20, Raleigh

Minimizing Insurance and Claims Costs
February 23 - 24, San Jose, CA

Fundamentals of Managing Market Risk
February 24 - 25, Calgary, AB

Business Continuity/Disaster Planning & Management
February 26 - 27, New York

 Risk Analysis Tools Boot Camp
 March 3 - 6, Miami
 A special four-day program for enhancing risk
 management data analysis and decision making.

    Enterprise Risk Management for the Advanced
    March 5 - 6, New York

Techniques of Risk Management
March 10 - 11, San Francisco

Fundamentals of Insurance
March 12 - 13, San Francisco

Directors and Officers Liability and Insurance
March 12 - 13, Cincinnati

    Move Your Program to the Next Level: RIMS Risk
    Maturity Model for ERM
    March 23 - 24, New York

Entrepreneurial Risk Management (ERMe): Risk
Management as a Profit Center (AB)
April 6 - 7, Edmonton, AB

                                                  Page 8 of 10
                                    Welcome New/Renewed Members
 Please see the Local Chapter
website and the Jobs   Cynthia Camarillo – Linbeck Group, LP
      Listing for details.      Brenda Demenge – HCC Insurance Holdings
                                Marian Jones – Consolidated Graphics, Inc.
                                Kathy Richter – Richfield Investment Corporation
                                Karen Todd – MEI Technologies, Inc.
                                Tammy Ward – Noble Drilling Services Inc.

                                                     Job Postings
                                               Local Chapter RIMS Websites

                                                      Houston Area:

                                Director, Risk Management (2)
                                Associate Director, Risk Management

                                                       Austin Area:

                                Claims Adjuster
                                Personal Lines Homeowners Property Claims Adjuster

                                                       Dallas Area:

                                Risk Manager
                                Insurance and Captives Manager
                                Risk Analyst (2)
                                Director, Risk Management
                                Lead Risk Specialist – Casualty

                                     Monthly Luncheon Meeting Place

                                                      The Briar Club
                                                    2603 Timmons Lane
                                                  Houston, Texas 77027
                                                Telephone: (713) 622-3667

                                                                                   Page 9 of 10
                                                                        Directions to The Briar Club

                                          The Briar Club is located at 2603 Timmons Lane, Houston, TX 77027. It is on the corner of
                                           Westheimer and Timmons Lane between the north - south streets of Edloe and Wesleyan.

                                                                            Border Streets
                                          Between Wesleyan and Buffalo Speedway (N-S) and West Alabama and Westheimer (E-W)
                                                                 » East of Galleria towards downtown
                                                                     » West of Kirby and Shepherd

                                                              From George Bush Intercontinental Airport (IAH)
                                                                     Go South on US-59/Eastex Freeway
                                                                Exit Buffalo Speedway and turn RIGHT/North
                                                                          Turn LEFT on Westheimer
                                                                 Turn LEFT on Timmons Lane @ WhataBurger

                                                                    From William P. Hobby Airport (HOU)
                                                                       Go North on I-45/Gulf Freeway
                                                                      Exit US-59 South toward Victoria
                                                              Exit at Buffalo Speedway and turn RIGHT/North
                                                                          Turn LEFT on Westheimer
                                                                Turn LEFT on Timmons Lane @ WhataBurger

                                                                              From Sugar Land
                                                                     Go North on US-59/Eastex Freeway
                                                         Exit at Buffalo Speedway and turn LEFT under the Freeway
                                                                          Turn LEFT on Westheimer
                                                                 Turn LEFT on Timmons Lane @ WhataBurger

                                                                            From 290/Northwest
                                                                     Go East on 290/Northwest Freeway
                                                                               Take 610 South
                                                            Exit at Westheimer and turn LEFT under the Freeway
                                                               Turn RIGHT on Timmons Lane @ WhataBurger

                                                                                From Katy
                                                                      Go East on I-10 (Katy Freeway)
                                                                              Take 610 South
                                                            Exit at Westheimer and turn LEFT under the Freeway
                                                               Turn RIGHT on Timmons Lane @ WhataBurger

                                                                               From Kingwood
                                                                     Go South on US-59/Eastex Freeway
Published by the Houston Chapter of the                       Exit at Buffalo Speedway and turn RIGHT/North
                                                                               To Westheimer
Risk & Insurance Management Society                             urn LEFT on Timmons Lane @ Whataburger

                                                                                                                    Page 10 of 10

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