Owens-Illinois Asbestos Trust Fund, Exposure & Compensation

O-I Glass, formerly Owens-Illinois, Inc., is a leading glass container manufacturer that partners with many major food and beverage brands. The company previously manufactured and sold asbestos-containing pipe covering and block insulation under the brand, Kaylo.

In response to escalating asbestos lawsuits, Owens-Illinois transferred its asbestos liabilities to a wholly owned subsidiary company, which subsequently filed for bankruptcy. As part of the reorganization plan, the Owens-Illinois Asbestos Personal Injury Trust was created to compensate victims exposed to Owens-Illinois asbestos products.

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If you or a loved one developed mesothelioma or another asbestos disease after exposure to Owens-Illinois insulation products, an asbestos attorney at Early, Lucarelli, Sweeney & Meisenkothen (ELSM) can help you file an Owens-Illinois asbestos trust claim.

Owens-Illinois Asbestos Trust At a Glance

• The Owens-Illinois Asbestos Personal Injury Trust was established in 2022 and has funds remaining to pay eligible claimants.
• To file an Owens-Illinois asbestos trust claim, the victim must be diagnosed with mesothelioma or another asbestos disease and prove Owens-Illinois is responsible for the exposure.
• Owens-Illinois asbestos exposure may have occurred through use of Kaylo insulation products on the job.
• ELSM Law asbestos lawyers will review your case to determine your eligibility and file an Owens-Illinois asbestos claim on your behalf.

Understanding the Owens-Illinois Asbestos Personal Injury Trust Fund

Owens-Illinois created a subsidiary company, Paddock Enterprises, LLC, to assume its asbestos liabilities, including ongoing asbestos lawsuits filed against the company. On January 6, 2020, Paddock filed for Chapter 11 bankruptcy to resolve these long-standing asbestos-related claims.

The Owens-Illinois Asbestos Personal Injury Trust was officially established on July 8, 2022 to resolve all asbestos-related personal injury claims associated with exposure to Owens-Illinois asbestos products. The asbestos trust fund was initially funded with $610 million in assets and shields Paddock Enterprises, Owens-Illinois Glass, and their affiliates from future asbestos lawsuits.

The trust began accepting asbestos claim on October 3, 2022, and has received over 82,300 unliquidated claims since its inception. The Delaware Claims Processing Facility, LLC continues to process these Owens-Illinois asbestos claims today.

In 2024, the Owens-Illinois Asbestos Personal Injury Trust:

• Paid over 3,050 claims.
• Received over 29,600 unliquidated claims.
• Paid approximately $51.8 million to asbestos victims in unliquidated claim settlements.
• Reported over $2.847 million in settled but unpaid claims.
• Reported approximately $540.5 million in total assets.

Owens-Illinois Asbestos Personal Injury Trust Payment Percentage

The Owens-Illinois Asbestos Personal Injury Trust will compensate asbestos victims based on the payment percentage system that is designed to preserve money for future claims. The current Owens-Illinois asbestos trust payment percentage is 50%. At a payment percentage of 50%, an Owens-Illinois mesothelioma claim filed under the expedited review process can be expected to receive the standard scheduled value payment of $50,000.

Determining Review Process for Owens-Illinois Claims

When filing an Owens-Illinois asbestos trust claim, an experienced asbestos lawyer will review the victim’s exposure, medical, and personal records to determine the appropriate filing process to maximize the claimant’s compensation.

Two claim review options are:

• Expedited Review (ER): An ER claim receives a standardized review to determine if it meets all requirements established in the Trust Distribution Procedures and qualifies for the standard value payment percentage.
• Individual Review (IR): An IR claim undergoes a thorough evaluation of the claimant’s exposure, medical records, and other personal information to determine the individual liquidated value of the claim. Certain medical and exposure circumstances require IR filing.

An asbestos attorney at Early, Lucarelli, Sweeney & Meisenkothen will evaluate the claimant’s information and file a mesothelioma claim. Compensation depends on factors such as age, diagnosis, exposure, and the firm’s settlement history.

Owens-Illinois’s Role in Asbestos Exposure

The Owens Bottle Machine Company was founded in 1903 and originally produced glass bottle-manufacturing machines. Over time, the company expanded into manufacturing glass bottles and related products, and in 1919 adopted the name Owens Bottle Company. In 1929, the Owens Bottle Co. merged with Illinois Glass Company to form Owens-Illinois Glass Company.

During the 1940s, Owens-Illinois expanded beyond its core glass business when it began producing asbestos-containing Kaylo pipe covering and block insulation. Although the company eventually sold the rights to the Kaylo product line to Owens-Corning Fiberglas, it remained liable for asbestos-related injuries caused by the Kaylo insulation products it manufactured before the sale. Following the sale, Owens-Illinois remained best known for its glass and packaging operations.

Key events in Owens-Illinois’s asbestos history include:

• 1948: Owens-Illinois began manufacturing asbestos insulation products under the brand name, Kaylo.
• 1958: Owens Corning officially acquired the rights to Owens-Illinois’s asbestos-containing Kaylo insulation products and continued manufacturing them until 1972.
• 1970s: Owens-Illinois began facing asbestos lawsuits, primarily from industrial and shipyard workers exposed to Kaylo insulation.
• 1995: In Sparks v. Owens-Illinois, Inc, a California jury held Owens-Illinois liable for a U.S. Navy metalsmith’s asbestos exposure to asbestos-containing Kaylo insulation aboard the U.S.S. Bremerton during an overhaul, which ultimately caused his mesothelioma.
• 2001: In Hutchinson v. Owens-Illinois, Inc. (and Combustion Engineering), a Texas jury awarded $11.1 million to a mesothelioma victim who worked with asbestos-containing Kaylo pipe insulation. Owens-Illinois was found jointly liable for negligence and for contributing to the plaintiff’s mesothelioma.
• 2019: Owens-Illinois completed a corporate modernization, establishing O-I Glass, Inc. as the new parent holding company. As part of this restructuring, Owens-Illinois created Paddock Enterprises, LLC, a wholly owned subsidiary, to manage asbestos liabilities from its Kaylo insulation products.
• 2020: Paddock Enterprises, LLC filed for Chapter 11 bankruptcy with the goal of establishing an asbestos trust to resolve the thousands of asbestos claims filed against the Owens-Illinois company.
• 2022: The Owens-Illinois Asbestos Personal Injury Trust was officially established to process and pay all current and future Owens-Illinois asbestos-related personal injury claims. In connection with the Trust, Owens-Illinois, O-I Glass, Paddock, and their affiliates are legally protected from future asbestos lawsuits.

Owens-Illinois Asbestos Products

Between 1948-1958, Owens-Illinois manufactured asbestos-containing thermal insulation products sold under the brand name, Kaylo. The Kaylo product line incorporated asbestos fibers to provide insulation and heat resistance for boilers, piping, furnaces, and other high-temperature systems. These products were primarily used in industrial, commercial, and maritime settings, and were occasionally installed in older homes with steam or boiler systems.

Owens-Illinois manufactured and sold the following asbestos products:

• Kaylo block insulation: Rigid insulation blocks used on boilers, furnaces, and other industrial equipment to withstand high temperatures. Workers cut the blocks to size and attached them.
• Kaylo pipe covering: Wrapped around piping to provide thermal insulation.

Who Was Most At-Risk for Asbestos Exposure?

Individuals who worked with Owens-Illinois asbestos products were at risk of developing different types of mesothelioma or other asbestos-related diseases. Family members of workers who were exposed to these asbestos materials also faced the risk of secondary exposure.

Occupational Exposure

In addition to Owens-Illinois employees, boiler workers, pipefitters, insulators, and other individuals who worked with or around insulation materials in industrial, commercial, shipbuilding, and shipyard settings were routinely exposed to Owens-Illinois Kaylo pipe covering and block insulation. Although the health risks associated with asbestos exposure were becoming increasingly documented during this time, tradesmen were not properly warned or provided adequate protection when handling asbestos-containing products.

Occupations at greater risk of Owens-Illinois asbestos exposure include:

Secondary Asbestos Exposure

Individuals who worked directly with Owens-Illinois’s Kaylo asbestos insulation products may have unknowingly put their family members at risk of secondary asbestos exposure when carrying asbestos fibers home on their clothing, shoes, and hair. This exposure typically occurred from close contact with the individual covered in asbestos dust or while handling and washing contaminated clothing.

If you believe your mesothelioma diagnosis is related to secondary exposure, you may be eligible to file an Owens-Illinois Asbestos Trust claim.

Understanding Your Legal Right to Compensation

Filing an Owens-Illinois mesothelioma claim with the Owens-Illinois asbestos trust requires specific documentation that complies with the Trust Distribution Procedures and filing deadlines.

An asbestos lawyer at ELSM will:

• Review your medical records to assess your Owens-Illinois asbestos claim eligibility.
• Collect your employment history to identify Owens-Illinois asbestos exposure sites.
• Connect your exposure sites to known Kaylo insulation product use or obtain written testimony confirming Kaylo product exposure.
• File your Owens-Illinois claim correctly with the required documentation.
• Monitor Owens-Illinois claim status and contact the Trust administrators to ensure timely progress.

With decades of experience handling asbestos trust claims, ELSM Law has the knowledge to guide asbestos victims through the filing process and is dedicated to helping clients secure the compensation they deserve. Contact us today for a free case evaluation.

Frequently Asked Questions

How do I file an Owens-Illinois claim through the Owens-Illinois Asbestos Trust?

An ELSM Law asbestos lawyer will evaluate your case and guide you through the mesothelioma claim process. They will prepare and submit the Owens-Illinois claim form with all the necessary documentation to the Owens-Illinois Asbestos Trust.

Can a family member file an Owens-Illinois Asbestos claim?

Yes, family members are able to file mesothelioma claims after death on behalf of a loved one. Family members who have experienced secondary asbestos exposure and were diagnosed with mesothelioma or lung cancer may qualify to file an Owens-Illinois claim.

How much compensation can I receive through the Owens-Illinois Asbestos Trust?

An ELSM Law asbestos lawyer will review your case to determine the appropriate review process to select when filing an Owens-Illinois asbestos claim. A mesothelioma claim could receive a settlement between $50,000 and $100,000 based on the current Owens-Illinois Asbestos Trust payment percentage.

How long do I have to file a claim with the Owens-Illinois Asbestos Trust?

The deadline to file an Owens-Illinois asbestos claim is set by the Owens-Illinois Asbestos Trust Distribution Procedures (TDP). Individuals diagnosed with an asbestos illness after the Owens-Illinois bankruptcy petition date must file their claim within 3 years of the diagnosis, or within three years of the Trust’s Initial Filing Date of November 30, 2021. Claims that were filed or tolled before the petition date must be submitted by November 30, 2024. An ELSM Law asbestos attorney will determine the applicable statute of limitations and ensure your claim is filed on time.