Judge Judith Fitzgerald, the presiding judge in Grace's Chapter 11 proceedings has rejected the possibility of barring lawsuits against the State of Montana by people who claim they were harmed by the asbestos at the Libby mine. It is alleged that the State failed to protect residents from the asbestos danger posed by the company's mining operations.

In last week's ruling, Judge Fitzgerald said that claims against the State of Montana do not pose a direct threat to the Grace bankruptcy proceedings. As already reported here, W R Grace and Co recently agreed to reimburse the federal government $250 million for the cleanup of the Libby asbestos contamination.

The allegations against the State of Montana claim that it was negligent in that it failed to warn State residents and mineworkers about the lethal contamination at the works.

Fitzgerald said people who claim asbestos from the mine triggered cancer, mesothelioma and other diseases can pursue action against Montana without disturbing Grace's reorganization.

Forbes