Babcock and Wilcox Asbestos Trust

Babcock & Wilcox specialized in the production of water tube boilers.

The company built its reputation on the perceived safety and reliability of its patented Non-Explosive Boilers, partnering with the U.S. government to provide boilers for the U.S. Navy and, later, government-sponsored nuclear power projects. 

Although they did not manufacture asbestos products, B&W used asbestos-containing components to build their boilers, even after being warned about the health risks.

On February 22, 2000, Babcock & Wilcox filed for Chapter 11 bankruptcy.

The Babcock & Wilcox Asbestos Personal Injury Settlement Trust launched on February 22, 2006, with $1.85 billion set aside to handle asbestos claims and compensation.

Like most asbestos trust funds, the B&W Trust only pays a percentage of each claim to ensure enough funds remain for all current and future claimants. The current payment percentage is 6.3%.   

Asbestos Exposure With Babcock & Wilcox

When George Babcock and Stephen Wilcox joined forces to create Babcock, Wilcox & Company in 1867, they manufactured some of the highest-quality boilers on the market.

By 1902, their machinery was so powerful that they powered the first subway to run through New York City and the first centralized electric-generating station in the United States.

B&W sold their boilers to many industries, including sugar refineries, electric companies, subway systems, the U.S. Navy, and the British Admiralty.

They expanded internationally, launching Babcock & Wilcox, Ltd., in London in 1891, which would become the company’s European headquarters.

After participating as a manufacturer in the Manhattan Project, B&W founded its Atomic Energy division in 1953, collaborating on creating the world’s first nuclear submarine and providing equipment to many nuclear power plants worldwide. 

The company phased out asbestos use in the early 1970s, but not before they exposed thousands of employees, technicians, naval officers, and others to their dangerous products in a wide variety of workplaces all over the globe. 

B&W is still operating today, specializing in hydrogen generation technology and biomass energy processing.

The BW Asbestos Trust operates separately from the parent company to compensate victims exposed to asbestos by B&W or through their products.

States That B&W Operated In

• Ohio
• Georgia
• Indiana
• New Jersey
• North Carolina
• Pennsylvania
• Texas

B&W Asbestos Lawsuits

When widespread asbestos litigation began in the 1970s, B&W handled the lawsuits and settlements in-house, but as the number of cases grew, the legal liabilities became unmanageable. 

By March 1991, a district court in New York consolidated more than 600 cases related to asbestos exposure.

These cases were filed against many different companies, including Babcock & Wilcox. The number of asbestos lawsuits eventually climbed to the thousands, totaling billions in losses.

Like many companies that produced asbestos products, lawsuits claimed the company had knowledge of the health risks and didn’t do enough to prevent the damage from occurring.

An article by HuffPost exposed a 1978 memo from a Babcock & Wilcox official that showed the company had knowledge of the health risks and actively chose not to act. 

This willful disregard for the safety of their employees and consumers left them liable to significant lawsuits, both domestically and internationally.

Some standout cases include:

• Anne McPadden filed on behalf of her deceased husband, who had been exposed to many asbestos products. She received settlements from nearly every company named in the suit, with compensation totaling $1.5 million. Babcock & Wilcox was among the companies that settled.
• The family of Adrienne Sweeney was awarded £250,000 in 2018 in a wrongful death suit against Babcock & Wilcox for secondhand asbestos exposure. 
• In 1996, the courts awarded the estate of Cleo Elmore, a 30-year veteran of the U.S. Navy, $2.8 million in compensatory damages. Babcock & Wilcox was one of many companies found liable during the lawsuit.

Associated Companies 

The Babcock & Wilcox Asbestos Trust was organized to settle all claims aimed at the Babcock & Wilcox Company, Diamond Power International, Inc., Babcock & Wilcox Construction Co., Inc., and Americon, Inc. 

Over 150 years, the Babcock and Wilcox Company has worked with many partner organizations across numerous industries.

The B&W Asbestos Trust maintains a list of over 42,000 sites where exposure occurred for which they are responsible. 

Companies Associated With B&W:

• Babcock & Wilcox^® Steam Generation and Environmental Systems
• Babcock & Wilcox Construction Co., LLC (BWCC)
• B&W Chanute
• Allen-Sherman-Hoff^® Ash and Material Handling
• Diamond Power^® Boiler Cleaning Equipment
• Diamond Power^® Controls and Diagnostics
• Solar Solutions
• FPS^® Combustion Equipment
• GMAB^®Flue Gas Cleaning and Flue Gas Condensation
• SPIG™ Wet and Dry Cooling Systems
• Vølund^® Renewable Energy Systems
• Hamon Research-Cottrell Emissions Control Systems
• Focaliti Digital Transformation and Engineering Applications

High-Risk Jobs Associated With B&W

B&W boiler and generator use was so widespread that thousands of occupations were put at risk following contact with a B&W product.

The B&W Asbestos Trust acknowledges over 1,800 professions at risk for significant occupational exposure.

Jobs at Highest Risk for Asbestos Exposure

Other At-Risk Jobs

• Crane Operators
• Cement Masons
• Iron Pourers
• Longshore Men
• Military Personnel
• Painters
• Petrochemical Workers
• Pipefitters
• Railroad Workers
• Shipyard Workers
• Utility Workers

Babcock & Wilcox Asbestos Exposure in the Navy

Over the last century, Babcock & Wilcox has worked with the U.S. government on many projects, including manufacturing boilers for the U.S. Navy. 

As the company made a name for itself, government leaders took notice. By 1907, B&W boilers powered a fleet of U.S. Navy battleships as they embarked on a trip around the world. At the same time, B&W continually improved its products and grew its product line. 

By the late 1950s, the company moved to coal fuel. Later, B&W built components for the first nuclear submarine and mechanisms for nuclear-powered aircraft carriers. B&W continues to make nuclear and oil generators today.

The addition of asbestos-containing components to B&W products means that anyone who served on a vessel, aircraft, or other installation where those products were present was at risk for asbestos exposure.

Those who worked in particularly close quarters with the contaminated products, like boiler room technicians, faced an even higher risk.

Asbestos Products Used at Babcock & Wilcox

B&W did not manufacture asbestos products but purchased them from other companies, including the Johns-Manville Corp.

B&W did, however, use asbestos inside their boilers and on the equipment used to assemble them. 

Asbestos was used to “protect” workers and equipment from the high temperatures and ensure the thermal efficiency of the boilers.

B&W phased out asbestos in the company’s machinery beginning in the early 1970s. 

Top Asbestos-Containing Products Used at B&W:

• Furnace boilers
• Steam-generating boilers
• Water-tube boilers
• Insulating firebrick
• Gauges
• Stirling boilers
• B&W 80 Firebrick

The Formation of Babcock & Wilcox Asbestos PI Settlement Trust

Founded in 1867, Babcock & Wilcox was a premier supplier of boilers and generators across many industries.

They worked closely with the U.S. Navy for most of the 20th century, providing specialized marine boilers for nearly the entire fleet. 

Despite repeated warnings from medical professionals about the dangers of asbestos, B&W chose to continue using this dangerous substance in their products and as part of their manufacturing process.

Asbestos litigation began to take a toll on the company in the 1970s. They filed for Chapter 11 bankruptcy in 2000 to escape their mounting legal liabilities.

In 2006, Babcock & Wilcox emerged from bankruptcy with a successful Chapter 11 reorganization plan.

As a part of that plan, the Babcock and Wilcox Personal Injury Settlement Trust was created to help victims affected by asbestos exposure. 

The Babcock and Wilcox settlement trust was funded with $1.85 billion to distribute to victims.

Understanding the Different Review Processes

Claimants applying for compensation through the B&W Asbestos Trust have two review options for processing their claims: expedited and individual. All claims are handled on a first-in, first-out (FIFO) basis.

An experienced mesothelioma attorney can help eligible claimants determine the most suitable process for them.

Babcock & Wilcox Expedited Review

Expedited review (ER) offers claimants a quick resolution and a guaranteed payment amount, but it has strict criteria and documentation requirements.

The most straightforward way to receive payment from a trust is an expedited review, suitable for those with pressing bills and expenses from their diagnosis.

Not all claimants are eligible for an expedited review. Claimants with Lung Cancer 2 (Level VI), Foreign Claims, and Secondary Exposure claims must be reviewed individually.

Babcock & Wilcox Individual Review

Individual review (IR) is suitable for those who don’t meet the precise criteria for any disease level or want to try for a larger settlement amount. Because each case must be evaluated on its merits, individual review claims take longer to process.  

Settlements from individual review claims may be larger or smaller than the scheduled value offered to those completing an expedited review.

Due to their complexity and the human resources required to process them, individual review claims may be handled after expedited review claims that are received on the same day.

Settlement and Payment Percentage in 2024

Like most asbestos trust funds, the B&W trust has a limited amount of funds, determined during bankruptcy proceedings, with which they must compensate all eligible current and future claimants.  

To ensure enough funds remain to meet their responsibilities, the trustees responsible for daily operations set a payment percentage, which is applied to all scheduled and gross settlement values before the claim is paid.

*This percentage periodically undergoes review and may be raised or lowered accordingly.

The current payment percentage of the B&W Asbestos Trust is 6.3%.

For example, once the payment percentage is applied, a mesothelioma settlement of $139,800 would result in a payout of $8,807.40. 

Most asbestos victims who can recover funds from the Babcock & Wilcox trust may be able to receive compensation from other trust funds due to exposure through multiple products and job sites.

Recovering funds from all possible responsible parties allows individuals to receive the maximum compensation available to them.

The current compensation amounts for asbestos-related diseases are as follows:

Disease	Compensation
Mesothelioma	$139,800
Lung Cancer	$45,400
Other Cancer	$5,000

See if you qualify for financial compensation.

Eligibility Requirements for the Babcock & Wilcox Asbestos Trust

Before they can receive compensation, claimants must first prove they are eligible. Eligibility requirements are split into two primary categories: medical and exposure. 

Proving eligibility can require significant time, as documentation requirements are strict. Seeking the help of experienced legal professionals can help smooth the process and ensure that critical deadlines are met. 

Medical Requirements

The medical requirements needed to prove eligibility can vary depending on the diagnosis, however, there are some standard requirements shared by most conditions.

• Diagnosis with one of the scheduled illnesses provided by a doctor or a pathologist if the patient is deceased
• Proof in the form of testing and imagining, including:
  • X-ray
  • CAT scan
  • Pleural functioning tests
  • Pathology report
• Supporting medical documentation linking the disease to asbestos exposure
• A 10-year latency

Exposure Requirements

To meet exposure requirements, claimants must show:

• Six months of B&W exposure before December 31, 1982
• Five years of cumulative occupational exposure to asbestos or significant occupational exposure

Documents used to prove exposure may include:

• Affidavits/witness statements 
• Military service records
• Sales records
• Construction records
• Employment records
• Paystubs
• Insurance records

Filing a Personal Injury Claim Against Babcock & Wilcox

The B&W Asbestos Trust allows claimants to file through the mail or electronically through the trust’s website.

Claimants must follow proper filing procedures defined by the Trust Distribution Procedures (TDP).

1. Claimants must choose whether to file for expedited or individual review.
2. Fill out the claim form.
3. Gather and submit all supporting documentation.
4. Submit the claim, either through the mail or electronically
   1. Claimants filing electronically can download the electronic filer agreement through the trust’s website.
5. Monitor the status of the claim, resolving any deficiencies determined by the trust.
6. Provide information needed for claim liquidation.

Incomplete claims cannot be processed until all deficiencies are met. All claims must be submitted within the statute of limitations. 

Managing the claims process can be frustrating and burdensome. Documentation requirements are stringent, and the process itself can be confusing.

Experienced legal assistance can make all the difference regarding quick and successful claims resolution for eligible claimants.

Loved Ones & Family Members 

Sometimes, an asbestos disease victim’s family may need to apply to the trust.

These loved ones may be applying on behalf of a deceased family member, or they may be suffering from an asbestos-related illness caused by secondary exposure and are applying on their own behalf.

Regardless of the exact situation, reaching out to a lawyer with a history of successful negotiation with asbestos trusts may help ease the burden placed on family members who are already struggling with expenses and caregiving duties following a diagnosis.

A reputable lawyer may be able to help manage deadlines, smooth the application process, and maximize compensation, allowing their clients to keep their focus on the health and well-being of the people who matter most.

To learn more about your options, contact us today.