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Why were the asbestos trust funds created?

The companies which filed for Chapter 11 bankruptcy protection were required by law to set up asbestos trust funds so that former workers injured by occupational asbestos exposure would still be able to receive financial compensation.

answered by Channika DeSilva Gonzalez

What are asbestos trust funds?

Asbestos litigation has been determining numerous liable companies to declare bankruptcy since the late 1980s. Due to the increasing number of lawsuits filed against them, executives could no longer pay asbestos victims. Thereby, former employees who had developed mesothelioma or lung cancer as a consequence of occupational asbestos exposure were at risk of losing their compensation. This forced companies to create trust funds to compensate then-current and future victims who had been exposed to their products.

Why were the asbestos trust funds created?

Asbestos trust funds were created to ensure everyone will be able to recover the financial compensation they deserve. The first asbestos trust fund was set up by Johns Manville in 1988 and numerous other major companies followed shortly after.

While asbestos victims cannot file lawsuits against the companies which are currently under bankruptcy protection, the bankruptcy code allows former workers to file asbestos claims, which is actually a more effective and rapid way of recovering compensation. A lawsuit typically results in financial compensation in 2 or even 3 years, whereas the majority of people who file claims with asbestos trust funds will receive the money they are eligible for within several months from the moment of submission.

How many trust funds are there and how much money is left for compensations?

There are 60 asbestos trust funds in the U.S. at the moment, each managed by a board of trustees who do not have any connection with the company's executives or staff. The eligibility requirements a person who intends to request compensation has to meet are different for every asbestos trust fund. Similarly, the size of asbestos trust funds, as well as their financial resources, varies. A total of over $37 billion is available for claimants and approximately $18 billion has been paid to individuals who were neglectfully exposed to asbestos in the workplace until now.

It is also noteworthy that people whose injury has been caused by more than one company can request compensation from multiple asbestos trust funds. This will allow asbestos victims to recover the maximum compensation possible. Nevertheless, the requested payment may not come from all the asbestos trust funds, but you will still recover a considerable sum of money. The size of the asbestos trust fund you file with is one of the factors which might influence the outcome of your case.

Active asbestos trust funds

Pacor Incorporated $2.5 billion
Johns Manville $2.5 billion
Western MacArthur $2 billion
Nicolet Keasbey & Mattison $2.11 billion
Combustion Engineering $1.43 billion
Babcock and Wilcox $1.85 billion
A.P. Green Industries $901 million
Kaiser Aluminum $1.2 billion
GAF Corporation $770 million
Pittsburgh Corning $3.4 billion
Lummus 524(g) $38 million
A&I Corporation &13 million
A-Best &18 million
API, Inc. $94 million
ARTRA 524(g) $74 million
Armstrong World Industries $2 billion
ASARCO LLC $830 million
Bartells Asbestos $172 million
Brauer 524(g) $1 million
Burns and Roe $20 million
NGC Bodily Injury $446 million
Owens Corning Fibreboard, Fibreboard Subfund $1.5 billion
Porter Hayden Bodily Injury n.a.
Raytech Corporation n.a.
Stone and Webster $6 million
Swan Asbestos and Silica $120 million
T. H. Agriculture and Nutrition, LLC Industries $901 million
United States Gypsum $3.9 billion
Leslie Controls n.a.
Narco n.a.
Piper Aircraft Corporation n.a.
Bondex n.a.
EPI n.a.
Plant n.a.
Flexitallic Gasket Company $635 million
Eagle Picher Industries Inc. $730 million
Bell Asbestos Mines $635 million
Federal Mogul Corporation T&N Subfund $635 million
AC$S $528 million
General Motors $625 million
Honeywell Heating $452 million
Garlock $480 million
Gold Bond $347 million
National Gypsum $347 million
Abex Corporation $307 million
Owens Corning Fibreboard, Owens Corning Subfund $3.4 billion
The Flintkote Company $214 million
Congoleum Corporation $270 million
J.T. Thorpe Inc. $153 million
Plibrico Company $205 million
Unarco $114 million
Republic Powdered Metals $140 million
H.K. Porter Inc. $104 million
Shook and Fletcher $109 million
C.E. Thurston and Sons $53 million
Celotex Asbestos Settlement $1.2 billion
DII Industries, LLC $2.5 billion
Federal Mogul, Fel-Pro Subfund n.a.
Federal Mogul, Vellumoid Subfund n.a.
Federal Mogul, FMP Subfund $55 million
G-1 $770 million
J.T. Thorpe Company Successor $233 million
Keene Creditors Trust $45 million
Lykes Tort Claims n.a.
United States Mineral Products $8 million
UNR Asbestos-Disease Claims n.a.
Utex Industries, Inc $10 million
APG $333 million
North American Refractories Company $6.3 billion
Quigley Company, Inc. $569 million
Skinner Engine Co. n.a.
Thorpe Insulation Company $389 million
W. R. Grace and Co. Asbestos $2.9 billion
Christy Refractories n.a.
Energy Future Holdings Corp. n.a.
Fuller-Austin n.a.
Metex n.a.
Hercules Chemical Company, Inc n.a.

If you are struggling with a disease caused by occupational asbestos exposure, you are eligible for financial compensation. Our highly skilled attorneys have been providing quality legal representation to asbestos victims since 1990, having recovered over $1.4 billion from asbestos trust funds, and are willing to help you as well.

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In order to receive compensation, you need to file a claim with the asbestos trust fund set up by the company responsible for your injury. A lawyer will speed up the process significantly.

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The compensation you will receive highly depends on factors such as the severity of your diagnosis, the size of the asbestos trust fund you file with, as well as the percentage they pay out.

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At the moment, the 60 active asbestos trust funds in the U.S. have over $30 billion available as financial compensation for the victims of occupational and secondary asbestos exposure.

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