A growing number of victims of asbestos exposure and their families are now receiving compensation through asbestos bankruptcy trusts. The link between asbestos exposure and an increased risk of diseases such as mesothelioma cancer, asbestos lung cancer, and asbestosis, among others, was conclusively established in the 1970s, forcing many companies involved in the manufacturing or sale of asbestos products to declare bankruptcy.
Once these links were publicly acknowledged, there was a significant increase in liability lawsuits lodged against companies connected with asbestos. The financial drain from these lawsuits eventually led many companies to seek the protection of bankruptcy. In response, US bankruptcy law was amended in an effort to address the needs of current and future asbestos claimants. Companies were then required to establish bankruptcy trusts as a means of providing compensation for victims.
According to Hissey, Mulderig & Friend, PLLC, these trusts have become a crucial lifeline for victims looking to secure compensation for their illnesses. Unlike traditional lawsuits, the processes involved in these trusts are generally less rigorous, thus allowing more victims and their families to gain access to funds. Moreover, it also allows companies to limit their future liabilities and afford a structured way to allocate funds for victims.
However, while these trusts offer a semblance of justice for victims of asbestos exposure, it’s important to note that they are not devoid of challenges. Critics argue that there’s a lack of transparency and accountability in their operations, which can sometimes lead to abuses. Additionally, the number of trusts and their overall funding have been insufficient to cover all asbestos-related claims.
Despite these challenges, the presence of asbestos bankruptcy trusts underscores the lasting legal, health, and social impacts of asbestos exposure. Their continued existence further highlights the need for companies to take corporate responsibility seriously so they can address past wrongdoings as well as prevent future ones.