10 Asbestos Settlement That Are Unexpected

Asbestos Bankruptcy Trusts

Companies that file for bankruptcy typically establish asbestos trusts for bankruptcy. These trusts cover personal injury claims made by asbestos exposure victims. At least 56 asbestos bankruptcy trusts have been created in the late 1970s.

Armstrong World Industries Asbestos Trust

Armstrong World Industries was founded in 1860 in Pittsburgh. It is the largest wine bottle cork manufacturer in the world. It employs more than 3000 people and has 26 manufacturing facilities around the world.

In the beginning in the beginning, the company used asbestos in a range of products such as tiles, insulation and vinyl flooring. This meant that workers were exposed substance, which could cause serious health issues like mesothelioma and lung cancer and asbestosis.

The asbestos-containing products of the company were extensively used in commercial, residential as well as the military construction industries. Many Armstrong workers were exposed to asbestos, resulting in asbestos-related illnesses.

Although asbestos is a naturally-occurring mineral, it isn't suitable for human consumption. It is also believed to be a material that can prevent fire. Companies have set up trusts to compensate victims due to the dangers of asbestos.

In the wake of the bankruptcy of Armstrong World Industries, a trust was established to compensate those affected by Armstrong World Industries' products. The trust settled more than 200,000 claims over the first two years. The total amount of compensation was greater than $2B.

The trust is managed by Armor TPG Holdings, a private equity firm. At the time of the 2013 year's beginning, the company owned more than 25 percent of the fund.

According to the Asbestos Victims Compensation Trust the company was accountable for more that $1 billion in personal injury claims. The trust has more than $2 billion in reserves to cover claims.

Celotex Asbestos Trust

In the early and mid 1980s, Celotex Corporation, a manufacturer and distributor of building materials, had to contend with an avalanche of lawsuits claiming asbestos-related property damage. These claims, along with others were a slew of billions of dollars in damages.

Celotex filed for bankruptcy protection in the year 1990. The reorganization plan that it had created established the Asbestos Settlement Trust to process asbestos related claims. The Trust filed a claim in the United States District Court for the Middle District of Florida. Saiber L.L.C. represented the Trust.

In the course of the investigation the trust sought protection under two excess general liability insurance policies that were comprehensive. One policy provided coverage of five million dollars, and the second policy provided coverage for 6.6 million. Jim Walter Corporation was also asked to provide coverage. It did not discover any evidence to suggest that the trust was legally required to give notice of additional insurances.

The Celotex Asbestos Trust filed proofs of bodily injury claims on December 31st of 2004. The trust also filed a motion to overturn the special master's ruling.

Celotex had less that $7 million of primary coverage when it filedfor bankruptcy, however, it was confident that future asbestos litigation would affect its coverage. In fact, the company anticipated the need for a number of layers of insurance coverage. However the bankruptcy court concluded that there was no evidence to show that Celotex provided adequate notice to its insurance providers who had excess coverage.

The Celotex Asbestos Settlement Trust is an extremely complex process. In addition, to provide claims for asbestos-related illnesses, it also has the responsibility of paying out claims against Philip Carey (formerly Canadian Mine).

It can be confusing. Fortunately, the trust offers a user-friendly tool for Asbestos Settlement managing claims and a user-friendly website. The website also features an entire page dedicated to claims deficiencies.

Christy Refractories Asbestos Trust

In the beginning, Christy Refractories' insurance pool was $45 million. However, in the first quarter of 2010, the company filed for bankruptcy. The filing was to settle asbestos lawsuits. After that, Christy Refractories' insurance carriers have settled asbestos-related claims for about $1 million per month.

Since the 1980s, asbestos trust funds have paid out more than 20 billion dollars. These funds can be used to cover lost income as well as therapy costs. The funds that are included in these are the Western MacArthur Trust, the M.H. Detrick Asbestos Trust, the Thorpe Insulation Settlement Trust, and the M.H. Porter Asbestos Trust.

Products from the Thorpe Company included insulation and refractory materials. Asbestos was also found in their products. In 2002, the company filed for Chapter 11 bankruptcy. However it was revived in 2006. It 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 over 2,000 asbestos claims. It also supplied sealing materials 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 Settlement Trust has paid out more than $500 million in claims. It also manages Yarway claims.

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

Federal Mogul's Asbestos PI Trust

In 2007, the trust was originally filed. Federal Mogul's Asbestos Personal Injury Trust was filed in 2007 and is an investment trust designed to aid victims of asbestos exposure. The Federal Mogul Asbestos PI Trust is a bankruptcy trust that provides financial compensation for diseases that were caused by asbestos exposure.

The initial assets of 400 million dollars were used to create the trust in Pennsylvania. It made payments to claimants in the millions when it was established.

The trust is now located in Southfield, MI. It is comprised of three separate coffers. Each one is dedicated to the handling of claims against asbestos product entities belonging to the Federal-Mogul group.

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

The US Bankruptcy Court figured that asbestos liabilities' net value was approximately $9 billion. It also determined that it was in the best interest of the creditors to maximize the value of the assets available to them.

In 2007 the Asbestos PI Trust (PI Trust) was established. Elihu Inselbuch, a partner in the firm Caplin & Drysdale, served as the Trust attorney.

To handle claims, the trust created Trust Distribution Procedures (or TDPs). These TDPs are designed to be fair to all claimants. They are based upon historical data for claims with substantially similar characteristics in the US tort system.

Reorganization protects asbestos lawsuit companies against mesothelioma lawsuits

Every year, thousands of asbestos lawsuits are settled by the bankruptcy courts. As such, large corporations are employing innovative strategies to gain access to the court system. Reorganization is one of these strategies. This allows the business to continue operating and provide relief to those who have not paid their creditors. Additionally, it could be possible for the company to be shielded from lawsuits by individual creditors.

For instance the trust fund could be set up for asbestos victims as part of a restructuring. The funds can be used to pay either in cash or gifts or a combination of both. The reorganization discussed above consists of an initial funding estimate that is followed by a court-approved plan. When a reorganization is approved and a trustee is designated. This could be an individual or a bank, or a third party. Generallyspeaking, the most efficient restructuring will include all participants.

Alongside announcing a fresh strategy for bankruptcy courts, the reorganization provides some powerful legal tools. It's not surprising that a lot of companies have applied for chapter 11 bankruptcy protection. To be on the safe side, some asbestos companies had no choice but to file for chapter 7 bankruptcy. Georgia-Pacific LLC, for example was the first to file chapter 7 bankruptcy in 2009. The reason is simple. Georgia-Pacific requested an order of reorganization in order to defend itself against a spate of mesothelioma lawsuits. It also merged all its assets into one. To tackle its financial problems it has been selling its most valuable assets.

FACT Act

The "Furthering Asbestos Claim Transparency Act" is currently in Congress. It will make it harder to claim fraudulently against asbestos trusts. The legislation will make it more difficult to make fraudulent claims against asbestos trusts, and will grant defendants access to information during litigation.

The FACT Act requires asbestos trusts to publish the names 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 are able to be viewed publicly, would help to prevent fraud.

The FACT Act would also require trusts to disclose other details, including payment information even when they were 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-related interests.

The FACT Act is a giveaway to asbestos-related companies with large scales. It may also hinder the process of compensation. It also creates privacy issues for victims. In addition the bill is a complex piece of legislation.

In addition to the information that is required to be made public in addition to the information required to be released, the FACT Act also prohibits the publication of social security numbers, medical records and other information that is protected by bankruptcy laws. The act also makes it harder to obtain justice in the courtroom.

Apart from the obvious question of how a victim's compensation might be affected, the FACT Act is a red herring. The Environmental Working Group examined the House Judiciary Committee's greatest achievements and discovered that 19 members were rewarded with corporate contributions to campaigns.