Mesothelioma is a life-altering diagnosis, often caused by asbestos exposure that occurred decades earlier. In many cases, the companies responsible for manufacturing or distributing asbestos-containing products have since gone out of business or filed for bankruptcy. This can leave victims and their families wondering whether legal action is even possible. Fortunately, there are still viable paths to compensation—even when the responsible company no longer exists. This article explores how to file a lawsuit against a defunct asbestos company and what legal options are available.
Why Asbestos Companies Go Defunct
The widespread use of asbestos in the 20th century led to thousands of lawsuits once its health risks became known. Many companies faced overwhelming legal liability and chose to:
- File for bankruptcy protection
- Dissolve or merge with other entities
- Establish asbestos trust funds to compensate victims
While these companies may no longer operate, their legal obligations often persist through court-approved mechanisms.
What Happens When a Company Files for Bankruptcy
When an asbestos company files for Chapter 11 bankruptcy, it may be required to create a trust fund to handle future claims. These trusts are managed independently and funded by the company’s assets.
Key features of asbestos trust funds:
- Designed to compensate victims of asbestos-related diseases
- Operate under federal bankruptcy law
- Have specific eligibility criteria and documentation requirements
- May offer expedited or individual review options
Examples of companies with established trust funds include Johns-Manville, Owens Corning, and W.R. Grace.
Legal Options for Suing a Defunct Company
Even if the company no longer exists in its original form, victims may still pursue compensation through several avenues:
1. File a Claim with an Asbestos Trust Fund
This is the most common route for victims of defunct companies. To file a claim:
- Identify the trust fund associated with the company
- Gather medical records confirming a mesothelioma diagnosis
- Provide employment history showing asbestos exposure
- Submit the claim through the trust’s official process
Trusts often offer two types of review:
- Expedited review: Faster processing with fixed compensation amounts
- Individual review: Longer process with potential for higher payouts
2. Sue a Successor Company
If the defunct company merged with or was acquired by another entity, the successor may inherit liability. Plaintiffs can:
- Investigate corporate history to identify mergers or acquisitions
- File suit against the successor company if it assumed asbestos liabilities
- Present evidence linking the original company’s products to the illness
This approach requires detailed legal research and may involve complex corporate structures.
3. File Against Multiple Defendants
Mesothelioma often results from exposure to products from several companies. Even if one company is defunct, others may still be viable defendants.
Legal teams can:
- Identify all sources of asbestos exposure
- File a multi-defendant lawsuit
- Allocate liability among surviving companies and trust funds
This strategy increases the chances of securing full compensation.
4. Seek Compensation Through Workers’ Compensation
In some cases, victims may be eligible for workers’ compensation benefits, especially if the exposure occurred on the job and the employer is still in business.
Limitations include:
- Lower payouts compared to lawsuits
- No compensation for pain and suffering
- Strict filing deadlines
Still, it can provide partial relief while other claims are pursued.
Challenges in Suing Defunct Companies
Filing a lawsuit against a defunct company presents unique challenges:
- Locating records: Employment and product documentation may be lost or archived
- Proving exposure: Plaintiffs must link their illness to specific products or job sites
- Navigating trust fund rules: Each trust has its own criteria and procedures
- Jurisdictional issues: Exposure may have occurred in multiple states
Despite these hurdles, experienced mesothelioma attorneys can help families build strong cases and access available compensation.
Real-Life Example
A former construction worker diagnosed with mesothelioma sought compensation from a company that had dissolved in the 1990s. His legal team:
- Identified the company’s asbestos trust fund
- Submitted medical and employment records
- Provided testimony from coworkers confirming exposure
- Received a $1.2 million settlement through the trust
This case illustrates how victims can still achieve justice—even when the responsible company no longer exists.
How Attorneys Help in Defunct Company Cases
Mesothelioma attorneys play a vital role in navigating these complex claims. Their services include:
- Researching corporate history and identifying successor entities
- Locating and accessing asbestos trust funds
- Preparing and submitting claims with supporting documentation
- Coordinating multi-defendant lawsuits
- Ensuring compliance with filing deadlines and legal procedures
Many attorneys work on a contingency basis, meaning families pay nothing unless compensation is awarded.
Tips for Families Pursuing Claims Against Defunct Companies
To improve your chances of success:
- Act quickly: Statutes of limitations vary by state and may expire within 1–3 years of diagnosis or death.
- Gather documentation: Medical records, employment history, and product information are essential.
- Consult a specialized attorney: Choose one with experience in asbestos litigation and trust fund claims.
- Explore all options: Don’t rely on a single path—consider lawsuits, trust funds, and workers’ comp.
- Stay organized: Keep copies of all documents and correspondence related to the case.
Preparation and persistence are key to securing compensation.
Final Thoughts
Mesothelioma victims shouldn’t be denied justice simply because the responsible company no longer exists. Through asbestos trust funds, successor liability, and multi-defendant lawsuits, families can still pursue meaningful compensation. With the help of experienced legal counsel and a well-documented case, it’s possible to hold defunct companies accountable and secure the financial support needed for medical care, lost income, and peace of mind.
References
- American Cancer Society. (2023). Malignant mesothelioma. https://www.cancer.org/cancer/malignant-mesothelioma.html
- Environmental Protection Agency. (2023). Asbestos laws and regulations. https://www.epa.gov/asbestos/asbestos-laws-and-regulations
- Occupational Safety and Health Administration. (2023). Asbestos. https://www.osha.gov/asbestos
- United States Courts. (2023). Bankruptcy basics. https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics