When a person is diagnosed with mesothelioma, a cancer linked to asbestos exposure, one of the many questions that arises is how to seek financial compensation. For most families, there are two main avenues: filing a lawsuit against companies that made or sold asbestos products, or filing a claim with an asbestos trust fund. Both options exist to help cover medical bills, lost income, and other costs, and many people pursue both.
Lawsuits and Settlements
A mesothelioma lawsuit is typically filed against companies whose asbestos-containing products or workplaces contributed to the exposure. Most of these cases never go to trial. Instead, they are resolved through negotiated settlements, in which the company or its insurer agrees to pay a set amount in exchange for the claim being dropped. Settlement amounts vary widely and depend on factors such as the strength of the evidence, the number of companies named, and the specific circumstances of the exposure.
Because many asbestos companies have gone bankrupt, however, lawsuits are not always possible against every responsible party. This is where trust funds come in.
What Are Asbestos Trust Funds?
Asbestos trust funds were created through bankruptcy court proceedings. When a company that used or made asbestos products filed for bankruptcy, the court required it to set aside money in a dedicated trust. The purpose of these trusts is to ensure that people harmed by the company's asbestos products can still receive compensation, even though the company itself is no longer operating.
There are dozens of these trusts operating across the United States, each with its own rules, claim forms, and review process. Some trusts were established decades ago, while others are more recent. Each trust has a set of criteria that must be met before a claim is approved, and each pays out according to a schedule that assigns a value to different types of asbestos-related diseases.
How Trust Fund Claims Work
Filing a claim with an asbestos trust fund is a formal process. The claimant must provide documentation of the mesothelioma diagnosis, evidence of exposure to the specific company's asbestos products, and information about work history. Many trusts require medical records and a statement from a physician. Some trusts also require a detailed work and exposure history that identifies the products and time periods involved.
Trusts typically review claims in one of two ways. Some use an expedited process, where claims that meet basic criteria are paid quickly at a set percentage of the scheduled value. Others use an individual review, where the claim is examined in more detail and the payment may be higher. The percentage paid on a claim, sometimes called the payment percentage, reflects the trust's current funding level and can change over time.
Choosing Between Options
There is no single right choice for every family. Some people pursue a lawsuit against a solvent company while also filing claims with one or more trusts. Others focus only on trust claims, especially if the exposure occurred at a workplace where the responsible companies have all filed for bankruptcy. The best approach depends on the details of the exposure history, the number of companies involved, and the family's goals.
It is also important to understand that filing a claim with a trust does not prevent a person from also pursuing a lawsuit against a different company. The two paths are separate, and many families use both to maximize the compensation available.
The Role of Legal Counsel
Because the rules for each trust and each lawsuit are different, most families work with an attorney who focuses on asbestos cases. A lawyer can help gather the necessary medical and work records, identify all potentially responsible companies, and determine which trusts may have claims available. An attorney can also explain the differences between the options and help a family decide how to proceed. Legal representation in these matters is typically handled on a contingency basis, meaning the attorney is paid only if the case or claim results in compensation.
For families facing a mesothelioma diagnosis, understanding the available settlement options is an important step. Whether through a lawsuit, a trust fund claim, or both, these avenues exist to provide financial relief during a difficult time.
