Fred Henry - Page 6




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          but were used to propagate orchid plants for future sales or to              
          develop further unique orchids.  Certain other orchid plants in              
          Mr. Henry's possession were immature and not ready for sale.                 
               Sometime during 1990, Mr. Henry noticed diminishing flower              
          production in at least some of the orchid plants in his pos-                 
          session.  During 1991, Selby and certain others who had purchased            
          orchid plants from Mr. Henry that became defective returned those            
          plants to Mr. Henry and/or made complaints about them.  Customers            
          of Fred Henry's Paradise of Orchids were not interested in                   
          purchasing orchid plants that had Benlate problems.  By October              
          1991, petitioner had sold plants which had been treated with                 
          Benlate before they showed signs of deformity and which even-                
          tually developed deformity.  All of the orchid plants in Mr.                 
          Henry's possession became deformed, unmarketable, and useless as             
          unique plants as a result of his having applied Benlate to them,             
          and many of them died.                                                       
               During 1991, du Pont realized that its fungicide Benlate may            
          be responsible for damaged plants, established a Benlate claims              
          process, and retained Crawford & Company (Crawford) as its                   
          representative to work in the field to assist it in evaluating               
          alleged damage caused by Benlate and processing claims for such              
          damage.  During that year, Mr. Henry began negotiating with du               
          Pont concerning the damage to the orchid plants of Fred Henry's              
          Paradise of Orchids and other orchid plants in his possession,               





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