5 Asbestos Settlement Lessons From The Professionals

Asbestos Bankruptcy Trusts

Companies who file for bankruptcy typically create asbestos trusts for bankruptcy. They then compensate 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 Trust

The company was founded in 1859 in Pittsburgh, PA, Armstrong World Industries is the world's largest wine bottle cork manufacturer. It employs more than 3000 people and has 26 manufacturing plants around the globe.

In the beginning in the beginning, the company used asbestos in a variety of products like insulation, tiles and vinyl flooring. Workers were exposed to asbestos, which could cause serious health problems like mesothelioma and lung cancer.

The asbestos-containing products of Armstrong were extensively employed 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 however, it is not safe to consume by humans. It is also called a fireproofing substance. Because of the risks associated with asbestos, companies have established trusts to compensate victims.

A trust was set up to pay the victims of Armstrong World Industries' bankruptcy. In the initial two years, the trust settled more than 200 thousand claims. The total amount of compensation was greater than $2B.

Armor TPG Holdings, which is a private equity firm is the owner of the trust. 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 was accountable for more than $1 billion in personal injuries claims. The trust has over $2 billion in reserves to pay for claims.

Celotex Asbestos Trust

Celotex Corporation was a distributor and manufacturer of building materials. In the 1980s, Celotex Corporation was hit with a flood of lawsuits claiming asbestos-related damage. These claims, among others claimed billions of dollars in damages.

Celotex filed for bankruptcy protection in the year 1990. The reorganization plan it was part of was a result of the creation of 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.

The trust sought coverage under two policies of comprehensive excess general liability insurance. One policy provided coverage of five million dollars, whereas the second policy provided coverage for 6.6 million. The trust also requested coverage from Jim Walter Corporation. However, it could not find evidence that the trust was required to give notice to excess insurers.

The Celotex asbestos trust (additional hints) filed proofs of bodily injury claims on December 31 2004. The trust also filed a motion seeking to overturn the special master's ruling.

Celotex had less than $7 million in primary coverage at the time of filing however, it believed that any future asbestos litigation could affect its excess coverage. In fact, the company foresaw the need for numerous layers of insurance coverage. The bankruptcy court was unable to find any evidence to suggest that Celotex gave adequate notice to its excess insurers.

The Celotex Asbestos Settlement Trust is an intricate process. In addition, to provide claims for asbestos lawyer-related diseases, it is also responsible for paying claims against Philip Carey (formerly Canadian Mine).

It can be confusing. The trust offers a user-friendly claim management tool as well as an interactive website. The site also has a page dedicated to claim inaccuracies.

Christy Refractories Asbestos Trust

In the beginning, Christy Refractories' insurance pool was $45 million. The company was declared bankrupt in 2010 however. The reason behind the filing was to sort out asbestos lawsuits. After that, Christy Refractories' insurance carriers have been settling asbestos-related claims at roughly $1 million per month.

Over 20 billion dollars distributed from asbestos trust funds since the late 1980s. These funds can be used to cover lost income and therapy costs. The Western MacArthur Trust and the M.H. Detrick Asbestos Trust and Thorpe Insulation Settlement Trust are among these funds. Porter Asbestos Trust.

Products from the Thorpe Company included insulation and refractory materials. Asbestos was also used in their products. 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 survival rate in their products. The United States Gypsum Company also employed asbestos in its products.

The Utex Industries, Inc. Successor Trust has paid over 2,000 pleural asbestos claims. It supplied sealing products to the oil industry.

The Prudential Lines Trust faced hundreds of lawsuits as well as mass tort cases and a 20-year limit on the distribution of funds.

The Western MacArthur Asbestos Settlement Trust paid out 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

Federal Mogul's Asbestos Personal Injury Trust was initially created in 2007. It is a trust designed to assist those who have been exposed to asbestos. Federal Mogul Asbestos PI Trust is a trust in bankruptcy that provides financial compensation for asbestos-related illnesses.

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

The trust is currently located at Southfield, MI. It is comprised of three separate coffers. Each is devoted to the administration of claims against entities who produce asbestos products for Federal-Mogul.

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 out more than $1 billion in claims.

The US Bankruptcy Court figured that the asbestos liabilities' net value was around $9 billion. It was also determined that creditors should maximize the value of assets.

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

The trust created Trust Distribution Procedures, or TDPs to deal with claims. These TDPs are designed to be fair to all claimants. They are based on past precedents for nearly identical claims in the US tort system.

Asbestos companies are protected against mesothelioma lawsuits by reorganization

Thousands of asbestos lawsuits are settling every year, thanks in part to bankruptcy courts. As such, large corporations are employing new methods to gain access to the judicial system. Reorganization is one such strategy. This permits the company to continue operating and provide relief to unpaid creditors. Furthermore, it is possible for the company to be protected from lawsuits by individual creditors.

As an example, in an organizational reorganization, there is a trust fund for asbestos victims might be set up. The funds could be paid out in the form of cash, gifts or a combination of both. The reorganization discussed above consists of an initial funding quotation, which is followed by a reorganization program approved by the court. If a reorganization is approved, a trustee is assigned. This could be an individual or a bank, or a third-party. A successful reorganization will benefit all parties.

Aside from announcing a new strategy for bankruptcy courts, the reorganization offers some effective legal tools. It's not a surprise that many businesses have filed for chapter 11 bankruptcy protection. To be on the safe side asbestos companies have no other choice other than to file chapter 7 bankruptcy. For example, Georgia-Pacific LLC filed for chapter 7 bankruptcy in 2009. The reason is easy. To safeguard itself from mesothelioma-related claims, Georgia-Pacific filed for Asbestos trust a restructuring and combined all of its assets into one. It has been selling its most valuable assets to gain control of its financial woes.

FACT Act

There is currently an act 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 information in litigation.

The FACT Act requires asbestos trusts to publish the names of claimants on an open court docket. They are also required to disclose the names, exposure histories, and compensation amounts paid to the claimants. These reports, which are made publicly accessible, will stop fraud from happening.

The FACT Act would also require trusts to divulge other information, such as payment details even if 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 donations from asbestos-related businesses.

The FACT Act is a giveaway to asbestos-related companies with large scales. It would also cause delays in the compensation process. Additionally, it creates serious privacy issues for victims. In addition, the bill is a very 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 release of social security numbers, medical records, or other information protected under bankruptcy laws. It's also harder to seek justice in courts.

The FACT Act is a red herring, aside from the obvious question about the compensation for victims. The Environmental Working Group studied the House Judiciary Committee's greatest accomplishments and found that 19 members were awarded campaign contributions from corporate interests.