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D.R. Johnson Wins Lawsuit

The Oregon Supreme Court rejected a $938,000 jury award in a rvrongful death lawsuit against D.R. Johnson Lumber Co., Riddle, Or., ruling that the company was not responsible for a 1998 accident that killed one worker.

Winston Boothby died after being struck by a log loader as it backed up at a work site in Washington state. He was employed by Intermountain Forest Management, Ogden, Utah, which was under contract with D.R. Johnson.

A jury awarded Marilu Boothby $900,000 in economic damages and $3.1 million in punitive damages. The trial court reduced the award to take incorporate the jury's allocation of fault and Oregon's cap on non-economic damages.

In October 2002, the Oregon Court of Appeals ruled that D.R. Johnson was not responsible for the negligence of a company it had hired to do the work. Under the contract with D.R. Johnson, Intermountain was "solely responsible for providing and maintaining all supplies and equipment."

In her appeal to the Supreme Court. Marilu Boothby had argued that D.R. Johnson was legally responsible for ensuring safe operation of the loader. rvhich had no backup rvarning siren.

LP Sponsors NFL Stadium

Louisiana-Pacific Corp.. Nashville. Tn.. and the Tennessee Titans have signed a lO-year. $3 million deal that gives LP exclusive naming rights on the team's home stadium in Nashville.

As part of the deal, LP rvill rvork rvith the Titans on philanthropic initiatives such as Habitat for Humanity to benefit Nashville and surroundins communities.

DOORS ARE OPEN: R&K Building Supplies held a grand opening May 31 lor its new window showroom in Gilbert, Az. The 14,000-sq. ft. facility leatures aluminum, vinyl and wood windows and patio doors, as well as unique products such as an automated, slide-away 20'x10'window wall.

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Scheduled Truck Runs, VMI Programs, Monthly, Quarterly, Yearly Pricing Programs, Cut-To-Size, Just.ln-Time Delivery, One-Stop-Shopping, Experienced Sales Staff. Warehouse. Direct and Reload Sales.

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Long Length Plywood and OSB - Thick PanelsAlternative ltems: Radiata Pine, Okume, Elliotis Pine, Low Grade Plywood and OSB - Salvage / Closeout Buys

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Sanded Plywood Elk Composite Decking

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Industrial Adhesives Tyvek ly required for a decision on most board matters, but good family business boards utilize a consensus style, seldom calling for a vote.

For management teams, consensus decisions are often utilized to gain broad acceptance and valuable support when it comes time to implement the decision, an important feature when, for example, one department must give up its funding to support another's strategic initiative. Decision-making authority is often very explicitly defined in business management, so that one knows when she/he can make an independent decision and when, for example, the c.e.o. must involve the board.

Family business matters on which a family has primary decision responsibility include these:

Family values/mission/vision

Communication in the family

Family education

. Family relations

Aiding troubled family members

Resolving family conflicts

Philanthropy

. Family/business relations

. Family employment policy

. Vacation home economics and use policy

These matters must be decided by families, often in family meetings, family assemblies, or family councils-or their subcommittees. How do families who take on these issues make good decisions?

Leadership

When faced with tough issues, many families default to a senior generation or senior family member. Parents, for example, are the leaders of a first-generation family and have natural decision-making authority. This makes decision making very clear and efficient. Sometimes, in second-generation businesses, the family decision-making authority will reside with an older brother or sister and be passed down to successively younger siblings as an older one relinquishes control of the business voluntarily or for health reasons. Decisions on family matters related to the business may be made by the one who controls the business.

As the family ages and grows, family leaders may respond by allowing family decision making to evolve. Faced with growing interest and pres- sure for involvement, a leader may opt for an approach that retains centralized decision making (the last word), yet only after checking in and listening to the views of all other family members. Thus, in considering all opinions, the leader's decision may be regarded as more satisfying to all concerned, even those who might disagree with it. A key factor, of course, is the level of trust and respect commanded by the leader. The more trust and respect, the more others will feel that the decision has been made with consideration of broad input.

While centralized decision making may serve some families, it rarely lasts beyond a generation or two. In many second-generation business families, and even more after the second generation, it is groups that make the decisions. One person making or controlling decisions becomes unfulfilling in that it does not allow all members of the family to feel they have a voice and may even contribute to apathy and reduced commitment to the family business. On the positive side, opening up decision making to a broader group:

. makes it more likely that all positions will get a fair hearing:

. helps form the teamwork skills that are required for maintaining unity;

. helps maintain boundaries, in that family members with a voice in family matters will be less likely to inappropriately get involved in management and board decisions, and increases the likelihood of all family members feeling that their input is valued and utilized, and potentially solidifies their commitment to the family business.

Voting

Families who make group decisions may adopt a one-person, onevote rule. As with any decision-making method, voting eligibility must be defined, and it varies by the forum and each family's own rules for "who will have a voice."

For example, a small family may have a family council that consists of all family members age 16 or older. Some families give the vote only to bloodline family members and exclude spouses, while others include spouses. Larger, extended families may elect representatives to a more formal family council.

It is healthy for families to engage in voting on family matters. Voting can bring decisions to quicker resolution, and as long as everybody understands what the voting rules are, the group generally will be able to support the outcome. Part of the understanding everyone needs in advance is what it takes to decide. A full discussion of all viewpoints followed by a vote with a simple majority rule is a common practice. Families who vote find that they are able to quickly move through material. However, they may not achieve the same buy-in that would be gained by those who

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