The Supreme Court today rejected an appeal made by W.R. Grace, the company that owned and operated the vermiculite mines in Libby, Montana.  The new decision allows the case against W.R. Grace to go to trial; in 2005, federal prosecutors accused the company and six of its executives of violating the Clean Air Act.

Grace claimed that under the specifications of the Act, asbestos was not clearly defined and did not necessarily pertain to substances released from the mine.  The claim was rejected by the 9th U.S. Circuit Court of Appeals.

In April, the company agreed to a $3 billion arrangement that would allow it to emerge from bankruptcy without facing further asbestos liability.  Additionally, Grace must pay $250 million to the federal government for fees incurred when investigating and cleaning the vermiculite mines.

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