Armstrong World Industries Asbestos PI Settlement Trust

The Armstrong World Industries Asbestos PI Settlement Trust is a court-established fund created to pay current and future asbestos personal injury claims against Armstrong World Industries, a major flooring and building products manufacturer that used asbestos in its products. The Trust was formed in 2006 under the company's Chapter 11 bankruptcy reorganization plan, which channeled all asbestos liability away from the reorganized company and into the Trust. People diagnosed with asbestos-related diseases who were exposed to Armstrong products can file claims with the Trust according to its published criteria, called Trust Distribution Procedures (TDP).

Origin

Armstrong World Industries filed for Chapter 11 bankruptcy in December 2000 due to mounting asbestos liabilities tied largely to its asbestos-containing floor tiles, insulation, and other building products manufactured throughout much of the 20th century. After years of litigation and negotiation, the Trust was established on October 2, 2006, under Section 524(g) of the U.S. Bankruptcy Code, which permits the creation of a channeling injunction that routes all qualifying asbestos claims to the Trust.

Significance in Asbestos Context

For patients exposed to Armstrong products (particularly floor tile installers, building maintenance workers, insulators, and people who worked in or remodeled older buildings), this Trust is often one of multiple bankruptcy trusts a claim can be filed against. Each Trust pays only a percentage of the scheduled value of a claim (the "payment percentage"), which has been adjusted over time as Trust assets and projected liabilities change. Filing with the Armstrong Trust doesn't prevent a person from pursuing lawsuits against solvent defendants, but the Trust submission and any payments received will typically be disclosed during litigation. Your legal team will identify whether your exposure history supports an Armstrong claim and will coordinate Trust filings with any pending tort cases.

Example Sentence

Because her late husband installed Armstrong vinyl-asbestos floor tile throughout the 1970s, the family's attorney filed a claim with the Armstrong World Industries Asbestos PI Settlement Trust in addition to claims against other manufacturers.

Related Terms

Section 524(g) Trust, Trust Distribution Procedures, Bankruptcy Trust Claim, Channeling Injunction, Payment Percentage, Chapter 11 Reorganization

Notes

• Preserve any evidence of exposure to Armstrong products, employment records, union records, product invoices, photographs of jobsites, and witness statements from coworkers who can identify Armstrong floor tile, insulation, or related products.
• Ask your attorney which bankruptcy trusts apply to your exposure history; most asbestos patients qualify to file against multiple trusts in addition to lawsuits against solvent defendants.
• Be aware that the Trust's payment percentage and claim values are set in the Trust Distribution Procedures and can change; the amount paid is typically a fraction of the full scheduled value.
• Trust claim submissions and recoveries are usually subject to disclosure in tort litigation, so coordinating the timing and content of filings with your legal team is important.