- 4 -
1992 fiscal year.1 More than 36 percent of Green Light’s sales
in fiscal year 1992 were to Central Garden.
4. Green Light’s Environmental Claims, Products Liability
Insurance, and Risks of Litigation
The Texas Water Commission (later the Texas Natural
Resources Conservation Commission (TNRCC)) told Green Light in
August 1991 that soil at its San Antonio facility was
contaminated with chlordane and xylene. The TNRCC ordered Green
Light to submit a corrective action plan within 30 days. Green
Light denied that its property was contaminated, and had not
submitted a plan as of the time of trial.
Green Light had $500,000 of products liability insurance in
1993, with a $50,000 deductible. It would have cost Green Light
about $250,000 more to increase its 1992 products liability
insurance coverage to $2 million, with a $1,000 deductible. As
of February 1, 1993, Green Light was a defendant in at least six
products liability lawsuits resulting from the alleged
misapplication of some of its products. Green Light faced
potential liability of more than $100 million in these lawsuits.
5. Sale of Green Light to Employee Stock Ownership Trust
On November 30, 1994, all of the stock of Green Light was
sold to an employee stock ownership trust created by the
employees of Green Light.
C. Decedent’s Estate Tax Return
1 Green Light used a fiscal year ending June 30.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011