W.R. Grace & Co. has asked the United States Supreme Court to hear an appeal in a criminal case against the specialty chemical company that once mined asbestos-contaminated vermiculite in the town of Libby, Montana.

W.R. Grace & Co. manufactured asbestos-containing products from 1938 through to the 1970s. The company also owned and operated a vermiculite mine in Libby that was contaminated with asbestos. Millions of homes throughout the country contain Zonolite, an insulation product containing the contaminated vermiculite, and thousands of Libby residents have developed asbestos-related diseases such as mesothelioma and asbestosis as a result of working in or living near the mine.

After settling its current and future asbestos-related claims with the creation of a $3 billion trust fund, the company, as well as six of its former executives, still faces criminal charges relating to the contamination of Libby.

Under the terms of the recently-created settlement, W. R. Grace will pay up to $1.8 billion into the trust fund initially. An additional $1.55 billion will be paid into the fund between 2019 and 2034.

The trust fund is to be further supplemented by the addition of W.R. Grace & Co. stock options worth tens of millions of dollars, which will be available at a reduced price relative to current market value. The chemical company also agreed that its remaining insurance coverage would also be added to the fund.

The creation of the settlement trust fund is one more move that will allow the company to eventually emerge from Chapter 11 bankruptcy.

The criminal charges relate to the company’s activities in Libby that involved the release of asbestos that injured or killed more than one thousand residents of the town. The company may face fines of up to $280 million, and the individuals may face prison terms of up to fifteen years, if convicted.

The company has also been charged with interfering with government clean-up efforts in the town.

In its appeal, W.R. Grace asked the high court to overturn a ruling made by a lower court. The ruling adopted a government definition of asbestos developed under the federal Clean Air Act.

The former vermiculite-mining company claims that according to the government definition, only 5% of the material is released in Libby is applicable to the criminal charges in the case.

This entry was posted on Tuesday, April 29th, 2008 at 3:02 pm and is filed under Asbestos Exposure, Asbestos Litigation, Montana. You can follow any responses to this entry through the RSS feed. Responses are currently closed, but you trackback from your own site.