Denver — Owners of property where Goodyear's Entran II radiant heating hose was installed may receive cash payments under a class action settlement, according to David Black and William Maywhort, who are among the class counsel that negotiated the settlement.
Eligible homeowners have until Nov. 19, 2009, to file a claim against the settlement fund. The amount of the payment is calculated based on the type of installation.
A customer's “maximum claim” is determined by multiplying the square footage of area heated by the Entran II installation by the reimbursement rate according to the following formula: in-slab: $75.10 per sq. ft.; thin-set: $56 per sq. ft.; staple-up with finished ceiling: $38.40 per sq. ft.; staple-up exposed: $17.50 per sq. ft.; snowmelt: $38.40 per sq. ft.; and baseboard: $6.40 per sq. ft.
Assuming a two-story, 2,000-sq. ft. home where Entran II hose has been installed in-slab to heat the first floor and stapled up beneath a finished ceiling to heat the second floor, the homeowner's maximum claim would be $113,500 ($75,100 for the in-slab installation plus $38,400 for the staple-up installation).
The question of whether a homeowner actually will receive the maximum claim amount depends upon two factors: first, the extent of the customer's property damage and second, the number of claimants among whom the settlement fund will be divided.
With respect to damage, the settlement puts owners into three categories. Those in “Category I” have or had less severe property damage, such as leaks at connections, corrosion or damage to the boiler or other components of the heating system or damage to the surrounding structure.
Those in “Category II” have or had serious failures of their heating system, such as major water damage and in-line breaks causing property damage. “Category II” also includes people who have replaced their systems in whole or in part prior to Nov. 19, 2009. Finally, “Category III” includes all of the people who do not qualify for “Category I or II.” Homeowners may change categories if their circumstances change after submitting a claim — before the Nov. 19, 2009 deadline — but they must submit an updated claim.
If a customer has experienced “Category I” type damage, the customer's initial payment will be 10.2% of the maximum claim. If a customer has experienced “Category II” type damage, the initial payment will be 26.3% of the maximum claim. And if a customer falls into “Category III,” the initial payment will be 5.1% of the maximum claim.
All customers will receive a second payment in early 2010, but the amount of that payment will depend on the amount of their maximum claim (and the category of their damage at that time), as well as the number of customers across the country and in Canada who have submitted claims.
Sometime after the settlement fund closes in November 2009, all of the remaining money (estimated to exceed $100 million) will be paid out to claimants.
It is estimated (but not guaranteed) that a “Category II” claimant will receive approximately 52.6% of the maximum claim as a second payment. Actual payments may be higher or lower based on the actual number of claimants.
To date, the claims administrator has processed approximately 2,000 valid claims representing approximately 5 million sq. ft. of heated space and snowmelt area. But this represents approximately one-quarter of the square footage area that is estimated to be heated by Entran II. That suggests that there may be more than 6,000 property owners who are eligible to participate in the settlement but who have not done so.