DiPirro v. Binney & Smith, Inc., et al.

Michael DiPirro and Binney & Smith, Inc. entered a Settlement Agreement on January 24, 2001, which resolved citizen enforcer DiPirro's allegations that Binney & Smith distributed and/or sold certain crayons containing asbestos and talc containing asbestiform fibers in the State of California without providing the requisite health hazard warnings.

Under the settlement, Binney & Smith agreed to (1) immediately initiate an effort to reformulate the crayons to eliminate the addition of talc containing asbestiform fibers or any other materials known to contain asbestos, (2) institute a reformulation schedule by which 100% of the crayons sold in California are reformulated products within 320 calendar days of the execution of the agreement, and (3) cease shipment of any non-reformulated crayons into California.

In addition to reformulation, Chanler Group attorneys were able to gain commitments from Binney & Smith to make significant contributions to services for low income families in California. Binney & Smith agreed to (1) contribute 40,000 non-talc containing washable markers to the California Child Care Resource & Referral Network within thirty days of the execution of the agreement and (2) contribute 40,000 reformulated products to the California Child Care Resource & Referral Network within 230 days of the execution of the agreement.

The Settlement Agreement required payments of $79,500 as reimbursement of costs and fees to whistleblower DiPirro and his counsel for their successful enforcement of this matter in the public interest. Civil penalties against Binney & Smith were waived in recognition of the defendant's significant contributions to needy California families.