During much of the 20th century, the National Gypsum Company, like many others in the construction industry, used asbestos in a variety of its products due to the material’s durability, fire resistance, and insulation properties.
As knowledge of asbestos’ serious health risks became more widespread, National Gypsum faced numerous lawsuits from individuals exposed to asbestos through its products, many of whom developed severe health conditions such as asbestosis, lung cancer, and mesothelioma. In response to the mounting legal challenges and financial liabilities, the company filed for bankruptcy in 1990. As part of its bankruptcy reorganization in 1993, the National Gypsum Asbestos Personal Injury Settlement Trust was created.
The National Gypsum Company
The National Gypsum Company is one of the leading manufacturers of building products in North America. It is best known for its signature product, Gold Bond® gypsum wallboard, but also produces a variety of other construction materials like cement board and plaster products. The company has a long history in the construction industry and is a significant player in the production of drywall and other materials used in residential, commercial, and industrial building projects.
National Gypsum was founded in 1925 by Melvin H. Baker, Joseph F. Haggerty, and Clarence E. Williams. Its headquarters were originally located in Buffalo, New York.
The company’s initial breakthrough product was its Gold Bond wallboard, which was marketed with a unique “gold bond” warranty. This wallboard became the foundation for the company’s success and a well-recognized brand in the construction industry.
Over the decades, National Gypsum expanded its product lines beyond wallboard to include a range of construction products, such as joint compounds, plaster, and cement board. It also expanded geographically, acquiring facilities across North America.
Why Was Asbestos Used by National Gypsum?
Asbestos was used by National Gypsum, like many other companies during much of the 20th century, due to its unique properties that made it highly desirable for construction materials.
Asbestos-Containing Products by National Gypsum
- Joint Compounds: Asbestos was often mixed into joint compounds to strengthen the material and give it fireproof properties.
- Wallboard (Drywall): Asbestos was added to wallboard to enhance its insulation and fire-resistant capabilities.
- Plaster Products: Asbestos could be used in plaster for similar reasons—adding strength, heat resistance, and durability.
- Cement Board: Cement boards made by National Gypsum used asbestos to improve their fire resistance, particularly in areas like kitchens and bathrooms, where fire safety was a concern.
Asbestos Lawsuits Against National Gypsum
By the 1980s, National Gypsum faced a growing number of asbestos-related lawsuits, which placed an enormous financial strain on the company.
Plaintiffs argued that National Gypsum, like other companies, knew or should have known about the health risks of asbestos but continued to use it in their products without adequately warning consumers or workers.
Since asbestos-related diseases can take decades to manifest, many of the plaintiffs were workers, contractors, or family members who had been exposed to asbestos years earlier. These lawsuits often hinged on demonstrating that the exposure to asbestos from National Gypsum’s products was directly responsible for their illnesses.
The company, like others facing asbestos litigation, often argued that it was following industry standards at the time and that the risks of asbestos were not fully understood. However, the growing body of evidence showing that companies knew or should have known about the risks made it difficult to avoid liability.
The sheer volume of claims and potential liability for damages forced National Gypsum to file for Chapter 11 bankruptcy protection in 1990. The purpose of the bankruptcy was to manage the company’s asbestos liabilities while allowing it to continue operating.
What is the National Gypsum Asbestos Trust?
As part of the company’s reorganization under bankruptcy, the National Gypsum Asbestos Trust was established in 1993. This trust was funded to handle and pay out claims from individuals harmed by exposure to National Gypsum’s asbestos-containing products. By setting up this trust, National Gypsum could emerge from bankruptcy while ensuring victims of asbestos exposure could still receive compensation.
The trust is responsible for processing claims and providing financial compensation to those who can prove they were harmed by asbestos exposure from National Gypsum’s products. This includes people who developed asbestos-related diseases as well as the families of deceased victims.
Who Can Make a Claim?
Claims can be made by individuals (or their families) who were exposed to asbestos-containing products manufactured by National Gypsum and later developed an asbestos-related illness, such as:
Additionally, family members of individuals who have passed away due to asbestos-related illnesses can file a wrongful death claim.
How Does the National Gypsum Asbestos Trust Work?
The National Gypsum Asbestos Personal Injury Settlement Trust operates independently of the National Gypsum Company. It is tasked with processing claims from people who developed asbestos-related illnesses, providing financial compensation based on specific criteria.
Claimants or their legal representatives must file a claim with the trust. This includes completing a claim form detailing their asbestos-related illness and exposure to National Gypsum products.
Claimants must provide medical records verifying a diagnosis of an asbestos-related illness (such as mesothelioma, lung cancer, asbestosis, or pleural disease) and evidence of exposure to asbestos through National Gypsum products. This evidence may include:
- Employment records showing work in environments where National Gypsum products were used.
- Witness statements from co-workers or family members.
- Documents proving the use of National Gypsum products in specific buildings or projects.
Once the claim is filed, the trust evaluates it to determine whether the claimant meets the eligibility criteria:
- Medical Review: The trust verifies the claimant’s medical condition to ensure it qualifies as an asbestos-related illness.
- Exposure Verification: The trust reviews evidence to confirm that the claimant was exposed to asbestos-containing products manufactured by National Gypsum.
If the claim is valid, the trust assigns a value to the claim based on:
- Type and Severity of Illness: More severe diseases like mesothelioma or lung cancer typically result in higher compensation, while non-malignant conditions like pleural plaques may receive lower compensation.
- Duration and Intensity of Exposure: Claimants who were exposed for longer periods or in environments with higher asbestos concentrations may receive higher compensation.
Types of Compensation Available
The National Gypsum Asbestos Trust typically provides two types of compensation:
- Scheduled Value: This is a set amount paid to claimants with specific asbestos-related conditions (e.g., mesothelioma or lung cancer). The trust sets a baseline value for different types of illnesses based on severity and risk.
- Individual Review: In some cases, claimants can request an individual review of their case. This can result in a higher payout, but it requires more extensive documentation and proof of greater personal or economic losses.
The trust is responsible for managing its funds prudently to ensure it can compensate both current and future claimants.
If the number of claims increases or the trust’s financial resources dwindle, the trust may implement a payment percentage. This means that claims may be paid out at a reduced percentage of their full value to ensure there are enough funds to cover all eligible claimants.
For example, if the trust determines it can only pay 30% of the full claim value due to financial limitations, all claimants would receive 30% of what they would otherwise be entitled to.
Seeking Legal Assistance
Many claimants seek the help of attorneys who specialize in asbestos litigation to ensure that they file their claims correctly and maximize the potential compensation. Lawyers can help gather necessary documentation, ensure the claim is filed within the proper timeframe, and represent claimants during the review and appeals process.
Reach Out For Your Free Consultation Today
If you or a loved one has been exposed to asbestos through National Gypsum products and developed an asbestos-related illness, you may be entitled to compensation through the National Gypsum Asbestos Trust. Don’t wait – time may be limited to file your claim. At Bailey Glasser, our experienced asbestos attorneys are here to help you navigate the claims process and fight for the compensation you deserve.
Call us today at (866) 871-7971 or fill out our online form for a free consultation. Let us help you secure the justice and compensation you’re entitled to.
