Recently, three asbestos trust funds announced increased payout percentages for successful claims. The increased percentages may mean asbestos victims will get more compensation.
The three trusts that have increased payout percentages are:
- National Gypsum Company Bodily Injury Trust (NGC) adjusted the payout percentage from 40% to 45%.
- Plant Asbestos Settlement Trust raised the payout percentage from 11.5% to 16.5%.
- Thorpe Insulation Settlement Trust (TIST) increased the payout percentage from 51.8% to 58.6%.
What Do Trust Funds Do?
Asbestos companies set up asbestos trusts after they file bankruptcy over mesothelioma lawsuits. These trust funds are funded with significant sums of money the bankrupt company and its insurers set aside.
In some cases, more than one company will share a trust. When more than one company is part of a trust, they often are affiliated with each other in some way. For example, two companies owned by the same parent company may share a trust.
A trust provides financial options for current and future claimants.
NGC Bodily Injury Trust
National Gypsum Company started the NGC Bodily Injury Trust in 1993. National Gypsum, which has operated since 1925, manufactured construction materials with asbestos. Because of the company’s use of asbestos, it faced many lawsuits. National Gypsum filed for Chapter 11 bankruptcy in 1990. National Gypsum initially funded the trust with $446 million in 1993.
The new payout percentage is 45%, up from 40%.
Plant Insulation Company Asbestos Settlement Trust
Plant Insulation Company began as an insulation contractor in 1937. For much of the company’s history, it had a deal to distribute Fibreboard Company’s products. The company started the Plant Insulation Company Asbestos Settlement Trust in 2012 after bankruptcy proceedings. Plant Insulation Company funded the trust with $242.8 million initially.
The Plant Insulation Company Asbestos Settlement Trust increased the payout percentage to 16.5%, which is up from 11.5%.
Thorpe Insulation Settlement Trust
Thorpe Insulation Company began in 1906 as a family-owned insulation company focused on industrial sites. Its subsidiary, Pacific Insulation Company, and Thorpe Insulation both contributed to this trust fund. The Thorpe Insulation Settlement Trust (TIST) started in 2006. The asbestos companies and insurers funded the trust with $389 million.
TIST’s previous payment percentage of 51.8% has been increased to 58.6%.
What Does an Increased Payout Mean for Asbestos Victims?
Increased payout percentages may mean larger payouts for victims. This percentage sets how much money a victim may get from a trust fund claim and can fluctuate over time. These percentages help ensure the trust fund has funds available to help current and future claimants.
Another consideration with payout amounts is the disease stage and the type of disease the victim had. For example, a trust may have a higher payout for someone diagnosed with stage 4 mesothelioma than with asbestosis.
Victims can make claims against more than one trust if the evidence supports it. An asbestos attorney can help victims determine the best course of action.
How Can Victims Get More Information?
Victims exposed to asbestos by a negligent company may have legal options. An experienced asbestos attorney can explain the available options. They also can help find the companies responsible for the exposure.
Anyone with an asbestos-disease diagnosis may want to speak with an attorney. A national asbestos law firm will have the resources to help.
Sources
Plant Asbestos Settlement Trust. About The Trust.
Thorpe Insulation Settlement Trust. About The Trust.
Trust Services Inc. NGC Bodily Injury Trust.
United States Bankruptcy Court Northern District of California, San Francisco Division. First Annual Report and Accounting, Audited Financial Statements, and Claim Report. April 2013.
Warmerdam E. No Easy Out for Firm Sunk by Asbestos Cases. Courthouse News Service. October 2013.
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Tara Strand specializes in writing content about mesothelioma and asbestos. She focuses on topics like mesothelioma awareness, research, treatment, asbestos trust funds and other advocacy efforts.
