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Maryland Local Law Suit

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Local Lawsuit (Morris v. Wood Preserving)

Summarize the actions that lead to the lawsuit.

In Morris v. Osmose Wood Preserving, 340 Md. 519 (1994), a number of homeowners purchased townhomes that had a roofs constructed of Fire Retardant Treated (FRT) plywood manufactured by the defendant Hoover Treated Wood Product, Inc. (Hood Wood). Homeowners claim in their complaint the fire retardant treated plywood, when exposed to high temperatures begin an acidic reaction that was designed to stop the spread of fire. It was also alleged that the reaction can occur at temperatures as low as 130 degrees and roofs can reach 180 degrees without the presence of fire. The homeowners say that the chemical reaction “weakens the wood and destroys the bonding between the plywood laminates, thereby causing the wood, among other things, to bow, darken, spot, warp fracture and otherwise deteriorate and lose strength capacity.” The homeowners claim that this reaction will eventually occur in the plywood installed in their homes, without regard to ventilation or moisture levels I attics. Management also advertised there products falsely after begin notified. The homeowners brought this class action suit to recover cost to replace their roofs that had the alleged defective fire retardant treated plywood.
Discuss what management could have done in terms of risk management to have prevented the events that lead to the lawsuit.
In retrospect, management could have handled this situation a couple of different ways. First and foremost, once they learned of the information they should have not continued to advertise they products as begin suitable for constructing roofs. They could have informed the home builders who purchased the plywood from them of the notice received from the American Plywood Association. They could have also requested that the home builders transit the

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