Garlock reaches $480 Million settlement on asbestos claims

Garlock plans to emerge from bankruptcy and establish a trust in the amount of $480 Million to pay asbestos claimants and their families. Garlock a member of the EnPro Industries consortium had made asbestos gaskets.Asbestos is a known carcinogen and causally connected with lung cancer, mesothelioma and other malignancies as well as asbestosis.

Rep. Maloney Joins with Industry and Trade Association Leaders to Introduce the Pandemic Risk Insurance Act

Congresswoman Carolyn B. Maloney (D-NY), senior member of the House Financial Services Committee, today joined with various stakeholders to introduce H.R. 7011, the Pandemic Risk Insurance Act of 2020 (PRIA). This legislation will create the Pandemic Risk Reinsurance Program, a system of shared public and private compensation for business interruption losses resulting from future pandemics or public health emergencies.

Cashed Check, Lost Lien Rights

What happens when a workers' compensation insurer agrees to accept a negotiated payment on its statutory lien — cashes the check — and then tries to walk back that agreement at the conclusion of the workers' compensation case? 

WCMSAs: What You Need to Know

The Centers for Medicare & Medicaid Services (CMS) recently hosted an informative webinar on Workers' Compensation Medicare Set-Asides (WCMSAs), shedding light on these crucial financial agreements and their impact on workers' compensation claims. 

CertainTeed files for bankruptcy claiming asbestos liabilities

DBMP LLC, an affiliate of CertainTeed LLC, based in North Carolina that holds the legacy asbestos liabilities of the former CertainTeed Corporation, today announced that it has filed a voluntary petition for Chapter 11 relief in the U.S. Bankruptcy Court for the Western District of North Carolina in Charlotte in an effort to equitably and permanently resolve all of its current and future asbestos claims. Chapter 11 is a special legal process under U.S. law, which can take 3 to 8 years to run its course, that immediately stays all litigation thus allowing the filing company the time and protection to negotiate in a single forum an agreement approved by claimants and by the court.

Is Workers' Compensation Ready? Pandemic Peril

Analyzing the preparedness of the U.S. workers' compensation system for a future pandemic requires considering multiple complex factors, including past administrative actions, potential policy shifts, and public health discourse. 

Paterson's Textile Past Unravels: EPA Tackles Asbestos Threat

A chapter of industrial history is about to be carefully closed in the heart of Paterson, New Jersey. The U.S. Environmental Protection Agency (EPA) has announced a significant asbestos cleanup operation at the former Allied Textile Printing (ATP) site, set to begin September 16, 2024.

NJ’s COVID-19 Response: Key Lessons and Future Steps

The Independent Review of New Jersey’s Response to the COVID-19 Pandemic, conducted by Montgomery McCracken Walker & Rhoads LLP. This comprehensive review, released on March 7, 2024, evaluates New Jersey’s preparedness, response, and lessons learned during the pandemic. It also provides recommendations to enhance future emergency management.

Asbestos Manufacturer Circor - Leslie Files for Bankruptcy Protection

Circor International, Inc. (NYSE: CIR) today announced a major development in its effort to stem mounting asbestos litigation costs and resolve asbestos liability claims at its Leslie Controls, Inc. subsidiary.

Leslie today filed a pre-negotiated plan of reorganization as a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code in U.S. Bankruptcy Court for the District of Delaware. Supported by a committee of attorneys representing current asbestos claimants and a proposed independent representative of future claimants, the plan is intended to permanently resolve Leslie’s asbestos liability through the creation of a trust pursuant to Section 524(g) of the U.S. Bankruptcy Code. All current and future asbestos claims against Leslie would be channeled to the trust for review and payment, thus providing both Leslie and CIRCOR with permanent court protection from such claims.

“Because we strongly believe that exposure to Leslie’s products has not caused any asbestos-related illness, our strategy has been to vigorously defend these claims,” said CIRCOR Chairman and Chief Executive Officer Bill Higgins. “However, the cost of this defense has exceeded the profits generated by Leslie’s operations, and we have been considering for some time a range of strategic alternatives that would enable us to permanently eliminate this expense and risk. Resolving Leslie’s asbestos liability through a pre-negotiated plan of reorganization accomplishes that aim, while preserving the value of a strong and viable business.”

Asbestos is a known cancer causing agent and has been linked to asbestosis and mesothelioma.

“We believe that a 524(g) trust that equitably resolves all pending and future claims and provides CIRCOR with permanent protection from derivative claims is in the best interest of all our stakeholders, including CIRCOR’s shareholders and Leslie’s customers, suppliers and employees,” Higgins continued. “Unencumbered by financial and legal exposure to asbestos liability, Leslie will be positioned to grow and contribute to CIRCOR’s profitability and cash flow going forward.”

Leslie intends to conduct business as usual during the Chapter 11 process, which could be completed in as little as 120 days., Today’s filing stays all pending and future asbestos litigation against Leslie. As a result, Leslie expects that its cash from operations will be sufficient to satisfy all of its operating obligations during this period. In addition, debtor-in-possession financing has been arranged for Leslie if needed.

Key terms of the pre-negotiated plan are as follows:
Funding for the 524(g) trust will consist of a $75 million contribution by Leslie andCIRCOR together with a contribution of proceeds from Leslie’s remaining asbestos insurance assets;
A provision that permanently protects CIRCOR and its affiliates from future derivative claims associated with Leslie’s asbestos liability; and
Leslie will remain a subsidiary of CIRCOR during and after Chapter 11.

Click here to read more about asbestos related disease and claims for benefits. For over 3 decades the Law Offices of Jon L. Gelman1.973.696.7900 jon@gelmans.com  have been representing injured workers and their families who have suffered asbestos related illnesses.

Federal Appeals Court Upholds Constitutional Challenge Against CMS Memo

In a significant decision the 10th Circuit Federal Court of Appeals ruled that a constitutional challenge against the CMS 2005 CMS memo on future medical benefits in workers' compensation claims may proceed. The Court reversed the decision of the trial court and remanded the case for further proceedings.

"This suit arose after CMS clearly rejected such use of § 411.47, declaring that it applies only to medical expenses incurred before the workers' compensation settlement. In a memorandum issued on July 11, 2005 (the 2005 Memo), it said.

Q11. Compromising of Future Medical Expenses-Does CMS compromise or reduce future medical expenses related to a [workers' compensation] injury?

A11. No. Some submitters have argued that 42 C.F.R. § 411.47 justifies reduction to the amount [set aside for Medicare in a workers' compensation settlement]. The compromise language in this regulation only addresses conditional (past) Medicare payments. The CMS does not allow the compromise of future medical expenses related to a [workers' compensation] injury."

The Court ruled:

"In light of this precedent, we conclude that Protocols has suffered an actual injury. It admits that it has arranged settlements that are contrary to what CMS has declared to be required. As a result, CMS may sometime in the future demand that Protocols reimburse Medicare for Protocols' portion of settlement proceeds. And according to affidavits submitted by Protocols, this potential liability has a present impact on its business-that is, the contingent liability has created an actual and imminent injury."

07-1175 - Protocols, LLC v. Leavitt (12/11/2008)

CMS and Future Medicals: New Rules Proposed

The Centers for Medicare and Medicaid Services (CMS) is proposing several options to efficiently and effectively handle issues concerning the payment of future medicals.


"This advance notice of proposed rulemaking solicits comment on standardized options that we are considering making available to beneficiaries and their representatives to clarify how they can meet their obligations to protect Medicare's interest with respect to Medicare Secondary Payer (MSP) claims involving automobile and liability insurance (including self-insurance), no-fault insurance, and workers' compensation when future medical care is claimed or the settlement, judgment, award, or other payment releases (or has the effect of releasing) claims for future medical care."
***
"We are issuing this advance notice of proposed rulemaking (ANPRM) to solicit public comments on standardized options that beneficiaries and their attorneys or other representatives will be able to use to resolve MSP obligations related to settlements, judgments, awards, or other payments (hereinafter, for ease of reference in this document and unless otherwise indicated, “settlement(s)”) involving future medical care while protecting Medicare's interest."


Click here to read the Federal Register Notice.

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Scientific Evidence to Support 'Seven Generations' future thinking; our toxic chemical exposures may harm our great-grandchildren

Thinking beyond today and beyond specific employee exposure is critical for the analysis of the consequences of our environment and health. One would think that we woud have learned of the serious medical problems caused by the consequences of being a household contact to an asbestos worker. Proven has been the causal relationship to asbestosis, lung cancer and mesothelioma. The future effects of industrial and environmental pollution are the subject of an insightful article by Jennifer Sass, Ph.D., Senior Scientist, Natural Resources Defense Council (NRDC) and, Professorial Lecturer, George Washington University (SEIU Local 500).

Native American tribes hold dear the concept of seven generations planning, that the impact of decisions should be considered out seven generations into the future, about 150 years. The idea is that our decisions today should consider the potential benefits or harm that would be felt by seven future generations. While such future-thinking has obvious ethical and moral value, it seems that it may also have scientific validity. A recent article by Washington State University biologist, Dr. Michael Skinner and his scientific team provides evidence from rat studies that male infertility can result from an exposure to the pesticide vinclozolin. What’s the catch? The pesticide exposure was not to the infertile rat, but to its great grandmother, three generations earlier! But, this wasn’t Skinner’s first article on...

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Garlock testimony switches to financial liability

Asbestos companies have for decades attempted to limit their personal injury claims liability by filing for bankruptcy protection. The Union Asbestos and Rubber Company and Johns Manville were the first in a series of companies who have sough protection. Adequately funding an asbestos personal injury claims trust is essential to protect injured workers and other victims of asbestos disease, ie. asbestosis, lung cancer & mesothelioma. As long as asbestos is not banned in the US, it is critical that these trust adequately compensate the victims and potential victims for decades into the future. 

Today's post was shared by Legal Newsline and comes from legalnewsline.com

Attorneys transitioned Friday from days of expert testimony on the carcinogenic effects of asbestos and the work practices of attorneys representing asbestos plaintiffs to arguments about how much financial liability Garlock Sealing Technologies should face in the company’s ongoing bankruptcy trial.

Garlock attorneys called on economists to give the court estimates for how much money the company should place in a trust for future mesothelioma victims who might sue the company over exposure to asbestos from their products. Doing so will allow the company to escape bankruptcy.

NYC Prepares for the Next Pandemic

Planning ahead is critical to avoiding uncontrollable infectious diseases. Looking forward, employers and insurance carriers should expand their health prevention programs and join efforts like those New York City has announced to prepare for the next pandemic. Inventing prevention is a necessity.

The Fatal Consequences of the GM Bankruptcy

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The General Motors (GM) bankruptcy is going to adversely impact workers' compensation. It has been estimated that GM is facing  $500 Million worth of future mesothelioma claims that its bankruptcy estate is going to avoid paying. The claims will arise because  deadly asbestos fiber that was used in in the manufacture of GM products including brakes.

Last month U.S. Bankruptcy Judge Robert Gerber in New York permitted the unsecured creditors (asbestos claimants) to obtain documentation from GM about the number of estimated / asbestos liability claims it could be facing in the future. As a result of the bankruptcy action, GM transfered its assets only to Motors Liquidation Co., but it plans not to transfer its asbestos liabilities to the new company. Therefore, future asbestos claims against GM will not be paid.

Brakes linings were raw asbestos. GM brakes were sold to and used by auto-mechanics for decades.  Asbestos is a known carcinogen and its deadly effects have been recognized since the early 20th century. One of the latent diseases caused by asbestos exposure is mesothelioma, a rare and fatal illness.

Workers' Compensation systems throughout the United States have been literally swamped with asbestos related claims as the workforce aged and the disease has manifested. The workers' compensation insurance carriers and past employers who used asbestos products have sought to be reimbursed for benefits paid to injured workers by the ultimate wrongdoers, the suppliers, manufacturers and distributors of asbestos products. Those wrongdoers failed to place warning of its products concerning the hazards of asbestos fiber and knew of the hazards.

Taking away the right of ill employees to seek benenfits from GM for its alleged wrongful acts will severely impact the workers' compensation system throughout the US, especially if this process of avoidance becomes of model for future asbestos bankruptcy actions. Difficulties navigating the workers compensation systems at present for occupational illness benefits have become burdensome and extremely difficult for injured workers and their families. GM's attempt to absolve itself from financial responsibility for asbestos related disease should not be permitted as it may create a fatal economic attack on the ailing compensation system.

For over 3 decades the Law Offices of Jon L. Gelman 1.973.696.7900 jon@gelmans.com have been representing injured workers and their families who have suffered asbestos related disease.

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Roundup Justice: Workers Negotiate a Settlement

Monsanto's Landmark Roundup Settlement — What It Means for Workers and Their Families - $7.25 Billion Dollars

The Future of Workers' Compensation

Congress has pushed the deadline for dealing with social issues and expenditures until after Election Day. That still leaves many issues including the future of Social Security and the delivery of medical benefits unaddressed. Those issues are closely intertwined with the patchwork of national programs called workers' compensation. Today's post was shared by Kaiser Health News and comes from www.kaiserhealthnews.org

The deal President Barack Obama, Republican and Democratic lawmakers reached to reopen the federal government and raise the debt ceiling includes a bipartisan panel charged with producing a long-term budget agreement. Led by Senate Budget Committee Chairman Patty Murray, D-Wash., and House Budget Committee Chairman Paul Ryan, R-Wisc., the 29-member panel has a Dec. 13 deadline to reach consensus, a timeframe that seems optimistic considering the bitter partisan showdown over the health law that resulted in a 16-day government shutdown of the government and risked federal default. In remarks Thursday, the president called for a new era of bipartisan cooperation on Capitol Hill. “To all my friends in Congress, understand that how business is done in this town has to change,” the president said. He noted that the nation’s fiscal challenges are the “long-term obligations that we have around things like Medicare and Social Security.  We want to make sure those are there for future generations. “ In a joint statement, Murray and Ryan pledged to work together to find a way around the automatic spending cuts known as “sequestration” now governing federal spending. “We hope we can reduce the deficit in a smarter way. We hope to restore stability to the budget process and end the lurching from crisis to crisis,” they said. Medicare currently accounts for 16 percent of the federal budget, a share that will grow as more baby...

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Presidential Primaries Are Defining the Future Course of Workers' Compensation Medical Benefits

Workers' Compensation medical benefits continue to be up for grabs as the US Presidential Primaries continue. The problematic compensation delivery system continues to provide little cost containment, high administrative costs and continues to drain the system by endless delay hampering the delivery of effective medical care.

A recent survey article in the New England Journal Medicine, baes on a Kaiser Family Foundation and Harvard School of Public Health review, crystallizes the political future of universal health care based upon present perceptions and future solutions. The review article analyzes multiple surveys and concludes that while polarization continues in many areas there are common grounds. It are those similarities that will define the future of medical care in the US.

While both Democrats (79%) and Republicans (52%) agree that the nation's health care system is "poor," they both Democrats (46%) and Republicans (28%) agree that it does not need to be completely rebuilt.

Both parties content that the failure to health insurance is a serious problem, Democrats (94%) and Republicans (55%) and the overwhelming majority of both parties feel that employers should not bear the responsibility for medical care, Democrats (19%) and Republicans (19%). The issue over the implementation of a universal coverage program seems to be split consistently along party lines, Democrats (79%) and Republicans (53%).

Interestingly enough very few surveyed wish to reduce Federal government programs, Democrats (5%) and Republicans (12%) which implies that a shift to a more efficient and effective Federal universal system would be warranted. Incorporating workers' compensation medical benefits into such a universally designed system would appear to be the direction where things are headed.

"Made in America" Will Impact Workers' Compensation Nationally

Today, President Biden signed the Executive order, Made in America.”  The effort to move manufacturing jobs back to the United States will have a major impact going forward for the entire workers' compensation system. This initiative will expand the workforce and expand the potential of a major increase in workers' compensation benefits through increased wages/rates and premiums paid for coverage and all related cottage industries involved in the social insurance program.

Chevron's Fall: Medicare Set-Asides Face Legal Shake-Up

The recent U.S. Supreme Court decision in Loper Bright Enterprises v. Raimondo (2024), which overturned the Chevron doctrine established in Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc., is likely to have significant impacts on how the Centers for Medicare & Medicaid Services (CMS) operates regarding the Medicare Secondary Payer (MSP) Act, including conditional payments and Medicare Set-Aside (MSA) agreements.