prod.liab.rep. (Cch) P 13,994 State Farm Mutual Automobile Insurance Company v. W.R. Grace & Company-Conn.

POSNER, Chief Judge.

In 1963 W.R. Grace & Company became the manufacturer of “Mono-Kote” fireproofing material, a dry mixture of vermiculite, gypsum, and asbestos packed and sold in 50-pound bags to construction companies. At the construction site a contractor or subcontractor would mix the Mono-Kote with water and spray the mixture on structural steel to fireproof it. In the early 1970s, State Farm insurance company built a corporate headquarters and two other buildings. The architect’s plans specified “cementitious” fireproofing, of which Mono-Kote was a prominent brand. The contractors…