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CBC Manitoba - Bankruptcy ruling puts Zonolite lawsuits on hold
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Bankruptcy ruling puts Zonolite lawsuits on hold
Last
Updated Nov 23 2005 08:44 AM CST
CBC
News
People who say they became sick because of exposure to asbestos in Zonolite insulation have been dealt a blow in their attempts to sue WR Grace, the company that made the insulation.
Zonolite, a popular type of insulation used in hundreds of thousands of Canadian homes, was made from the mineral vermiculite, which came from a WR Grace mine in Montana that was naturally contaminated with an extremely carcinogenic form of asbestos.
CBC INDEPTH: Deadly dust: More on vermiculite insulation
An Ontario judge granted bankruptcy protection to WR Grace last week.
As a result, at least eight lawsuits filed against the company by hundreds of people who say their health was affected by the insulation are on hold.
"They have bankruptcy protection and the opportunity to try to bring in a restructuring plan that would allow them to continue to operate as a company, but yet require them to put aside money in a settlement fund which victims of Zonolite could then apply to for compensation," said lawyer Evatt Merchant, who represents homeowners across the country, including several in Manitoba.
"We're hoping that by t...