Asbestos Bankruptcy Trusts Explained
Asbestos bankruptcy trusts are a complex but important aspect of asbestos litigation. This is video of the presentation I was asked to give on how asbestos bankruptcy trusts work at the 2014 International Mesothelioma Interest Group conference in Cape Town, South Africa last month. Here are some highlights.
How Asbestos Bankruptcy Trusts Started
The asbestos bankruptcy industry – and I call it that- started in 1982 with the first asbestos bankruptcies. There are now about 50 asbestos bankruptcy trusts. They came about because of asbestos litigation –and corporate decisions to evade full responsibility for the death and disease they caused– we sued enough companies often enough and beat them badly enough that many of them decided they had enough and needed to find a legal way to pay up and move on.
I have been involved with almost all of these bankruptcies and resulting trusts since the beginning, often as a chair or co-chair of what is known as the victims’ creditors or advisory committees. That means I am one of the watchdogs who help make sure that the victims’ interests are being served. In fact, the Wall Street Journal reported that our firm is involved with more trusts and handle more trust funds than any other American law firm.
Asbestos Bankruptcy Trust Assets and Payouts
The US bankruptcy trusts to date have already paid out over $21 billion dollars.
We’ve put together a list of their assets which is a daunting task because it requires us to dig through a lot of records filed with the courts.
This year’s figures aren’t public but as of the end of last year, the asbestos bankruptcy trusts together have close to $32 billion dollars in assets. This is money that is set aside to be paid out over the next 30 to 40 years to asbestos victims. The funds earn about 5 percent annually on their investments so they will ultimately pay out well above their current asset total.
The bulk of the funds go to mesothelioma cases. The amount paid on each case is based on the number of present cases and how many cases are projected for the future divided into the amount in each trust. Under this formula, a typical shipyard worker or construction worker with mesothelioma would receive about $260,000.
Are You Eligible To Receive Funds From an Asbestos Bankruptcy Trust?
To be eligible to receive funds from a bankruptcy trust, you do not need to prove that the company’s products contained asbestos. The companies involved have admitted that their products contained asbestos and were handled by workers at sites around the country and aboard many ships. We’ve got lists of them. There are 115,000 identified sites in the U.S. plus 19,000 ships. You just need to prove that you worked at one of them and that you are now ill.
All the trusts provide information on how to file a claim on their websites. We’ve made the procedures the same for each trust.
For a claim to be approved you must show:
- Exposure to a product of the company for which that trust is responsible, when and where you worked and your trade or job, and what asbestos disease you have.
- Claimant’s occupation when claimant worked with the product
- Time period claimant worked with the product
- Asbestos-related disease
- Who claimant’s dependents are
- Claimant’s medical expenses and/or economic loss (optional]
If you have any questions about asbestos bankruptcy trusts after you watch the video, please email me and I will answer them for you.