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Howard filled Delbert’s mind with war stories of terrible tales of juries that had awardedmillions of dollars for similar claims. Delbert knew those are all “worst case scenarios.”Delbert hoped that these early claims were simply due to the introduction of a newproduct and they should soon be eliminated. He wasn’t sure Howard’s recommendationof a full blown investigation was necessary. He might just keep quiet and wait it out untilthe claims went away.After consulting with Howard, Delbert knew he had to inform P.H. “Boss” Washingtonand Alice Madison, Pathos’ Chief Executive Officer and Chief Financial Officer,respectively. Delbert knew that Boss didn’t understand legal matters well and wasalways worried about how investors would take any negative news about Pathos. Healso knew that Alice had a short temper, especially when it came to spending moneywithout adding value to the bottom line. Not wanting to rush in with bad news and largeexpenses, and since Boss and Alice were preparing for an investor conference in NewYork, Delbert set up a meeting the following week to discuss the issues raised by theCherry Wud claims.The extra time would give Delbert an opportunity to evaluate how real the variousissues raised by Howard would be, and if they were real, put the insurance carriers onnotice of a possible claim and start the investigation. The extra time would also givehim an opportunity to find the contract between Pathos and Panels Everywhere. Surely,if there was responsibility, Panels Everywhere was the company with the risk sincePathos was just an importer of that product, and there was probably a favorableindemnity section in the contract. Delbert also hoped there was an arbitration clause inthe agreement so the parties could avoid a public dispute.5

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