Monsanto: Solutia Remains Obligated Under Distribu
St. Louis, Dec 04--Solutia Inc. has notified Pharmacia Corporation and Monsanto Company that it will not be making approximately $3 million of payments in connection with settlements entered into earlier this year relating to asbestos litigation in Texas.
Solutia's failure to honor its payment obligations with respect to these litigation settlements would be a breach of its obligations under the distribution agreement entered into Sept. 1, 1997, between Pharmacia (then known as Monsanto Company) and Solutia. Under the distribution agreement, Solutia assumed these obligations and does not have the right to selectively determine which obligations it honors.
The settlement agreements, which were entered into by Solutia in April and August of 2003, respectively, relate to two asbestos cases: Brignac, et al v. Pharmacia Corporation f/k/a Monsanto Company, et al, and Campbell et al v. Pharmacia Corporation f/k/a Monsanto Company, et al. Solutia was defending these cases as a result of the 1997 distribution agreement.
