DII Industry Asbestos Trust
As one of the largest trusts, DII Industries trust currently contains $2.6 billion. Created in 2005, the DII Industries, LLC Asbestos PI Trust was the result of the bankruptcy of several corporations, including Dresser Industries, Halliburton Company, Harbison-Walker Refractories Company and Kellogg Brown & Root.
The asbestos-related issues began with Harbison-Walker Refractories, which was founded in the late 1800’s. The company produced fireproof bricks and other materials that contained asbestos. In the late 1960’s, Harbison-Walker merged with Dresser Industries. By early 1997, Dresser and Halliburton merged. The subsidiary became known as DII Industries. At that time, former Vice President Dick Cheney ran Halliburton, an oil pipeline service company. Initially, the merger was considered one of Cheney’s best business moves. That is, until the asbestos lawsuits began pouring in.
Halliburton and Asbestos Use
Dresser Industries, a pipeline equipment maker, was known for its rubber joints and packers used in oilfields and natural gas pipelines. All of these products contained asbestos. When Halliburton acquired Dresser, it also inherited 300,000 asbestos claims. The following equipment was used by Halliburton and contained asbestos:
Workers at Risk
Anyone from blue-collar oil-field workers to white-collar engineers runs the risk of being exposed to toxic levels of asbestos. Those who work for Halliburton, DII Industries, Dresser, Harbison-Walker or Kellogg Brown & Root are particularly at risk. The following is a sampling of occupations that were at high risk for exposure:
- Drilling crew, including mud engineers
- Iron workers
- Pipeline construction workers
- Transport drivers
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How Was the Trust Formed?
As a result of the influx of asbestos lawsuits, Halliburton, Kellogg Brown & Root (later known as KBR), Dresser and some other subsidiaries filed for Chapter 11 bankruptcy. The resulting trust is called DII Industries, LLC Asbestos PI Trust and was initially funded with $4 billion in cash and stock. At the time, it was considered the largest asbestos settlement in history. Halliburton claimed its losses from asbestos lawsuits were about $900 million a year from 2002 through 2004.
DII trust claims are paid at 35.6 percent. That means that DII pays $35.6 for every $100 of a claim. The compensation amount is limited to ensure there is enough money to pay future claimants. For Halliburton or Non Harbison-Walker claims, the maximum amount paid for a mesothelioma claim is $256,000 with the average being $76,400. For Harbison-Walker claims, the maximum amount is $610,000 with the average amount being $182,000.
- Burr, Barry B. “Halliburton asbestos trust gets $2.6 billion in company’s stock.” Pension & Investments. Retrieved from http://www.pionline.com/article/20050307/PRINT/503070729/halliburton-asbestos-trust-gets-26-billion-in-companyx2019s-stock
- Glater, Jonathan D. The Path Taken By Halliburton To Reach a Deal In Asbestos Suits. Retrieved from http://www.nytimes.com/2002/12/31/business/the-path-taken-by-halliburton-to-reach-a-deal-in-asbestos-suits.html