Monsanto: Solutia 'obligated' to pay $3m asbestos claims

Author: Mike Sheridan

2003/12/03

HOUSTON (CNI)--Monsanto said Wednesday that fibres producer Solutia is obligated to pay $3m (Euro2.5m) to settle two asbestos cases involving former parent Monsanto.

St Louis, Missouri-based Monsanto confirmed that Solutia had notified it and its successor company, Pharmacia, earlier today that Solutia will not make the payments to settle asbestos litigation in Texas.

Monsanto said that Solutia's failure to honour its payment obligations would be a breach of its 1 September 1997 agreement between Pharmacia (then known as Monsanto) and Solutia.

Continued Monsanto in a statement: "Under the distribution agreement, Solutia assumed these obligations and does not have the right to selectively determine which obligations it honours."