Oskaloosa.com

September 30, 2008

Clow Valve civil trial begins Oct. 7

The case revolves around “questions relating to representations and warranties ... about the qualities and use of Chevron FM Grease EP in Clow Valve’s fire hydrants,” according to a Clow Valve motion filed Sept. 16.

By MICHAEL SCHAFFER

OSKALOOSA — Clow Valve Company, headquartered in Oskaloosa, has filed a civil lawsuit against Chevron USA, Diamond Oil Company and Oskaloosa Gas and Oil over grease they claim caused corrosion of thread material in fire hydrants.

Clow has requested a jury trial scheduled to begin at 9:30 a.m. Oct. 7 at the Mahaska County Courthouse in front of Judge Annette J. Scieszinski and last up to 15 days. A hearing was held this morning on several plaintiff and defendant’s motions and on the status of the jury pool.

The nine-count lawsuit, which was filed in June of 2006, alleges breach of warranties, breach of contracts, strict liability, negligence, and fraudulent and negligent misrepresentation.

According to a Clow Valve press release issued in August 2006, a manufacturer-approved grease containing calcium acetate was used to lubricate upper stem threads in Medallion and F2500 Clow fire hydrants between the years of 2002 and 2004.

“There are many variables that determine when corrosion begins, but it is known that the corrosion will accelerate over time,” the Clow Valve press release states. “If left unimpeded the corrosion could eventually result in a hard or, in extreme cases, impossible-to-operate hydrant.

“Clow Valve Company urges clients to discontinue using any grease that contains calcium acetate in all Clow Valve Company fire hydrants or any brand of fire hydrant, including grease formerly supplied by Clow Valve Company.”

According to a Clow Valve press release dated Oct. 29, 2007, “During its replacement of the upper stem and lubrication in hydrants to date, Clow has found hydrant stems exhibiting corrosion caused by the calcium acetate in the grease. It appears the corrosion is increasing as time passes. As a result, there is a very real danger that some hydrants will be rendered inoperable if remedial action is not taken.”

One of the motions filed by Clow states the defendants involved in the case claim “that the grease at issue in this case fulfilled the warranties made by Defendants because each and every claim in Defendant’s product literature and other written warranties were supported by ASTM testing.”

One claim Clow is making in the motion is that a now-retired senior staff scientist at Chevron, Dr. Carl E. Ward, who oversaw the formulation of Chevron FM grease, including the EP formulation, contradicts the defendant’s defense.

“Indeed, Ward’s testimony confirms that Defendant’s claim that the grease passed standard ASTM corrosion tests and therefore fulfilled all warranties is false,” the motion states.

The 2007 press release says grease formerly supplied by Clow with the label, DIAMOND FM GREASE 2EP or CLOW MEDALLION LUBRICANT, or any grease containing calcium acetate, should be discontinued.

According to court documents, Oskaloosa Gas and Oil dealt with Diamond Oil Company to obtain Chevron grease products.

In August 2006, Clow Valve began testing hydrants for corrosion and instituted an upper stem replacement kit program free of charge each with a $40 labor allowance. Clow Valve says there is no imminent danger as all hydrants tested were operable, but they are recommending the replacement of upper stems in conjunction with scheduled inspection and maintenance procedures.

The Oct. 29, 2007, Clow press release estimates up to 113,000 fire hydrants may be affected. Contractors provided by Clow Valve at no charge are now in the process of replacing 45,000 upper stems in more than 600 communities nationwide, and 30,000 upper stems have already been replaced and returned to Clow. The cost to replace the upper stems is estimated at $8 million.

Herald City Editor Michael Schaffer can be reached by email at mschaffer@oskyherald.com