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RISKS AND CONTROL
1. Risk factors
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SAINT-GOBAIN
- REGISTRATION DOCUMENT 2016
LEGAL RISKS
1.4
Risk of regulatory changes
1.4.1
regulations applicable to classified sites.
France, for example, Group plants are subject to the laws and
Group companies that operate industrial sites are generally
could have an impact on its financial position, although the
regulations of the country where such sites are located. In
required to comply with the specific national laws and
The Group is not subject to any specific regulations that
introduction of stricter regulations or more diligent
manner that may be unfavorable to the Group. The
under which the Group operates its businesses, which could
enforcement of existing regulations may affect the conditions
results.
material adverse effect on its business, financial position or
activities or act as a brake on business growth. More
increase its operating expenses, limit the scope of its
rapid or significant regulatory changes in the future with a
generally, the Group cannot guarantee that there will be no
materials and products it uses in its activities may change in a
Laws and regulations applicable to the Group and to the
administrative procedures
Risks associated with legal and
1.4.2
a) Asbestos-related litigation
Current legal actions related to asbestos are described below.
Asbestos-related litigation in France
Inexcusable fault lawsuits
out
fiber-cement
operations
for
asbestos-related
In France, further individual lawsuits were filed in 2016 by
Everite and Saint-Gobain PAM which in the past had carried
former employees (or persons claiming through them) of
supplementary compensation over and above the amounts
two companies since 1996 with the aim of obtaining
paid by the French Social Security authorities in this respect.
2016, a total of 805 such lawsuits had been issued against the
occupational diseases they have or had. As at December 31,
As of December 31, 2016, 761 of these 805 lawsuits had been
cases, the employers were held liable on the grounds of
completed in terms of both liability and quantum. In all these
“inexcusable fault”.
Compensation paid by Everite and Saint-Gobain PAM in
settlement of these lawsuits totaled approximately
€1.7 million.
have been decided but the compensation awards have not
Saint-Gobain PAM at December 31, 2016, the merits of three
of these 44 lawsuits have been completed in terms of both
yet been made, pending Appeal Court rulings. A further four
Concerning the 44 lawsuits outstanding against Everite and
compensation has not yet been assigned.
liability and quantum, but liability for the payment of
actions have been canceled but the plaintiffs may request
pending before the Social Security courts. The last four
their restoration at any time within a two-year period.
procedures relating to the merits of 33 cases were at
Out of the 37 remaining lawsuits, at December 31, 2016 the
investigated by the French Social Security authorities and 29
different stages, with four in the process of being
In addition, as of December 31, 2016, 221 similar suits had been
employees of 13 other French companies of the Group
filed since the outset of the litigation by current or former
used equipment containing asbestos to protect themselves
the Group), in particular by current or former employees who
against heat from furnaces.
(excluding suits against companies that are no longer part of
“inexcusable fault”.
89 of these cases, the employer was held liable for
As of December 31, 2016, 164 lawsuits had been completed. In
totaled approximately €2.5 million.
The compensation definitively paid by these companies
With regard to the 57 suits outstanding at December 31, 2016,
Social Security court and five before the Appeal Courts. The
compensation, of which one was pending before the French
may request their restoration at any time within a two-year
seven remaining suits have been canceled but the plaintiffs
before the Appeal Courts. In addition, seven suits had been
including 25 pending before the Social Security courts and 16
regard to the quantum or liability for paying the
completed in terms of liability but are still pending with
Social Security authorities, 41 were being investigated –
two cases were still at the investigation stage by the French
period.
Anxiety claims
asbestos, are subject of damages claims that are different
operate or have operated facilities classified as containing
from those described above.
Eight of the Group’s French companies, including six that
operating, which previously manufactured materials
industrials facilities, that have been closed or are still
containing asbestos or used protection and insulation
“Facilities classified as containing asbestos” are defined as
ministerial decree on the official list of facilities whose current
equipment containing asbestos and are included by
benefits paid to asbestos workers (ACAATA).
or former employees are entitled to the early-retirement
receiving the ACAATA benefit. Of these 822 suits, 585 have
asbestos-related disease and some of them were not
by current or former employees claiming compensation for
At December 31, 2016, a total of 822 suits had been brought
to asbestos. None of these plaintiffs were suffering from an
various damages suffered as a result of their alleged exposure
(bureau de jugements des Conseils de prud’hommes), five are
Appeal Courts, eight before the competent labor tribunals
canceled but the plaintiffs may request their restoration at
pending before the Court of Cassation and 110 have been
exposed to an asbestos risk, the total amount of
while for the 582 others who were recognized as having been
remaining 237 suits, 97 are pending before the competent
compensation is €7.6 million at December 31, 2016. Of the
been terminated. Three plaintiffs had their claims dismissed,