A proposed settlement that could give hundreds of Manitobans with asbestos-tainted insulation in their homes about $600 each has been dismissed by critics as a poor offering that benefits lawyers instead of the plaintiffs.
Earlier this week, American company W.R. Grace offered a $6.5-million settlement to Canadians whose homes contain Zonolite insulation. As much as half the money is earmarked to pay lawyers and administrators.
The settlement has yet to be approved in Canadian or American courts.
Tens of thousands of Winnipeg homes and businesses contain Zonolite, much of which was made from Montana-mined vermiculite and found to contain naturally occurring asbestos.
Exposure to asbestos fibres can cause cancer and lung disease, although Health Canada has said the insulation does not pose a health risk if left undisturbed and sealed off.
The $600 is "an absolutely paltry amount of money," said Winnipeg Centre MP Pat Martin, who has taken up the asbestos cause for years. "It's almost useless in terms of the scale of the remediation work that needs to be done out there."
Zonolite was popular in Canada from the 1950s until the 1980s, and is found in an estimated 300,000 homes across the country. Homeowners were eligible for federal grants to install the insulation from the late 1970s until the early 1980s.
W.R. Grace was granted bankruptcy protection in 2005.
Martin said the $600 figure is especially galling given the tens of thousands of dollars it can cost to safely clear a home of Zonolite.
"That is just adding insult to injury," said Raven ThunderSky, a Winnipeg activist who grew up in a home on Poplar River First Nation with asbestos-laced insulation. She has lost six family members to asbestos-related illnesses.
"$600? I don't know if you can get anybody to do an assessment of your home for $600, said ThunderSky, who is not part of the lawsuit. She pursued independent legal action.
Just how much a Canadian homeowner might get would depend on the number of people who register and how many of them qualify, said Montreal lawyer Michel Bélanger, who helped set up the class-action suit.
lindsey.wiebe@freepress.mb.ca
Where settlement money is going
Up to $2.25 million to Canadian lawyers for current and future legal fees, which could include a US$350,000 payment to American legal counsel;
Up to $850,000 to a claims administrator;
Up to $150,000 to a "qualified expert" for consultation and procedure development.
The remainder of the money in the fund, as well as interest and any leftover cash, will be available to claim holders.
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