Holian Insulation settles for $5.5 million in Chemtool fire

Northern Illinois residents affected by the disaster at Chemtool in Rockton, Illinois on June 14, 2021 are expected to receive $5.5 million as part of a second settlement in the class action lawsuit. Parties in the Chemtool, Lubrizol, and Holian Insulation lawsuit met in Judge Stephen Balogh’s court in Boone County on Friday, June 27, 2025, either in person or via Zoom, to agree to a preliminary settlement against Holian Insulation of Spring Grove, IL. Judge Balogh, while granting preliminary approval to the settlement, will have parties appear in court again on Thursday, October 23 at 1:30 p.m. for final approval of the settlement agreement.

The basis for this portion of the settlement stems from an OSHA citation issued on December 12, 2021 against Holian Insulation. OSHA determined Holian was at fault for the fire at the 1165 Prairie Hill Road plant because their contractor did not ensure “that adequate clearance was maintained between a scissor lift and overhead obstructions while operating a scissor lift between cooking kettles (reactors) R601 and R604. While operating the scissor lift, it struck a pressure tap on a hot oil return pipe for cooking kettle R604, resulting in an oil leak and subsequent fire.” OSHA fined Holian $9,557 the same day the citation was issued, which Holian paid on December 14, 2022.

Added to the previous $94.5 million settlement, this $5.5 million settlement brings the total settlement to $100 million. Judge Balogh commented that this was the largest settlement amount that Mr. Robert Libman, one of the attorneys for the plaintiffs/residents, could find in the Winnebago and Boone County jurisdiction. Attorneys received $33 million of the $94.5 million from the previous settlement. The Holian agreement also provides that attorneys may receive payment from this settlement. But some of the seven lead plaintiffs, such as Charles K. Grasley, will not receive additional compensation for their Chemtool damage and loss of use of their property. The seven were awarded $18,000 each from the last settlement…

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