For purposes of this article, the mesothelioma victim in this case will be referred to as I.L.
In a recent court decision, a mesothelioma lawsuit filed by I.L., a woman exposed to asbestos while washing her husband’s clothes has been temporarily paused. This follows a bankruptcy filing by one of the defendants that I.L. had pursued legal action against. The victim had filed a lawsuit against multiple defendants, including Huntington Ingalls Incorporated, the successor to the Avondale shipyard where her husband worked for over two decades. However, after one of the named defendants, Hopeman Brothers, Inc., filed for bankruptcy, the court issued a stay, delaying the case until the bankruptcy proceedings were resolved.
In this case, I.L. argued that the asbestos dust clung onto her husband’s clothes when he worked as a laborer, welder, and pipefitter at the Avondale shipyard from 1973 to 1996. Asbestos is notorious for clinging onto clothes, and due to its microscopic fibers, one cannot see them and “remove them” easily. By repeatedly inhaling the fibers while washing his clothes, I.L. unknowingly exposed herself to the toxic asbestos, leading to her mesothelioma diagnosis. Unfortunately, five months after filing her case, she passed away. Her children stepped in to continue her legal fight, only to face an unexpected hurdle when Hopeman filed for bankruptcy.
When a company files for bankruptcy, all legal actions against it are automatically halted. This halt, known as a stay, prevents creditors and claimants from pursuing compensation until the bankruptcy court decides on a reorganization plan. Many asbestos companies have used this strategy to avoid responsibility for harm caused to victims.
After Hopeman’s bankruptcy filing, the other defendants argued that the entire lawsuit should be put on hold to ensure fairness. While I. L.’s family wished to proceed with the other defendants without delay, the judge ultimately ruled in favor of the temporary halt, stating that to ensure all parties were treated fairly, the brief stay had to be permitted. The case is set to resume in March 2025 once the bankruptcy court determines the status of Hopeman and its co-defendants.
For mesothelioma victims, a bankruptcy filing doesn’t mean the end of the road to seeking the justice and compensation you deserve. When an asbestos company files for bankruptcy, it is often required to establish a trust fund to compensate current and future claimants. These trust funds ensure that victims continue to receive compensation long after the responsible company is no longer in operation. When filing a claim against a bankruptcy trust, a specific procedure must be followed to determine how claims are approved and how much will be paid to a claimant. As such, it is essential to work with an experienced mesothelioma attorney to help navigate the complex system and ensure you receive the compensation you deserve.
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If you or a loved one were diagnosed with mesothelioma, contact our office to speak to one of our experienced nationwide mesothelioma attorneys about your situation. Our office can help investigate your case and determine if compensation can be sought from negligent parties to help you and your family live a more comfortable life.