W.R. Grace Inc.'s Prior Knowledge of Risks of Asbestosis Ignored in Federal Court
by moth
04 October 2009
This report will attempt to show that several corporate officers
employed by W.R. Grace Inc., the defendants in a recent federal trial in
Missoula, Montana were engaged in acts of criminal conspiracy to commit negligent
homicide against their workers at the W.R. Grace's Zonolite brand
vermiculite plant in Libby, Montana during several decades.
The Zonolite brand of vermiculite was mined and processed by W.R. Grace
Inc. as insulation material, sold to homeowners during the '70s and
'80s.
Zonolite vermiculite was packed in bags so consumers could pour it out
into openings in between joists in the attics of homes after
construction.
The main ingredient of Zonolite is vermiculite, a naturally occurring
mineral found in and around Libby. Vermiculite has exfoliation
properties,
meaning that it can expand to several times its original volume after
being heated. This property results in vermiculite expanding to block
any
airflow directly around the heated area, effectively trapping the heat
inside. Despite the generally positive and safe properties of
vermiculite
minerals, the supply of vermiculite that was mined in Libby was often
contaminated with an uncommon yet incredibly dangerous form of asbestos
fiber known as tremolite (Ceatus Media Group).
Over several months beginning at 2008 until the trial's end in 2009,
evidence was presented to indicate that W.R. Grace Inc.'s corporate
executives and certain members of management were engaged in a criminal
conspiracy to silence any evidence of serious health risks caused by
exposure to the tremolite vermiculite asbestos fibers. The final verdict
of the Missoula Federal Court's Judge Donald Malloy was not guilty on
all
charges, effectively letting W.R. Grace executives off the hook from any
responsibility. However, there is reason to believe that this trial was
not conducted in a fair and even handed manner by presiding Judge Donald
Malloy, especially when the obvious nature of W.R. Grace's corporate
executive's crimes were presented numerous times in court in a
consistent
and scientifically accurate manner.
The defendants were several of W.R. Grace's corporate officers, and the
prosecution was the U.S. federal government. After several months of
evidence presented by the prosecution against W.R. Grace corporation
showing that they had prior knowledge of severe health dangers faced by
workers from exposure to vermiculite asbestos, Judge Malloy claimed that
the evidence was all insubstantial since W.R. Grace's Libby plant closed
down just before passage of the Clean Air Act in 1980.
After hearing several witness testimonies, W.R. Grace's prior
knowledge of
dangerous tremolite asbestos fibers contained in their Zonolite
vermiculite product and found around Libby's mines became more
apparent to
everyone listening. However, even this prior knowledge of severe health
risks from exposure to tremolite asbestos would not result in a guilty
verdict. The criminal provision of the Clean Air Act began in 1990, the
same year W.R. Grace closed their Libby vermiculite mine and factory.
The
prosecution was forced then to prove that W.R. Grace committed criminal
acts after 1990. Even though W.R. Grace knowingly exposed their mine and
factory workers and also the entire town of Libby to deadly tremolite
asbestos fibers, during the Missoula trial Judge Donald Molloy
oversimplified the case in his statement to the jury, "I hope we're not
misleading you, but there is no violation of the law prior to 1990
because
it wasn't illegal." (Brayton -- Purcell, 2009). However, this itself is
misleading, as the poisoning of the air in the Libby facility with
asbestos went beyond simple pollution and resulted in physical harm to
the
workers themselves, as would food poisoning or other direct attacks on
the
worker's bodies.
Federal Judge Donald Malloy also showed clear bias against former W.R.
Grace employee Robert Locke, one of the prosecution's main expert
witnesses by nearly calling him a "liar". The defense lawyers
attempted to
discredit Locke's testimony on the grounds that he suffered from chronic
depression and their unsubstantiated claim that he may have had a
personal
vendetta against W.R. Grace for firing him several years earlier as a
result of his ongoing struggles with depression. However, Locke kept
meticulous notes and was directly involved in supervising the handling
of
the tremolite vermiculite asbestos mineral materials during his time at
W.R. Grace.
Several other expert witnesses for the prosecution were either muzzled
or
discredited by Judge Malloy also. The "not guilty" ruling by Missoula
Federal Court's Judge Donald Malloy for the W.R. Grace corporate
defendant's roles in knowingly giving their employees lung cancer from
vermiculite asbestos exposure, results in the residents of Libby,
Montana
and many others feeling that justice has not yet been served and in fact
was derailed by an overtly pro-corporate bias on the part of Judge
Donald
Malloy.
Once again the U.S. government has shown its inability to regulate and
prosecute corporations who engage in dangerous and deadly practices. The
W.R. Grace corporation literally got away with murder, and yet today
well
paid Grace executives are free to enjoy their wealth of profits robbed
from the hills and labor of Libby for their retirement, while the Grace
workers killed by vermiculite asbestos exposure only get cold graves as
their reward.
Making claims of judicial bias showing favoritism towards a corporate
defendant is nothing new, and the same pattern appears to repeat itself
when corporations are put on public trial for environmental and human
rights violations from knowingly exposing workers and residents to
carcinogenic toxins. These false positive verdicts of "not guilty" fly
into the face of reality and must be challenged on every level. Like
going
to a doctor, we must demand a "second opinion" or a second trial where
expert witnesses are treated fairly and their testimonies are NOT
excluded
or condensed and available for the jury to hear in full detail.
Throughout
the trial, Judge Donald Malloy often invoked "Rule 403", effectively
preventing large and possibly incriminating amounts of testimony and
evidence from being heard (The David Law Firm, Mesothelioma Web).
Other expert witnesses for the prosecution were limited in their
testimony. For example, in docket # 1103, the order from Judge Molloy to
strike the testimony of Dr. Whitehouse is granted, though not the entire
testimony is stricken. Judge Molloy strikes his critical prediction that
Libby's CARD (Center for Asbestos Related Disease) will continue to see
asbestosis related cases until 2030, claiming that Dr. Whitehouse lacks
epidemiological knowledge to make such a prediction. Since Dr.
Whitehouse
makes this claim from his position on the frontline of treatment, his
testimony is considered "unscientific" and has this statement stricken
from the record. However, with a few mathematical equations, this
predictive statement could also be proven by science. It is reasonable
to
support Dr. Whitehouse's prediction as being supported by statistical
evidence of future projections of disease tracking (U.S. District Court,
Montana Case File).
Other biased rulings by Judge Malloy include docket # 1089, which grants
and denies the motion to exclude witness testimony from Melvin Burrett,
based upon defense lawyers' objections in open court during Melvin's
testimony. We do not know the content of what he said that was
objected to
by the W.R. Grace lawyers, nor which of their objections were
overruled by
Judge Malloy (U.S. District Court, Montana Case File).
In docket # 1062 defendant Bettacchi's motion to exclude evidence of
demolition of Grace's buildings at the screening plant and mine are also
granted and denied, as reflected in the court's rulings during Mr. Leroy
Thoms's testimony, yet we do not know any specifics on what was
allowed as
evidence and what was suppressed (U.S. District Court, Montana Case
File).
What is known and not subject to guessing games and whims of pro-
corporate
activist judges like Judge Donald Malloy is the peculiar history of W.R.
Grace corporation's Nazi ties as found in documented literature.
The history began in 1928 when U.S.G.S. scientists found vermiculite
deposits in Libby at least 100 million years old, with 100 foot wide by
1,000 foot long deposits. Ed Alley then heated layers of ore, which
expanded and released trapped water as steam. He called the finished
product "Zonolite" and discovered many uses, including insulation
(Peacock, 30-1).
Zonolite was also the name of Libby's initial vermiculite mining
corporation that then was taken over by W.R. Grace in 1963. Here we are
introduced to Earl Lovick, an employee of Zonolite who was transferred
to
Grace after the takeover. Even after his retirement in 1983, Lovick
stayed
with Grace as a paid consultant. "Earl Lovick knew that Zonolite was
laced
with asbestos, that alley's miracle ore was killing miners and maybe
other
townspeople, though he did nothing to warn them." (Peacock, 35-6)
Earl Lovick knew the form of asbestos in Zonolite's mine was called
tremolite, a straighter fiber than the commercial forms of asbestos
usually available to the public. He knew where in the plant the asbestos
dust was leaking, and that over a third of the miners who worked at W.R.
Grace in Libby were developing lung problems. He felt that employees
were
aware of the risks without being told, and that with respirator masks
were
safe. (Peacock, 35-6)
Bob Wilkins, a union representative, was not aware of the risks from
tremolite asbestos until 1979, when he was told by a federal health
inspector (Peacock, 38). The six story high dry mill used screens and
shakers to separate the vermiculite from the surrounding rock matrix,
and
as a result was extremely dusty. The respirator masks given to employees
during their time at the dry mill were either clogged or did not seal
properly (Peacock, 39).
The background on J. Peter Grace reveals some connections and complicity
with the Nazis during WW2, and including Nazi chemical conglomerate I.G.
Farben's Dr. Otto Ambrose as management staff at Grace following WW2 and
"Operation Paper Clip" when former Nazi scientists were transferred into
positions in the U.S. government and private corporations like W.R.
Grace
(Peacock, 58-9).
The infiltration of former Nazi officials into U.S. government positions
slowly became public knowledge when Ronald Reagan appointed J. Peter
Grace
to head up the Grace Commission, a federal agency directed to downsize
protection and regulatory agencies in the government, including NIOSH
(National Institute for Occupational Safety and Health). This
appointment
of a former Nazi supporter to a deregulatory agency was timed for when
the
health and safety regulators were preparing to investigate W.R. Grace
after Scotts Company worker's asbestosis cases were linked to Zonolite
materials that originated from W.R. Grace's factory in Libby.
Not only was J. Peter Grace a high level Reagan appointee to deregulate
protective agencies in favor of corporations, Grace was also leader of
the
U.S. Council of the International Chamber of Commerce, and president of
the Knights of Malta, an top secret Catholic organization with members
of
the CIA and Council on Foreign Relations (Scipes).
One of W.R. Grace corporation's biggest stockholders by 1980 was the
Frick
Group, known to have profited from Nazi takeovers of Jewish owned
businesses. Following a written recommendation letter for a visa from J.
Peter Grace, former I.G. Farben scientist Otto Ambrose was allowed into
the U.S. Prior to the letter from Grace, Ambrose was unable to enter the
U.S. due to knowledge of his war time position at I.G. Farben where he
supervised poison gas operations at Auschwitz death camp (Scipes).
Once Ambrose began working at W.R. Grace Inc., the former Nazi
employee of
I.G. Farben was able to continue his inhumane experimentation on the
community of Libby, Montana. Instead of I.G. Farben's deadly Zylon-B
gas,
the chemical agents were now sharp minerals called vermiculite tremolite
asbestos. That is how some officials in the U.S. government collaborate
with industrialist war criminals at the expense of the health and
welfare
of their own people.
Peter Grace was also enabled by Ronald Reagan to cut the budgets of the
regulatory agencies that were supposed to protect the health of Libby
workers and residents. This resulted in a delay of the NIOSH
investigation
until 1987, only three years prior to W.R. Grace closing down the Libby
plant. A company memo in 1980 discussed their options regarding the
NIOSH
proposal to study tremolite fibers at Grace's Libby location. Libby
resident Gayla Benefield said that W.R. Grace preferred a pre-emptive
epidemiological study combined with delay tactics and political pressure
to distract NIOSH and stifle health data that could threaten their
economic interests (Fritz, Cascadia Times).
Other tactics were used over the years to cover up essential details of
health risks, such as the state of Montana conducting most of their
routine air quality inspections during rainy weather of while the mill
wasn't operating. In other cases the evidence was literally covered up;
such as Libby's high school track originally built with tremolite mine
tailings was later paved over with asphalt in 1982 (Fritz, Cascadia
Times).
The same year that Libby's tremolite running track was paved over,
Reagan
appointed then W.R. Grace CEO J. Peter Grace as head of the Grace
Commission, who then recommended deep cuts to the EPA, thus slowing
their
investigation of W.R. Grace's site in Libby. Gayla Benefield believes
that
the Grace Commission's report resulted in the EPA dropping their
investigation in 1982 after only two years of on site research.
According
to then EPA researcher Thomas Dixon, budget cuts forced the EPA to
prioritize their work on asbestos in public schools (Fritz, Cascadia
Times).
Benefield's personal involvement in the case continued, the daughter of
Grace worker Perley Vatland and mother Margaret Vatland, both of whom
died
from asbestosis, was driven by the need for justice. "I started to carry
the message to our elected officials, right up to the governor's
office,"
Benefield says. Though former Montana Governor Marc Racicot's hometown
was
Libby, he never visited nor acknowledged that the asbestosis problem
existed. Despite overwhelming evidence of statistics and reports from
Montana State Board of Health as early as 1956, nobody in public office
took any action (Fritz, Cascadia Times).
What ends up happening when corporate executives like J. Peter Grace of
W.R. Grace are selected by unscrupulous politicians like Ronald Reagan
to
head up deregulatory agencies like the Grace Commissions that decide
what
forms of pollution and toxic exposures are worthy of safety
investigations
or not is the net effect of the fox guarding the henhouse, and the
results
are never pleasant for the people effected.
In a book review of "An Air That Kills" by Andrew Schneider and David
McCumber, the link between the EPA's failure to follow up on its own
investigation and the Grace Commission's official title as "Private
Sector
Survey on Cost Control" is recognized in a quote from the EPA's first
administrator in 1970; William Ruckelshaus; "If Grace's company owned
that
mine in Libby or had any other major involvement with asbestos, (Peter
Grace) shouldn't have been reviewing actions dealing with the regulation
of the asbestos industry." (Holt, Counterpunch).
Schneider and McCumber continue to detail W.R. Grace's devious
strategies
such as reassigning employees who's X-rays showed signs of lung
disease to
jobs with lower exposure levels. Their calculated goal was to minimize
any
further exposures to asbestos dust so that early stage diseased
employees
would be able to work until retirement without becoming a higher cost
medical liability. The company's advertised "Libby Medical Program"
claimed to help workers, though Schneider and McCumber explain that it
denied coverage to applicants and refused to pay for some of their
medications and oxygen supplies (Holt, Counterpunch).
The last ruling from Judge Donald Malloy was given to chief corporate
lawyer Mario Favorito on June 15 as a dismissal, since all other
defendants were exonerated at an earlier date. The first three not
guilty
verdicts were given to Robert Bettacchi, Jack Wolter, and Henry
Eschenbach
on May 8. Their roles at W.R. Grace were senior vice president, vice
president of the construction products division, and director of health,
safety and toxicology for W.R. Grace. Out of the original seven
defendants, the mine's general manager Alan Stringer was deceased in
2007,
and towards the end of the trial the prosecution dropped charges against
senior vice president Robert Walsh, and former general manager of the
Libby mine, William McCaig (The David Law Firm, Mesothelioma Web).
As shown above in several examples, there was considerable foreknowledge
on the part of the W.R. Grace executive officers that the tremolite
asbestos fibers found at their Libby facility were indeed harmful to
their
workers over time. The corporate officers then made deliberate choices
to
limit exposures to the dangerous fibers in already exposed workers so
that
the corporation could get a few more years of work out of the ailing
workers before they finally perished from asbestos related lung
diseases,
thus failing to collect any pensions or medical benefits from W.R.
Grace.
Regardless of the time frame, slow and controlled poisoning of people
still amounts to homicide, yet W.R. Grace executives who participated in
this decision making process were declared not guilty.
Following the not guilty verdict and the trial's end, on June 16th W.R.
Grace's stock rose 96.3 percent above the March value of $6.80, now
selling at $13.34 per share (The David Law Firm, Mesothelioma Web). How
ironic that W.R. Grace can leave their Libby facility and nearly the
entire town as a toxic superfund site with absolutely no legal
responsibility yet continue to reap profits outside of the region. Under
"corporate personhood" rules, corporations are given equal rights as
living human beings yet are not held responsible in situations where
ordinary humans would end up in prison for committing the same criminal
acts. In this sense the corporate structure enables W.R. Grace's
executive
officials greater leeway to commit large scale crimes yet bear none of
the
consequences. We could imagine old school gangsters like Al Capone
turning
green with envy at the ability of the murderous corporate criminals of
the
W.R. Grace executive administration to evade and manipulate the justice
system to their advantage.
In conclusion, most reasonable people expect there to be some common
sense
attached to verdicts of this magnitude. To simply dismiss decades of
ecological destruction and physical harm to workers from asbestos
exposure
as irrelevant because these acts occurred prior to the passage of the
1980
Clean Air act ignores other laws already in existence. The simple and
straightforward laws of 'do not knowingly cause harm to people working
for
your business' also needs to be taken into consideration, and these
protections existed the entire time W.R. Grace was operating their Libby
facility. The years of exposure to asbestos is comparable to a
hypothetical employee's cafeteria that placed small amounts of arsenic
in
their chow with the intent that the corporation could avoid expensive
retirement pension payments if the cumulative effects of the arsenic
resulted in the early demise of the employees. If this were the case,
most
reasonable judges would rule against the corporation for knowingly
poisoning the food of their workers, though for some reason W.R. Grace's
poisoning the air of the workplace environment is treated differently?
The final question we need to consider is when justice is derailed by
the
U.S. federal courts, what other realistic options are there for
restoring
balance of wrongs committed by W.R. Grace against the people of Libby?
We
are asked to rely on the legal system to attain justice, yet when overt
judicial bias is recognized and the legal system's inability to gain
justice for the victims becomes apparent, where do people turn for
balancing the scales of justice?
* * * * *
Our correspondent moth lives car-free near the Great Basin. He formerly volunteered at Culture Change's Arcata office in 2003.
References
Libby, Montana: Asbestos and the Deadly Silence of an American
Corporation" by Andrea Peacock (2003) from Johnson Publishing Co. in
Boulder, CO
"An Air That Kills: How the Asbestos Poisoning of Libby, Montana
Uncovered
a National Scandal" Written by Andrew Schneider and David McCumber, published by G. P.
Putnam's Sons; 1/22/04
University of Montana Grace Case
A Joint Project of the School of Law & the School of Journalism
http://blog.umt.edu/gracecase/
"Scarred Paradise: A Montana Tragedy Who will help the dying people of
Libby?"
Written by Jane Fritz, published by Cascadia Times; 2001
http://www.times.org/archives/2001/libby.htm
"Federal Prosecutors Dismiss Last W.R. Grace Defendant"
Sources: Bloomberg, New West, KPAX,
Published on Mesothelioma Web, sponsored by The David Law Firm,
Woodlands, TX
http://www.mesotheliomaweb.org/jun200917a.htm
Culture Change mailing address: P.O. Box 3387, Santa Cruz, California, 95063, USA, Telephone 1-215-243-3144 (and fax). Culture Change was founded by Sustainable Energy Institute (formerly Fossil Fuels Policy Action), a nonprofit organization.
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