The embattled WR Grace Company, currently in bankruptcy due to an onslaught of asbestos lawsuits stemming from its vermiculite mine in Libby, Montana, has asked a judge overseeing its bankruptcy case to bar asbestos-related lawsuits against Burlington Northern Santa Fe Railway Co. over the railroad’s objections to the legal protection.

According to an article in the Baltimore Sun, “Grace’s effort to resolve more than 100,000 asbestos claims it faces would be more difficult if Burlington Northern Santa Fe Railroad Company (BNSF) starts defending itself against 113 lawsuits involving the railroad’s transportation of vermiculite ore in Libby, Mont.,” Grace attorney David M. Bernick contended yesterday in court. BNSF transported vermiculite from the Montana mine until it closed in 1990.

About 600 town residents and former railroad workers have filed suit against BNSF, claiming the railroad’s transportation of vermiculite ore exposed them to asbestos and therefore put them at risk for developing asbestos-related diseases, such as asbestosis and mesothelioma.

BNSF, however, wants to be able to defend itself in these cases “before memories fade and witnesses die,” the company said in court records.

Lawyers for Grace contend that those suing BNSF will eventually sue Grace as well. The BNSF cases would give plaintiffs’ attorneys “the chance to collect evidence that would later be used as leverage against Grace in negotiations,” Bernick told the judge.

Judge Fitzgerald agreed to sign an order allowing BNSF to pursue legal claims against its insurers, but has not yet ruled on Grace’s motion to extend the ban on lawsuits to BNSF, the article points out.

This entry was posted on Tuesday, May 22nd, 2007 at 10:14 am and is filed under Asbestos Exposure. You can follow any responses to this entry through the RSS feed. Responses are currently closed, but you trackback from your own site.