Asbestos can be a painful product when it settles in the lungs of workers and others who have been exposed to these microscopic fibers.  Health problems associated with exposure include lung cancer (particularly if the person smoked cigarettes), asbestosis (progressive and sometimes fatal disease that destroys the lungs’ ability to absorb oxygen) and mesothelioma, a rare and painful cancer (only occurs as a result of asbestos exposure) and other pulmonary problems.

Prior to the discontinued use of asbestos, extensively for fire retardant and insulation, workers in the building trades suffered massive exposure with anecdotal stories of workers talking about toiling in conditions where the asbestos “flowed like snow.”

Class action suits have been filed across the country on behalf of workers, their spouses who did their laundry and even residents of communities which suffered massive exposure to asbestos.

   Some companies have settled the lawsuits with plaintiffs, but one of the largest, W.R. Grace and Co., which manufactures chemicals and construction materials hasn’t and faces 325,000 lawsuits with an estimated $6 billion in claims.  Facing such a huge potential liability, the company and 61 domestic subsidiaries filed for Chapter 11 bankruptcy in April of 2001.

  Grace subsequently filed to have the bankruptcy judge issue a ruling on the legitimacy of the pending asbestos-related lawsuits.  In January of 2008 testimony began before Judge Judith Fitzgerald of the U.S. Bankruptcy Court, District of Delaware

Grace claims many of the lawsuits resulted from mass asbestos screenings and are therefore not legitimate.  Judge Fitzgerald has already allowed the company to introduce testimony claiming the diseases were “over diagnosed.”

Judge Fitzgerald will not rule on the individual claims as valid or invalid, but the judge in bankruptcy cases does rule on what liabilities the company faces.

The unusual move by Grace could potentially affect all existing asbestos and product liability lawsuits as it breaks new legal ground.  Attorneys say no one disputes a personal injury claimant has a right to a jury trial, but if Grace succeeds in its attempts to have many of the claims dismissed, this will be the first time a claimant has not gotten a jury trial without their consent. (A claimant can waive the right to a jury trial.)

Judge Fitzgerald is expected to issue her ruling in May of 2008 so watch for further information.