Texas Asbestos Trust Funds

What is Asbestos Trust Funds in Texas

Following a mesothelioma claim, Texas mesothelioma settlements are made by asbestos companies to asbestos exposure or mesothelioma victims. These asbestos companies typically played a role in exposing the mesothelioma compensation beneficiary to asbestos. As a result of asbestos exposure, victims are prone to several health conditions, especially lung diseases like asbestosis. The treatment costs of these health conditions are usually expensive. Mesothelioma compensations are paid to make up for lost wages, travel costs, medical expenses, and other losses asbestos exposure victims incurred due to their injuries. Common sources of mesothelioma compensation include asbestos trust funds and mesothelioma lawsuits.

Asbestos trust funds are sources through which a bankrupt asbestos company pays mesothelioma compensations. These trusts are set up to set aside funds to pay present and future asbestos claims against an asbestos company.

Texas is reportedly among the top states for asbestos exposure-related death. Throughout the 20th century, Texan workers in different industries were exposed to asbestos at their place of work. Asbestos was used in insulating workers' safety uniforms and equipment due to the mineral's fire-resistant properties. Asbestos use was prevalent in major Texas oil refineries and shipyards such as El Paso Texaco Oil and Baytown Exxon Refinery. Since mesothelioma discovery in 1972 and its link to asbestos exposure, numerous mesothelioma laws have been enacted in Texas. In 1981, the Asbestos Control Act was implemented, setting the state's standards for handling and the disposal of asbestos.

Following the Borel decision in 1973, thousands of mesothelioma lawsuits were filed against different asbestos companies that were liable for exposing Texans to asbestos. This led to the bankruptcy of numerous asbestos companies. During their bankruptcy proceedings, many of these companies are required to set up an asbestos trust to ensure adequate compensation for Texans' exposure to asbestos. This is mainly due to the high cost of mesothelioma treatments and other medical bills. Through an asbestos trust fund, qualified mesothelioma patients can access mesothelioma compensation.

What is a Mesothelioma Trust Fund in Texas?

Mesothelioma trust funds and asbestos trust funds can be used interchangeably to refer to trust funds set up by bankrupt asbestos companies. In Texas, a mesothelioma trust fund serves as a means through which mesothelioma compensation is dispersed to qualified mesothelioma patients.

Who is Eligible to File an Asbestos Trust Fund Claim in Texas?

Under Chapter 90 of the Civil Practice and Remedies Code of Texas, individuals who incurred injuries or damages due to asbestos exposure due to asbestos company operations are eligible to file an asbestos trust fund claim. These individuals must also be diagnosed with mesothelioma or other asbestos-related diseases. In Texas, these individuals include workers exposed to asbestos by their employers. Others include:

Members of an asbestos exposure victim's household
Surviving family members of an individual who died due to asbestos exposure.
Individuals who were exposed to asbestos as a result of environmental factors and asbestos-containing products

What are My Mesothelioma Compensation Options in Texas?

Asbestos exposure victim's mesothelioma compensations options in Texas include filing an asbestos trust funds claim, filing a mesothelioma lawsuit against asbestos companies responsible for their asbestos exposure, and filing a department of veteran affairs benefit claim.

Obtaining Compensation From Mesothelioma Trust Funds in Texas

In Texas, compensation may be obtained from mesothelioma trust funds by filing a claim against these trust funds. Claimants are not limited to filing a single mesothelioma trust fund claim. They can file multiple claims against different trust funds. However, to qualify to receive compensation from a trust fund, a claimant would need to meet specific criteria set by the trust and submit several reports along with their claim to the trust fund trustee.

Section 90.003, Title 4 of the Civil Practice and Remedies Code, reports include a report attesting to the claimant's asbestos-related diagnosis by a certified physician. The physician may be certified in pulmonary medicine, occupational medicine, internal medicine, oncology, or pathology.

How Much Money is Left in Texas Asbestos Trust Funds?

$30 billion is estimated to be remaining across over 60 active asbestos trust funds throughout the country. Over the past 30 years, around $18 billion has already been dispensed to qualifying asbestos exposure victims who suffer from asbestos-related diseases such as mesothelioma and asbestosis.

How Do Trust Fund Payment Percentages Work in Texas?

In Texas, asbestos trust fund payment percentages are set to ensure that enough money remains present in asbestos trust funds to pay out future claims. These payment percentages differ by asbestos trust and are detailed in the payment schedules of each asbestos trust. Some asbestos offers a high asbestos trust fund payments percentage (80% to 100%), while others offer lower percentages (between 5% to 20%).

An asbestos trust fund payment percentage is the final determinant of the trust fund's compensation amount to approved claimants. For example, if an asbestos trust fund offers a payment percentage of 20% and a claim is liquidated at $250,000, compensation that would be paid to the claimant would be $50,000.

It is worth noting that trust funds payment percentages are prone to fluctuations that could increase or decrease a trust current payment percentage. These fluctuations are usually due to the number of claims an asbestos trust fund expects to receive within a particular time frame. If the number of claims exceeds the trust expectation, its payment percentages increase, and vice versa. When an asbestos trust fund payment percentage increases, former claimants are usually paid the difference to offset their compensation. However, former claimants are allowed to keep the full sum of any remuneration they receive before the reduction of an asbestos trust fund payment percentage. This makes filing a claim against an asbestos trust fund as early as possible more profitable long term.

Filing an Asbestos Trust Fund Claim in Texas

In Texas, filing an asbestos trust fund claim involves a multi-step process. First, a claimant must identify asbestos trust funds where they qualify to receive compensation. Consulting with a mesothelioma attorney or firm can assist claimants in identifying these trust funds. A claimant would need to meet strict requirements set by any asbestos trust fund to access compensation through the trust.

Per section 90.003 of the Civil Practice and Remedies Codes (CPRC), claimants must submit certain reports when filing a claim involving asbestos-related injuries. These reports include a medical report by a licensed physician stating the claimant has been diagnosed with an asbestos-related disease. The physician may be certified in pulmonary medicine, occupational medicine, internal medicine, oncology, or pathology. These reports must also attest to a reasonable medical degree that the claimant's exposure to asbestos contributed to the development of their diagnosed disease. Although not required, other evidence of a claimant's exposure to asbestos may also be provided to strengthen their case. This evidence may include witness affidavits, invoices, and employment records.

After gathering all required evidence, a claim may be filed against an asbestos trust fund according to its protocols. While many asbestos funds allow claimants to submit their claims electronically via their website, others may require claims to be submitted via mail. It is essential to consult with a mesothelioma attorney or firm as they typically understand how different trust funds operate. When a claim gets filed with all required documents, it would then be reviewed by the asbestos trust fund administrator (trustee) for approval.

Generally, a trustee may review a claim in two ways, namely individual and expedited review. Under section 90.010 of the CPRC, factually similar asbestos cases may be grouped to review claims quickly. This type of review method is known as expedited review or the multidistrict litigation rule (MDL). Although claims are reviewed faster, and compensations are sent out faster relative to individual reviews, the MDL rule method is also associated with a fixed compensation amount across the grouped claims. For individual review, claims are reviewed one at a time. Compared to expedited review, more factors are considered when assigning claim values, and a fixed compensation amount is not utilized across claims.

After a claim has successfully been reviewed and approved, the claim would be liquidated and calculated based on the trust fund payments percentage, then sent to the claimant.

What are the Filing Limitations for a Mesothelioma Trust Fund Claim in Texas?

Texas statutes of limitation regarding taking action for personal injury or death due to asbestos exposure is the state's major filing limitation. Per sections 16.003 and 16.0031 of the Civil Practice and Remedies Code, claimants are allowed two (2) years to file a trust fund claim from either the death of a loved one or severing a defendant with a report complying with section 19.003 or 90.010(f). State laws also permit setoff payments. Defendants often sue to deduct the amount of previous compensation received by a claimant from a current claim against them.

How are Asbestos Bankruptcy Trusts Created in Texas?

Generally, asbestos bankruptcy trusts are created in Texas when asbestos companies file for a Chapter 11 bankruptcy, also known as a "reorganization bankruptcy". During a Chapter 11 bankruptcy, an asbestos company is given time to reorganize and gather enough money to fund its asbestos trust. During this period, the asbestos companies are protected from lawsuits, and many are allowed to continue their operations to raise funds.

A business plan would also be created by the asbestos company detailing the initial funding of their soon-to-be-created trust fund. This plan would be submitted to a Texas bankruptcy court for review and possible approval by the court. When approved, the asbestos trust fund would be created, and the court would sign a trustee.

A Chapter 7 bankruptcy may be forced on asbestos companies that were denied reorganization. This type of bankruptcy is also known as "liquidation bankruptcy". During a Chapter 7 bankruptcy proceedings, the entire assets a company owns are sold to pay off the company's debts and to compensate qualified asbestos exposure victims.

How Texas Asbestos Trust Fund Claims Compare to Other Mesothelioma Claims

Asbestos trust fund claims are one of several legal means asbestos exposure victims can seek compensation. Asbestos trust fund claims differ from other mesothelioma claims in the procedures involved in filing a claim and source of compensation.

Mesothelioma lawsuits involve taking legal action against asbestos companies responsible for the claimant's asbestos-related illness. These types of mesothelioma claims are paid through Mesothelioma settlements or a court-issued verdict.

Mesothelioma lawsuits are typically filed against asbestos companies that are not protected by reorganization bankruptcy and are yet established a trust. Not having a trust fund makes liable asbestos companies susceptible to future claims which are paid directly from these companies.

Although not technically a legal claim, VA claims provide compensation to veterans and health care services to veterans and their families. These types of claims are filed with the Department of Veterans Affairs.

List of Texas Companies with Asbestos Trust Funds

In Texas, most companies with asbestos trust funds are involved in oil refineries and shipments. As these industries were known to rely heavily on asbestos use. Texas companies with asbestos trust funds include and are not limited to:

Halliburton Company,
Global Industrial Technologies (Harbison-Walker)
Kellogg Brown
Root incorporated.
Flexitallic
Fuller-Austin DynCorp ( currently inactive)
J.T. Thorpe (S.D. Tex.)
Swan Transportation Company
Tyler Pipe and Foundry
Tyler Pipe Industries incorporated
Utex Industries
Energy Future Holdings (EFH) and its Subsidiaries namely: Lone Star Energy, Dallas Power, Enserch, Ebasco EECI, Big Brown, TXU, and Luminant.

What is the Average Asbestos Trust Fund Payout in Texas?

A state average for asbestos trust fund payout in Texas can not be determined as compensation payout sums differ by asbestos trusts fund. However, asbestos exposure victims can receive compensation from different trust funds totaling in the six figures margins.

Other factors may also influence an asbestos trust fund payout. These factors may include the claimant's asbestos-related illness diagnosis and the trust's current payments percentage.

Obtaining Financial Assistance to Help with Mesothelioma Treatment in Texas

Financial assistance for mesothelioma treatment is oftentimes essential. Mesothelioma treatment can cost as much as $500,000, excluding other out-of-pocket expenses such as travel and hotel if a claimant's treatment center is not in their state of residency. Additional damages, including lost wages, can affect a claimant's financial stability, further influencing their need for financial support. Mesothelioma treatment financial assistance can be obtained through:

Insurance claims
The department of veterans affairs benefits
Mesothelioma lawsuits
Asbestos trust fund claims
Third-Party cancer organizations
Housing and travel grants.

Do You Need an Attorney to File a Mesothelioma Trust Fund Claim in Texas?

Texas claimants are advised to hire an attorney when filing a mesothelioma trust fund claim. However, claimants do not need an attorney to file a mesothelioma trust fund claim. Claimants benefit immensely from hiring, particularly a mesothelioma attorney or firm. These legal representatives are well-versed in mesothelioma trust fund claim filing processes and have intimate knowledge of how different trusts operate in Texas.

An attorney may offer claimants legal advice, identify trust funds a claimant is eligible for, and ensure they are adequately compensated. Some attorneys and firms are also well connected and could help claimants gather required evidence to strengthen their claim case. Generally, an attorney or firm can help to ease the processes involved in filing a mesothelioma trust fund claim.

Trust Fund Claim vs. Mesothelioma Lawsuit in Texas

In Texas, asbestos trust fund claims and mesothelioma lawsuits are ways through which qualified asbestos exposure victims may access compensation. These compensations are provided to cover treatment costs and other expenses associated with asbestos-related injuries and to compensate for lost wages due to these injuries. The main difference between an asbestos trust fund claim and a mesothelioma lawsuit is their use case and their filing processes.

Asbestos trust claims are made against asbestos trust funds established by bankrupt asbestos companies, while mesothelioma lawsuits are filed against asbestos companies. A mesothelioma lawsuit is usually filed against asbestos companies that are yet to establish a trust fund. There are mainly two types of mesothelioma lawsuits, a wrongful death claim and a personal injury claim. Asbestos exposure victims or their representatives file personal injury claims, while a wrongful death claim is filed by the family members of a dead asbestos exposure victim.

Compensation obtained from mesothelioma lawsuits may be paid in two ways, either through a settlement or a court-issued verdict. When both parties of asbestos litigation agree to settle a claim out of court, compensations are typically paid through settlements. On the other hand, a verdict is the court's final decision concerning an asbestos litigation through which compensation may be awarded.

Although both an asbestos trust fund claim and a mesothelioma lawsuit serve similar purposes, compensation gotten from mesothelioma lawsuits is typically more than those obtained for an asbestos trust claim. Unlike an asbestos trust fund claim, compensations from mesothelioma lawsuits are usually not subject to payment percentages. Hence, claimants are typically granted the full sum of the compensation awarded by the court.

Can Asbestos Trust Fund Claims Impact Mesothelioma Lawsuits in Texas?

Due to Texas compensation disclosure laws, claimants are required to disclose previously filed asbestos claims to parties of an asbestos lawsuit. Defendants (asbestos companies)may offer settlements or compensation based on previous compensation a claimant has received or would receive. This could lead to lesser compensation payment amounts being offered by defendants.

Texas Asbestos Trust Fund Laws

Chapter 9 of the Texas Civil Practice and Remedies Code contains the state's governing laws over asbestos trust fund claims. This chapter sets the state requirements to file an asbestos trust fund claim, prohibited basis for diagnosis, required reports, and basis of joining claimants cases, to name a few.

Texas Mesothelioma Compensation Disclosure Laws

Under section 90.053, claimants are required to disclose each asbestos trust fund claim they filed or that was filed on their behalf in any action to recoup damages resulting from an asbestos-related injury. This information must be served in a notice to each party of the action. In the notice, a claimant must identify each asbestos trust fund claim they filed or was filed on their behalf. Additionally, the claimant would also need to indicate the date each claim was made, the amount of compensation received from each trust, and any further requests submitted to these trusts.

The notice must be submitted 120 days before the action's trial is set to commence or at a date provided by the court. Furthermore, per section 90.054, an action trial may not commence unless the notice stated in section 90.053 has been submitted to the parties of the action.

Are Asbestos Trust Fund Payments Taxable in Texas?

Generally, asbestos trust fund payments for medical expenses are not taxed per Section 104 of the Internal Revenue Services (IRS) Tax Code. Additionally, there is currently no contradictory Texas state law. However, asbestos trust fund payments for punitive damages and wage loss may be taxed. Claimants are advised to verify through a mesothelioma attorney, firm, or tax expert if they owe any tax for any asbestos trust fund payment they receive.

Can a Family Member File an Asbestos Trust Fund Claim in Texas?

Yes, the surviving family member of an asbestos exposure victim can file a wrongful death claim against an asbestos trust fund. Provided the asbestos exposure victim had not received compensation from the trust.

How Long Do I Have to File an Asbestos Trust Fund Claim in Texas?

In Texas, To File an Asbestos Trust Fund Claim, a claimant would first need to file a court action to recuperate damages owed due to an asbestos-related injury. After the action has been reviewed, a trial date would be set by the court. According to section 90.052 of the Texas Civil Practice and Remedies Code, claimants are given 150 days to file an asbestos trust fund claim before the trial date stated in their action.

How are Asbestos Trust Fund Claim Values Calculated?

In Texas, several factors are considered or can directly affect an asbestos trust fund claim value. These factors include the claimant's assigned claim value, previous payments from the parent company before bankruptcy, and the trust fund payment percent.

Most asbestos trust funds have a schedule in which they assign claim values to different types of asbestos-related diseases. These claim each asbestos trust fund individually sets values in their "schedule". Hence, claim values differ by trust funds.

Before the bankruptcy of the asbestos company and the creation of the trust fund, if a claimant had received any compensation from the aforementioned asbestos company, their claim value may be affected. This ensures that claimants are not overcompensated and the even distribution of compensation across claimants.

Payments percentages also vary by asbestos trust funds. Payments percentages are set by asbestos trust funds to hedge against running out of funds to compensate current and future claims. In essence, most trust funds do not pay the full value of a claim. Instead, a percentage of the claim value is paid to the claimant. This percentage is known as the asbestos trust fund payment percentage.

How Soon Will I Receive Payment From a Texas Asbestos Trust Fund?

The duration in which a claimant can expect to receive payments from an asbestos trust fund depends on the trust fund and their case. Claimants may receive payments from an asbestos trust fund between 90 days to 6 months or longer.

Most claimant cases differ in complexity. For instance, claimants who have different companies liable for their injuries may deal with lengthy legal processes. Although the combined payment a claimant may receive from other companies is, on-average, significantly larger, claimants have to wait longer.

The asbestos trust fund size is also a major determinant of the trust payments duration. Generally, larger trust funds have more claims filed against them than smaller trusts. Due to the greater influx of claims, these trusts may have a backlog of unreviewed claims, which in turn may affect the duration in which newer claims are reviewed.