Below is the response from our broker commenting on the coverage issue posed by NEPCO.  Our confidential approach to this policy is in jeopardy as more and more people are creating a need to know and the "traffic" on this topic (internally and externally) has increase considerably. On this Nepco inquiry,  I suggest that I speak with David Lund on the coverage and request that he keep same confidential and advise his operations people that they need not pursue the issue any further.  Please advise if you concur?

On this same subject, I have received a request from Michelle Cash to notify our insurers of a potential "age discrimination " claim.  EEOC has made an "inquiry",  which means (according to Michelle), that they have received a complaint and want information. I have discussed with our broker, and they recommend, based upon review of the reporting provisions in the policy, that we file a report of a potential claim with underwriters. I do not have the all facts nor do I have copies of any of any documents, however, understand that this arises from the "Performance Review process". This is one we should discuss, as it could involve a large class of people.  Please give me a call.

 -----Original Message-----
From: 	Paul Sparks <pspa@mcgriff.com>@ENRON [mailto:IMCEANOTES-Paul+20Sparks+20+3Cpspa+40mcgriff+2Ecom+3E+40ENRON@ENRON.com] 
Sent:	Monday, April 30, 2001 5:44 AM
To:	Bouillion, James L.; Mary Harkins
Cc:	Alastair Muir-Taylor; Paul Sparks; Kendall, Earline; Natalie Solomon
Subject:	RE: Newest ASAP from Littler Mendelson

Jim,
Your coverage, with AEGIS, does extend to the individual employees should
they be named as a defendant in employment related litigation. This was done
as there are other states where the courts have adopted a similar position.
Regards,
Paul

 -----Original Message-----
From: 	James.L.Bouillion@enron.com [mailto:James.L.Bouillion@enron.com]
Sent:	Thursday, April 26, 2001 12:51 PM
To:	MHAR@McGriff.com
Cc:	amui@McGriff.com; Paul Sparks; Earline.Kendall@enron.com
Subject:	FW: Newest ASAP from Littler Mendelson

Have you been made aware of this decision?  What is the view on coverage
under our program?
---------------------- Forwarded by James L Bouillion/HOU/ECT on 04/26/2001
12:46 PM ---------------------------


Richard Vincent@ENRON
04/24/2001 08:46 AM

To:   James L Bouillion/HOU/ECT@ECT, Paul Clayton/HOU/ECT@ECT
cc:   David Lund/ENRON@enronXgate
Subject:  FW: Newest ASAP from Littler Mendelson

Please respond.


---------------------- Forwarded by Richard Vincent/NA/Enron on 04/24/2001
08:45 AM ---------------------------


Davidlu@nepco.com on 04/23/2001 03:36:48 PM

To:   Mikei@nepco.com
cc:   johng@nepco.com, rvincen@enron.com

Subject:  FW: Newest ASAP from Littler Mendelson

Mike,  According to a recent decision by the Washington Supreme Court, a
supervisor can be held personally liable for job-related discrimination or
harassment.  We need to check out with Enron Insurance group to determine
if
our current employment practice liability insurance covers a situation like
this.  The distinction is that if the plaintiff employee names the company,
we're covered, but he/she names only the supervisor "personally" would the
Enron insurance decline coverage?

By copy to Dick Vincent, I am asking him to confirm this issue with our
insurance program.  If coverage exists, then should we document something
in
the policy to specifically cover this new form of employment liability
unique to Washington State?

David H. Lund, Jr.
Assistant General Counsel
National Energy Production Corporation
11831 North Creek Parkway N.
Bothell, WA 98011
425-415-3138
Fax: 425-415-3032
David.Lund@nepco.com or davidlu@nepco.com

-----Original Message-----
From:           Notestine, Kerry [mailto:KNotestine@littler.com]
<mailto:[mailto:KNotestine@littler.com]>
Sent:           Monday, April 23, 2001 5:57 AM
To:        'knotestine@mciworldcom.net'
Subject:        Newest ASAP from Littler Mendelson

I am sending you our most recent ASAP.  Our ASAP's are our summaries of
recent developments in employment matters.
This ASAP addresses a recent case from the Washington State Supreme Court
in
which that court held that individual supervisors can be held personally
liable for acts of unlawful harassment and discrimination.  This ruling
relates to the Washington state discrimination statute and not Title VII.
This ruling is contrary to federal law under Title VII where individual
supervisors are not personally liable for such acts.  Similarly, individual
supervisors are not subject to personal liability under the Texas
Commission
on Human Rights Act.  It may be prudent for employers with workers in
Washington to review insurance and indemnity agreements to determine if
these contracts cover supervisors who may be sued for acts in the course
and
scope of their employment.
http://www.littler.com/nwsltr/asap_scott_paper.html
<http://www.littler.com/nwsltr/asap_scott_paper.html>
Please double click on the above link to access the ASAP.  Let me know if
you have trouble accessing this ASAP, and I can send you a hard copy.  You
also may visit our website (www.littler.com <http://www.littler.com> ) to
review these and other
publications by lawyers from our firm.  Feel free to forward this link or
print a copy and distribute it to others within or outside your
organization.  In addition, let me know if you do not want to receive these
updates, and I will delete you from my distribution list.
I also wanted to call your attention to the invitation to our National
Employer seminar that you should have received in the last week or two.
The
invitation is a two-sided document, with the white side having valuable
information regarding current employment issues and the dark side being the
invitation.  If you look at the white side originally, you may not realize
that the document is an invitation.  Our National Employer is one of the
largest and most comprehensive employment-law conferences in the country
with over 1000 people attending every year.  You can review the invitation
and more information regarding the National Employer by visiting our
website
(www.littler.com <http://www.littler.com> ) or I will send you another copy
of the invitation if you tossed yours or never received one.
Littler Mendelson is the nation's largest firm representing employers in
employment and labor matters.  With approximately 400 attorneys in 30
office, we address more issues related to employment than any other law
firm.  Please contact me if we can assist you with employment issues
related
to harassment, discrimination, other matters.

Kerry E Notestine
Littler Mendelson, PC
1900 Chevron Tower
1301 McKinney Street
Houston, Texas 77010
713.652.4748
713.951.9212 (fax)
knotestine@littler.com <mailto:knotestine@littler.com>
www.littler.com <http://www.littler.com>


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