The Motors Liquidation Company (MLC) Asbestos Personal Injury Trust was created in 2009 as part of General Motors Corporation’s bankruptcy proceedings.
In one of the largest Chapter 11 bankruptcy cases in U.S. history, GM borrowed $50 billion from the government to meet its liabilities and reorganize.
The MLC Trust was created to compensate victims of asbestos exposure of which GM and its subsidiaries are responsible. It was funded with $625 million.
Like most asbestos trust funds, the General Motors Trust only pays each victim a percentage of the settlement value to ensure enough funds remain to compensate all current and future claimants.
The current payment percentage is 12.2%.
See if you qualify for compensation from the Motors Liquidation Company (MLC) Asbestos Personal Injury Trust today.
Key Information
- GM used asbestos in its cars for decades. The brake and clutch systems they manufactured had exceptionally high concentrations of asbestos.
- The top occupations impacted were auto mechanics and factory workers.
- The MLC Trust has two claim options: individual and expedited review.
- The average payout for a mesothelioma diagnosis is $175,000.
General Motors & Asbestos Exposure
Formed in 1903 through the merger of Buick and Oldsmobile, General Motors quickly grew into a multinational conglomerate, spanning multiple brands and industries.
Beyond automotive parts, GM also produced components for trains, ships, and aircraft. During wartime, the company expanded further, manufacturing defense materials for the U.S. military.
Regardless of the application, numerous GM products included asbestos due to the material’s heat- and friction-resistant properties.
Throughout General Motors’ long history of using asbestos, the company failed to warn employees and consumers about the associated health risks.
In the 1930s, an internal survey of GM brake plants revealed that asbestos concentrations were highest in areas where asbestos cord was unwound for clutch manufacturing, clutch facings were sanded, and dry ingredients were mixed for brake lining.
Despite recommendations for improved ventilation in high-risk areas, GM didn’t install industrial ventilation in some plants until the early 1960s.
The company also used auto parts with heavy asbestos concentrations, requiring employees to vacuum asbestos dust from shipping containers, bag it, and send it to landfills.
Many former GM plants are now environmental hazards due to their use of asbestos and other toxins. Although the U.S. Occupational Safety and Health Administration (OSHA) mandated warnings on brake products in 1986, GM didn’t start enforcing them until 1989.
Along with Ford and Chrysler, GM has paid over $43 million to experts who testified in court that the asbestos used in brake shoes and pads was harmless.
Check the form below to see if you may qualify for compensation from Motors Liquidation Company (MLC) Asbestos Personal Injury Trust today.
Asbestos Lawsuits Facing General Motors
GM ignored warnings about the dangers of asbestos for decades. Not only did it fail to take adequate precautions in handling a dangerous substance, but it also didn’t warn employees or customers that asbestos was dangerous at all.
GM’s professional negligence left it open to asbestos lawsuits from consumers and former employees. When it declared bankruptcy in 2009, its legal liabilities had become too costly to continue normal business operations.
- In 2018, GM settled with thousands of individuals exposed to asbestos-containing products in its vehicles. The payout for the GM asbestos settlement was not disclosed, but it was reportedly in the hundreds of millions of dollars. The individuals in the lawsuit included employees, retirees, and family members of those who worked at GM facilities where asbestos was present.
- New Jersey resident Susan Buttitta won $30.3 million following the death of her husband, Mark, from mesothelioma in 2002. GM was one of the defendants in the case.
- Roland Grenier, a former auto mechanic, was diagnosed with mesothelioma in 2005. He was awarded $2 million from multiple defendants, including GM.
Those impacted by the company’s asbestos use may have grounds for a GM asbestos lawsuit. Speaking to an experienced mesothelioma lawyer can help to clarify your options.
Associated Companies
General Motors was created in 1903 through the merger of Oldsmobile and Buick. By 1920, GM had acquired more than 30 additional companies, many of which it shut down following the acquisition.
By 1941, GM accounted for 44% of all domestic auto sales. During WWII, GM turned its attention to the production of defense materials.
Thanks to its highly developed industrial network, it produced everything from ball bearings to tanks, aircraft, naval ships, bombers, cannons, and projectiles. Their wartime production is valued at $12.3 billion.
Many of the products they manufactured contained asbestos, which was broadly used to increase durability and for its flame-, heat-, and chemical-resistant properties.
GM, directly and indirectly, exposed hundreds of thousands of people to asbestos despite being well aware of the mineral’s dangers.
GM remains one of the foremost automobile manufacturers in the U.S. Although the company claims to have stopped using asbestos-containing parts, many older model cars and aftermarket parts may still contain asbestos.
Companies Associated With General Motors:
- Adam Opel
- Buick
- Cadillac
- Chevrolet
- Daewoo Motor Company
- Electronic Data Systems
- Fiat Auto
- Fisher Body Company
- Fuji Heavy Industries
- General Motors Acceptance Corporation
- Hughes Aircraft
- Hughes Electronic
- Isuzu Motors
- McLaughlin Motor Company
- Oakland
- Olds Motor Vehicle Company
- Pontiac
- Saab Automobile AB
- Saturn Corporation
- Subaru
- Vauxhall Motors
High-Risk Jobs Associated With General Motors
Because General Motors was at one time the largest vehicle producer in the U.S., its asbestos-contaminated products were spread across many industries, putting countless professionals and hobbyists at risk.
General Motors used asbestos to make products at dozens of manufacturing plants. In fact, GM may be one of the car part manufacturers that still uses asbestos today.
Although the U.S. government banned the final type of asbestos (chrysotile) in 2024, companies still have 12 years to phase it out of their products.
“General Motors used asbestos to make products at dozens of manufacturing plants. In fact, GM may be one of the car part manufacturers that still uses asbestos today. Although the U.S. government banned the final type of asbestos (chrysotile) in 2024, companies still have 12 years to phase it out of their products. ”
– Daniel Wasserberg, Attorney
Jobs at Highest Risk for Asbestos Exposure
- Factory Workers
GM plants nationwide were known to have toxic levels of asbestos. Today, many of those plants have undergone abatement and renovation, been abandoned, or are slated for demolition, including the GM stamping plants in Wyoming, Ohio, New York, Wisconsin, and Tennessee.
Factory workers and others who assembled, repaired, or handled GM asbestos-containing parts are at risk of asbestos-related illness.
- Auto Mechanics
Auto mechanics who worked on asbestos brake and clutch systems are at risk for developing mesothelioma. Even today, mechanics are advised against using compressed air to blow out chrysotile asbestos dust and beveling, grinding, and sanding asbestos brakes.
- Other Automobile Enthusiasts
The Motors Liquidation Company Asbestos Trust identifies other possible claimants in the automotive field, including:
“Shade tree” mechanics (do-it-yourselfers), automobile hobbyists, individuals who occasionally performed brake and clutch work on their vehicles or their friends’ and neighbors’ vehicles, and individuals who were not regularly employed as professional auto mechanics.
There is no safe amount of asbestos exposure. Even those who encounter it casually through daily activities and hobbies can be at risk for developing dangerous illnesses.
Other At-Risk Jobs
- Aircraft mechanics
- Appliance installers/repair technicians
- Engineers
- Industrial workers
- Machinists
- Machine operators
- Military veterans
- Railway workers
- Shipyard workers
Exposed to Asbestos
See if you qualify for compensation from the General Motors (GM) asbestos trust fund today.
Start Your Free ClaimAsbestos Products Used at General Motors
GM continued to use asbestos in its brake and clutch systems until the 1980s despite repeated warnings about health hazards.
They used asbestos to prevent overheating from friction, but the constant wear and tear on these high-stress parts released asbestos fibers into the air, endangering anyone nearby.
Later, the company purchased several appliance companies, including Frigidaire and Delco-Heat, which also used asbestos.
Top Asbestos-Containing Products Used at General Motors
- AC Delco Brake Pads
- AC Delco Brake Linings
- AC Delco Clutch Disks
- AC Delco Clutch Facings
- AC Delco Clutch Linings
- AC Delco Clutch Pads
- AC Delco Locomotive Brake Shoes
- Disk Breaks
- Drum Breaks
- Engines
- Engine Gaskets
- Insulation
- Oil Pan Gaskets
The Formation of the Motors Liquidation Company Asbestos PI Trust
The MLC Asbestos Personal Injury Trust was created in 2009 to discharge GM’s legal responsibilities to those exposed to asbestos through their factories or products.
The trust recognizes seven asbestos-related illnesses as eligible for compensation.
The trustees responsible for the daily governance of the MLC Trust review claims, set the payment percentage, and decide on the Maximum Annual Payment (MAP), which is the total amount the trust can pay out in a single year.
“The GM asbestos trust has an 80/20 payment ratio, meaning that 80% of the MAP must go toward compensating those with the most severe asbestos-related illnesses, while only 20% is earmarked for those with less severe conditions.”
– Daniel Wasserberg, Attorney
Settlement and Payment Percentage in 2024
To ensure that enough funds remain for all current and future claimants, the MLC Trust pays only a percentage of each claim’s settlement value.
The current payment percentage is 12.2%.
The MLC trust handles claims on a first-in, first-out (FIFO) basis. It’s important to file your claim quickly because if the MAP is met before your claim is evaluated, it will be pushed back to the following year.
The MLC Trust reviews claims on two different schedules: expedited and individual.
Expedited reviews have strict criteria and offer a guaranteed payment amount. They are usually resolved quickly. Not all claimants are eligible for expedited review (ER).
Individual review (IR) takes longer because it examines each claim on its own merits. Individual review offers claimants the opportunity to receive a tailored payment amount, which can be more or less than the scheduled value offered by expedited review.
The table below shows average payments for expedited review claims.
Disease | Average Payouts |
---|---|
Mesothelioma | $175,000 |
Lung Cancer | $50,000 |
Severe Asbestosis | $50,000 |
Eligibility Requirements for the General Motors Asbestos Trust
To receive payment from the MLC trust, claimants must first prove eligibility through extensive documentation. Eligibility requirements take two primary forms: medical and exposure.
All claims must be filed within the statute of limitations to be considered. Once the statute of limitations has passed, asbestos companies like GM can no longer be held responsible for their negligence.
An experienced asbestos lawyer may be able to help you meet this crucial deadline if you’re eligible.
Fact
The statute of limitations for asbestos cases varies by state, but typically claimants have only 2 to 3 years after receiving a medical diagnosis to file their claim.
Medical Requirements
The precise medical requirements vary by disease, however, there is some overlap.
Common requirements include:
- A diagnosis of one of the seven scheduled conditions by a physician or pathologist.
- Proof in the form of testing and imaging, including:
- X-ray
- CAT scan
- Pleural testing
- Pathology report
- Evidence linking the illness to asbestos exposure
- 10-year latency
Exposure Requirements
Claimants must be able to prove significant occupational exposure — as defined by the trust distribution procedures (TDP) — and show six months of exposure to GM asbestos products occurring before December 31, 1982.
Documents commonly used to prove exposure include:
- Affidavits/witness statements
- Construction records
- Employment records
- Insurance records
- Invoices
- Military service records
- Paystubs
- Sales records
“Working with an experienced asbestos attorney can help take the stress out of the claims process. A good lawyer may be able to help you navigate these trusts by gathering evidence and documentation, keeping track of important deadlines, and working on your behalf to seek the maximum amount of compensation available.”
– Daniel Wasserberg, Attorney
Filing a Personal Injury Claim Against General Motors
There are three main steps to filing a claim against GM:
- Submit a completed proof of claim (POC) form with all required documentation.
- Claims can be filed my mail or online
- During the review process, monitor the status of your claim. Any deficiencies discovered by the trust must be remedied before a claim can be liquidated.
- If the claim is approved, a release form will be generated and sent to the claimant for completion.
- The release form must be completed and submitted before the claim is liquidated and funds are released to the claimant.
Claims resolution can be a long and challenging process. The documentation requirements are stringent and finding evidence can be grueling. Working with a lawyer who specializes in asbestos cases may help streamline the process.
Loved Ones & Family Members
Often, the direct victims of asbestos exposure are too ill to manage the claims process on their own. In many cases, they may have passed away before the claims process can begin.
If your loved one or family member is suffering or has died from an asbestos-related condition caused by GM, an experienced asbestos lawyer can help you figure out what your next steps should be.
A reputable lawyer may be able to help you hold asbestos companies responsible for their negligence, potentially giving you and your family access to much-needed funding while allowing you the time and space you need to heal.
We may be able to help you start the claim filing process today.
Reach out to us today to learn more.
Sources
- LexisNexis Legal Newsroom. “General Motors’ Asbestos Liability Set At $625 Million
- U.S. Environmental Protection Agency. Case Summary: 2010 MLC (General Motors) Bankruptcy Settlement
- Bigman, D. (2024, June 3). How General Motors was really saved: The untold true story of the most important bankruptcy in U.S. history. Forbes. https://www.forbes.com/sites/danbigman/2013/10/30/how-general-motors-was-really-saved-the-untold-true-story-of-the-most-important-bankruptcy-in-u-s-history/
- Davenport, C. (2024, March 18). U.S. bans the last type of asbestos still in use. The New York Times. https://www.nytimes.com/2024/03/18/climate/biden-administration-bans-asbestos.html
- Findlaw’s Supreme Court of Delaware Case and opinions. (n.d.). https://caselaw.findlaw.com/de-supreme-court/1219422.html
- Friedman, D. J. (n.d.). Encyclopedia of Building & Environmental Inspection, testing, diagnosis, repair. Companies that Produced Asbestos & Years of Asbestos Product Production – How to file an asbestos injury claim with an Asbestos Trust. https://inspectapedia.com/hazmat/Asbestos_Producing_Companies.php
- General Motors Corporation. FundingUniverse. (n.d.). http://www.fundinguniverse.com/company-histories/general-motors-corporation-history/
- MLC Trust – Documents. Claimsres. (2024, June 28). https://www.claimsres.com/documents/mlc/
- N.J. Court affirms record $30.3 million award in Asbestos exposure case. Law.com. (2010, April 6). https://www.law.com/almID/1202447541716/
- Whoriskey, P. (2009, July 10). GM Emerges From Bankruptcy After Landmark Government Bailout. Washington Post. https://www.washingtonpost.com/wp-dyn/content/article/2009/07/10/AR2009071001473.html?sid=ST2009071002081