Asbestos Trust Funds

Recent Asbestos Trust Fund Settlements

Because mesothelioma is so aggressive, claimants with this cancer tend to recover more compensation than those suffering from other asbestos-related conditions like pleural plaques or asbestosis.

While individual review settlements can vary widely even within a single trust, expedited review settlement amounts do not vary.

Some examples of expedited review payouts include:

• Owens Corning: $215,000
• Fibreboard: $135,000
• United States Gypsum Company: $155,000
• Armstrong World Industries: $110,000
• Babcock & Wilcox Company: $90,000

These numbers represent the settlement amount before payment percentages have been applied. The payment percentage is subject to change, so it is best to file an asbestos trust claim as soon as possible.

Asbestos Trust Fund List

If you have mesothelioma and worked for one of these companies, you may have a legal claim.

If you don’t see the company you worked for, that does not mean you don’t have a claim. There are hundreds of other asbestos companies not listed who may be held accountable for your cancer.

Find out how you can access asbestos trust funds.

Limitations on Filing a Trust Fund Claim

Who can file a trust fund claim, how long they have to file, and where they can file it are all subject to state and national laws.

State Laws

Every state has laws and regulations governing asbestos claims.

States can decide on details like:

• Minimal medical criteria: How sick an asbestos victim has to be before filing a claim
• Filing multiple claims for different diseases: Whether a victim who filed a claim for a less-severe asbestos disease, like asbestosis, can file again if they later develop a more severe condition, like mesothelioma
• Statute of limitations: The deadline for filing a trust fund claim

State laws can be complicated. Working with an experienced mesothelioma law firm is the best way to ensure that a victim’s compensation isn’t negatively affected by unexpected rules and regulations.

“These manufacturers, most of them are aware that asbestos created a problem with health. I think if you find out you have mesothelioma, you should contact an attorney as quick as possible.”

– Ernie C., Pleural Mesothelioma Patient

Filing Other Claims and Lawsuits

Victims who intend to seek compensation both from asbestos bankruptcy trusts and from lawsuits against active companies need to be aware of how the two processes can affect each other.

Compensation Disclosure Laws

Some states have laws about information sharing, which require plaintiffs involved in a lawsuit to disclose if they have already received compensation from a trust for the injuries or illness they are suing over.

This can allow defendants to shift blame for the injury to the now-bankrupt company that established the trust, even if they may also be partially responsible.

Setoffs

Other states allow setoffs, which can affect the total amount of compensation a defendant is required to pay if they lose at trial. Setoffs reduce the verdict amount based on compensation already received.

For example, in a state with setoffs, a victim who is awarded $500,000 in a trial but has already received $100,000 from a trust may find that the defendant is required to pay them only $400,000.

How Were Asbestos Trust Funds Created?

When asbestos litigation first gained momentum in the late 1970s, many of the companies responsible for producing asbestos-containing products were unprepared to face the consequences.

In turn, they started to file for bankruptcy to look for protection from mesothelioma lawsuits.

To prevent these companies from shirking responsibility, the courts ordered them to create asbestos trust funds. Regulated by the U.S. Bankruptcy Code, these trusts allowed victims of asbestos exposure to pursue compensation without suing the companies at fault.

Asbestos Trust Fund Creation Process

Today, when a company involved in asbestos litigation petitions for bankruptcy, they are required to follow certain trust fund establishment procedures in order to compensate current and future victims.

1. Bankruptcy Court: First, the company petitions the bankruptcy court for Chapter 11 bankruptcy and reorganization. If granted, all lawsuits against the company are stopped immediately.
2. Estimates for Asbestos: Once bankruptcy has been declared, the company has to enter into negotiations with its creditors. This includes the plaintiffs suing them for asbestos-related illnesses and their legal counsel. Together, they develop a plan for reorganization that includes details about the funding and management of the asbestos trust fund. Money for the trust comes from selling the company’s assets.
3. Reorganization Approval: The reorganization plan is submitted to the courts. If it is approved, the asbestos trust fund is established and can begin settling claims.

The Johns-Manville Corporation

The Johns-Manville Corporation first filed for bankruptcy protection against asbestos lawsuits in 1982. At the time, this company was the largest producer of asbestos-related products in the United States.

It took 6 years, but in 1988, the Manville Personal Injury Settlement Trust was created, and all asbestos-related litigation against the company shifted to the trust.

As time went on, and the rate at which claims were filed did not decrease, the trust became unable to pay victims 100% of the value of their claims. The personal injury trust was forced to reorganize.

New policies, like paying more to claimants with more serious illnesses and payment percentages, have kept the trust stable for decades, ensuring it will be there to provide compensation for future victims and their family members.

Asbestos Trust Fund Legislation

Although asbestos trust funds are an established part of the asbestos exposure compensation process, new laws governing who can access the funds, and how, continue to be a topic of disagreement among lawmakers.

Fairness in Class-Action Litigation (FACT) Act

The FACT Act does 2 main things to asbestos litigation, in an attempt to protect the trusts from those looking to take advantage of the system.

First, it requires that all members of a class-action lawsuit have the same extent of injuries. This means that some members of the suit cannot have a less serious condition like pleural plaques while others have mesothelioma.

It also requires victims to provide more specific information when seeking compensation from a trust. This information must be reported quarterly by the trusts in their public bankruptcy dockets.

Other Legislation

The Department of Justice (DOJ) has also taken aim at asbestos trust funds in recent years.

The DOJ has criticized the trusts’ lack of fraud safeguards and their habit of working with attorneys during reorganization and formation who will later benefit from filing claims against them, citing a conflict of interest.

Get Help Filing an Asbestos Trust Fund Claim

Filing an asbestos trust fund claim can be an efficient and effective way for asbestos exposure victims to seek compensation. However, going at it alone can be difficult.

An experienced mesothelioma lawyer can do more than help with filing the paperwork and negotiating the claim amount. They can help victims navigate laws that could complicate their claim and decrease their compensation amounts.

If you or a loved one have been affected by mesothelioma and you want to explore possible compensation options, don’t hesitate.

See if you qualify for asbestos trust fund compensation now.