Facing billions of dollars in mesothelioma liabilities, many asbestos companies that negligently exposed workers to the carcinogenic material filed for bankruptcy protection. In response, the courts required them to establish asbestos bankruptcy trust funds to ensure that victims would receive compensation for their illnesses. Among those companies affected was North American Refractories Co., or Narco, an affiliate of Honeywell International. Now Honeywell has filed a lawsuit against that fund’s managers, accusing them of being too generous in their payments and mismanaging the trust’s funds.
Asbestos Bankruptcy Trusts Ensure Protection of Mesothelioma Victims
The legal battle between the trust administrators and the conglomerate is the culmination of years of acrimony over payments to mesothelioma victims. The administrators claim that Honeywell is trying to evade its legal obligation to pay up to $150 million a year to asbestos victims, while Honeywell argues that the managers are not exercising enough oversight before distributing funds.
The Narco asbestos trust was established without an expiration date, as it is nearly impossible to determine how far into the future mesothelioma victims and others affected by asbestos contamination might be diagnosed. Honeywell has asserted that the trust’s ultimate value could be as much as $2.3 billion paid out to victims. They issued a statement reading, “Honeywell has evidence of severe and abusive mismanagement of the Narco Trust, including that the Trust has squandered its assets and has paid claimants who have not demonstrated exposure to any Narco product.”
Trust Managers Argue on Behalf of Asbestos Victims
In response to Honeywell’s accusations, the Narco trust managers issued their own statement, indicating that the company is attempting to interfere with their obligation to mesothelioma victims and others affected by asbestos exposure from Narco’s products. “The improper purpose of Honeywell’s actions is to deny or limit compensation to very ill asbestos victims in order to improve its own bottom line.” The acrimony between the two sides predates the first payment being made to an asbestos victim, with Honeywell attempting to minimize its total obligation by issuing a one-time payment of $506 million.
Asbestos bankruptcy trust funds offer mesothelioma victims compensation without the stress of litigation. If you or someone you love has a history of asbestos exposure and you need information about your options, contact the Patient Advocates at Mesothelioma.net today at 1-800-692-8608.