Celotex Asbestos Settlement Trust

The Celotex Asbestos Settlement Trust is a court-supervised fund created to pay asbestos injury claims against the former Celotex Corporation and its subsidiary Carey Canada, both manufacturers of asbestos-containing building products. It was established after Celotex filed for Chapter 11 bankruptcy protection in 1990 due to the overwhelming volume of asbestos lawsuits. The Trust pays eligible claimants a percentage of the value of their claim rather than its full amount, following a published payment matrix.

Origin

Celotex Corporation, a major producer of asbestos insulation, roofing, and joint compound products, was driven into bankruptcy by tens of thousands of asbestos personal injury claims. The Trust was created in 1998 under the company's reorganization plan, approved by the U.S. Bankruptcy Court for the Middle District of Florida, pursuant to Section 524(g) of the Bankruptcy Code.

Significance in Asbestos Context

For patients with mesothelioma, lung cancer, or asbestosis whose exposure history includes Celotex or Carey Canada products (including Carey insulation, Careytemp pipe covering, Panacoustic ceiling tile, and various joint compounds), the Trust is a direct avenue for compensation separate from any lawsuit against still-solvent defendants. Because the Trust pays only a fraction (a "payment percentage") of the scheduled value of each claim, your legal team will typically file claims with every applicable trust in parallel with any civil suit. Documenting where and when you worked with or near Celotex or Carey products (including job sites, employers, and product names) is critical to qualifying. Trust payment percentages are periodically adjusted based on the Trust's remaining assets and projected future claims.

Example Sentence

Because her late husband had installed Careytemp pipe insulation at the shipyard in the 1970s, the attorney filed a claim with the Celotex Asbestos Settlement Trust along with several other bankruptcy trusts.

Related Terms

Section 524(g) Trust, Bankruptcy Trust Claim, Trust Distribution Procedures, Payment Percentage, Manville Trust, Asbestos Trust Fund

Notes

• Make a written list of every Celotex or Carey Canada product you (or your loved one) recall working with or near, including job site, employer, approximate dates, and coworker names who could corroborate.
• Preserve any old pay stubs, union records, W-2s, Social Security earnings records, or military service documents. These are often used to establish the worksites where Celotex products were present.
• Ask your attorney which trusts are likely applicable to your exposure history; Celotex is often filed alongside Manville, Owens Corning Fibreboard, Babcock & Wilcox, and other major trusts.
• Be aware that trust recoveries may need to be disclosed in any related civil lawsuit and can affect settlement offsets under some state laws.
• Claims can typically be filed by a surviving spouse or estate if the diagnosed person has already passed; do not assume the opportunity is lost.