Mesothelioma Lawyers Blog
Some defendants in asbestos litigation, facing crippling debt in the face of accountability for concealing the danger of their products and failing to protect the public, filed for bankruptcy and established trusts to pay out current and future claims.
More than 100 companies have filed for bankruptcy protection due in whole or in part to asbestos litigation, collectively containing about $20 billion in assets – and another $12 billion in assets pending, according to an analysis by Bates White Economic Consulting. It’s important for mesothelioma attorneys to keep careful tabs on how much is contained in these trusts because it plays a role in how much will be paid out per each individual claim.
Many of the bankrupted companies – and claimants – have relied on previous insurance policies to make good on claim payments. In fact, a 2015 report by rating agency A.M. Best Co. indicated the insurance industry has paid out more than $90 million in combined asbestos and environmental losses, and there is approximately $27 billion still available to fund future payments. This heavy reliance on the insurance industry makes it imperative to follow the cases that may have an impact on claimants’ ability to collect. Recently, the U.S. Bankruptcy Court for the Southern District of New York recently ruled in Rapid-American Corp. et al. v. Travelers Casualty & Surety Co. et al. that providers of excess insurance to a now-bankrupt asbestos product manufacturer do not have to provide coverage unless and until the primary insurers have paid in full under those policies. Continue reading
