Combustion Engineering Asbestos Trust

By - on June 16, 2020

Last Updated: June 16th, 2020

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Combustion Engineering was a leader in developing fossil fuels and nuclear steam power systems in the United States for decades. It manufactured boilers, cement, insulation, adhesives, and coatings that contained asbestos, which later led to thousands of asbestos lawsuits.

Combustion Engineering was established in 1912 when American Stoker Company and Grieve Gate Company merged. In 1920, the firm built its headquarters in lower Manhattan. The first products made by Combustion Engineering were underfeed stokers and dryers, as well as boilers. (Asbestos.com)

In 1990, Asea Brown Boveri (ABB Group) took over Combustion Engineering’s operations. While Combustion Engineering no longer made asbestos-containing products at that time, ABB Group assumed liability for future any future asbestos claims.

Combustion Engineering Products That Contained Asbestos

Some of the brand name products that Combustion Engineering made before 1990 that contained asbestos included:

  • A-1199 Insulating Cement
  • Asbestos Ropes
  • Block Stick
  • Boilers
  • Buck Stay Cement A1360
  • Calcrete 30 Insulating Cement
  • Casing Cement
  • Lite Wate 22
  • Lite Wate 50
  • MHD Finishing Cement
  • SDK 50 Cement
  • Pemaseal Weathercoating
  • Stic Tite Insulating Cement
  • Gunisul
  • Kaiser M. Block

Engineers, shipyard workers, plant workers, construction workers, and Navy veterans were at the highest risk of asbestos exposure from these products.

Also, the family of workers may have been exposed to toxic asbestos dust. Employees often went home covered in asbestos and unknowingly exposed their loved ones to the dangerous substance.

Anyone who worked with any of the above asbestos-containing products may want to talk to an experienced asbestos exposure attorney today. If you can prove the company exposed you to asbestos and caused your mesothelioma, you may be entitled to compensation.

Asbestos Lawsuits Involving Combustion Engineering

Combustion Engineering had significant financial debt and millions in asbestos liability that almost bankrupted the company in the early 2000s. In 2001, the company boosted the amount to cover asbestos-related claims in the future from $470 million to $940 million.

At the time, the company increased efforts to settle valid claims and dispute any invalid ones.

Combustion Engineering had 110,000 legal claims pending at the end of 2002. Many of the claims were due to asbestos use in insulation materials made before the 1980s.

To handle the claims and manage their debt Combustion Engineering and its parent company ABB Group agreed on Chapter 11 bankruptcy reorganization plan in 2003. (WSJ.com)

Overview of The Combustion Engineering 524(g) Asbestos PI Trust

The Combustion Engineering 524(g) Asbestos PI Trust was founded in 2005 and was initially funded with $1.43 billion. (CETrust.org). ABB Group also set up enhanced payments for asbestos claimants in the form of cash or company stock. The cash payments by ABB Group totaled $350 million and were paid between 2004 and 2009.

In early 2014, the trustees set the maximum amount to be paid each year at $113 million. The mesothelioma settlement fund has paid $98 million for Category A claims and $14.7 million for Category B claims. Category A claims include severe malignancies, while Category B consist of nonmalignant diseases, such as asbestosis. (Mesotheliomafund.com)

In 2013, the trust paid at 87% for Category A claims and 13% for Category B claims. It is possible the claims payment ratio could be reduced based on the agreement of trustees and the consent of the future claimants’ representatives. (CETrust.org)

Summary

ABB Group and Combustion Engineering continue to make products that do not contain asbestos today. But that does not change the pain and suffering of people who were exposed to asbestos in the past and developed mesothelioma.

These companies were involved in the production and use of many asbestos-containing products. Company executives often knew of the risks to workers but continued to use asbestos without safety equipment.

If you or a loved one were exposed to asbestos by Combustion Engineering or ABB Group, it is wise to speak to an experienced mesothelioma attorney.

They can investigate your work history and determine where and when you were exposed to asbestos. If one of these companies was responsible for your asbestos exposure, you may be entitled to compensation.