The settlement doesn't erase all of Grace's problems.
Claims regarding Grace-made attic and wall insulation installed in millions of homes and offices are pending in federal court. It also faces complaints seeking damages for the cost of removing Grace products from homes and offices. More than 4,000 cases were brought against the company. It has 175 left to settle.
The company and some of its current and former executives still face criminal charges related to the Libby mine operation. They stand accused of knowingly exposing thousands of workers and residents near the mine to asbestos fibers for decades.
Festa said the criminal trial is separate from the bankruptcy proceedings.
Some victims were unhappy with yesterday's settlement.
Libby victims said they feared the settlement won't adequately replace the Grace-funded medical plan offered to Libby residents suffering from asbestos complications. Though Grace said the plan will continue after the company emerges from bankruptcy, Jon Heberling, lead counsel for the Libby victims, said there is nothing in writing to enforce that.
Libby resident Gayla Benefield, who lost both of her parents to asbestos disease and now suffers from it herself, says medical care is the most important issue to her. She spends about $900 every month on prescriptions and fears the amount she could receive from the settlement will not cover all her health costs, let alone adequately compensate her for her turmoil.
"When Grace jumps up and starts throwing money around, to tell you the truth, we would like to see the company crumble," Benefield said.
Heberling said he and Benefield disagreed with the proposed settlement. They want to make sure that Libby gets a "large piece of the pie" in the final settlement.
One legal expert said settling the suits removes a large hurdle from Grace's business.
"It puts the issue of payments to the asbestos claimants behind them so they can move on to their core business, which is definitely not defending lawsuits, but making the products they sell," said Alan Kopit, legal editor at lawyers.com. "If you had piecemeal cases, you could never quantify to any degree the extent of the liability. Now it quantifies itself and creates a fund for the claimants to tap into."
andrea.walker@baltsun.com paul.adams@baltsun.com
Sun reporter Megan Hartley contributed to this article.
