For decades, the former Bendix plant in Teterboro, New Jersey, represented American industrial might—manufacturing brake systems and aerospace components that powered the nation's growth. But beneath that productive facade lurked a silent killer: asbestos. Today, Honeywell's recent divestiture of all legacy Bendix asbestos liabilities to Delticus for approximately $1.68 billion brings renewed attention to a public health crisis that continues to unfold, even as the factory floors have long gone quiet.
The Asbestos Threat: A Microscopic Menace
Asbestos, once hailed as a "miracle mineral" for its fire-resistant and insulating properties, became ubiquitous in industrial settings throughout the 20th century. At facilities like Bendix, workers handled asbestos-containing materials daily—in brake linings, gaskets, insulation, and protective equipment—often without adequate protection or awareness of the danger.
When asbestos fibers are disturbed, they become airborne and can be inhaled or ingested. These microscopic fibers are virtually indestructible once lodged in human tissue. The primary health hazards include:
- Asbestosis: A chronic lung disease causing scarring of lung tissue, leading to breathing difficulties and reduced oxygen transfer
- Mesothelioma: A rare and aggressive cancer affecting the lining of the lungs, abdomen, or heart—almost exclusively caused by asbestos exposure
- Lung Cancer: Asbestos exposure significantly increases lung cancer risk, especially among smokers
- Other Cancers: Including laryngeal, ovarian, and gastrointestinal cancers
The causal relationship between asbestos exposure and these diseases is well-established through decades of medical research and thousands of documented cases.
The Cruel Reality of Latency
The most insidious aspect of asbestos-related diseases is their extraordinary latency period. Unlike immediate workplace injuries, asbestos illnesses typically don't manifest until 10 to 50 years after initial exposure. This means:
- Workers who left Bendix in the 1970s or 1980s may only now be developing symptoms
- Many victims never connected their illness to their former workplace
- Family members who washed contaminated work clothes or lived near the facility face secondary exposure risks
- The full scope of the health crisis continues to emerge decades later
This extended latency creates a cascade of legal and financial challenges. Workers who felt healthy at retirement suddenly face terminal diagnoses in their 60s, 70s, or even 80s. By then, proving workplace exposure and navigating complex claims processes becomes an additional burden on already suffering families.
A Legacy of Workers' Compensation Claims
The Bendix asbestos legacy has generated thousands of workers' compensation and personal injury claims over the past several decades. These claims represent:
For Workers:
Medical expenses for the treatment of incurable diseasesLost wages and diminished earning capacityPain and suffering compensationEnd-of-life care costsFor Families:
Wrongful death claims for deceased workersLoss of consortium damagesFinancial support for dependents left behind
The emotional toll of watching loved ones suffer
The workers' compensation system was designed for immediate workplace injuries, not decades-delayed occupational diseases. This mismatch has created significant challenges in proving claims, especially when:
- Employment records are incomplete or destroyed
- Companies have changed ownership multiple times
- Witnesses and coworkers have passed away
- Medical records from the exposure period are unavailable
Honeywell's Divestiture: Corporate Responsibility or Financial Engineering?
On October 1, 2025, Honeywell announced it had divested all of its legacy Bendix asbestos liabilities, as well as certain non-Bendix asbestos liabilities, to Delticus, a leading institutionally capitalized corporate liability acquisition platform. The transaction's key elements include:
- Approximately $1.68 billion in cash contributions from Honeywell and Delticus
- Transfer of certain insurance assets related to these legacy asbestos liabilities
- Delticus assumes full responsibility for administering and resolving all current and future asbestos-related claims
- Honeywell has no further financial exposure to the transferred liabilities, with full indemnification
Financial Implications:
The divestiture results in a one-time after-tax loss of approximately $115 million for Honeywell, excluded from Adjusted Earnings Per Share. However, the transaction is expected to improve annual free cash flow by more than $100 million over the next several years.
What This Means for Claimants:
The transfer to Delticus raises important questions:
- Will claims processing become more efficient or more challenging?
- Does Delticus have the resources and commitment to honor all valid claims?
- What happens to pending claims during the transition?
- Are claimants' rights adequately protected in the transfer?
Honeywell emphasized that the timing aligns with its overall efforts to simplify its portfolio in advance of its planned separation into three independent, industry-leading companies, expected to be completed in the second half of 2026.
The Broader Implications
This divestiture reflects a broader trend of corporations seeking to resolve legacy liabilities through third-party transfers. While it may provide certainty for Honeywell's shareholders, it raises concerns about:
- Accountability: Does transferring liabilities to a third party diminish the original company's moral responsibility?
- Claimant Protection: Are victims' interests adequately safeguarded in these transactions?
- Precedent: Will other companies follow suit, creating a marketplace for toxic liabilities?
- Long-term Security: What happens if Delticus faces financial difficulties in the future?
Key Takeaways
- The Health Crisis Continues: Despite the Bendix plant closing decades ago, new asbestos-related disease cases continue to emerge due to the long latency period of 10-50 years.
- Thousands Affected: Former Bendix workers, their families, and community members face ongoing health risks from historical asbestos exposure.
- Massive Financial Transfer: Honeywell's $1.68 billion divestiture to Delticus represents one of the largest asbestos liability transfers in recent corporate history.
- Uncertainty for Claimants: The transition to Delticus management creates questions about claims processing, accountability, and long-term security for victims.
- Corporate Trend: This transaction exemplifies how companies are seeking to resolve legacy liabilities through third-party transfers, raising broader ethical and legal questions.
- Ongoing Vigilance Required: Former workers and their families should remain aware of their rights and seek medical monitoring, even decades after exposure.
- Legal Representation is Critical: Given the complexity of asbestos claims and corporate restructuring, individuals affected should consult experienced asbestos litigation attorneys.
Moving Forward
The Honeywell-Delticus transaction marks a new chapter in the Bendix asbestos saga, but it doesn't close the book on this public health crisis. For the thousands of former workers and their families still at risk, vigilance remains essential.
If you or a loved one worked at the Bendix plant or lived near the facility, consider:
- Regular medical screenings, even if you feel healthy
- Documenting your employment history and potential exposure
- Consulting with an asbestos litigation specialist about your rights
- Staying informed about the transition to Delticus administration
The legacy of asbestos at Bendix serves as a stark reminder that the consequences of industrial practices can echo across generations. While corporations may divest their liabilities, the human cost endures in the lives forever altered by exposure to this deadly fiber.
Recommended Citation: Gelman, Jon, Bendix Asbestos: Legacy Lives On (10/12/2025) https://workers-compensation.blogspot.com/2025/10/bendix-asbestos-legacy-lives-on.html
Blog: Workers' Compensation
LinkedIn: JonGelman
LinkedIn Group: Injured Workers Law & Advocacy Group
Author: "Workers' Compensation Law" West-Thomson-Reuters
Mastodon:@gelman@mstdn.social
Blue Sky: jongelman@bsky.social
© 2025 Jon L Gelman. All rights reserved.
Attorney Advertising
Prior results do not guarantee a similar outcome.
