Stephens and Stephens LLP represent victims of asbestos exposure suffering from asbestos-related illnesses who would like to claim compensation across the country. Compensation can be obtained by filing lawsuits against manufacturers of asbestos products, as well as by filing claims against the trust funds of companies that have declared bankruptcy. To be compensated for an asbestos bankruptcy trust claim, the claimant must provide his or her medical diagnosis and link his or her illness to the specific products of a bankrupt company. The process is often extensive and complex; it may require the services of a specialized asbestos attorney. An experienced attorney will also help a claimant file a successful lawsuit against responsible operating companies and obtain the maximum possible compensation.
Claiming compensation from an asbestos trust
Since 1988, over sixty trusts have been established to compensate victims of asbestos exposure. These trusts were created from companies that were declared bankrupt due to asbestos-related liability. Since their establishment, billions of dollars have been issued as compensation to millions of Americans who continue to allege injuries related to occupational exposure to asbestos. These trusts were formed in accordance with Chapter 11 and § 524(g) of the federal bankruptcy code, under which a company transfers its liabilities and certain assets to an asbestos personal injury trust, which is then responsible for compensating present and future claimants.
Eligibility Criteria
To qualify for a financial payout from an active asbestos bankruptcy trust, applicants must provide evidence of a medical diagnosis confirming an asbestos-related illness, such as mesothelioma, lung cancer, or severe asbestosis. The claimant must also provide evidence of exposure, which may include employment history, military service records, or invoices that establish direct or secondary contact with the bankrupt company’s specific asbestos products. The claim must also be submitted within the state-specific statute of limitations, which typically begins on the date an asbestos disease diagnosis is officially made.
Evidence required when filing an asbestos bankruptcy trust claim
- Medical evidence: Medical proof often includes certified medical diagnosis of an asbestos-related disease (like mesothelioma or lung cancer), pathology reports, and a doctor’s letter linking the illness to asbestos.
- Work history: This includes detailed employment records, such as union logs or military discharge papers (DD-214), showing where and when the individual worked.
- Product identification: A claimant can provide product invoices, blueprints, or co-worker depositions proving that the bankrupt company’s specific materials were present at the claimant’s job site.
How do you file an asbestos claim?
Since the claimant may have been exposed to asbestos from products of multiple companies, the claimant may claim compensation from multiple trust funds. The claimant is required to identify the companies that went bankrupt due to asbestos liabilities and cross-reference his or her employment dates and job sites. Since some trusts have become inactive after depleting the financial assets intended to compensate all viable current and future claimants, the claimant may need to verify the status of the target trusts.
When filing a claim, the claimant chooses how he or she wants the trust to evaluate the case. There is an expedited review process whereby a trust checks whether the claimant meets the standard criteria and quickly pays a fixed amount. The expedited review process may take 90 days or less, and the pay structure is predetermined.
A claimant may also choose an individualized review process whereby the trust considers the claimant’s specific financial hardships, lost wages, and unique exposure details. The individual review process is longer than the expedited, but it can result in a higher payout in severe cases. This review process is ideal for unique cases with high medical bills or severe lost wages. It may take several months, and the specific economic damages determine the payout.
Most asbestos trusts use electronic claim-filing portals to submit and track claims. They also apply strict deadlines for claim submission. These timelines are based on the statute of limitations of different states. Most trusts require an individual to file a claim within 2 to 3 years from the date of their official diagnosis or date of death for wrongful death claims.
Once a claim is approved, the trust pays the claimant a percentage of the total assigned value, thereby keeping funds available for future victims. The payout awarded depends on the number of trusts an individual files against and the severity of the exposure. The total compensation in multiple-trust claims typically ranges from $300,000 to $400,000, while high-severity cases with extensive exposure records can exceed $1 million. A few trusts pay up to 100% of the assigned claim value, such as the NARCO Asbestos Trust.
Individuals can claim compensation from multi-trust claims if they were exposed to asbestos-containing items from multiple companies. There is no central application for multiple trusts. Thus, individuals filing claims from multiple trusts must submit the claim and relevant evidence to each trust in accordance with that trust’s specific Trust Distribution Procedures (TDP). Victims often qualify to file claims against 15 to 20 different trusts simultaneously, substantially increasing total compensation.
Setoff Rules Governing Asbestos Claims
Individuals exposed to more than one asbestos-containing product from different companies can simultaneously claim compensation from the manufacturers or their trusts. If some of the liable companies are still operational, the claimant can also file a lawsuit against them, increasing the compensation. However, there are statutory regulations (state statutory laws and common-law tort doctrines) governing compensation from multiple sources, involving trust funds and lawsuits. In some states, asbestos trust setoffs apply, whereby a trial verdict or settlement is reduced based on compensation a plaintiff receives, or is eligible to receive from bankruptcy trusts for the same alleged injury. Courts use these setoff rules to prevent “double dipping,” whereby a plaintiff recovers more than the total value of the actual damages awarded at a trial. It also protects the financial viability of solvent defendants and preserves trusts’ resources available to future claimants.
The setoff rules that apply to a claim depend entirely on whether a state follows joint and several liability or several (proportional) liability. In joint and several liability, each defendant is independently responsible for the entirety of the damages, and a plaintiff can collect 100% of a verdict from a single “deep-pocket” defendant, even if they were only 10% at fault. For states that apply Several (Proportional) Liability, each defendant is responsible only for their assigned percentage of fault, and the claimant plaintiff must collect separate, smaller judgment amounts individually from each defendant.
Setoff deductions can either be proportional or dollar-for-dollar. In dollar-for-dollar (Pro Tanto) setoffs, the court subtracts the exact dollar amount the plaintiff has already received from the asbestos trusts from the final jury verdict against the solvent company. For instance, if the verdict is $1 million and the plaintiff received $500,000 from trusts, the remaining defendant pays $500,000. In proportionate (pro rata), the jury determines the total fault of all parties, including the bankrupt companies. If a bankrupt trust is deemed 20% responsible for the illness, the jury award against the solvent defendant is reduced by 20%, regardless of how much the trust actually paid.
Most states that apply set-off rules require absolute transparency regarding trust fund applications. Over 17 states, including Ohio, Texas, and Missouri, have passed laws requiring plaintiffs to disclose all trust fund claims in a sworn statement identifying all asbestos trusts they have filed with or plan to file with before their civil case can proceed to trial.
If a trust claim has been submitted but not yet paid at the time of a jury verdict, the court in some jurisdictions will calculate a setoff based on the trust’s standard “scheduled value” multiplied by its current payment percentage, even if the check hasn’t arrived. In other states, only the amount in the plaintiff’s possession is considered in rendering a verdict.
Asbestos trusts do not set off a claimant’s compensation against each other. Meaning, one trust will not reduce a claimant’s payout based on compensation the claimant received from another trust. Thus, if a claimant qualifies for 15 different trusts, each trust awards payment based on its own independent criteria and Payment Percentage.
Trusts Compensation Values
To treat all claimants with similar disease levels equitably, most trust funds have scheduled eight levels of asbestos-related disease that qualify for compensation, as follows (in ascending order):
- Mesothelioma
- Lung cancer with evidence of bilateral asbestos disease, such as asbestosis
- Other cancers
- Severe asbestosis
- Asbestosis/pleural lung disease with restricted pulmonary function
- Other asbestos-related illnesses
Each trust has an assigned scheduled value, usually set above the 50th percentile of the average historical settlements that the at-fault company paid to injured individuals before declaring bankruptcy. Most trusts pay the claimant a percentage or a discounted value of a claim. These payments vary widely based on the size and scope of the trust.
File an asbestos trust claim/lawsuit.
Contact our asbestos trust claims attorney, R. Hugh Stephens, at (716) 208-3525 for help filing a claim or lawsuit. An experienced asbestos or mesothelioma attorney can help a claimant obtain maximum compensation from all liable asbestos trusts and solvent companies. Victims of asbestos exposure are highly encouraged to file claims from the asbestos trust funds, as well as personal injury lawsuits against companies that have not declared bankruptcy. Pursuing both simultaneously maximizes a victim’s family’s total compensation.