Mesothelioma victims often have two distinct paths to compensation: a civil lawsuit against solvent companies, and an asbestos bankruptcy trust fund claim against companies that have gone bankrupt. The good news: these aren’t either/or — most attorneys pursue both simultaneously to maximize total recovery.
- Lawsuits can pay more (avg. $1M–$1.4M settlements, $2.4M trial verdicts) but take longer
- Trust fund claims pay less per claim (avg. $300,000–$400,000 combined) but are faster and more predictable
- Over 60 asbestos trusts exist, holding roughly $30 billion for victims
- Most cases involve both — lawsuit against still-solvent companies + trust claims against bankrupt ones
- An experienced attorney files both in parallel for maximum recovery
What Is a Mesothelioma Lawsuit?
A lawsuit is filed against companies that are still operating (“solvent”) and that manufactured, sold, or used asbestos-containing products that caused your exposure. These cases go through the civil court system — filing, discovery, negotiation, and either settlement or trial.
What Is an Asbestos Trust Fund Claim?
When asbestos manufacturers filed for bankruptcy (many did, facing thousands of lawsuits), courts required them to set aside funds specifically to compensate current and future victims. More than 60 of these trusts exist today, collectively holding an estimated $30 billion. Each trust has its own claim form, payment schedule, and evidence requirements — but the process is generally administrative rather than a courtroom lawsuit.
Side-by-Side Comparison
| Factor | Lawsuit (Solvent Companies) | Trust Fund Claim |
|---|---|---|
| Average payout | $1M–$1.4M settlement; up to $2.4M+ at trial | $300,000–$400,000 combined across trusts |
| Time to payment | 12–18 months (settlement); longer if trial | 3–12 months typically |
| Process | Civil court litigation | Administrative claim filing |
| Risk | Possible $0 if case is lost at trial | Lower risk — pays per established schedule if criteria met |
| Can you do both? | Yes — both are commonly pursued together | |
Why Pursue Both?
Most mesothelioma victims were exposed to asbestos products from multiple manufacturers over the course of their career — some still in business, others bankrupt. By pursuing:
- Lawsuits against solvent companies for larger potential recoveries, and
- Trust claims against the bankrupt companies’ trusts for additional, faster payments,
victims and families can maximize total compensation rather than leaving money unclaimed from either avenue.
How the Process Works Together
- Exposure investigation identifies all companies/products linked to your case — both solvent and bankrupt
- Lawsuit filed against solvent defendants in the appropriate court
- Trust claims filed in parallel against each relevant bankruptcy trust, following each trust’s specific requirements
- Trust payments often arrive first (faster administrative process), while the lawsuit proceeds through discovery and negotiation
- Lawsuit settlement or verdict follows, typically within 12–18 months
Is One Better Than the Other?
Neither is inherently “better” — they serve different roles. Trust funds provide faster, more predictable (though smaller) payments. Lawsuits offer potentially larger recoveries but take longer and carry some uncertainty if a case proceeds to trial. The combined approach captures the advantages of both.
A free consultation includes an exposure history review to identify every potential source of compensation.
Frequently Asked Questions
Do I have to choose between a lawsuit and a trust claim?
No. Most attorneys pursue both simultaneously as part of a single overall strategy to maximize your total recovery.
Which pays out first, usually?
Trust fund claims often pay first since they follow a more administrative process, while lawsuits typically take 12–18 months or longer.
What if the company that exposed me only has a trust fund (no lawsuit option)?
That’s common — many original manufacturers are bankrupt. Your attorney files claims against the relevant trusts even if no lawsuit is possible against that specific company.
Are trust fund payments taxable?
Generally, compensation for physical injury or sickness — including most trust fund payments — is not taxable under IRS rules (26 U.S. Code § 104). Consult a tax professional for specifics.
Sources
- U.S. Government Accountability Office, “Asbestos Injury Compensation” (GAO-11-819)
- Mealey’s Litigation Report: Asbestos
- 26 U.S. Code § 104 — Compensation for injuries or sickness
This article is for informational purposes only and is not legal or tax advice. Consult a licensed attorney about your specific situation.
