Honeywell 2005 Annual Report Download - page 26

Item 3. Legal Proceedings
We are subject to a number of lawsuits, investigations and claims (some of which involve substantial amounts) arising out of the
conduct of our business. See a discussion of environmental, asbestos and other litigation matters in Note 21 of Notes to Financial
Statements in “Item 8. Financial Statements and Supplementary Data.”
Environmental Matters Involving Potential Monetary Sanctions in Excess of $100,000
As previously reported, three incidents occurred during 2003 at Honeywell's Baton Rouge, Louisiana chemical plant, including a
release of chlorine, a release of antimony pentachloride which resulted in an employee fatality, and an employee exposure to
hydrofluoric acid. Honeywell has been served with several civil lawsuits regarding these incidents, for which we believe we have
adequate insurance coverage. In addition, the United States Environmental Protection Agency (USEPA) and the United States
Department of Justice (USDOJ) are conducting investigations of these incidents, including a federal grand jury convened to
investigate the employee fatality. Honeywell has been informed by the USDOJ that it is a potential target of the grand jury
investigation. If we are ultimately charged with wrongdoing, the Baton Rouge facility could be deemed ineligible to supply products
or services under government contracts pending the completion of legal proceedings. Although the outcome of this matter cannot be
predicted with certainty, we do not believe that it will have a material adverse effect on our consolidated financial position,
consolidated results of operations or operating cash flows.
Honeywell is a defendant in a lawsuit filed by the Arizona Attorney General's Office on behalf of the Arizona Department of
Environmental Quality (ADEQ). The complaint alleges various environmental violations and failure to make required disclosures.
Honeywell believes that the allegations in this matter are without merit and intends to vigorously defend against this lawsuit. In
September 2004, the Court partially dismissed several of the ADEQ's significant allegations. In November 2005, the Court dismissed
the most significant remaining claims in ADEQ's amended complaint. We do not believe that this matter could have a material adverse
effect on our consolidated financial position, consolidated results of operations or operating cash flows.
Item 4. Submission of Matters to a Vote of Security Holders
Not Applicable.
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