Asbestos exposure has had devastating health consequences for many individuals and families over the decades. Companies that produced or used asbestos-containing materials, like Celotex Corporation, have faced lawsuits and claims from people affected by diseases such as mesothelioma, asbestosis, and lung cancer. To help address these claims, the Celotex Asbestos Trust was established. This blog post will provide a clear overview of what you need to know about the trust, who qualifies for compensation, and how to file a claim.
The Celotex Corporation
Founded in 1920, Celotex Corporation quickly became a major supplier of roofing and insulation materials. The company initially manufactured fiberboard insulation made from sugarcane waste, which became popular for its affordability and energy-saving properties. Over time, Celotex expanded its product line to include a variety of construction materials such as gypsum wallboard, ceiling tiles, and other insulation products.
Why Was Asbestos Used by Celotex?
Celotex manufactured a wide range of products, many of which contained asbestos. These products were primarily used in residential, commercial, and industrial buildings. Some of the most common products included:
- Asbestos Insulation: Used in roofing, walls, and ceilings to improve thermal efficiency and fire resistance.
- Asbestos Cement: Utilized in exterior building panels, pipes, and ducts.
- Ceiling Tiles and Wallboards: Contained asbestos to enhance fireproofing capabilities.
- Roofing Felt: A type of insulation placed underneath shingles to improve durability and weather resistance.
While these products were effective in construction, they exposed workers, contractors, and even building occupants to hazardous asbestos fibers. Prolonged exposure to these fibers can cause serious health issues, including mesothelioma, asbestosis, and lung cancer.
Asbestos Lawsuits Against Celotex
By the 1970s, the health risks associated with asbestos exposure became widely known, and Celotex Corporation, like many other companies that produced asbestos-containing materials, began facing lawsuits from individuals suffering from asbestos-related diseases. The claims came from workers in industries like construction and shipbuilding, as well as homeowners and building occupants exposed to asbestos materials.
As lawsuits mounted, Celotex’s financial situation worsened, eventually leading the company to file for bankruptcy in 1990. The bankruptcy reorganization plan included the establishment of the Celotex Asbestos Settlement Trust, which was created to manage and pay out claims from individuals affected by asbestos exposure from Celotex products.
What is the Celotex Asbestos Trust?
The Celotex Asbestos Settlement Trust was created in 1998 as a result of the bankruptcy reorganization of Celotex Corporation and Carey Canada Inc. Both companies were major suppliers of asbestos-containing products, which were used in construction and other industries for decades. By the 1990s, Celotex faced overwhelming numbers of lawsuits from individuals suffering from asbestos-related diseases.
The trust was designed to provide compensation to people who developed illnesses due to exposure to asbestos products manufactured or distributed by Celotex. Its purpose is to streamline the claims process and ensure that victims and their families receive compensation in a timely and equitable manner.
Who Can Make a Claim?
If you or a loved one have been diagnosed with an asbestos-related illness and believe it was caused by exposure to Celotex asbestos products, you may be eligible to file a claim with the trust. Claimants can include:
- Individuals diagnosed with mesothelioma, asbestosis, lung cancer, or other asbestos-related diseases.
- Family members or heirs of someone who passed away due to an asbestos-related illness.
- Workers who were exposed to asbestos products manufactured or distributed by Celotex or Carey Canada.
To be eligible, you must be able to prove that your illness was caused by exposure to products made by Celotex or Carey Canada. Medical records, employment history, and documentation of exposure are essential components of a successful claim.
How Does the Celotex Asbestos Settlement Trust Work?
Here are the key steps involved in filing a claim with the Celotex Asbestos Trust:
- Complete the Claim Form: Potential claimants must fill out a claim form provided by the trust. The form asks for detailed information regarding the individual’s diagnosis, exposure history, medical treatments, and supporting documentation.
- Submit Evidence: Along with the claim form, claimants must submit medical records, work history, and any other relevant documents proving their exposure to Celotex asbestos-containing products.
- Claim Review Process: Once the claim is submitted, the trust reviews it to ensure it meets the eligibility criteria. The review process involves evaluating the medical diagnosis, exposure evidence, and documentation.
The trust evaluates each claim based on the severity of the illness, the claimant’s exposure to asbestos, and the type of disease. The trust typically uses two methods for processing claims:
- Discounted Cash Payment (DCP): This is the faster option where claims are evaluated based on pre-established criteria. Claimants receive a standardized payment based on their diagnosis and exposure history.
- Individualized Review Claim (IRC): In cases where claimants believe their situation warrants more compensation, they can opt for individual review. This is a more detailed and longer process where the trust assesses the claim’s unique circumstances and may award a higher payout if justified.
Payment Percentages
As of June 23, 2023, the Celotex Asbestos Trust has set its Initial Payment Percentage (IRC) at 7% of the gross settlement value for approved claims. This percentage is crucial for claimants to understand because it represents the amount they will receive as compensation, relative to the full settlement value of their claim.
What Does the 7% Payment Percentage Mean?
The Initial Payment Percentage is the fraction of the total value of a settlement that the trust pays to a claimant. The payment percentage is adjusted to ensure that the trust can continue to provide compensation to current and future claimants while managing its limited assets responsibly. Given the large number of potential claims, trusts often reduce the payout percentages to ensure equitable distribution of funds.
For instance, if the gross settlement value of a claim is determined to be $100,000, and the IRC payment percentage is 7%, the claimant would receive $7,000 from the trust as compensation.
Why Is the Payment Percentage Lower Than the Full Settlement Value?
Several factors contribute to why the payment percentage is lower than 100%:
- Limited Funds: The trust has finite resources and must manage them carefully to compensate both current and future claimants.
- Long-Term Obligations: Since asbestos-related diseases have long latency periods (often decades), the trust needs to maintain funds for individuals who may develop illnesses in the future and file claims.
- Economic Uncertainty: The trust may adjust the payment percentage over time based on economic conditions, the number of claims filed, and the trust’s ability to meet long-term financial obligations.
What Should Claimants Expect?
Claimants should understand that while the 7% payment percentage means they will only receive a fraction of the full settlement value, it also ensures that the trust can remain solvent and continue to meet its obligations over time. The payment percentage may be revised in the future depending on the trust’s financial health, meaning there could be increases or decreases depending on the circumstances.
Seeking Legal Assistance
If you or a loved one have been diagnosed with an asbestos-related illness due to exposure to Celotex products, you may be entitled to compensation through the Celotex Asbestos Settlement Trust. Don’t wait – your health and future deserve justice. At Bailey Glasser, we are here to help you navigate the claims process and ensure you receive the compensation you’re entitled to.
Call us today at (866) 871-7971 or fill out our online form for a free consultation. Our experienced team is ready to fight for your rights. Let us handle the legal complexities so you can focus on your health and well-being.
