Asbestos Corporate Bankruptcies: Don’t Shed A Tear

April 29th, 2010. By admin

Guest blogger, RJ Abernathy, is an Asbestos attorney with Goldenberg Heller Antognoli and Rowland. He has a unique perspective as an asbestos lawyer, having been a Laborer with Local 100 in East St. Louis, Illinois for over 20 years prior to becoming an attorney. As a Laborer, he worked in many of the same conditions as those in which his clients have worked. Abernathy also lost his own father to asbestos-related cancer in 1999.

A recent article published by an arm of the US Chamber of Commerce noted that another company “collapsed” under the weight of asbestos claims. According to this article, 89 such companies have “collapsed” since 1982. In the latest case, Durabla Manufacturing sold asbestos containing products well into the 1980’s, long after asbestos was recognized as a dangerous and deadly material. 

A closer look at the other 88 “collapsed” companies reveals that not only have many of these companies remained in business, but many of them thrived after ‘going bankrupt.’ Walk into any Home Depot or Lowe’s home improvement stores and you will find a large percentage of these “collapsed” companies’ products on the shelves. For example, the Pink Panther didn’t lose his job when Owens Corning went bankrupt. Dick Cheney’s former employer, Halliburton, never missed a beat over the past seven years during the Iraq war since filing for bankruptcy protection due to its subsidiaries asbestos liabilities.

In another case, W.R. Grace filed for bankruptcy protection in 2001, even though it has annual sales of nearly 3 billion dollars. In 2005, the United States Department of Justice filed criminal charges against Grace, including counts for fraudulent transfers of nearly 5 billion dollars just prior to the bankruptcy filing.

In other cases, I think it is hard to argue that these companies should not have “collapsed.” The miners, manufacturers and purveyors of raw asbestos fibers should have been out of business sooner than they were. If these companies had heeded the scientific and medical warnings in the 1930’s, 40’s, 50’s, 60’s or 70’s, maybe some of the victims who suffered needlessly would have been spared. Perhaps these companies would still be in business had they only listened to their own insurance companies rather than their accountants back in the 1930’s and 40’s. Perhaps these companies would still be around had they worked harder at developing safe substitutes rather than marketing asbestos as the miracle mineral for over 40 years.

So before we break out the black armbands and head out to candlelight vigils for yet another “collapsed” asbestos company, remember that the majority of these “bankrupt” companies are still manufacturing and selling products, still earning and delivering profits for their shareholders. Please don’t pity a company that chose its course. Instead, let’s remember those folks who were never warned of the dangers of asbestos until many years after these ticking time bombs were inhaled into their lungs. Let’s remember the men and women who worked for five or ten bucks an hour in dirty and dusty jobs, not the corporations that continue to profit after being relieved of the responsibilities they owe to these men and women who built America.

These companies had a chance to head off asbestos litigation 60 or 70 years ago. These companies gambled that profits would exceed liabilities. Thanks to favorable corporate bankruptcy law, in most cases, they bet correctly.

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Tags: Asbestos, asbestos lawyer, Asbestos Mesothelioma, Goldenberg Heller Antognoli and Rowland, RJ Abernathy

This was posted on Thursday, April 29th, 2010 at 1:38 pm and is filed under Asbestos Mesothelioma . Feel free to respond, or trackback. Read our comments policy.