Kaiser Gypsum Files for Bankruptcy Amid Asbestos Exposure Claims

 Posted on October 22, 2016 in Defective Products

Throughout the 19th and first half of the 20th century, asbestos could be found in nearly everything. Paint, shingles, pipes, certain textiles, household goods, and drywall were just some of the many products that contained the heat-resistant mineral. As more and more scientific evidence linking asbestos exposure to illnesses like mesothelioma was released, governments around the world limited and even banned the use of asbestos. Today, asbestos is banned from being used from most, but not all, consumer products in the United States.

When an individual suffers an illness as the result of asbestos exposure, he or she may seek compensation for damages through an asbestos exposure claim. The compensation amounts secured by claimants can be fairly high, putting a financial strain on the companies responsible for those illnesses and pushing them toward bankruptcy. This is the case with Kaiser Gypsum, a former drywall manufacturer based in North Carolina. The company has faced 13,967 asbestos exposure claims, 1,498 of which were filed by claimants in Illinois. Although the company stopped producing drywall many years ago, it remains in existence to pay out compensation amounts to individuals affected by asbestos exposure.

Trust Funds for Victims of Bankrupt Companies

Many companies realize that they cannot pay all of their victims' expenses immediately or out of pocket, so they contribute to trust funds set up specifically for this purpose. By putting money into a trust, the money is protected from the company's creditors in the event the company files for bankruptcy. Mesothelioma victims can seek compensation for their damages from these trust funds, rather than directly from the companies themselves. This is also an option for victims of companies that are no longer in existence.

If you are considering closing your company and you know that you could face legal claims for compensation in the future, talk to your bankruptcy lawyer about setting up a trust fund to hold money for this purpose. In a different vein, if you are an individual affected by mesothelioma or any other illness related to prolonged, preventable exposure by an employer or another entity, consider filing your claim with a trust fund to receive the compensation you need to cover your damages. In some cases, this is your only option. In others, it is one of many options that your lawyer can discuss with you in detail.

Work with an Experienced Palatine Bankruptcy Lawyer

Asbestos exposure can cause an individual to suffer from serious illnesses like asbestosis and mesothelioma. Many companies that worked with asbestos in the past, existing and defunct, have trust funds in place to cover the damages. To learn more about what you can do if you face a lawsuit against your company after closing it permanently, speak with an experienced bankruptcy lawyer. Contact our team at Newland & Newland, LLP today to set up your initial legal consultation with a member of our team. We serve clients in the Arlington Heights, Palatine, Rolling Meadows, Libertyville, Mundelein, Buffalo Grove, Schaumburg, Elk Grove, and Itasca areas from out our office located in the prestigious 180 North LaSalle street building in Chicago.