By David Forster, LAW WEEK COLORADO

A long-running dispute between northern Colorado landowners and a major oil company over asbestos contamination ended last month with a $40 million settlement.

Along the way, the case drew a significant ruling from the Colorado Supreme Court on class action certifications.

The court’s October 2011 ruling upholding a trial court judge’s decision to let the case proceed as a class action dealt a setback to Unocal, now owned by Chevron Corp. Settlement talks began a couple of months later.

Under the terms of the deal approved in late January by a district court judge, Chevron will pay $32.5 million in cash to the landowners in the class. It will also pay $7.5 million for asbestos cleanup and testing.