Vornado Liquidating Trust for and on Behalf of Vornado Air Circulation Systems, Inc., a Trust, Provisional Acceptance of a Settlement Agreement and Order, 6712-6714 [08-491]
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Federal Register / Vol. 73, No. 24 / Tuesday, February 5, 2008 / Notices
days before the meeting date. Dated in
Washington DC, 29 January 2008.
Thomas Luebke,
AIA, Secretary.
[FR Doc. 08–482 Filed 2–4–08; 8:45 am]
Dated: January 30, 2008.
Todd A. Stevenson,
Secretary.
Staff Allegations
United States of America Consumer
Product Safety Commission, CPSC
Docket No. 08–C0003
BILLING CODE 6330–01–M
In the Matter of Vornado Liquidating
Trust for and on Behalf of Vornado Air
Circulation Systems, Inc. a Trust
CONSUMER PRODUCT SAFETY
COMMISSION
Settlement Agreement and Order
[CPSC Docket No. 08–C0003]
Vornado Liquidating Trust for and on
Behalf of Vornado Air Circulation
Systems, Inc., a Trust, Provisional
Acceptance of a Settlement Agreement
and Order
Consumer Product Safety
Commission.
AGENCY:
ACTION:
Notice.
SUMMARY: It is the policy of the
Commission to publish settlements
which is provisionally accepts under
the Consumer Product Safety Act in the
Federal Register in accordance with the
terms of 16 CFR 1118.20(e0). Published
below is a provisionally-accepted
Settlement Agreement with Vornado
Liquidating Trust for and on behalf of
Vornado Air Circulation Systems, Inc., a
Trust, containing a civil penalty of
$500,000.
Any interested person may ask
the Commission not to accept this
agreement or otherwise comment on its
contents by filing a written request with
the Office of the Secretary by February
20, 2008.
DATES:
Persons wishing to
comment on this Settlement Agreement
should send written comments to the
Comment 08–C0003, Office of the
Secretary, Consumer Product Safety
Commission, 4330 East West Highway,
Room 502, Bethesda, Maryland 20814–
4408.
ADDRESSES:
FOR FURTHER INFORMATION CONTACT:
rmajette on PROD1PC64 with NOTICES
Ronald G. Yelnik, Trial Attorney, Office
of Compliance and Field Operations,
Consumer Product Safety Commission,
4330 East West Highway, Bethesda,
Maryland 20814–4408; telephone (301)
504–7582.
The text of
the Agreement and Order appears
below.
SUPPLEMENTARY INFORMATION:
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15:34 Feb 04, 2008
Jkt 214001
1. This Settlement Agreement is made
by and between the staff (the ‘‘staff’’) of
the U.S. Consumer Product Safety
Commission (the ‘‘Commission’’) and
the Vornado Liquidating Trust, a trust
acting for and on behalf of Vornado Air
Circulation Systems, Inc., a dissolved
Kansas corporation, and established for
the sole benefit of the corporation’s
shareholders, in accordance with 16
CFR 1118.20 of the Commission’s
Procedures for Investigations,
Inspections, and Inquiries under the
Consumer Product Safety Act (‘‘CPSA’’).
This Settlement Agreement and the
incorporated attached Order resolve the
staff’s allegations set forth below.
The Parties
2. The Commission is an independent
federal regulatory agency responsible for
the enforcement of the CPSA, 15 U.S.C.
2051–2084.
3. Vornado Air Circulation Systems,
Inc. was a corporation organized and
existing under the laws of the State of
Kansas, with its principal corporate
office located in Andover, Kansas. On
December 29, 2006, Vornado Air
Circulation Systems, Inc. ceased
operations and sold most of its
operating assets to a private equity
group which formed a new company,
Vornado Air LLC, a Delaware company.
Vornado Air Circulation Systems, Inc.’s
remaining assets and its proceeds from
the asset sale were assigned to the
Vornado Liquidating Trust, which was
established as of December 29, 2006, for
the purpose of satisfying Vornado Air
Circulation Systems Inc.’s remaining
liabilities, including the claims asserted
by the Commission which are the
subject of this Settlement Agreement.
Vornado Air Circulation Systems, Inc.
was legally dissolved in September
2007. Vornado Air Circulation Systems,
Inc. and the Vornado Liquidating Trust
are hereinafter referred to collectively as
‘‘Vornado’’ or the ‘‘firm.’’
4. At all times relevant herein,
Vornado designed, manufactured and
sold portable electric heaters, including
those that are the subject of this
Settlement Agreement and Order.
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Sfmt 4703
5. Between July 1991 and January
2004, Vornado manufactured and sold
approximately one million of the subject
portable electric heaters, model
numbers 180VH , Intellitemp , EVH
(collectively, ‘‘Heaters’’ or ‘‘Products’’),
which were sold at retailers and
distributors nationwide as well as
through Vornado’s Web site, for
between $50 and $120.
6. The Heaters are ‘‘consumer
product(s)’’ and, at the times relevant
herein, Vornado was a ‘‘manufacturer’’
of ‘‘consumer product(s),’’ which were
‘‘distributed in commerce’’ as those
terms are defined or used in sections
3(a)(1), (4), (11) and (12) of the CPSA,
15 USC 2052(a)(1), (4), (11) and (12).
7. The Heaters are defective because
a faulty electrical connection can cause
the Product to overheat and stop
working, thereby posing a fire hazard to
consumers. More specifically, certain of
the Heaters are defective and pose a fire
hazard to consumers because they
contain a faulty crimp involving
insulated connectors (‘‘quick
connects’’), a flaw which can cause the
Heaters to overheat.
8. Vornado received its first report of
an overheating incident in January 1993.
By the end of 1993, Vornado knew of at
least 22 reports of Heater incidents
involving melting, smoking, burning,
actual fire or the emission of flame.
9. On or about October 27, 1997,
Vornado changed the design of its
Heaters to incorporate insulated quick
connects on the white wires between
the heating element and the switch. The
redesigned Heaters were sold from the
fall of 1998 through 2003.
10. Although Vornado had received
reports of Products overheating prior to
the design change described in
paragraph 9, the firm asserts that this
design change caused the faulty crimp
problem which resulted in the majority
of the overheating incidents that
eventually came to Its attention.
11. After implementing the design
change in question, Vornado received
many reports of over-heating incidents
with the Heaters, some of which
involved fires and the emission of
flames. These reports continued for
several years thereafter.
12. Despite being aware of the
information set forth in paragraphs 5
through 11, Vornado did not report to
the Commission about the overheating
issue involving the heaters until
February 20, 2004, and even then only
when requested to do so by the
Commission staff.
13. By the time of its February 20,
2004 report to the CPSC, Vornado was
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Federal Register / Vol. 73, No. 24 / Tuesday, February 5, 2008 / Notices
aware of at least 300 reports of
overheating incidents involving the
subject Heaters. More than 100 of these
incident reports involved Heaters
catching fire and/or emitting flames,
while the remainder related to units
burning, melting and smoking.
14. Although Vornado had obtained
sufficient information to reasonably
support the conclusion that the Heaters
contained a defect which could create a
substantial product hazard, or created
an unreasonable risk of serious injury or
death, it failed to inform the
Commission of such defect or risk as
required by sections 15(b)(2) and (3) of
the CPSA, 15 U.S.C. 2064(b)(2) and (3).
In failing to do so, Vornado
‘‘knowingly’’ violated section 19(a)(4) of
the CPSA, 15 U.S.C. 2068(a)(4), as the
term ‘‘knowingly’’ is defined in section
20(d) of the CPSA, 15 U.S.C. 2069(d).
15. Pursuant to section 20 of the
CPSA, 15 U.S.C. 2069, Vornado is
subject to civil penalties for its failure
to report as required under section 15(b)
of the CPSA, 15 U.S.C. 2064(b).
rmajette on PROD1PC64 with NOTICES
Response of Vornado
16. Vornado contests and denies the
staff’s allegations. Vornado asserts that
it acted responsibly and reasonably to
investigate and respond to incident
reports it received involving the
Products, including its implementation
of a successful product recall in
cooperation with the Commission on
August 3, 2004. Vornado denies it was
aware of facts that arguably could have
given rise to a reporting obligation
under the CPSA until the time it
actually filed a report with the
Commission on February 20, 2004.
Likewise, the firm denies that any
alleged violation of the CPSA’s
reporting requirements was committed
‘‘knowingly.’’
17. Vornado has entered this
settlement in order to resolve this claim
without the expense and distraction of
litigation.
Agreement of the Parties
18. The commission has jurisdiction
over this matter and over Vornado
under the CPSs, 15 U.S.C. 2051–2084.
19. In settlement of the staff’s
allegations, Vornado agrees to pay a
civil penalty of five hundred thousand
dollars ($500,000.00) within twenty (20)
calendar days of receiving service of the
Final Order of the Commission
accepting this Settlement Agreement.
This payment shall be made by cashier’s
check payable to the order of the United
States Treasury.
20. The parties enter this Settlement
Agreement for settlement purposes only.
the Settlement Agreement does not
VerDate Aug<31>2005
18:00 Feb 04, 2008
Jkt 214001
constitute an admission by Vornado or
a determination by the Commission that
Vornado violated the CPSA’s reporting
requirements.
21. Upon provisional acceptance of
this Settlement Agreement and Order by
the Commission, the Commission shall
place this Agreement and Order on the
public record and shall publish it in the
Federal Register in accordance with the
procedure set forth in 16 CFR
1118.20(e). If the commission does not
receive any written requests not to
accept the Settlement Agreement and
Order within 15 calendar days, the
Agreement and Order shall be deemed
finally accepted on the 16th calendar
day after the date it is published in the
Federal Register, in accordance with 16
CFR 1118.20(f).
22. Upon final acceptance of this
Settlement Agreement by the
Commission and issuance of the Final
Order, Vornado knowingly, voluntarily
and completely waives any rights it may
have in this matter to the following: (i)
An administrative or judicial hearing;
(ii) judicial review or other challenge or
contest of the commission’s actions; (iii)
a determination by the Commission as
to whether Vornado failed to comply
with the CPSA and the underlying
regulations; (iv) a statement of findings
of fact and conclusions of law; and (v)
any claims under the Equal Access to
Justice Act.
23. The Commission may publicize
the terms of the Settlement Agreement
and Order.
24. This Settlement Agreement shall
apply to, and be binding upon Vornado
and each of its successors and assigns.
25. The commission’s Order in this
matter is issued under the provisions of
the CPSA, 15 U.S.C. 2051–2084, and a
violation of the Order may subject those
referenced in paragraph 24 above to
appropriate legal action.
26. This Settlement Agreement may
be used in interpreting the Order
Agreements, understandings,
representations, or interpretations made
outside of this Settlement Agreement
and Order may not be used to vary or
to contradict its terms.
27. This Settlement Agreement and
Order shall not be waived, changed,
amended, modified, or otherwise
altered, without written agreement
thereto executed by the party against
whom such amendment, modification,
alteration, or waiver is sought to be
enforced, and approval by the
Commission.
28. If, after the effective date hereof,
any provision of this Settelement
Agreement and Order is held to be
illegal, invalid, or unenforceable under
present or future laws effective during
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6713
the terms of the Settlement Agreement
and Order, such provision shall be fully
severable. The rest of the Settlement
Agreement and Order shall remain in
full effect, unless the commission and
Vornado determine that serving the
provision materially changes the
purpose of the Settlement Agreement
and Order.
The Vornado Liquidating Trust for and
on Behalf of Vornado Air Circulation
Systems, Inc.
Dated: January 14, 2008.
By: Charles Wear,
Co-Trustee, 2705 West 112th Street,
Leawood, Kansas 66211.
Dated: January 14, 2008.
By: Kay Reed,
Co-Trustee, 14021 E. Whitewood,
Wichita, Kansas 67230.
Dated: January 15, 2008.
By Christopher Smith,
Sonnenschein Nath & Rosenthal LLP,
1301 K Street, NW., Suite 600, East
Tower, Washington, DC 20005–3364,
Counsel for the Vornado Liquidating
Trust.
U.S. CONSUMER PRODUCT SAFETY
COMMISSION.
John Gibson Mullan,
Assistant Executive Director, Office of
Compliance and Field Operations.
Dated: January 17, 2008.
By: Ronald G. Yelenik,
Acting Director,
M. Reza Malihi,
Trial Attorney, Legal Division, Office of
Compliance and Field Operations.
United States of America Consumer
Product Safety Commission, CPSC
Docket No. 08–C0003
In the Matter of Vornado Liquidating
Trust for and on Behalf of Vornado Air
Circulation systems, Inc., a Trust
Order
Upon consideration of the Settlement
Agreement entered into between the
Vornado Liquidating Trust, a trust
acting for an on behalf of Vornado Air
Circulation Systems, Inc., a dissolved
Kansas corporation, and established for
the sole benefit of the corporation’s
shareholders (collectively, ‘‘Vornado’’),
and the staff of the U.S. Consumer
Product Safety Commission (the
‘‘Commission’’), and the Commission
having jurisdiction over the subject
matter and over Vornado, and it
appearing the Settlement Agreement is
in the public interest, it is
Ordered, that the Settlement
Agreement be, and hereby is, accepted;
and it is
Further ordered, that Vornado shall
pay a civil penalty in the amount of five
hundred thousand dollars
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Federal Register / Vol. 73, No. 24 / Tuesday, February 5, 2008 / Notices
($500,000.00). This payment shall be
made payable to the order of the United
States Treasury within twenty (20)
calendar days of service of the Final
Order of the Commission upon
Vornado. Upon the failure of Vornado to
make full payment in the prescribed
time, interest on the outstanding
balance shall accrue and be paid at the
federal rate of interest under the
provisions of 28 U.S.C. section 1961(a)
and (b).
Provisionally accepted and Provisional
Order issued on the 30th day of January,
2008.
By Order of the Commission:
Todd A. Stevenson,
Secretary, Consumer Product Safety
Commission.
[FR Doc. 08–491 Filed 2–4–08; 8:45 am]
Dated: January 30, 2008.
Angela C. Arrington,
IC Clearance Official, Regulatory Information
Management Services, Office of Management.
BILLING CODE 6355–01–M
Office of Innovation and Improvement
DEPARTMENT OF EDUCATION
Notice of Proposed Information
Collection Requests
rmajette on PROD1PC64 with NOTICES
AGENCY: Department of Education.
SUMMARY: The IC Clearance Official,
Regulatory Information Management
Services, Office of Management, invites
comments on the proposed information
collection requests as required by the
Paperwork Reduction Act of 1995.
DATES: Interested persons are invited to
submit comments on or before April 7,
2008.
SUPPLEMENTARY INFORMATION: Section
3506 of the Paperwork Reduction Act of
1995 (44 U.S.C. Chapter 35) requires
that the Office of Management and
Budget (OMB) provide interested
Federal agencies and the public an early
opportunity to comment on information
collection requests. OMB may amend or
waive the requirement for public
consultation to the extent that public
participation in the approval process
would defeat the purpose of the
information collection, violate State or
Federal law, or substantially interfere
with any agency’s ability to perform its
statutory obligations. The IC Clearance
Official, Regulatory Information
Management Services, Office of
Management, publishes that notice
containing proposed information
collection requests prior to submission
of these requests to OMB. Each
proposed information collection,
grouped by office, contains the
following: (1) Type of review requested,
e.g. new, revision, extension, existing or
reinstatement; (2) Title; (3) Summary of
the collection; (4) Description of the
need for, and proposed use of, the
information; (5) Respondents and
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15:34 Feb 04, 2008
Jkt 214001
frequency of collection; and (6)
Reporting and/or Recordkeeping
burden. OMB invites public comment.
The Department of Education is
especially interested in public comment
addressing the following issues: (1) Is
this collection necessary to the proper
functions of the Department; (2) will
this information be processed and used
in a timely manner; (3) is the estimate
of burden accurate; (4) how might the
Department enhance the quality, utility,
and clarity of the information to be
collected; and (5) how might the
Department minimize the burden of this
collection on the respondents, including
through the use of information
technology.
Type of Review: New.
Title: National Writing Project Annual
Performance Indicators.
Frequency: Annually.
Affected Public: Individuals or
household; Not-for-profit institutions.
Reporting and Recordkeeping Hour
Burden:
Responses: 480.
Burden Hours: 460.
Abstract: The purpose is to
implement a data collection and review
process for a new annual reporting for
Government Performance Results Act
(GPRA) purposes for the National
Writing Project (NWP) program. These
data are necessary to assess the
performance of the NWP program in
meeting its stated goals and objectives.
The data collection will occur in phases
over a 2-year period. Although all EDgrantees are required to provide
performance data on an annual or
periodic basis, the respondents for this
data collection are participants in the
NWP grant; therefore, their participation
in the data collection is voluntary.
Requests for copies of the proposed
information collection request may be
accessed from https://edicsweb.ed.gov,
by selecting the ‘‘Browse Pending
Collections’’ link and by clicking on
link number 3445. When you access the
information collection, click on
‘‘Download Attachments’’ to view.
Written requests for information should
be addressed to U.S. Department of
Education, 400 Maryland Avenue, SW.,
LBJ, Washington, DC 20202–4537.
Requests may also be electronically
mailed to ICDocketMgr@ed.gov or faxed
to 202–401–0920. Please specify the
complete title of the information
collection when making your request.
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Comments regarding burden and/or
the collection activity requirements
should be electronically mailed to
ICDocketMgr@ed.gov. Individuals who
use a telecommunications device for the
deaf (TDD) may call the Federal
Information Relay Service (FIRS) at 1–
800–877–8339.
[FR Doc. E8–2067 Filed 2–4–08; 8:45 am]
BILLING CODE 4000–01–P
DEPARTMENT OF EDUCATION
Submission for OMB Review;
Comment Request
AGENCY: Department of Education.
SUMMARY: The IC Clearance Official,
Regulatory Information Management
Services, Office of Management invites
comments on the submission for OMB
review as required by the Paperwork
Reduction Act of 1995.
DATES: Interested persons are invited to
submit comments on or before March 6,
2008.
ADDRESSES: Written comments should
be addressed to the Office of
Information and Regulatory Affairs,
Attention: Education Desk Officer,
Office of Management and Budget, 725
17th Street, NW., Room 10222,
Washington, DC 20503. Commenters are
encouraged to submit responses
electronically by e-mail to
oira_submission@omb.eop.gov or via fax
to (202) 395–6974. Commenters should
include the following subject line in
their response ‘‘Comment: [insert OMB
number], [insert abbreviated collection
name, e.g., ‘‘Upward Bound
Evaluation’’]. Persons submitting
comments electronically should not
submit paper copies.
SUPPLEMENTARY INFORMATION: Section
3506 of the Paperwork Reduction Act of
1995 (44 U.S.C. Chapter 35) requires
that the Office of Management and
Budget (OMB) provide interested
Federal agencies and the public an early
opportunity to comment on information
collection requests. OMB may amend or
waive the requirement for public
consultation to the extent that public
participation in the approval process
would defeat the purpose of the
information collection, violate State or
Federal law, or substantially interfere
with any agency’s ability to perform its
statutory obligations. The IC Clearance
Official, Regulatory Information
Management Services, Office of
Management, publishes that notice
containing proposed information
collection requests prior to submission
of these requests to OMB. Each
proposed information collection,
E:\FR\FM\05FEN1.SGM
05FEN1
]]>Agencies
[Federal Register Volume 73, Number 24 (Tuesday, February 5, 2008)]
[Notices]
[Pages 6712-6714]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 08-491]
=======================================================================
-----------------------------------------------------------------------
CONSUMER PRODUCT SAFETY COMMISSION
[CPSC Docket No. 08-C0003]
Vornado Liquidating Trust for and on Behalf of Vornado Air
Circulation Systems, Inc., a Trust, Provisional Acceptance of a
Settlement Agreement and Order
AGENCY: Consumer Product Safety Commission.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: It is the policy of the Commission to publish settlements
which is provisionally accepts under the Consumer Product Safety Act in
the Federal Register in accordance with the terms of 16 CFR
1118.20(e0). Published below is a provisionally-accepted Settlement
Agreement with Vornado Liquidating Trust for and on behalf of Vornado
Air Circulation Systems, Inc., a Trust, containing a civil penalty of
$500,000.
DATES: Any interested person may ask the Commission not to accept this
agreement or otherwise comment on its contents by filing a written
request with the Office of the Secretary by February 20, 2008.
ADDRESSES: Persons wishing to comment on this Settlement Agreement
should send written comments to the Comment 08-C0003, Office of the
Secretary, Consumer Product Safety Commission, 4330 East West Highway,
Room 502, Bethesda, Maryland 20814-4408.
FOR FURTHER INFORMATION CONTACT: Ronald G. Yelnik, Trial Attorney,
Office of Compliance and Field Operations, Consumer Product Safety
Commission, 4330 East West Highway, Bethesda, Maryland 20814-4408;
telephone (301) 504-7582.
SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears
below.
Dated: January 30, 2008.
Todd A. Stevenson,
Secretary.
United States of America Consumer Product Safety Commission, CPSC
Docket No. 08-C0003
In the Matter of Vornado Liquidating Trust for and on Behalf of Vornado
Air Circulation Systems, Inc. a Trust
Settlement Agreement and Order
1. This Settlement Agreement is made by and between the staff (the
``staff'') of the U.S. Consumer Product Safety Commission (the
``Commission'') and the Vornado Liquidating Trust, a trust acting for
and on behalf of Vornado Air Circulation Systems, Inc., a dissolved
Kansas corporation, and established for the sole benefit of the
corporation's shareholders, in accordance with 16 CFR 1118.20 of the
Commission's Procedures for Investigations, Inspections, and Inquiries
under the Consumer Product Safety Act (``CPSA''). This Settlement
Agreement and the incorporated attached Order resolve the staff's
allegations set forth below.
The Parties
2. The Commission is an independent federal regulatory agency
responsible for the enforcement of the CPSA, 15 U.S.C. 2051-2084.
3. Vornado Air Circulation Systems, Inc. was a corporation
organized and existing under the laws of the State of Kansas, with its
principal corporate office located in Andover, Kansas. On December 29,
2006, Vornado Air Circulation Systems, Inc. ceased operations and sold
most of its operating assets to a private equity group which formed a
new company, Vornado Air LLC, a Delaware company. Vornado Air
Circulation Systems, Inc.'s remaining assets and its proceeds from the
asset sale were assigned to the Vornado Liquidating Trust, which was
established as of December 29, 2006, for the purpose of satisfying
Vornado Air Circulation Systems Inc.'s remaining liabilities, including
the claims asserted by the Commission which are the subject of this
Settlement Agreement. Vornado Air Circulation Systems, Inc. was legally
dissolved in September 2007. Vornado Air Circulation Systems, Inc. and
the Vornado Liquidating Trust are hereinafter referred to collectively
as ``Vornado'' or the ``firm.''
4. At all times relevant herein, Vornado designed, manufactured and
sold portable electric heaters, including those that are the subject of
this Settlement Agreement and Order.
Staff Allegations
5. Between July 1991 and January 2004, Vornado manufactured and
sold approximately one million of the subject portable electric
heaters, model numbers 180VH [reg], Intellitemp [reg], EVH [reg]
(collectively, ``Heaters'' or ``Products''), which were sold at
retailers and distributors nationwide as well as through Vornado's Web
site, for between $50 and $120.
6. The Heaters are ``consumer product(s)'' and, at the times
relevant herein, Vornado was a ``manufacturer'' of ``consumer
product(s),'' which were ``distributed in commerce'' as those terms are
defined or used in sections 3(a)(1), (4), (11) and (12) of the CPSA, 15
USC 2052(a)(1), (4), (11) and (12).
7. The Heaters are defective because a faulty electrical connection
can cause the Product to overheat and stop working, thereby posing a
fire hazard to consumers. More specifically, certain of the Heaters are
defective and pose a fire hazard to consumers because they contain a
faulty crimp involving insulated connectors (``quick connects''), a
flaw which can cause the Heaters to overheat.
8. Vornado received its first report of an overheating incident in
January 1993. By the end of 1993, Vornado knew of at least 22 reports
of Heater incidents involving melting, smoking, burning, actual fire or
the emission of flame.
9. On or about October 27, 1997, Vornado changed the design of its
Heaters to incorporate insulated quick connects on the white wires
between the heating element and the switch. The redesigned Heaters were
sold from the fall of 1998 through 2003.
10. Although Vornado had received reports of Products overheating
prior to the design change described in paragraph 9, the firm asserts
that this design change caused the faulty crimp problem which resulted
in the majority of the overheating incidents that eventually came to
Its attention.
11. After implementing the design change in question, Vornado
received many reports of over-heating incidents with the Heaters, some
of which involved fires and the emission of flames. These reports
continued for several years thereafter.
12. Despite being aware of the information set forth in paragraphs
5 through 11, Vornado did not report to the Commission about the
overheating issue involving the heaters until February 20, 2004, and
even then only when requested to do so by the Commission staff.
13. By the time of its February 20, 2004 report to the CPSC,
Vornado was
[[Page 6713]]
aware of at least 300 reports of overheating incidents involving the
subject Heaters. More than 100 of these incident reports involved
Heaters catching fire and/or emitting flames, while the remainder
related to units burning, melting and smoking.
14. Although Vornado had obtained sufficient information to
reasonably support the conclusion that the Heaters contained a defect
which could create a substantial product hazard, or created an
unreasonable risk of serious injury or death, it failed to inform the
Commission of such defect or risk as required by sections 15(b)(2) and
(3) of the CPSA, 15 U.S.C. 2064(b)(2) and (3). In failing to do so,
Vornado ``knowingly'' violated section 19(a)(4) of the CPSA, 15 U.S.C.
2068(a)(4), as the term ``knowingly'' is defined in section 20(d) of
the CPSA, 15 U.S.C. 2069(d).
15. Pursuant to section 20 of the CPSA, 15 U.S.C. 2069, Vornado is
subject to civil penalties for its failure to report as required under
section 15(b) of the CPSA, 15 U.S.C. 2064(b).
Response of Vornado
16. Vornado contests and denies the staff's allegations. Vornado
asserts that it acted responsibly and reasonably to investigate and
respond to incident reports it received involving the Products,
including its implementation of a successful product recall in
cooperation with the Commission on August 3, 2004. Vornado denies it
was aware of facts that arguably could have given rise to a reporting
obligation under the CPSA until the time it actually filed a report
with the Commission on February 20, 2004. Likewise, the firm denies
that any alleged violation of the CPSA's reporting requirements was
committed ``knowingly.''
17. Vornado has entered this settlement in order to resolve this
claim without the expense and distraction of litigation.
Agreement of the Parties
18. The commission has jurisdiction over this matter and over
Vornado under the CPSs, 15 U.S.C. 2051-2084.
19. In settlement of the staff's allegations, Vornado agrees to
pay a civil penalty of five hundred thousand dollars ($500,000.00)
within twenty (20) calendar days of receiving service of the Final
Order of the Commission accepting this Settlement Agreement. This
payment shall be made by cashier's check payable to the order of the
United States Treasury.
20. The parties enter this Settlement Agreement for settlement
purposes only. the Settlement Agreement does not constitute an
admission by Vornado or a determination by the Commission that Vornado
violated the CPSA's reporting requirements.
21. Upon provisional acceptance of this Settlement Agreement and
Order by the Commission, the Commission shall place this Agreement and
Order on the public record and shall publish it in the Federal Register
in accordance with the procedure set forth in 16 CFR 1118.20(e). If the
commission does not receive any written requests not to accept the
Settlement Agreement and Order within 15 calendar days, the Agreement
and Order shall be deemed finally accepted on the 16th calendar day
after the date it is published in the Federal Register, in accordance
with 16 CFR 1118.20(f).
22. Upon final acceptance of this Settlement Agreement by the
Commission and issuance of the Final Order, Vornado knowingly,
voluntarily and completely waives any rights it may have in this matter
to the following: (i) An administrative or judicial hearing; (ii)
judicial review or other challenge or contest of the commission's
actions; (iii) a determination by the Commission as to whether Vornado
failed to comply with the CPSA and the underlying regulations; (iv) a
statement of findings of fact and conclusions of law; and (v) any
claims under the Equal Access to Justice Act.
23. The Commission may publicize the terms of the Settlement
Agreement and Order.
24. This Settlement Agreement shall apply to, and be binding upon
Vornado and each of its successors and assigns.
25. The commission's Order in this matter is issued under the
provisions of the CPSA, 15 U.S.C. 2051-2084, and a violation of the
Order may subject those referenced in paragraph 24 above to appropriate
legal action.
26. This Settlement Agreement may be used in interpreting the
Order Agreements, understandings, representations, or interpretations
made outside of this Settlement Agreement and Order may not be used to
vary or to contradict its terms.
27. This Settlement Agreement and Order shall not be waived,
changed, amended, modified, or otherwise altered, without written
agreement thereto executed by the party against whom such amendment,
modification, alteration, or waiver is sought to be enforced, and
approval by the Commission.
28. If, after the effective date hereof, any provision of this
Settelement Agreement and Order is held to be illegal, invalid, or
unenforceable under present or future laws effective during the terms
of the Settlement Agreement and Order, such provision shall be fully
severable. The rest of the Settlement Agreement and Order shall remain
in full effect, unless the commission and Vornado determine that
serving the provision materially changes the purpose of the Settlement
Agreement and Order.
The Vornado Liquidating Trust for and on Behalf of Vornado Air
Circulation Systems, Inc.
Dated: January 14, 2008.
By: Charles Wear,
Co-Trustee, 2705 West 112th Street, Leawood, Kansas 66211.
Dated: January 14, 2008.
By: Kay Reed,
Co-Trustee, 14021 E. Whitewood, Wichita, Kansas 67230.
Dated: January 15, 2008.
By Christopher Smith,
Sonnenschein Nath & Rosenthal LLP, 1301 K Street, NW., Suite 600, East
Tower, Washington, DC 20005-3364, Counsel for the Vornado Liquidating
Trust.
U.S. CONSUMER PRODUCT SAFETY COMMISSION.
John Gibson Mullan,
Assistant Executive Director, Office of Compliance and Field
Operations.
Dated: January 17, 2008.
By: Ronald G. Yelenik,
Acting Director,
M. Reza Malihi,
Trial Attorney, Legal Division, Office of Compliance and Field
Operations.
United States of America Consumer Product Safety Commission, CPSC
Docket No. 08-C0003
In the Matter of Vornado Liquidating Trust for and on Behalf of Vornado
Air Circulation systems, Inc., a Trust
Order
Upon consideration of the Settlement Agreement entered into between
the Vornado Liquidating Trust, a trust acting for an on behalf of
Vornado Air Circulation Systems, Inc., a dissolved Kansas corporation,
and established for the sole benefit of the corporation's shareholders
(collectively, ``Vornado''), and the staff of the U.S. Consumer Product
Safety Commission (the ``Commission''), and the Commission having
jurisdiction over the subject matter and over Vornado, and it appearing
the Settlement Agreement is in the public interest, it is
Ordered, that the Settlement Agreement be, and hereby is, accepted;
and it is
Further ordered, that Vornado shall pay a civil penalty in the
amount of five hundred thousand dollars
[[Page 6714]]
($500,000.00). This payment shall be made payable to the order of the
United States Treasury within twenty (20) calendar days of service of
the Final Order of the Commission upon Vornado. Upon the failure of
Vornado to make full payment in the prescribed time, interest on the
outstanding balance shall accrue and be paid at the federal rate of
interest under the provisions of 28 U.S.C. section 1961(a) and (b).
Provisionally accepted and Provisional Order issued on the 30th
day of January, 2008.
By Order of the Commission:
Todd A. Stevenson,
Secretary, Consumer Product Safety Commission.
[FR Doc. 08-491 Filed 2-4-08; 8:45 am]
BILLING CODE 6355-01-M
