Dubious Distribution: Asbestos Bankruptcy Trust Assets and Compensation
By Marc Scarcella and Peter Kelso for the U.S. Chamber Institute for Legal Reform
Dubious Distribution: Asbestos Bankruptcy Trust Assets and Compensation, shows that of $40 billion contributed to asbestos trusts between 2004 and 2016, $25 billion remain. In fact, of the 35 asbestos trusts operating as of early 2008, 21 of them are currently paying an average of only 60 percent of what they paid that year. The report also points out that most trusts have no contingency fee caps, and allow plaintiffs’ attorneys to collect 40 percent or more of claims paid out.
This research delves into the details of asbestos trust expenses and claim payment. The paper concludes that the depletion of trust assets will result in the systematic under-compensation of legitimate asbestos victims in the future if left unabated.
Roux’s Economic & Complex Analytics (ECA) team is nationally recognized for its expertise in helping clients evaluate the legal, scientific, and financial risks associated with environmental, mass tort, and product liability litigation. Our ECA experts have analyzed a diverse set of environmental and product liability risks, including asbestos, benzene, talc, perfluorooctanoic acid (PFOA), polychlorinated biphenyls (PCBs), diacetyl, silica, isocyanate, pharmaceutical and medical devices, and many others. Overall, our analysts work to reduce risks for our clients through better forecasting and predictive modeling. Read more here