Wednesday, December 3rd, 2008
W.R. Grace and Company has recently reached a $60 million agreement that is aimed to settle property damage claims concerning asbestos-contaminated insulation. Home and business owners who used the attic and wall insulation for their property are the ones that will benefit from the settlement.
The settlement developed because W.R. Grace negligently used the naturally occurring mineral asbestos in their Zonolite insulation. Asbestos is an extremely toxic substance that has been linked to several forms of disease, including asbestosis, lung cancer and malignant mesothelioma. Those who are exposed to asbestos, even on just one occasion, will likely experience great risk in developing either one of these harmful diseases.
The settlement states that those who used the product can be paid 55 percent of the amount of damages that they claimed in the suit. However, no one filing a claim will be eligible to receive more than $4,125.
According to the agreement, W.R. Grace will place $30 million in a 20-year trust during the first year. An additional $30 million will be placed in the trust for the third year. After the fifth year, the company will add $8 million each year the trust falls below $10 million. Home and business owners will be able to file claims as long as the trust exists, and the money is designed to cover the costs of replacing the asbestos-contaminated insulation.
W.R. Grace chose not to specify how many people had previously filed claims. Though according to government officials, an estimated $35 million homes and businesses have had Zonolite insulation installed in their property.
W.R. Grace previously filed for bankruptcy protection back in 2001 over hundreds of thousands of asbestos-related claims. In April, 2008, the company announced a settlement that could be worth $3 billion, which would likely place an end to thousands of lawsuits by those affected with asbestos exposure. According to Fred Festa, W.R. Grace could come out of bankruptcy during the first half of 2009.
In addition the Grace’s recent $60 million settlement, the company has also agreed to pay $250 million to remove any asbestos contamination in Libby, Montana. This is where Grace mined and processed asbestos-contaminated vermiculite for 27 years. In the history of the federal government’s Superfund program, it’s the largest sum of money agreed upon by any organization.
To this date, current and former executives of W.R. Grace continue to face criminal charges in relation to the Libby mine operation.
For additional information on the effects of asbestos exposure, visit the Mesothelioma Cancer Center.

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