A national industrial manufacturer recently set aside two newly created units of its business in order to fund an asbestos bankruptcy trust and relieve itself from the hundreds of mesothelioma cancer lawsuits it faces each and every year. As part of the liability restructuring, Trane Technologies Plc formed two subsidiaries, Aldrich Pump LLC and Murray Boiler LLC, back in May 2020 in order to transfer assets and liability to the new business entities and enjoin all asbestos cancer-related lawsuits against Trane Technologies.
After creating Aldrich Pump LLC and Murray Boiler LLC, Trane Technologies subsequently transferred tens of millions of dollars in cash and assets and recently had these entities file for Chapter 11 bankruptcy in U.S. Bankruptcy Court for the Western District of North Carolina. The end game for the transfer of assets and liability is to ultimately establish an asbestos bankruptcy trust which plaintiffs with claims against Trane Technologies to file claims against.
According to Trane Technologies, the company resolves through trial or settlement an estimated 900 asbestos cancer lawsuits each year and spends nearly $100 million on litigation costs, which includes payouts for victims and the company’s out attorney’s fees. The strategy is a similar one enacted by other asbestos companies like Bestwall LLC and Kaiser Gypsum Company Inc. in order to shield the parent companies from asbestos cancer lawsuits brought by victims who claim they developed mesothelioma from exposure to asbestos in the defendant’s products.
There are currently over 50 such asbestos bankruptcy trusts set up across the United States to compensate victims who claim they developed mesothelioma and non-malignant injuries through the course of working for the bankrupt company or with its products. By filing claims against these asbestos bankruptcy trusts, victims and their families can recover vital compensation for the expenses associated with asbestos-related injuries such as medical care, lost wages, and the pain and suffering of living with the associated health condition.
For decades, companies used asbestos in a variety of commercial, industrial, and military applications and did so despite knowing of the health consequences associated with exposure to the deadly carcinogen. It was not until the 1970s when federal legislation effectively banned the use of asbestos did companies cease using the mineral in its products, which included everything from vinyl floor tiles to insulation to auto parts.
Perhaps the most serious health consequence of asbestos exposure is mesothelioma, a rare and deadly form of lung cancer that commonly affects the thin linings of tissue surrounding vital organs such as the lungs, heart, and abdominal cavity. Because mesothelioma can take anywhere from 20 to 50 years to be diagnosed, many victims and their families must file claims against now bankrupt defendants in order to recover compensation for the harm suffered.
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If you or a loved one were diagnosed with mesothelioma, contact our office to speak to one of our experienced mesothelioma attorneys about your situation. Our office can help investigate your case and determine if compensation can be sought from negligent parties to help pay for your medical treatment to help you and your family live a more comfortable life.