W.R. Grace, Former Executives Acquitted of Federal Charges

W.R. Grace & Company and three former executives were acquitted of federal charges that they knowingly allowed residents of the small northwestern Montana town of Libby to be exposed to asbestos from its vermiculite mine.  W.R. Grace & Co., founded in 1854 in Peru, bought the mine in 1963 and closed it in 1990 after many years of complaints.

Attorneys for some residents of the town (poplulation 2,635) blame tremolite asbestos from the vermiculite for about 2,000 cases of illness and about 225 deaths in and around the community.  Given the small size of the community, prosecutors repeatedly pointed out the very high incidence of disease.  Miners accidentally carried asbestos home on their clothes thus exposing their family's to asbestos.  Asbestos-containing vermiculite was also used to cover school running tracks in Libby and some residents used vermiculite as mulch in their home gardens.  Vermiculite, an ore found in the area in 1881, had been mined since 1919.

The company and its former top officers were accused of knowingly endangering the lives of mine workers as well as all residents of Libby, and of ignoring warnings by state agencies to clean up the vermiculite mining operation. They were also accused of Clean Air Act violations and obstruction of government efforts to address problems in Libby.

Charges against two executives were dropped during the trial at the request of prosecutors. Subsequently the jury acquitted Jack Wolter, Henry Eschenbach, and Robert Bettacchi.

Gayla Benefield of Libby, who suffers health effects from asbestos exposure and lost both parents to asbestos-related lung diseases, said she doesn't know what the next step will be.

"They have gotten away with murder. That's all I can say," she said.

Another defendant in the case, Grace in-house lawyer O. Mario Favorito, was scheduled for trial in September, 2009. Grace also faces civil cases in which hundreds of Libby residents seek compensation for health problems.

The company knew about the health hazards of asbestos, but covered it up "... so they could continue making money as well as avoid liability." Assistant U.S. Attorney Kris McLean said during Wednesday's closing arguments.

Allegations of prosecutorial misconduct arose during the trial and U.S. District Judge Donald Molloy was visibly frustrated at times, at one point telling prosecutors they did not understand the evidence they were presenting.

Assistant U.S. Attorney Jessica Fehr of Billings, a spokeswoman for the U.S. Justice Department in Montana, declined comment because Mr. Favorito stills faces charges.

Asbestos contamination in Libby led to environmental cleanup and health care services that have become a major economic force in the community once reliant on mining and logging.

Cleanup has been overseen by the U.S. Environmental Protection Agency.  The EPA has been removing asbestos-contaminated soils and other materials in and near Libby since May 2000, and has spent $120 million.  The town and the surrounding area with about 10,000 residents now has a health clinic devoted to asbestos-related disease.