Dow Chemical 2015 Annual Report Download - page 77

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67
The table below provides information regarding asbestos-related claims pending against Union Carbide and Amchem based on
criteria developed by Union Carbide and its external consultants. Union Carbide had a significant increase in the number of
claims settled, dismissed or otherwise resolved in 2015, resulting from a detailed review of the status of individual claims and
an update to criteria used to classify claims.
2015 2014 2013
Claims unresolved at January 1 26,116 29,005 33,449
Claims filed 7,544 8,857 12,069
Claims settled, dismissed or otherwise resolved (14,882) (11,746) (16,513)
Claims unresolved at December 31 18,778 26,116 29,005
Claimants with claims against both UCC and Amchem (6,804) (8,209) (8,331)
Individual claimants at December 31 11,974 17,907 20,674
Plaintiffs’ lawyers often sue numerous defendants in individual lawsuits or on behalf of numerous claimants. As a result, the
damages alleged are not expressly identified as to Union Carbide, Amchem or any other particular defendant, even when
specific damages are alleged with respect to a specific disease or injury. In fact, there are no personal injury cases in which only
Union Carbide and/or Amchem are the sole named defendants. For these reasons and based upon Union Carbide’s litigation and
settlement experience, Union Carbide does not consider the damages alleged against Union Carbide and Amchem to be a
meaningful factor in its determination of any potential asbestos-related liability.
For additional information see Part I, Item 3. Legal Proceedings and Asbestos-Related Matters in Note 15 to the Consolidated
Financial Statements.
K-Dow Arbitration
In February 2009, the Company initiated arbitration proceedings against Petrochemical Industries Company (K.S.C.) ("PIC")
alleging that PIC breached the Joint Venture Formation Agreement related to the establishment of K-Dow, a proposed 50:50
global petrochemicals joint venture with PIC, by failing to close the transaction. In May 2012, the International Court of
Arbitration of the International Chamber of Commerce ("ICC") awarded the Company $2.161 billion in damages ("Partial
Award"), not including pre- and post-award interest and arbitration costs. On March 4, 2013, the ICC released the Final Award
in the arbitration case covering the Company's claim for pre- and post-award interest and arbitration costs and awarded the
Company $318 million, as of February 28, 2013. On May 6, 2013, the Company and PIC entered into a Deed providing for
payment of the Company's claims against PIC under the K-Dow arbitration. On May 7, 2013, the Company received a
$2.195 billion cash payment from PIC, which included the Partial Award of $2.161 billion as well as recovery of Dow's costs
incurred in the arbitration, including legal fees. In addition, Kuwait Petroleum Corporation provided assurances that no
retaliatory or punitive actions would be taken against the Company and its affiliates as a result of the Deed and payment. The
K-Dow arbitration is considered final and settled in full.