Supreme Court Decision Could Affect Johns Manville Asbestos TrustWashington, D.C. - The United States Supreme court has agreed, as of December 12th, to consider reinstating an asbestos trust fund of nearly $500 million against the Travelers Co, an insurer long associated with the asbestos product manufacturer Johns Manville.
The Johns Manville Co, once among the world’s largest manufacturer of asbestos products created a separate trust in the 1980s to satisfy claims filed against the company directly. The trust fund was approved by a federal bankruptcy judge and the funds came largely from insurers.
However, claims are now being filed directly against the Travelers Co, who is being accused of attempting to hide the dangers of asbestos while an insurer of Johns Manville. Travelers has already settled with several plaintiffs provided that the federal courts block further cases against the insurer.
Travelers is claiming now that their trust fund is unjust because any claims against the insurer should be paid out through the existing Johns Manville trust as opposed to the fund solely attached to the insurer.
Although the trust was approved in the lower courts the U.S. Second Circuit Court of Appeals overturned that ruling over concerns about the power of the bankruptcy courts to issue such broad settlements.
