The Asbestos Trust Fund Process: A Roadmap for Families in NJ & PA

What is the Asbestos Trust Fund Process? The asbestos trust fund process is a non-adversarial compensation method where victims file claims against bankrupt companies that manufactured asbestos. Instead of a lawsuit, you submit evidence of exposure and diagnosis. If approved, the trust pays a percentage of a set value. This system currently holds over $30 billion for victims who cannot sue these now-bankrupt entities.

f you are reading this, you or someone you love has likely just received news that stops the world spinning. A diagnosis of mesothelioma or lung cancer feels like a theft—a stealing of time, of future memories, of peace.

At Cohen, Placitella & Roth, we know that in the weeks following a diagnosis, the last thing you want to do is decode complex legal jargon about "bankruptcy trusts" or "liquidation rates." You want answers. You want to know if your family will be okay.

For decades, we have stood in courtrooms and living rooms across New Jersey and Pennsylvania, holding the hands of families just like yours. We know that while no check can undo the damage done by corporate greed, securing your financial future is a critical act of justice. This guide will walk you through the asbestos trust fund process—not as a cold legal procedure, but as a pathway to the security you deserve.

1. Why Do These Trusts Exist?

In the late 20th century, the companies that poisoned American workers faced a reckoning. Faced with thousands of lawsuits, major manufacturers like Johns-Manville, USG, and Babcock & Wilcox filed for Chapter 11 bankruptcy.

But the courts didn’t let them walk away scot-free.

To reorganize, these companies were forced to establish Asbestos Trust Funds. These trusts are vast reservoirs of money—currently estimated at over $30 billion—set aside specifically to pay future victims. Because the companies are technically "bankrupt," you can no longer sue them in civil court. Instead, you must file a claim with their trust.

Key Difference:

Lawsuit: You fight a defendant in court (adversarial).

Trust Claim: You submit proof to a trustee (administrative).

2. The 5-Step Filing Process

While every trust has unique rules, the path to compensation generally follows these five steps. We handle the heavy lifting here, but it helps to understand the journey.

Step 1: Exposure Investigation

We don't just ask "where did you work?" We dig deeper. Using our proprietary library of job sites, we link your work history to specific products.

Example: You worked at a shipyard in Camden. We identify that you handled specific gaskets made by a now-bankrupt manufacturer.

Step 2: Medical Confirmation

Trusts require specific medical evidence. A simple doctor’s note isn't enough. We compile pathology reports, imaging scans, and physician statements that definitively link your illness to asbestos fibers.

Step 3: Filing the Claim

We submit your claim packet. Here, we make a strategic choice:

Expedited Review: A faster track with a fixed payout amount. Best for straightforward cases.

Individual Review: A slower, more detailed review. We use this when your case involves special hardship or higher-than-average exposure, fighting for a higher valuation.

Step 4: The "FIFO" Queue

Trusts operate on a "First-In, First-Out" basis. Once your claim is deemed complete, it enters a queue. This is why acting quickly—but correctly—is vital.

Step 5: Liquidation & Payment

Once the trustee approves the claim, they issue a check. Note that this is rarely the full "scheduled value" (more on that below).

3. The "Insider" Strategy: Trusts vs. Lawsuits in NJ & PA

Here is what most generic legal blogs won't tell you.

In Pennsylvania and New Jersey, filing a trust claim isn't just about filling out a form. It is a strategic move that interacts with any active lawsuits you might have against solvent companies (companies that are not bankrupt).

The "Setoff" Trap

In states like Pennsylvania, defendants in a lawsuit can sometimes reduce the amount they owe you by the amount you’ve already received from trusts. This is called a "setoff" or "credit."

The Risk: If we file trust claims too early, a solvent defendant might argue, "Look, they already got paid by the bankrupt guys, so we shouldn't have to pay as much."

The CPR Strategy: We carefully sequence your claims. Sometimes, it is better to delay trust filings until after your lawsuit is resolved to ensure you get the maximum compensation from all parties.

Transparency Laws

Recent legislative pushes (like the "Fairness in Claims and Transparency Acts") aim to force plaintiffs to disclose trust claims during lawsuits. We navigate these disclosure rules meticulously to protect your rights and prevent defense lawyers from using your trust claims to delay your trial.

4. Payment Percentages: The Hard Truth

We believe in radical honesty. If a trust lists a "Scheduled Value" of $100,000 for Mesothelioma, you will likely not receive a $100,000 check.

To ensure money remains for future victims (who may get sick 10 years from now), trusts pay a Payment Percentage.

Hypothetical Example: If a trust has a 25% payment percentage, a $100,000 claim results in a **$25,000 payment**.

Why you need an attorney: While we cannot change the percentage, we can fight to ensure your claim is categorized at the highest possible disease level (e.g., severe asbestosis vs. mild asbestosis), which increases the base value before the percentage is applied.

5. Local Exposure Sites (NJ & PA)

Our region was the industrial heart of America. If you or your loved one worked at these sites, you may have valid trust claims:

Pennsylvania

Bethlehem Steel (Bethlehem): Massive use of asbestos insulation in high-heat furnaces.

U.S. Steel (Clairton Works): Coke production facilities with heavy pipe insulation.

Power Plants: Duquesne Light and Keystone Power Plant workers often handled asbestos gaskets and turbines.

New Jersey

New York Shipbuilding Corp (Camden): One of the most active sites for asbestos use in naval vessel construction.

Johns-Manville Plant (Manville): A "ground zero" for manufacturing asbestos products.

Exxon Bayway Refinery (Linden): Chemical and heat piping heavily insulated with asbestos.

6. Frequently Asked Questions

Q: Can I file a trust claim and a lawsuit at the same time? A: Yes. In fact, a comprehensive strategy usually involves both. You sue the companies that are still in business and file trust claims against the ones that went bankrupt.

Q: How long does it take to get paid? A: It varies by trust. Expedited claims can sometimes be paid in 3-6 months, while individual reviews can take longer. However, "liquidated" (approved) claims are paid much faster than a court verdict.

Q: Does this affect my veteran's benefits? A: Generally, no. Asbestos trust compensation is separate from VA benefits. You can usually pursue both without one reducing the other.

Q: What if my loved one has already passed away? A: You can still file. The estate representative (usually a spouse or child) can file a "wrongful death" claim with the trusts to recover compensation for the family.