Congoleum Corporation, founded in the 19th century, became a significant player in the resilient flooring industry. However, between 1947 and 1984, many of its products contained asbestos, a material that was later found to cause serious health issues, such as mesothelioma and lung cancer. As asbestos-related lawsuits mounted, Congoleum filed for bankruptcy and, as part of its restructuring, created the Congoleum Plan Trust to manage and settle claims from individuals affected by asbestos exposure.
The Congoleum Corporation
The origins of Congoleum can be traced back to 1828, when Michael Nairn, a Scottish entrepreneur, established a company that manufactured oilcloth. Oilcloth was an early form of floor covering made from a fabric base coated with linseed oil, which was durable and relatively inexpensive.
Nairn’s oilcloth business grew, and by the late 19th century, he shifted focus to producing linoleum, a more advanced and resilient type of floor covering. Linoleum became the cornerstone of the company’s early success, and Nairn’s company was a major player in the European flooring industry.
Congoleum Corporation and the American arm of Nairn Linoleum merged, forming Congoleum Nairn Inc. This merger made the company a major force in the flooring industry, combining the strengths of both organizations. The merged company operated in Kearny, New Jersey, where it produced linoleum and other flooring products.
By the 1930s, Congoleum-Nairn had expanded its product lines, becoming known for innovative and affordable flooring solutions. Linoleum remained the dominant product, and it was widely used in residential, commercial, and industrial buildings.
Why Was Asbestos Used by Congoleum?
During the mid-20th century, using asbestos in building materials was standard practice across the construction industry. Many manufacturers, including Congoleum, incorporated asbestos into their products because of its superior performance and low cost. At the time, the health risks associated with asbestos exposure were not fully understood or publicly acknowledged, so it was considered a modern, innovative material for improving product quality.
Congoleum used asbestos in its flooring products due to its fire resistance, durability, thermal and sound insulation, and cost-effectiveness. Asbestos helped create long-lasting, heat-resistant flooring, which was standard in the construction industry during the mid-20th century.
Although asbestos improved product performance, it eventually led to legal and health challenges for companies like Congoleum when the dangers became widely recognized.
Asbestos Lawsuits Against Congoleum
Beginning in the 1980s, Congoleum and many other companies that used asbestos in their products faced lawsuits from individuals who had developed asbestos-related illnesses. The claims came from both workers exposed to asbestos during the manufacturing process and consumers who had been exposed during installation or through the use of their flooring products.
Congoleum filed for Chapter 11 bankruptcy protection in 2003, facing thousands of lawsuits. The goal of the bankruptcy filing was to reorganize the company’s finances while addressing the liability from asbestos claims.
As part of the reorganization, Congoleum established the Congoleum Asbestos Trust to handle the claims of individuals who were harmed by its asbestos-containing products.
What is the Congoleum Plan Trust?
The Congoleum Plan Trust was established to handle and resolve claims related to asbestos exposure from Congoleum’s products. This trust is a legal and financial mechanism designed to compensate individuals who have developed asbestos-related illnesses due to exposure to Congoleum’s flooring products, particularly during the years when asbestos was used in manufacturing.
Who Can Make a Claim?
People exposed to asbestos-containing Congoleum products can file claims with the trust. This typically includes:
- Workers involved in manufacturing or installing Congoleum flooring.
- Consumers who may have been exposed while using or renovating spaces with Congoleum products.
To file a claim, individuals must provide:
- Medical documentation of their asbestos-related illness.
- Proof of exposure, such as work or building records showing they were in contact with Congoleum products.
How Does the Congoleum Plan Trust Work?
The trust was established to compensate individuals who were exposed to asbestos in Congoleum products and developed asbestos-related diseases, such as mesothelioma, lung cancer, and asbestosis. The trust assumes Congoleum’s liabilities related to asbestos exposure, providing a structured process for resolving claims.
Starting January 1, 2024, claimants must pay a $50 Claim Filing Fee. Claims will not be processed or tolled under the statute of limitations unless the fee is paid within 60 days.
To file a claim, claimants must submit a completed Claim Form along with all required supporting documents. Claims can be filed by mail, email, or through the Trust’s online system.
Claims are processed on a first-in-first-out (FIFO) basis once all required information is submitted. Claimants can choose Expedited Review (for faster, standardized compensation based on disease levels) or Individual Review (for more detailed, case-specific evaluations).
Payment Percentages and Trust Funding
As of October 12, 2023, the Congoleum Plan Trust set its Payment Percentage at 8.67%. This means that claimants who are approved for compensation from the trust will receive 8.67% of the full value of their claim. The payment percentage is determined by the trust’s available funds and is adjusted over time to ensure that the trust remains solvent and can pay current and future claimants.
This percentage reflects the financial health of the trust and the number of claims being processed, ensuring equitable distribution of the limited resources.
Seeking Legal Assistance
If you’re considering filing an asbestos-related claim with the Congoleum Plan Trust, or believe you were exposed to asbestos through Congoleum’s products, seeking legal assistance can be an essential step in navigating the process.
Laws related to asbestos claims are complex, and each state has specific statutes of limitations. A qualified attorney can ensure you file within the correct time frame.
An attorney can help you choose between the trust’s Expedited Review or Individual Review options, depending on the severity of your illness and the specifics of your case.
Lawyers can help ensure that you receive the maximum compensation available for your disease level, and they can represent you in negotiations or appeals if the claim is denied or underpaid.
If your claim involves complex issues, such as secondary exposure (through a family member) or an extraordinary claim (cases with significant financial loss or extreme illness), an experienced attorney can advocate on your behalf and navigate these complexities.
Reach Out For Your Free Consultation Today
If you or a loved one have been exposed to asbestos through Congoleum products and are suffering from an asbestos-related illness, you may be entitled to compensation. Don’t navigate the claims process alone – let the experienced attorneys at Bailey Glasser guide you every step of the way.
Get in touch with us today for a free consultation by calling (866) 871-7971 or filling out our online form. We’re here to help you understand your rights and secure the compensation you deserve. Don’t wait – reach out to Bailey Glasser now!
