The parties have reached a tentative settlement in a class action filed against Shaw Industries, Inc., on behalf of California businesses and residents who performed work in connection with floor covering products under warranty by Shaw in California between September 19, 1998, and June 4, 2004. The action alleges that Shaw did not properly compensate its dealers for activities undertaken in connection with the service, repair, and replacement of floor covering products covered by warranty. Persons eligible to take part in the settlement should contact the attorneys for the class for more information.

The action alleges that Shaw committed violations of California's Song-Beverly Consumer Warranty Act, which requires the following payments by a manufacturer:

• In the event of replacement, payment in an amount equal to the actual cost to the retail seller of the replaced goods, and cost of transporting the goods, if such costs are incurred plus a reasonable handling charge.

• In the event of service and repair, payment in an amount equal to that which would be received by the retail seller for like service rendered to retail customers who are not entitled to warranty protection, including actual and reasonable costs of the service and repair and the cost of transporting the goods, if such costs are incurred, plus a reasonable profit.

• In the event of reimbursement under subdivision (a) of Section 1793.3 of the Act, payment in an amount equal to that reimbursed to the buyer, plus a reasonable handling charge.

The parties have agreed that for purposes of settlement only, a class should be provisionally certified consisting of all dealers in California who sold residential, commercial, or wholesale floor covering products manufactured or distributed by Shaw, and which are subject to express or implied warranties to persons, businesses, or other entities within California at any time from September 19, 1998, to June 16, 2004.

With respect to past claims, the settlement provides that you may submit and/or resubmit any claim for compensation and reimbursement of costs for any warranty activities that was first submitted or could have been submitted between September 18, 1998, and June 16, 2004. Dealers wishing to submit warranty claims to Shaw must do so within 60 days of the date of notice of final settlement.

Warranty claims that are not submitted in a timely manner will not be considered. All submitted warranty claims must be accompanied by reasonable documentation supporting the claim, as described by Shaw’s guidelines, copies of which may be obtained from Shaw upon request. If the proposed settlement is approved, Shaw will review all submitted or resubmitted warranty claims in the same manner as it administers other claims, and if after review, it finds a claim to be reasonable in light of the supporting documentation, and applicable warranty coverage, Shaw will compensate the dealer accordingly.

In the event that Shaw rejects a claim in whole or in part, the claimant may take the matter to arbitration. Dealers who wish to arbitrate a partially or wholly rejected warranty claim must file a written demand within 15 days of notification by Shaw that all or a part of the claim has been denied. If no demand for arbitration is filed during that time, the right to arbitrate is waived and Shaw will pay out any amount that it has agreed should be paid. The settlement contemplates a binding arbitration proceeding by a retired judge affiliated with a neutral organization who will make the decision based on the written claim submitted to Shaw and Shaw’s written response. It is contemplated that the time the arbitrator will spend will generally not exceed one or two hours. Shaw will pay any up front all administrative fees. The arbitrator’s fees will be borne by the party who does not prevail in the arbitration.