USG Asbestos Personal Injury Settlement Trust

The USG Asbestos Personal Injury Settlement Trust is a court-supervised compensation fund created by United States Gypsum Company (USG Corporation) to pay people harmed by asbestos in its joint compound, plaster, and other building products. It was established when USG emerged from bankruptcy and assumed all of the company's existing and future asbestos personal injury liability. Eligible claimants (including people with mesothelioma, lung cancer, asbestosis, and certain non-malignant conditions) file claims directly with the trust rather than suing USG in court.

Origin

USG filed for Chapter 11 bankruptcy in June 2001 under the weight of mounting asbestos claims tied largely to its joint compound products sold from the 1940s through the 1970s. The Trust was created in 2006 under Section 524(g) of the U.S. Bankruptcy Code as part of USG's reorganization plan, channeling all qualifying asbestos claims to the Trust and shielding the reorganized company from further direct litigation.

Significance in Asbestos Context

For patients whose exposure involved drywall work, home remodeling, or construction trades, the USG Trust is one of the most commonly filed claims because USG's joint compound (sold under names like Sheetrock and Ready-Mix) was widely used by drywall finishers, carpenters, painters, and do-it-yourself homeowners. A claim against this Trust does not replace lawsuits against other solvent defendants. Patients often file with multiple trusts and pursue separate court cases at the same time. Each trust has its own Trust Distribution Procedures (TDP) setting medical criteria, exposure proof, and payment percentages, so what you recover depends on your diagnosis, work history, and the documentation your legal team submits.

Example Sentence

Because her late husband had spent thirty years finishing drywall, his attorney filed claims with the USG Asbestos Personal Injury Settlement Trust along with several other joint compound manufacturer trusts.

Related Terms

Section 524(g) Trust, Trust Distribution Procedures, Bankruptcy Trust Claim, Joint Compound, Payment Percentage, Mesothelioma

Notes

• Gather and preserve any evidence linking the patient to USG products: employment records, union records, co-worker statements, product photos, receipts, or memories of brand names like Sheetrock or Ready-Mix joint compound.
• Ask your attorney which exposure tier and disease level the Trust's TDP places your claim in. This directly determines the scheduled value before the payment percentage is applied.
• USG Trust claims usually require a pathology report or medical records confirming the asbestos-related diagnosis; request complete copies from every treating hospital and keep them organized.
• Filing with the USG Trust does not prevent claims against other asbestos trusts or lawsuits against non-bankrupt defendants; a thorough work history can unlock many parallel claims.
• Be aware that some states require disclosure of trust filings during civil litigation, which can affect strategy and timing. Your legal team should coordinate these filings deliberately.