Bankrupt companies that exposed workers to asbestos created asbestos trust funds to compensate those who developed mesothelioma and other illnesses. Asbestos trusts support future claimants and their families and still contain about $30 billion in available funds.
If you or a loved one have mesothelioma, asbestos-related lung cancer, or asbestosis, you may be eligible for a large amount of compensation. We invite you to fill out our form today for a free Financial Compensation Packet, filled with information about highly-respected mesothelioma lawyers in your area, how to get paid in 90 days, how to file an asbestos trust fund claim, and much more.
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An asbestos or mesothelioma trust fund is a fund that contains money set aside to compensate victims of asbestos exposure and their families. Many companies used asbestos for decades, exposing workers to this toxic mineral that causes mesothelioma, lung cancer, asbestosis, and other illnesses.
Why Did Companies Create Asbestos Trust Funds?
Expensive lawsuits over asbestos illnesses forced many companies into bankruptcy. Companies had to create these funds as a requirement of reorganization under Chapter 11 protection.
How Does the Asbestos Trust Fund Work?
There are several asbestos trust funds set up by individual companies or groups of a few related companies and subsidiaries.
Victims of asbestos exposure and eligible family members file claims with the trusts to receive compensation for medical and other expenses.
Because these companies went bankrupt, the trusts protected them from lawsuits. If a company that exposed you to asbestos went bankrupt, a trust fund might be your only source of compensation.
Important Facts About Mesothelioma and Asbestos Trust Funds
In 1971, the widow of a Louisiana man who developed cancer from one of the company’s products sued the Johns-Manville Sales Corporation. The plaintiff won, and shortly after, courts across the nation were flooded with asbestos-related lawsuits.
For many companies, the burden of lawsuits led to bankruptcy. However, as a condition for filing for bankruptcy protection, these companies were required to set up trusts to compensate victims of asbestos-related illnesses.
Johns-Manville set up the first asbestos trust in 1988.
The trust funds are designed to handle current claims while retaining enough funds also to compensate future claims.
The trust funds have already distributed billions of dollars to asbestos victims.
There are now hundreds of asbestos trusts and an estimated $30 billion set aside for victims. If you’ve developed an illness due to exposure to asbestos, now is the time to reach out and find out if there is a trust that can compensate you.
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“When I was diagnosed with mesothelioma it was like falling into a dark hole but the Patient Advocates at Mesothelioma Lawyer Center told us “Don’t worry, this is what you do, this is how we will help you.” They gave us recommendations and have been there all along the way. Not everyone you talk to in law firms understand how critical this is but Mesothelioma Lawyer Center does.”
How Do I File an Asbestos Trust Fund Claim?
The first step in the process of filing a claim is to find one or more asbestos trusts for which you are eligible. To determine your eligibility, gather proof, and make a claim, it’s a good idea to rely on the advice and guidance of an asbestos law firm.
1. List of Asbestos Trust Funds
This is a partial list of important companies that set up trusts to compensate victims. Contact an experienced asbestos lawyer to determine where you were exposed, the companies responsible, and the appropriate trust for making your claim.
To have your claim approved, you must meet specific criteria. You can find the requirements on the trust fund’s website. Eligibility criteria vary by fund, but they generally include:
When and where you encountered asbestos
A diagnosis of an asbestos illness
Evidence of asbestos products you used or worked near
A time limit for filing
3. Collect Evidence
You must support your claim with evidence. An experienced mesothelioma lawyer can help you do this. You will likely need medical documentation, a physician statement, and employment records.
4. File the Claim
With everything in order, you can claim with one or more trusts. Your lawyer can do this for you and ensure the claim contains everything you need for a payout.
5. Wait for Review and Approval
Once the trust administrators receive your claim, they will review it. There are two ways they can approach this step:
An individual review is filed when you don’t meet the mandated medical requirements of an expedited or quick review. It requires a deeper look at your personal information and medical history to determine a compensation amount.
An expedited review has a fixed compensation amount, and victims are usually paid more quickly when compared to an individual review. Because individual reviews don’t have set value amounts, they require more evidence from the victim, including in-depth work and medical history, to be processed.
Your lawyer will know which type of review to request to give you the best chance of approval.
6. Claim Liquidation
Once the claims are reviewed, liquidation begins for qualified plaintiffs. The trust provides the plaintiff with a financial offer.
At this point, a plaintiff can accept or deny the offer amount. If you accept, your claim will go into a payment queue.
Your claim will enter alternative dispute resolution (ADR) if you reject the offer. Your lawyer will negotiate with the trust to get you a better offer.
Am I Eligible for Asbestos Trust Fund Claims?
This is an important question to answer before you start the claims process. In general, anyone exposed to asbestos and who developed an asbestos illness, such as mesothelioma, asbestosis, or lung cancer, may file. You are eligible if you got sick after:
Working with or near asbestos products and materials
Living with someone who worked with asbestos and brought fibers home on their clothing
Living near a workplace with asbestos or naturally-occurring asbestos
Loved ones who lost a family member to asbestos illnesses may also be eligible to claim with a trust.
Medical requirements will vary according to each trust. For some, you may need to provide an in-depth medical and work history, while other trusts may be more lenient in proof requirements. It is up to you to ensure you provide all the necessary information.
What Is the Average Asbestos Trust Fund Settlement?
From 1998 to 2010, according to GAO, 3.3 million trust cases have been paid, totaling about $17.5 billion. The actual amounts awarded from the mesothelioma trust funds depend on individual factors in each claim.
According to reports, claim payouts range widely from $7,000 to $1.2 million. The median payment is $180,000.
How Much Compensation Will I Get From a Trust Fund?
The amount of compensation any individual can get from an asbestos trust fund varies. There are several factors involved.
Personal Factors for Determining Asbestos Compensation
Factors unique to each individual often play a role in determining compensation amounts:
The type of illness diagnosed
The severity of the illness
The extent of past asbestos exposure
The number of asbestos products involved
What Percentage Does an Asbestos Trust Pay?
Another factor is the payment percentage of the trust. Unfortunately, most companies don’t have enough funds to pay the total compensation amount awarded to claimants. Many trusts operate under the percentage value, meaning that claimants will get a certain percentage of the total amount.
For example, if the total amount happens to be $1.5 million and the company is offering 25 percent of the total amount, then the claimant can expect to receive $375,000.
There is a chance that the trust payout will be higher than 25 percent, but rarely does compensation fall below 25 percent.
Why Do Asbestos Trust Funds Only Pay a Percentage of Compensation Owed?
According to the United States Government Accountability Office (GAO), if companies paid the full amount of the claim, funds may not be available for future cases.
FAQs About Asbestos Trust Funds
The best way to get all your questions answered is to contact experienced asbestos lawyers in your area. Here are some answers to get you started.
Can I File a Lawsuit and a Trust Claim?
It’s possible to file both a mesothelioma lawsuit and a trust fund simultaneously. If you receive trust compensation, it may affect the amount you receive in a lawsuit.
State laws vary in the amount of compensation you can receive in a lawsuit if you also file a claim for trust fund compensation.
Is There a Time Limit to File a Claim?
Yes, each trust fund sets a statute of limitation for filing. Most are two or three years, so it’s essential to act quickly once you receive a diagnosis. Talk to a lawyer or asbestos law firm as soon as possible.
How Long Does it Take to Get a Mesothelioma Trust Fund Payout?
Most claims take just a few months, about 90 days, to pay out to victims. The best way to get through this process faster is to work with a lawyer experienced in filing claims.
Will Trust Amounts Have Enough for All Victims?
This is a valid concern, with more and more victims coming forward and filing claims against the responsible parties.
However, with over $30 billion in trust funds and strict management to ensure that the funds are allocated fairly, there is no reason to worry.
Do I Need an Asbestos Lawyer to File a Claim?
Most trust funds do not require legal representation to file. However, it’s best to work with an experienced asbestos attorney to get your claim approved quickly.
A lawyer can also negotiate on your behalf, helping you get the maximum amount of compensation possible.
What if I Have Lung Cancer, Not Mesothelioma?
If your lung cancer is related to asbestos exposure, you can file a claim for compensation from an asbestos trust. Your lawyer can help you find a medical expert to prove your illness resulted from asbestos.
Will My Claim Be Taxed?
Trust funds payouts are not usually taxed, but you should consult your lawyer or a tax attorney to determine if your compensation is tax-exempt.
Notable Companies with Large Asbestos Trusts
These are just a few of some of the most important asbestos trust funds:
Owens Corning
After World War II, the Owens Corning Corporation quickly became a leader in the insulation industry. It used asbestos heavily in its products from the 1930s through the 1980s.
The company bought the Fibreboard Corporation in 1997. Fibreboard also relied on asbestos for its products.
Shortly after the acquisition, Owens Corning set up a trust anticipating asbestos lawsuits against both companies. Known as the Owens Corning Fibreboard Asbestos Personal Injury Trust of 2006, the company placed close to $7 billion in the fund.
Owens Corning used asbestos in:
Equipment, duct, and pipe insulation
Roof tile insulation
Fiberglass
Finishing cement
Laminated panels
One Cote cement
Mastic
Armstrong World Industries
Armstrong World Industries has been making cabinets and ceiling and flooring materials since 1860. Armstrong faced a string of lawsuits beginning in 1970 when Clarence Borel, an industrial insulation worker, filed a lawsuit against Armstrong and ten asbestos manufacturers after developing mesothelioma.
Borel won against Armstrong and marked a milestone for asbestos victims.
Thousands of cases against Armstrong followed Borel’s. After paying millions out to former workers who developed asbestos-related diseases, Armstrong filed for bankruptcy in 2000.
In 2006 the company created the Armstrong World Industries Asbestos Trust. In the first two years alone, the Armstrong World Industries Asbestos Trust had over 200,000 cases.
Armstrong once used asbestos in a variety of products, including:
Floor tile
Asbestos paper
Cement
Adhesives
Sealers
Asphalt tiles
Cork coverings
Floor felt
Mastics
Emulsions
Finishes
National Gypsum
Established in 1925, National Gypsum (NGC) produces wallboard products under the Gold Bond trademark. Many of the company’s products contained asbestos. NGC declared bankruptcy in 1990 after facing many lawsuits over asbestos illnesses.
NGC created a trust to help handle more than 40,000 pending lawsuits as part of this process. NGC had paid out over $200 million by 2010.
The three primary products that NGC made with asbestos were:
Gold Bond gypsum board
PermaBase cement board
Proform drywall finishing products
Combustion Engineering
Combustion Engineering (CE) manufactured boilers that included several asbestos-containing materials. The company began in 1912 and was bought in 1990 by Asea Brown Boveri (ABB Group). ABB Group became responsible for any asbestos lawsuits.
By 2002 CE still had close to 111,000 pending lawsuits, which ABB successfully reduced to 94,000. Since the number of asbestos cases was extremely high, ABB established a trust several years later, which covered any unsettled asbestos lawsuits as well as any future claims.
Products that CE and ABB manufactured with asbestos include:
Boilers
Ropes
Block sticks
Cement
Joint material
Protective and weather coating
Johns Manville
The Johns Manville Trust is the largest asbestos trust fund created in the U.S., with an estimated $2.5 billion. The company established the trust in 1988 after thousands of people began developing diseases after being exposed to asbestos in the company’s products.
Johns Manville began in 1858 as a construction and insulation company that provided many asbestos-containing products for the construction of residential and commercial buildings.
In 1927, the company also began manufacturing products for the military. Many of these went into U.S. Navy ships that required significant insulation and fireproofing.
As early as 1929, Johns Manville faced its first lawsuit after employees laid health-related charges against the company. Numerous asbestos claims followed, resulting in the establishment of the 1988 trust.
A large number of workers in a variety of industries were potentially affected by Johns Manville asbestos products:
Construction workers
Factory workers
Electricians
Bakers
Firefighters
Military veterans
Painters
Roofers
Pipefitters
Shipbuilders
Insulation installers
HVAC installers and repair workers
Products containing asbestos, provided by Johns Manville, included:
Adhesives
Siding sheets
Roofing materials
Tiles
Insulation
Caulking putty
Roof shingles
Panels
Wallboard
Protective clothing
Flexboards
Transite sheets
Fireproof sheets
Limitations on Asbestos Trust Fund Claims
Legitimate victims of asbestos exposure through bankrupt companies should have no problem getting compensation from a trust. There are some limitations, though, and you should be aware of them.
Statute of Limitations
As with lawsuits, there are deadlines for filing asbestos trust fund claims. Every trust sets its own statute of limitations, determining when it is too late to file. Your lawyer can guide you here and ensure you don’t miss the deadline.
Other State Laws
Another reason to work with a lawyer to make an asbestos trust claim is that state laws vary. Your state might limit your ability to collect compensation through certain laws. This is especially important if you are also filing a lawsuit. The asbestos lawsuit process is dictated by state law.
The Furthering Asbestos Claim Transparency Act
Some states have passed what is known as a FACT law (Furthering Asbestos Claim Transparency). This law requires anyone filing an asbestos or mesothelioma lawsuit to disclose any asbestos trust fund claims they have made. They must also disclose any claims they plan to make in the future.
The law limits the amount of damages a victim can recover in a lawsuit over asbestos exposure. If they have received trust fund compensation from a bankrupt company, that amount can be deducted from damages or a settlement against another company.
Where Can I Get Legal Assistance with Asbestos Trust Funds?
Remember, if you’ve been diagnosed with mesothelioma, asbestos-related lung cancer, or asbestosis, you may qualify for significant compensation. Don’t forget to fill out our form to get our free Financial Compensation Packet, filled with information on asbestos and mesothelioma attorneys in your area. If you need additional assistance, contact us toll-free at 800-793-4540.
Paul Danziger grew up in Houston, Texas and earned a law degree from Northwestern University School of Law in Chicago. For over 25 years years he has focused on representing mesothelioma cancer victims and others hurt by asbestos exposure. Paul and his law firm have represented thousands of people diagnosed with mesothelioma, asbestosis, and lung cancer, recovering significant compensation for injured clients. Every client is extremely important to Paul and he will take every call from clients who want to speak with him. Paul and his law firm handle mesothelioma cases throughout the United States.
U.S. Government Accountability Office. (2011, September). Asbestos Injury Compensation. The Role and Administraton of Asbestos Trusts. Retrieved from: https://www.gao.gov/assets/590/585380.pdf
The Owens Corning Fibreboard Asbestos Personal Injury Trust. (n.d.). The Owens Corning Fibreboard Asbestos Personal Injury Trust. Retrieved from: https://ocfbasbestostrust.com
The Armstrong World Industries Asbestos Trust. (n.d.). The Armstrong World Industries Asbestos Trust. Retrieved from: https://armstrongworldasbestostrust.com
