Texas Court Reviews Asbestos Claims Tied to Former Montana Talc Mine Operations

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News Summary

A Texas judge investigates the asbestos content in talc from Barretts Minerals, amid numerous lawsuits linking the product to cancer cases.

Texas Court Reviews Asbestos Claims Tied to Former Montana Talc Mine Operations

A Texas bankruptcy judge is currently investigating the asbestos content found in talc produced by Barretts Minerals from a now-closed mine in Dillon, Montana. This scrutiny arises after Barretts Minerals took the drastic step of filing for bankruptcy in 2023, due to an avalanche of lawsuits that accuse the company of causing cancer, particularly the aggressive form known as mesothelioma, which has been directly linked to asbestos exposure.

Attorneys representing the claimants assert that Barretts Minerals failed to disclose vital information regarding the safety of its talc, alleging that asbestos was present in dangerously high levels. This has led to widespread concern and criticism, as the health implications for those who used the product are significant. Following its bankruptcy filing, Barretts Minerals has been operating under the name Barretts Minerals OldCo, attempting to navigate the complex landscape of litigation.

Financial Complications and Controversy

Meanwhile, Barretts Minerals’ parent company, Minerals Technologies Inc., continues to operate financially, drawing criticism for allegedly exploiting Barretts Minerals OldCo’s bankruptcy as a shield against lawsuits. Attorneys, including prominent figure Clay Thompson, argue that the choice of Texas for the bankruptcy filing was no coincidence, citing the company’s landholdings in the state that generate a substantial rental income.

The U.S. Bankruptcy Court Judge, Marvin Isgur, has given the green light for the bankruptcy proceedings to continue but seeks a separate court’s assessment of whether the talc contained harmful levels of asbestos. This determination could have far-reaching implications, potentially reopening or closing numerous lawsuits across the country.

Denial of Wrongdoing

In an attempt to mitigate the growing concerns, Barretts Minerals has categorically denied any wrongdoing, maintaining that its talc was tested appropriately and has always been safe for use. Despite these assertions, the legal landscape remains fraught with uncertainty. In 2024, the contaminated mine was sold for an impressive $32 million to Riverspan Partners and rebranded as High Divide Minerals, effectively distancing itself from Barretts Minerals. However, the bankruptcy process for Barretts Minerals OldCo continues, with a proposed plan that seeks to address both current and future asbestos-related claims, including those targeting its parent company.

Legal Maneuvers and the Human Cost

Critics have expressed concerns that Barretts Minerals’ bankruptcy strategy is more about avoiding accountability for asbestos-related harm rather than a legitimate means of business restructuring. Minerals Technologies Inc. claims to have reserved $215 million to tackle these claims while reiterating that the lawsuits against them lack merit.

This philosophical and legal battleground has effectively stalled numerous lawsuits across various states, leaving many claimants in a precarious state of uncertainty as they seek paths to justice. Should the Texas court rule that the talc indeed contained dangerous levels of asbestos, a flood of new lawsuits could emerge, while a ruling against the presence of such harmful material may lead to the dismissal or prolongation of many existing claims.

The Ongoing Battle

As the legal battle unfolds, many claimants, including individuals like cancer victim Sally Salas, are waiting with bated breath for resolution. Sally has openly shared her struggles with health issues she attributes to the contamination of talc with asbestos, exemplifying the dire human cost entangled within this complicated legal dispute.

This situation is not isolated, as other large corporations, such as Johnson & Johnson, have employed similar bankruptcy tactics — the so-called “Texas Two-Step” — to strategically manage their liabilities concerning talcum powder lawsuits. This trend highlights a growing concern over how major firms navigate the bankruptcy system to minimize or evade liability.

As the District Court case number 23-90794 continues, focusing on the troubling relationship between asbestos in talc and mesothelioma diagnoses, all eyes are on the Texas courts to uncover the truth behind these troubling claims that could impact countless lives.