Combustion Engineering manufactured and then distributed boilers as well as cement, insulation, and other products containing asbestos. This resulted in Combustion Engineering later facing thousands of asbestos lawsuits. The company subsequently filed for bankruptcy and created a trust fund with $1.43 billion to compensate people who are diagnosed with mesothelioma or associated conditions in the future.The History of Combustion Engineering
Established in 1912, Combustion Engineering quickly became a leader in the creation of fossil as well as nuclear steam-based power systems in the United States.
In 1920, Combustion Engineering constructed its first headquarters in lower Manhattan. The company’s first products included boilers as well as underfeed stokers and dryers.
In the 1930s, Combustion Engineering focused on improving steam engines that would be placed in locomotives. Following a merger with Superheat Company, Combustion Engineer began producing assemblies for use in power plants.
During the Second World War, Combustion Engineering constructed several asbestos-lined boilers for ships. Following the war, the company began producing other products including synthetic fibers and plastic.
As Combustion Engineering grew in size, the company also expanded the list of products it manufactured. These products included things like cement and protective seals.
Combustion Engineering’s financial debt as well as its liability associated with asbestos was inherited by ABB Group and almost led the company to file for bankruptcy at the start of the 2000s. After 2001, ABB expanded the amount of funds apportioned to address future asbestos exposure claims against Combustion Engineering.Asbestos Exposure Litigation and Combustion Engineering
Litigation initiated against Combustion Engineering was first filed in the mid-1960s. After 2001, almost 94,000 claims were pending against Combustion Engineering. The following year, Combustion Engineering was named in an additional 79,000 claims. The company apportioned $940 million in 2000 and $590 million the next year for asbestos litigation costs.
One case initiated against Combustion Engineering was filed by a former worker, who was diagnosed with mesothelioma. After more than three decades working at Shipyard that utilized asbestos-containing products manufactured by Combustion Engineering, the man retired in poor health and was later diagnosed. The man subsequently received three settlements from various companies responsible for his asbestos exposure.The Combustion Engineering Asbestos Exposure Trust
After ABB Group acquired Combustion Engineering for $1.6 billion in cash, ABB Group inherited a large number of asbestos claims.
In 2006, Combustion Engineering filed for Chapter 11 bankruptcy. As a term of emergency from bankruptcy, Combustion Engineering was required to establish an asbestos compensation trust fund. This trust received initial funding of $1.4 billion.
At the beginning of 2014, trustees overseeing the Combustion Engineering trust established the maximum annual amount for the year. The trust also allocated $98.6 million for Category A claims and another $14.7 million for Category B claims. Category A claims include the most serious malignancies, while Category B claims include nonmalignant pleural diseases.Contact an Experienced Mesothelioma Exposure Attorney
If you or a loved one worked at Combustion Engineering or handled its asbestos-containing products and were later diagnosed with mesothelioma, you should not hesitate to speak with a compassionate attorney. Contact the Throneberry Law Group today to schedule a free case