$6.5M settlement proposed in Zonolite insulation suit

A U.S. company that produced home-insulation found to contain asbestos is proposing to pay Canadian homeowners $6.5 million a settlement some of the plaintiffs suggest is too modest.

Raven Thundersky says Zonolite, the insulation used in her northern Manitoba home,has caused serious health problems for her family.

"I think that's an insult to families," Thundersky said of the proposed settlement offered by the U.S.-based W.R. Grace and Co.

"I've lost everything. My family has paid a very heavy price, they've paid with their lives."

Health Canada says there is no scientific evidence linking health risks to Zonolite which is estimated to be in about 300,000 homes across the country if it is left undisturbed and enclosed.

But the federal agency notes that vermiculite ore drawn from W.R. Grace's Libby mine in Montana from the 1920s to the 1990s is at least partly tainted by asbestos. When inhaled, asbestos can lead to asbestosis, mesothelioma and lung cancer.

Winnipeg MP Pat Martin said the company is not offering enough to homeowners.

"Half of the houses in this neighbourhood are loaded with Zonolite in their attics," he said. "The settlement is a farce."

Michel Blanger, one of the Montreal lawyers that launched the class action suit, said settlement is the sole viable option given that the company is facing bankruptcy in the U.S.

"[The judge] listened to all experts, and she [decided] that if you live in a house, there is no risk to your health because of that product," Blanger said. "So, at the end, maybe we were facing nothing."

Belanger noted that the lawsuit against the Canadian federal government has yet to proceed before the courts. From 1977 to the mid-1980s, homeowners who installed products including Zonolite in their home were eligible for grants under the federal government's Canadian home insulation program.