W R Grace & Co has, subject to Bankruptcy Court approval, settled its litigation with Honeywell concerning contamination of Grace owned property at Route 440 in Jersey City, New Jersey.
Under the terms of the settlement, Grace will transfer the Route 440 property to Honeywell. Honeywell in turn will fully indemnify Grace and pay the company $62.5 million.
The Route 440 property, which covers approximately 32 acres, was acquired from Honeywell by a Grace subsidiary in 1981. Unknown to Grace at the time, the Route 440 property was contaminated with approximately 1.5 million tons of chromium waste from a chromium manufacturing facility that had closed in 1954.
Grace sued Honeywell in Federal Court in Newark, New Jersey for damages and for an injunction ordering Honeywell to remove the chrome waste and backfill with clean fill. Honeywell was ordered by a federal judge in May 2003 to do the work, which was estimated to cost more than $400 million.