Girardi | Keese

Asbestos Litigation: Concerns About Future Compensation, Part 3

This is the third post in our series on the current status of asbestos litigation. Because of the slow-developing nature of mesothelioma and other asbestos-related conditions, some victims may be at risk of facing serious diseases without the assistance of compensation from the companies responsible for the illnesses.

Although manufacturers knew about the dangers associated with asbestos exposure as early as the 1920s, they continued to use the minerals in countless industrial and consumer products.

Beginning the 1980s, victim started to come forward with diseases like mesothelioma. It was relatively easy to establish toxic tort link to asbestos. Many manufacturers faced enormous amounts of liability to the victims of their misconduct. Those who were not forced into bankruptcy took advantage of a law allowing them to create massive compensation trusts to assist future victims. Those companies became immune to litigation - but their multi-billion trusts remained.

Victims have submitted millions of claims to these trusts. By the end of 2010, the trusts had paid around 3.3 million claims. This massive wave of payouts for serious diseases resulted in net payments of around $17.5 billion.

While the trusts are intended to be able to sustain themselves for some period by reinvesting assets and earning more income for future payouts, observers believe that they may be headed towards premature depletion.

Check back in a few days for results from the Wall Street Journal's investigation of these trusts.

Source: The Wall Street Journal, "As Asbestos Claims Rise, So Do Worries About Fraud," Dionne Searcey and Rob Barry, Mar. 11, 2013

No Comments

Leave a comment
Comment Information

IN THE NEWS

The Soto Verdict

Girardi | Keese attorneys have won a $2.3M verdict for a Long Beach resident run over by a Parks & Rec truck. Read more here.

The Madero Verdict

Attorney Christopher T. Aumais persuaded a San Bernardino County jury to deliver an  exceptionally high verdict in an area known for low jury awards.

A Champion of Justice

Partner Amy Fisch Solomon was a Champion of Justice in 2015, proving that success in law isn't just about the size of your verdict or settlement.

Own a VW Diesel?

Read about VW's emissions scandal and 
our class action against the automaker.

Referrals

Learn About Our Referral Network Read More

Our Attorneys

Meet our award-winning team Read More

AWARDS & RECOGNITION

The true measure of a lawyer isn’t the awards, but what the awards say about the lawyer: dedication and commitment to the client.

Super Lawyers Distinguished AV | Lexis Nexis | Martindale-Hubbell | Peer Review Rated For Ethical Standards and Legal Ability American Association For Justice Consumer Attorneys Association Of Los Angeles Consumer Attorneys California Supreme Court Icon 7 Icon Best Lawyers | Best Law Firms 2014 | U.S. News American Board of Trial Advocates Law Dragon America's Top 100 Attorneys | Lifetime Achievement