For decades, asbestos was a widely used mainstay in industries ranging from construction to automotive manufacturing, and was much prized for its durability and ability to resist heat. Unfortunately, it was also linked to severe health issues like mesothelioma, lung cancer, and asbestosis, and as these facts became undeniable, the consequences of asbestos exposure became a global issue.
Victims of asbestos-related diseases face not only life-threatening illnesses but also mounting medical costs, emotional distress, and lost income.
As a result, asbestos and mesothelioma trust funds have emerged as a critical lifeline, providing financial compensation for those affected.
Asbestos and Mesothelioma Trust Funds
Asbestos trust funds were created in response to an ever-growing number of lawsuits filed by victims and families who had been exposed to asbestos. Companies that manufactured or used asbestos in their products or facilities faced overwhelming legal liabilities.
To address this, many of these companies chose to file for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code, and as part of their reorganization plans, they were required to establish trust funds to compensate victims.
The goal of these trust funds is to ensure that individuals diagnosed with asbestos-related diseases can receive compensation without lengthy litigation.
According to The National Cancer Institute, the most common asbestos-related diseases include:
- Asbestosis: A chronic inflammatory lung disease that causes scarring and can lead to shortness of breath, coughing, and permanent lung damage
- Mesothelioma: A set of cancer types that affect the thin membranes lining the chest cavity and abdomen
- Lung cancer: A cancer directly resulting from exposure to asbestos
Once these trusts have been established, they operate independently of the original companies, typically managed by a board of trustees. These individuals are responsible for evaluating claims and distributing funds based on predetermined criteria, ensuring fairness and transparency.
Mesothelioma trust funds, a subset of asbestos trust funds, specifically target individuals diagnosed with mesothelioma—a less common but extremely aggressive form of cancer that’s caused almost exclusively by exposure to asbestos.
Since mesothelioma often develops decades after exposure, these funds are designed to remain operational for years to come, addressing the needs of current and future claimants.
Filing a Claim for Compensation
Victims seeking compensation through asbestos trust funds must follow a structured claims process, including the following:
- The first step in filing a claim typically involves gathering evidence of asbestos exposure and collecting medical documentation showing the test results and diagnosis of an asbestos-related disease. Evidence may include employment records, product identification, and witness statements linking the victim to asbestos contact.
- Once the necessary documentation is prepared, the claim is submitted to the appropriate trust. Each trust has its own set of criteria for evaluating claims, often outlined in its Trust Distribution Procedures (TDP). These procedures specify the types of evidence required, the diseases covered, and the amount of compensation for each condition.
- After submission, claims are reviewed by the trust’s administrators. The review process may be expedited for severe cases, such as advanced-stage mesothelioma, to make sure that the victim receives their funds as quickly as possible.
- Once approved, the compensation amount is calculated based on the trust’s payment percentage, which reflects its current financial health and the need to preserve funds for future claimants.
Balancing Immediate and Long-Term Needs
One of the key challenges for asbestos trust funds is balancing the immediate needs of current claimants with the long-term responsibility of compensating future victims. Since asbestos-related diseases have long latency periods, even those who were exposed decades ago may only currently be developing recognizable symptoms.
To address this, trusts employ a payment percentage system, which reduces the full value of approved claims to a fraction of the amount originally assessed.
While this may seem like a significant reduction, it’s a necessary measure for the trust’s sustainability.
Payment percentages are periodically reviewed and adjusted based on the trust’s financial status, the volume of claims, and projected liabilities in the future.
The Role of Legal Help
Navigating asbestos and mesothelioma claims can be complicated and confusing, especially for those who are unfamiliar with the legal and medical requirements involved in the process.
Legal professionals who specialize in asbestos litigation can be of invaluable assistance, helping victims and their families gather evidence, identify all relevant trusts, and file their claims efficiently. These attorneys can also help ensure that victims pursue all available compensation avenues, as many of them may qualify for payouts from multiple trusts due to exposure to products from various companies.
At Frost Law Firm, PC, our asbestos attorneys work on a contingency basis, meaning we only collect fees when your claim is successful. This helps you seek professional assistance without upfront financial burdens and increases your likelihood of getting justice and maximum compensation.
These asbestos and mesothelioma trust funds are a vital mechanism in compensating victims of this public health crisis that continues to unfold. These finances offer a financial lifeline to individuals and families who are dealing with or facing the devastating effects of asbestos exposure and offer a measure of justice for the preventable harm they suffer.
While challenges still remain, particularly in offering a balance between current and future liabilities, the existence of these trusts reflects a commitment to accountability and compassion for those affected.
For victims, the compensation they receive can be the difference between total financial ruin and the chance to focus on their treatment and recovery. This is the critical role these trust funds play in addressing the lasting legacy of asbestos use.
