Fact checked and legally reviewed by Daniel Wasserberg • Contributor & Legal Advisor

Updated

Owens-Illinois used asbestos in its popular Kaylo insulation products from the 1940s to the late 1950s.

Through its products and activities, the company exposed employees, their families, and other end users, such as plumbers, pipefitters, insulators, and others, to the dangers of asbestos.

Asbestos exposure can cause serious illnesses like mesothelioma, lung cancer, and asbestosis. Complete the form below to determine if you may be eligible for compensation from the Owens Illinois Asbestos Trust.

Check Your Compensation Eligibility Now

Step 1 of 3

Were you or your family member diagnosed with an asbestos-related illness?

Step 3 of 3

Based on your answers, it seems like you may have a potential claim. How can we get in touch to confirm your eligibility?

Your information will be kept private

Key Information Regarding Owens-Illinois Asbestos Trust:

  • Compensation is Available: Injured workers, bereaved family members, and secondary exposure victims may all be eligible for financial compensation through this trust fund.  
  • Products: Owens-Illinois’s Kaylo brand products included block insulation, pipe insulation, and pipe coverings.
  • Occupations: Plumbers, pipefitters, insulators, and shipyard workers were all at high risk. 
  • Get Help Today: Unsure if you’re eligible? Contact us today, and we can help you determine whether you may be entitled to compensation from this trust.

Owens-Illinois History With Asbestos

Owens-Illinois (OI) was founded in 1929 through the merger of the Illinois Glass Co. and the Owens Bottle Co. Initially a producer of glass and fiberglass products, Owens-Illinois began using asbestos in its products in the 1940s.

From 1944 until 1958, Owens-Illinois manufactured and sold its Kaylo product line. Kaylo insulation products, including block insulation, pipe insulation, and pipe coverings, were made with 10% to 15% amosite or chrysotile asbestos.

When Saranac Laboratory warned Owens-Illinois about the dangers of asbestos in 1948, the company ignored the warning. Instead, it made more than $40 million from selling Kaylo asbestos products. In 1958, it sold the rights to the Kaylo brand to Owens-Corning Fiberglas™.

Owens-Illinois Maneuver to Block Asbestos Litigation

Although Owens-Illinois sold the right to produce its asbestos-contaminated Kaylo insulation product line in 1958, it’s still responsible for the harm the product caused during its ownership. The company faced its first asbestos lawsuit in 1977, kicking off decades of costly litigation.

This strategy has two primary phases:

  1. Split the Company: Owens-Illinois divided into two new entities.
    1. O-I Glass Inc. retained all of the company’s most valuable assets.
    2. Paddock Enterprises LLC took on all the asbestos liability. 
  2. File for Bankruptcy: Paddock Enterprises filed for Chapter 11 bankruptcy almost immediately after its creation, claiming financial obligations that far outweighed its assets.

This financial and legal strategy allowed the company to protect O-I Glass — and all its valuable properties and activities — from asbestos litigation while Paddock Enterprises went bankrupt.  

Many anti-asbestos advocates are critical of this increasingly popular strategy because it prevents victims from collecting full and fair compensation. Making the company’s assets look smaller during bankruptcy reduces the amount it must set aside in trust.  

The bankruptcy of Paddock Enterprises was resolved in 2022 with the formation of the Owens-Illinois Asbestos Personal Injury Trust. This trust handles all claims against both O-I Glass and Paddock Enterprises.

Formation of the Owens-Illinois Asbestos Personal Injury Trust

The Owens-Illinois Asbestos Personal Injury Trust was formed to process, liquidate, and pay all valid asbestos personal injury claims made against O-I Glass Inc. and Paddock Enterprises LLC. It was initially funded with $610 million but has paid out more than $50 million since its founding in 2022.

The trust processes claims related to eight scheduled disease levels. It handles all claims on a first-in, first-out (FIFO) basis until the Maximum Annual Payment (MAP) is met. At this point, all claim payments are delayed until the next fiscal year. 

The trust’s claims payment ratio reserves 93% of the MAP for handling category A claims related to the most severe and damaging diseases like mesothelioma, lung cancer, and severe asbestosis. Only 7% is reserved for category B claims related to less severe diseases.

Check Your Compensation Eligibility Now

Step 1 of 3

Were you or your family member diagnosed with an asbestos-related illness?

Step 3 of 3

Based on your answers, it seems like you may have a potential claim. How can we get in touch to confirm your eligibility?

Your information will be kept private

Settlement & Payment Percentage in 2025

Like most asbestos trust funds, the Owens-Illinois trust only pays a percentage of the settlement value to ensure enough funds remain to compensate all current and future victims. The current payment percentage of the Owens-Illinois Asbestos Trust is 50%.

Fact

For example, a mesothelioma claim worth $100,000 would be paid out as $50,000 once the payment percentage was applied. A large percentage of victims of asbestos exposure are eligible for multiple forms of compensation through different trusts and companies.

Source: Mesotheliomafund.com

The trust offers claimants two review processes to choose from:

  • Expedited Review (ER): This review process offers a quick resolution and a guaranteed payment amount. It’s best for those who need compensation quickly. 
  • Individual Review (IR): IR offers the opportunity for those with unique circumstances who may not qualify for the expedited option to have their claim reviewed. This review process is best for those who can wait longer for compensation or want to maximize potential compensation.

The tables below show a claim’s scheduled or average values before applying the payment percentage.

Expedited Review Scheduled Values by Disease Level

Disease LevelScheduled Value
Mesothelioma (Level VIII)$100,000
Lung Cancer 1 (Level VII)$25,000
Lung Cancer 2 (Level VI)None
Other Cancer (Level V)$10,800
Severe Asbestosis (Level IV)$28,200
Asbestosis/Pleural Disease (Level III)$5,900
Asbestosis/Pleural Disease (Level II)$2,900
Asbestosis/Pleural Disease (Level I)$400

Individual Review Average Values by Disease Level

Disease LevelScheduled Value
Mesothelioma (Level VIII)$145,300
Lung Cancer 1 (Level VII)$55,900
Lung Cancer 2 (Level VI)$29,400
Other Cancer (Level V)$13,400
Severe Asbestosis (Level IV)$39,400
Asbestosis/Pleural Disease (Level III)None
Asbestosis/Pleural Disease (Level II)None
Asbestosis/Pleural Disease (Level I)None

Eligibility Requirements for the Owens-Illinois Asbestos Trust

Claimants must meet specific medical and exposure requirements to file a claim against the Owens-Illinois Asbestos Trust. All claims must be filed within the statute of limitations to be considered.

Medical Requirements

Medical requirements can vary depending on which of the eight scheduled diseases a claimant is diagnosed with.

Common requirements include:

  • Diagnosis of the disease by a physician or a pathologist if the patient is deceased
  • Evidence of the disease in the form of testing or imaging
    • Chest X-ray
    • CAT scan
    • Pulmonary function test
    • Pathology report
  • Supporting medical evidence establishing asbestos exposure as the cause of illness
  • 10-year latency

Exposure Requirements

Exposure requirements can also vary by disease type.

Standard requirements include:

  • Six months of exposure before December 31, 1958
  • Five years of cumulative occupational exposure to asbestos OR five years of Significant Occupational Exposure (SOE) to asbestos

Documents used to prove asbestos exposure include:

  • Witness statements
  • Employment records
  • Military service records
  • Sales records
  • Construction records

Filing a Claim Against Owens-Illinois

Filing a claim against a trust fund can be a complex and burdensome process. Working with an experienced asbestos attorney can help eligible victims navigate the process smoothly and successfully.

Steps to file a claim against the Owens-Illinois Asbestos Trust:

  1. Choose between expedited and individual review.
  2. Submit a claim form with all required supporting documentation.
  3. Monitor the status of your claim and respond to any additional requests for documentation and clarification.
  4. Accept the offered settlement or enter arbitration to dispute the decision. 

Loved Ones & Family Members

It’s also possible for the loved ones and family members of asbestos workers to take legal action against negligent asbestos companies.

There are two primary paths these individuals can take to compensation:

  • Wrongful Death Claim: Filed by bereaved dependents after the death of an asbestos-exposure victim, this type of claim can help those left behind cover remaining medical bills, burial expenses, and loss of future income.
  • Secondary Exposure Claim: Sometimes, the family members and loved ones of asbestos exposure victims can also become sick with asbestos-related illnesses following secondary asbestos exposure in the home. These victims also have a right to seek compensation for their asbestos injuries.

Working with an experienced asbestos lawyer can help clarify your potential options. If you or someone you love has been diagnosed with an asbestos-related illness, don’t wait to get help.

Contact us today for a free case assessment

Profile picture of Daniel Wasserberg

Written & Legally Reviewed By

Daniel Wasserberg

Attorney and On-Site Legal Advocate

Daniel Wasserberg was a New York metropolitan area “Super Lawyer Rising Star” from 2013 to 2018 (attorneys under age 40), and a Super Lawyer in 2019. In 2017, Daniel was named a “Top 100 Civil Litigator” by the National Trial Lawyers organization. This recognition is rarely awarded to attorneys under the age of 40. Daniel is proud to call himself a Trial Lawyer, and is often asked to speak at gatherings of the nation’s leading attorneys, from both sides of the bar.

Learn More

Sources