10 Unexpected Asbestos Settlement Tips

Asbestos Bankruptcy Trusts

Generally asbestos bankruptcy trusts are typically established by companies who have filed for bankruptcy. They then pay personal injury claims of those who were exposed to asbestos. At least 56 asbestos bankruptcy trusts have been set up since the mid-1970s.

Armstrong World Industries asbestos treatment Trust

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

In the beginning, the company used pleural asbestos in a range of products like tiles, insulation, and vinyl flooring. The result was that employees were exposed to the material, which can cause serious health issues, such as mesothelioma, lung cancer, and asbestosis.

The company's asbestos-containing products were widely used in the residential, commercial and military construction industry. Because of the exposure, thousands of Armstrong workers were afflicted with asbestos-related diseases.

Although asbestos is a natural mineral however, it is not safe for humans to eat. It is also believed as a fireproofing substance. Companies have created trusts to pay compensation to victims of the dangers of asbestos.

As a result of the bankruptcy of Armstrong World Industries, a trust was created to compensate the people who were affected by Armstrong World Industries' products. The trust settled more than 200,000 claims in the first two years. The total compensation amounted to more than $2 billion.

The trust is managed by Armor TPG Holdings, a private equity firm. The company held more than 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 more than $2 billion in reserve to pay out claims.

Celotex Asbestos Trust

Celotex Corporation was a distributor and manufacturer of building materials. During the 1980s, Celotex Corporation was hit by a flurry of lawsuits alleging asbestos-related property damage. These claims, as well as others were a flurry of billions of dollars in damages.

Celotex filed for bankruptcy protection in the year 1990. The plan of reorganization led to the creation of the Asbestos Settlement Trust to process these asbestos related claims. The Trust filed a claim in the United States District Court for Middle District of Florida. It was represented by attorneys from Saiber L.L.C.

The trust applied for coverage under two policies of excess comprehensive general liability insurance. One policy provided five million dollars in coverage while the other provided 6.6 million. The trust also asked for coverage from Jim Walter Corporation. But, it did not find evidence that the trust was required to provide notice to excess insurers.

Celotex Asbestos Trust submitted proofs of bodily injury claims on December 31 of 2004. The trust also moved to set aside the special master's decision.

Celotex had less that $7 million in primary insurance at the time of filing, but they believed that asbestos litigation in the future would affect its excess coverage. In fact, the company saw the need for many layers of extra insurance coverage. However the bankruptcy court concluded that there was no evidence that proved Celotex provided adequate notice to its insurance companies that had excess coverage.

The Celotex Asbestos Settlement Trust is complex. It is responsible for the settlement of claims against Philip Carey (formerly Canadian Mine) and provides treatment for asbestos-related diseases.

The process can be confusing. Fortunately, the trust offers an easy to use claims management tool as well as an interactive website. A page is also available on the site that addresses claims deficiencies.

Christy Refractories Asbestos Trust

Christy Refractories originally had an insurance pool of $45 million. The company filed for bankruptcy in 2010, however. The filing was to settle asbestos lawsuits. Then, Christy Refractories' insurance carriers have been settling asbestos-related claims for around $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 and therapy expenses. 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.

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

The Western MacArthur Trust paid out more than $1.1 billion in claims. Pneumo Corporation, Abex Corporation and Synkoloid all made use of 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 supplied sealing products to the oil extraction industry.

The Prudential Lines Trust faced hundreds of lawsuits in mass tort actions and a 20 year limit on the distribution of funds.

The Western MacArthur Asbestos Settlement Trust has paid more than $500 million in claims. It also manages claims against Yarway.

The Thorpe Insulation Settlement Trust includes the Pacific Insulation Company as well as 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 originally filed in 2007. It is an trust designed to aid those suffering from asbestos exposure. The Federal Mogul Asbestos PI Trust is a bankruptcy trust which provides financial compensation for diseases that were caused by asbestos exposure.

Initial assets of $400 million were used to create the trust in Pennsylvania. It paid millions to claimants when it was established.

The trust is currently located at Southfield, MI. It is comprised of three separate coffers. Each one is devoted to settling claims against asbestos-related entities of the Federal-Mogul group.

The main purpose of the trust is to pay the financial compensation needed for asbestos-related illnesses among the approximately 2,000 professions that utilize asbestos. The trust has already paid out more that $1 billion in claims.

The US Bankruptcy Court estimated the asbestos liabilities' total value to be in the range of $9 billion. It also found that it was in the best interests of the creditors to maximize the value of assets available to them.

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

The trust 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 values for substantially identical claims in the US tort system.

Reorganization helps asbestos companies protect themselves from mesothelioma lawsuits

Many asbestos lawsuits are settling every year, due in part, to bankruptcy courts. As a result, big companies are implementing new methods to gain access to the judicial system. Reorganization is one strategy. This allows the company's operations to continue, and offers relief to those who have not paid their creditors. Furthermore, it is possible for the company to be shielded from lawsuits by individual creditors.

For example the trust fund could be set up for asbestos-related victims as part of a restructuring. These funds can be used to pay either in cash or gifts or a combination of both. The reorganization discussed above consists of a first funding quote that is followed by a court-approved plan. A trustee is appointed once the reorganization was approved. This could be a person or a bank, or an outside party. A successful reorganization will benefit all who are involved.

The reorganization not only announces a new strategy to bankruptcy courts but also reveals some powerful legal tools. It's not a surprise that many firms have filed for chapter 11 bankruptcy protection. Certain asbestos-related companies were forced to make chapter 7 bankruptcy filings to ensure their safety. Georgia-Pacific LLC, for example, filed chapter 7 bankruptcy in 2009. The reason for this is quite simple. To protect itself from mesothelioma cases that have been rife, Georgia-Pacific filed for a restructuring and rolled all of its assets into one. To tackle its financial woes it has been selling off its most important assets.

FACT Act

In the present, there's an act in Congress, called the "Furthering Asbestos Claim Transparency Act" (FACT) which will alter the way asbestos life expectancy trusts function. The legislation will make it more difficult to claim fraudulent claims against asbestos trusts and asbestos litigation will allow defendants unlimited access to information in litigation.

The FACT Act requires asbestos trusts to publish a list of claimants in the public docket of the court. They are also required to disclose the names of those who have been exposed, as well as the exposure history and compensation amounts that are paid to these claimants. These reports, which can be viewed publicly, would help to prevent fraud.

The FACT Act would also require trusts to share any other information, including payment details, even if they are part of confidential settlements. The Environmental Working Group's report on FACT Act found that 19 House Judiciary Committee members voted in favor of the bill. They also received donations from asbestos-related organizations.

The FACT Act is a giveaway to large asbestos companies. It may also hinder the process of settling compensation. In addition, it creates important privacy concerns for victims. The bill is also a tangled piece of legislation.

The FACT Act prohibits publication of information in addition to information that must be made public. It also prohibits release of social security numbers, medical records or any other information protected by bankruptcy laws. The law also makes it more difficult to seek justice in a courtroom.

Aside from the obvious question of how compensation for victims might be affected, the FACT Act is a red herring. The Environmental Working Group studied the House Judiciary Committee's most notable achievements and found that 19 members were given campaign contributions from corporations.