Asbestos trust funds

Nowadays, it is a well-known fact that asbestos exposure can cause devastating illnesses, including lung cancer and mesothelioma. Although it was in 1971 that the U.S. Environmental Protection Agency classified asbestos as a human carcinogen and began regulating it accordingly, the health risks associated with exposure had been known long before. The manufacturers of asbestos products were aware that asbestos exposure is responsible for pulmonary disease since the early 1930s, as more and more reputable medical studies on this topic were emerging throughout the country at the time, as well as in Europe. However, the executives of most asbestos companies chose to hide this information from employees for their own financial profit, insisting that exposure was safe, which resulted in a 40-year national conspiracy.

Shortly after the dangers of asbestos were publicly acknowledged, the number of people suing for personal injuries increased exponentially. As a consequence, a lot of asbestos companies soon became unable to compensate former employees and decided to file for Chapter 11 bankruptcy protection.

By the 1980s and 1990s, lawsuits against asbestos companies surged. A 2011 Government Accountability Office (GAO) report found that around 100 asbestos-related firms had filed for bankruptcy, partly due to lawsuits. Under U.S. Bankruptcy Law, however, these companies were required to set aside money for victims, leading to the creation of asbestos trust funds. The first asbestos trust fund was set up by Johns Manville in 1988, with $2.5 billion available as compensation.

The asbestos trust funds process

Asbestos trust funds operate on behalf of liable companies. Each of them is managed by a board of trustees who do not have any relation to company executives, employees, or staff. Trustees are in charge of processing the claims submitted by asbestos victims, calculating the amount of money each individual qualifies for, making monthly payments to those whose claim was approved, as well as ensuring the trust has sufficient funds to compensate future claimants. It is worth noting that asbestos trust funds pay out only a certain percentage of the entire sum of money a claimant is eligible for, depending on their financial resources. The percentage may change over time due to various factors.

In general, mesothelioma claims will result in substantial compensation, as this is the most severe disease asbestos exposure can cause, whereas people who suffer from other types of cancer will receive slightly less. Regardless of the asbestos trust fund you file with, the claim must be accompanied by the following:

• evidence of employment, such as records or invoices, which are necessary to support your workplace asbestos exposure
• medical documentation clearly stating your diagnosis and how it relates to occupational exposure, as well as concrete proof of your illness, such as pathology reports or radiographs

It is important to know that there are three ways of submitting a claim:

• expedited review, for individuals who meet all the eligibility criteria, which results in a preset amount of money
• individual review, for claimants who meet the trust’s requirements only partially, which might provide you with a larger sum of money (however, you will have to wait longer for your claim to be reviewed)
• extraordinary review, which is suitable for special circumstances, such as when a person has been exposed to asbestos by a single company for several decades

If your request for compensation is approved, you will receive the sum of money assigned to your claim in monthly payments. Other factors that might influence how fast your claim will be processed include:

• the size of the asbestos trust fund
• the number of claims trustees have to review
• the type of review via which your claim was submitted
• the complexity of your case

If the hazardous products you handled or were exposed to on the job were manufactured by more than one company, you can file with multiple asbestos trust funds. Provided you meet the eligibility criteria, you have the legal right to seek compensation from the asbestos trust fund of each company responsible for your injury.