5 Asbestos Settlement Projects That Work For Any Budget

Asbestos Bankruptcy Trusts

Typically, asbestos bankruptcy trusts are established by companies that have filed for bankruptcy. These trusts cover personal injury claims of asbestos exposure victims. Since the mid-1970s, at least 56 asbestos bankruptcy trusts were created.

Armstrong World Industries Asbestos Trust

In 1860, when it was first established in Pittsburgh, PA, Armstrong World Industries is the world's largest wine bottle cork manufacturer. It employs more than three thousand employees and 26 manufacturing plants around the world.

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. Many Armstrong workers were exposed to asbestos, which resulted in asbestos-related diseases.

While asbestos is a naturally occurring mineral, it isn't suitable for human consumption. It is also known to be a fireproofing material. Companies have created trusts in order to compensate victims of asbestos' dangers.

A trust was created to pay the victims of Armstrong World Industries' bankruptcy. 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 owned by Armor TPG Holdings, a private equity firm. At the start of 2013 the company owned more than 25 percent of the fund.

According to the Asbestos Victims Compensation Trust the company was responsible for more that $1 billion in personal injuries claims. The trust holds more than $2 billion in reserves to pay for claims.

Celotex Asbestos Trust

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

In 1990, Celotex filed for bankruptcy protection. To deal with asbestos-related claims the Asbestos Settlement Trust was created in the reorganization plan of Celotex. 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 process the trust sought coverage under two general liability insurance policies that were comprehensive. One policy offered coverage for five million dollars, and the other provided coverage for 6.6 million. The trust also requested coverage from Jim Walter Corporation. It did not discover any evidence that the trust was required by law to give notice of additional insurances.

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

Celotex had less than $7 million of primary coverage at the time of filing, however, the company believed that any independence asbestos litigation would impact its excess coverage. In reality, the company anticipated the need for Vimeo a number of layers of extra insurance coverage. The bankruptcy court could not find any evidence to suggest that Celotex provided a reasonable notice to its insurers who were in excess.

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

The process can be confusing. The trust offers a simple claim management tool as well an interactive website. A page is also available on the website to address claims-related deficiencies.

Christy Refractories Asbestos Trust

Christy Refractories originally had an insurance pool of $45 million. In the beginning of 2010 the company filed for bankruptcy. The reason behind the filing was to sort out asbestos lawsuits. Afterwards, Christy Refractories' insurance carriers have been settling asbestos-related claims at around $1 million per month.

Since the 1980s asbestos trust funds have dispensed more than 20 billion dollars. These funds can be used to pay for lost income and therapy costs. These funds include the Western MacArthur Trust, the M.H. Detrick Asbestos Trust and Thorpe Insulation Settlement Trust are among these funds. Porter Asbestos Trust.

The products of the Thorpe Company included insulation and refractory materials. Asbestos was also a component in their products. The company filed for Chapter 11 bankruptcy in 2002 However, it reemerged in the year 2006. It dealt with 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 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 more than 22,000 asbestos claims. It supplied sealing products to the oil industry.

The Prudential Lines Trust faced hundreds of lawsuits, 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

Federal Mogul's Asbestos Personal Injury Trust was first filed in 2007. It is a trust that helps victims of asbestos exposure. Federal Mogul Asbestos PI Trust, a bankruptcy trust, offers financial compensation for asbestos-related diseases.

The trust was first established in Pennsylvania with 400 million dollars of assets. It made payments to claimants in the millions after it was established.

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

The primary goal of the trust is to pay the financial compensation needed for fort myers asbestos-related illnesses within the 2,000 occupations that use asbestos. The trust has already paid more that $1 billion in claims.

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

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

The trust has established Trust Distribution Procedures, or TDPs to manage claims. These TDPs are designed to treat all claimants equally. They are based on the historical precedents for substantially identical claims in the US tort system.

Asbestos businesses are protected from mesothelioma lawsuits by reorganization

Thousands of asbestos lawsuits are settled each year, due in part, to bankruptcy courts. As a result, big corporations are employing new methods to access the judicial system. Reorganization is one strategy. This allows the business to continue to function and provide relief to those who have not paid their creditors. Moreover, it may be possible for the company to be shielded from lawsuits brought by individuals.

As an example, during the course of a restructuring, an asbestos trust fund victims can be established. These funds can pay out in the form of cash, gifts, or some combination thereof. The reorganization described above consists of an initial funding proposal followed by a plan that has been approved by the court. A trustee is appointed after a reorganization has been approved. This could be an individual or bank, or even a third party. Generally, the most effective reorganization will provide for all parties involved.

The reorganization does not just announce the new approach to bankruptcy courts, but also unveils powerful legal tools. It's not surprising that a lot of companies have filed for chapter 11 bankruptcy protection. Some asbestos companies were forced to declare bankruptcy under chapter 7 to ensure their safety. Georgia-Pacific LLC, for example was the first to file chapter 7 bankruptcy in 2009. The reason is simple. To protect itself from mesothelioma lawsuits, Georgia-Pacific filed for a restructuring and rolled over all its assets into one. It has been selling its most valuable assets in order to take control of its financial problems.

FACT Act

There is currently an act in Congress, called the "Furthering Asbestos Claim Transparency Act" (FACT) that will alter the way asbestos trusts operate. The legislation will make it more difficult to make fraudulent claims against asbestos trusts, and will allow defendants unlimited access to information during litigation.

The FACT Act requires that asbestos trusts publish a list listing plaintiffs on a public court docket. They must also provide the names, exposure history, and compensation amounts that claimants have received. These reports, which are able to be seen by the public, could aid in preventing fraud.

The FACT Act would also require trusts to share other information, including 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 contributions from asbestos-related interests.

The FACT Act is a giveaway for big asbestos companies. It may also hinder the compensation process. Additionally, it could create important privacy issues 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 bans the release of social security numbers, medical records or other information that is protected under bankruptcy laws. The law also makes it more difficult to seek justice in a courtroom.

The FACT Act is a red herring, besides the obvious question of how victims could be compensated. The Environmental Working Group examined the House Judiciary Committee's top achievements and found that 19 members were rewarded by corporate campaign contributions.