5 Asbestos Settlement Projects For Every Budget

Asbestos Bankruptcy Trusts

Companies who file for bankruptcy usually create asbestos bankruptcy trusts. They then cover personal injury claims for those who were exposed to asbestos. Since the mid-1970s at least 56 asbestos bankruptcy trusts have been established.

Armstrong World Industries Asbestos Trust

Armstrong World Industries was founded in 1860 in Pittsburgh. It is the largest wine cork manufacturer in the world. It employs over 3000 people and has 26 manufacturing plants across the globe.

In the beginning the company employed asbestos in a variety of products, including tiles, insulation and vinyl flooring. Workers were exposed to asbestos which can lead to serious health issues such as mesothelioma and lung cancer.

The asbestos-containing products of the company were extensively used in residential, commercial as well as the military construction industries. As a result of this exposure, thousands of Armstrong workers suffered from asbestos-related diseases.

While asbestos is a natural mineral however, it isn't safe for humans to eat. It is also often referred to as a fireproofing material. Companies have created trusts to pay victims for asbestos' dangers.

As a result of the bankruptcy of Armstrong World Industries, a trust was set up to compensate those who have been affected by the company's products. The trust paid out more than 200,000 claims during the first two years. The total amount of compensation was greater than $2 billion.

The trust is managed by Armor TPG Holdings, a private equity firm. The company owned over 25 percent of the fund as of the beginning of 2013.

According to the Asbestos Victims Compensation Trust, the company is estimated to be liable for more than $1 billion in personal injury claims. The trust has over $2 billion in reserves to pay claims.

Celotex Asbestos Trust

In the early to mid 1980s, Celotex Corporation, a manufacturer and distributor of building materials, faced an influx of lawsuits alleging asbestos-related property damage. These claims, among other claims, asbestos Trust fund demanded billions of dollars in damages.

In 1990, Celotex filed for bankruptcy protection. To process asbestos-related claims, the Asbestos Settlement Trust was created through Celotex's reorganization program. The Trust filed a claim at the United States District Court for Middle District of Florida. Saiber L.L.C. represented the Trust.

In the process the trust sought to secure coverage under two excess general liability insurance policies. One policy offered coverage for five million dollars, whereas the other policy offered coverage of 6.6 million. Jim Walter Corporation was also asked to provide coverage. However, it could not find proof that the trust was required to give an advance notice to any excess insurers.

Celotex Asbestos Trust submitted proofs of bodily injuries claims on December 31st, 2004. The trust also filed a motion to set aside the special master's ruling.

Celotex had less than $7 million of primary coverage at the time of filing however, it believed that any future asbestos litigation would impact its excess coverage. Celotex was aware of the need for multiple layers of excess insurance coverage. The bankruptcy court could not find any evidence to suggest that Celotex provided reasonable notice to its insurers who were in excess.

The Celotex Asbestos Settlement Trust is an intricate procedure. It is responsible for settlement of claims against Philip Carey (formerly Canadian Mine) and providing treatment for asbestos-related illnesses.

It can be confusing. The trust offers a simple claim management tool as well an interactive website. There is also a page on the website that addresses the issues with claims.

Christy Refractories Asbestos Trust

At first, Christy Refractories' insurance pool totaled $45 million. In the beginning of 2010, the company filed for bankruptcy. The reason for the filing was to sort out asbestos lawsuits. Christy Refractories' insurers have been settling asbestos claims for approximately $1 million per month for the past three years.

Since the 1980s asbestos trust funds have been paid out more than 20 billion dollars. These funds can be used to pay for the cost of therapy as well as lost income. The Western MacArthur Trust and the M.H. Detrick Asbestos Trust, the Thorpe Insulation Settlement Trust, and the M.H. Porter Asbestos Trust.

The Thorpe Company's product range included insulation and refractory materials, which contained asbestos. The company filed for Chapter 11 bankruptcy in 2002 and resurfaced in the year 2006. It has handled more than 4,500 claims.

The Western MacArthur Trust has paid out over $1.1 billion in claims. Pneumo Corporation, Abex Corporation and Synkoloid all employed asbestos in their products. The United States Gypsum Company used asbestos in its products.

The Utex Industries, Inc. Successor Trust has paid out over 22,000 asbestos claims. It supplied sealing products to the oil extraction industry.

The Prudential Lines Trust was subject to hundreds of lawsuits, mass tort actions, and a 20 year limitation on the distribution of funds.

The Western MacArthur asbestos causes Settlement Trust has paid more than $500 million in claims. It also handles claims against Yarway.

The Thorpe Insulation Settlement Trust covers the Pacific Insulation Company and the Thorpe Insulation Company.

Federal Mogul's Asbestos PI Trust

The trust was first filed in 2007. Federal Mogul's Asbestos Personal Injury Trust is a trust that is meant to aid those suffering from asbestos exposure. Federal Mogul Asbestos PI Trust, a bankruptcy trust, offers financial compensation for asbestos life expectancy-related illnesses.

Initial assets of $400 million were used to create the trust in Pennsylvania. Following the trust's creation it made payments of millions to claimants.

The trust is located in Southfield, MI. It is made up of three separate funds. Each one is dedicated to the handling of claims against companies that manufacture asbestos products for Federal-Mogul.

The main goal of the trust is to offer financial compensation for asbestos-related illnesses among approximately 2,000 occupations that use asbestos. The trust has paid more than $1 billion in claims.

The US Bankruptcy Court estimated the asbestos liabilities' value to be in the range of $9 billion. It also concluded that it was in the best interest of the creditors to maximize the value of assets they have access to.

The Asbestos PI Trust was created in 2007. Elihu Inselbuch was a partner at the firm Caplin & Drysdale and served as the Trust attorney.

The trust has established Trust Distribution Procedures, or TDPs to manage claims. These TDPs are intended to be fair to all claimants. They are based on the historical precedents for claims that are substantially comparable in the US tort system.

Reorganization safeguards asbestos trust fund companies from mesothelioma lawsuits

Every year, thousands of asbestos lawsuits are settled thanks to the bankruptcy courts. Large corporations are using new strategies to gain access to the judicial system. Reorganization is one strategy. This permits the company to continue to operate and offer relief to creditors who are not paid. Additionally, it could be possible for the company to be shielded from lawsuits filed by individuals.

For instance, in the course of a restructuring, an asbestos trust fund victims may be established. These funds can be distributed in the form of cash, gifts or any combination of the two. The reorganization described above is an initial funding quote and is followed by a court-approved reorganization strategy. If a reorganization is approved and a trustee is designated. This could be an individual or bank, or even a third party. The most effective arrangement will cover all participants.

The reorganization not only announces the bankruptcy courts with a new strategy, but it also reveals courts, but also unveils powerful legal tools. So, it's no surprise that a large number of businesses have filed for chapter 11 bankruptcy protection. Certain asbestos-related companies were forced to make chapter 7 bankruptcy filings in order to protect themselves. Georgia-Pacific LLC, for example has filed chapter 7 bankruptcy in 2009. The reason is easy. Georgia-Pacific applied for an order of reorganization to protect itself against a rash mesothelioma-related lawsuit. It also rolled all its assets into one. It has been selling its most valuable assets in order to take control of its financial woes.

FACT Act

Currently, there is a bill in Congress, called the "Furthering Asbestos Claim Transparency Act" (FACT) that will change how asbestos trusts function. The legislation will make it more difficult to submit fraudulent claims against asbestos trusts, and will give defendants full access to the information they need in court.

The FACT Act requires asbestos trusts to publish the list of claimants in a public docket. They are also required to disclose the names, exposure history, and compensation amounts that claimants have received. These reports, which can be viewed by anyone, would help to prevent fraud.

The FACT Act would also require trusts to divulge any other information including payment information even if they are part of confidential settlements. In fact, the report on the FACT act by the Environmental Working Group found that 19 members of the House Judiciary Committee who voted for the bill received campaign contributions from asbestos interests.

The FACT Act is a giveaway to asbestos-related companies with large scales. It would also cause delays in the compensation process. It also creates privacy issues for victims. Additionally, the bill is a terribly complicated piece of legislation.

The FACT Act prohibits publication of information in addition to information that is required to be released. It also prohibits the disclosure of social security numbers, medical records, or other information protected under bankruptcy laws. It's also more difficult to obtain justice in courts.

Aside from the obvious question of how compensation for victims could be affected, the FACT Act is a red herring. The Environmental Working Group studied the House Judiciary Committee's greatest accomplishments and found that 19 members were rewarded with campaign contributions from corporate interests.