Mesothelioma Lawsuit vs. Trust Fund Claim: Which Should I File?

Key Differences at a Glance

Mesothelioma lawsuits and asbestos trust fund claims serve the same goal — compensating victims of asbestos exposure — but they work through fundamentally different systems. The table below summarizes the major differences.

Factor	Lawsuit	Trust Fund Claim
Filed against	Solvent companies still in business	Funds created by bankrupt asbestos companies
Process	Court litigation (complaint, discovery, trial or settlement)	Administrative review (submit claim, trust evaluates, payment issued)
Typical timeline	12–18 months (settlement); 2–3 years (trial)	3–12 months
Potential amount	$1 million–$2.4 million average settlement; verdicts can exceed $10 million	$50,000–$400,000+ per trust (varies by trust and disease level)
Who pays	The defendant company (or its insurer)	The asbestos trust fund
Can you file both?	Yes — most families file both simultaneously

When to File a Lawsuit

A mesothelioma lawsuit is appropriate when one or more of the companies responsible for your asbestos exposure is still solvent — meaning it has not filed for bankruptcy and has assets or insurance to pay claims.

Lawsuits offer the potential for larger individual awards than trust fund claims. According to RAND Corporation research, mesothelioma settlements average between $1 million and $2.4 million, while jury verdicts can be substantially higher. In a lawsuit, your attorney can argue the full extent of your damages — including pain and suffering, loss of consortium, and punitive damages — which are not available through trust fund claims.

The tradeoff is time. Lawsuits require more procedural steps: filing a complaint, the discovery process, depositions, and either settlement negotiations or a trial. However, many courts offer expedited dockets for mesothelioma cases that can significantly compress the timeline.

When to File a Trust Fund Claim

Trust fund claims are filed when the companies responsible for your asbestos exposure have gone through bankruptcy and established trust funds to pay future victims. More than 60 asbestos trust funds currently hold over $30 billion in combined assets, according to a Government Accountability Office (GAO) report on asbestos trust fund operations.

Trust fund claims are faster and less adversarial than lawsuits. There is no courtroom, no depositions, and no trial. You submit documentation of your diagnosis and evidence linking your exposure to the bankrupt company's products. The trust reviews your claim against its established payment matrix and issues an offer.

Each trust has its own payment schedule based on disease severity. Mesothelioma — the most serious asbestos-related disease — receives the highest scheduled payment values. However, most trusts apply a "payment percentage" that reduces the scheduled value to preserve funds for future claimants. These percentages are adjusted periodically and currently range from about 5% to 100% of the scheduled value, depending on the trust.

Why Most People File Both

Lawsuits and trust fund claims target different pots of money. A lawsuit against a solvent company does not prevent you from also filing claims with trust funds established by bankrupt companies — and vice versa. Since most mesothelioma patients were exposed to asbestos from multiple sources over many years, there are typically both solvent and bankrupt companies in the chain of liability.

An experienced mesothelioma attorney will evaluate your exposure history and identify every possible source of compensation. For many families, the total recovery includes a lawsuit settlement plus payments from several trust funds.

For example, a former shipyard worker may have been exposed to insulation made by a bankrupt company (trust fund claim), pipe fittings made by another bankrupt company (second trust fund claim), and boiler equipment made by a company that is still in business (lawsuit). Pursuing all three tracks simultaneously maximizes total compensation without delaying any single claim.

Timeline Comparison

Trust fund claims move faster because they bypass the court system. Here is a side-by-side look at how the timelines typically play out.

Trust fund claims (3–12 months): After your attorney submits the claim with supporting documentation, the trust reviews it under either an expedited or standard review process. Expedited review uses a fixed payment schedule and is faster. Individual review allows you to argue for a higher amount but takes longer. Most mesothelioma claims qualify for the highest disease category and are processed within a few months.

Lawsuit settlements (12–18 months): After filing, both sides exchange evidence during discovery. Settlement discussions typically begin 6 to 12 months in. Once terms are agreed upon, payment is usually received within 30 to 60 days.

Lawsuit trials (2–3 years): If settlement negotiations fail, the case proceeds through trial preparation and ultimately to a jury verdict. Appeals can add additional time, though many defendants choose to settle after an unfavorable verdict rather than pursue a lengthy appeal.

Because trust fund claims resolve faster, they often provide financial relief while a lawsuit is still in progress. This staggered approach ensures families receive some compensation relatively quickly while pursuing larger amounts through litigation.

How Filing One Affects the Other

Filing a trust fund claim does not waive your right to file a lawsuit, and filing a lawsuit does not prevent you from pursuing trust fund claims. However, there are a few procedural considerations your attorney will manage.

Setoff provisions. Some states allow lawsuit defendants to reduce (or "set off") their liability by the amount you receive from trust funds. Your attorney factors this into the overall strategy, timing trust fund submissions and lawsuit settlements to maximize your net recovery.

Disclosure requirements. In many jurisdictions, you are required to disclose trust fund claims and payments during lawsuit discovery. This is standard procedure and does not reduce your right to pursue both paths. Your attorney handles these disclosures as part of the normal litigation process.

No double recovery for the same exposure. You cannot collect twice from the same company — once through a trust fund and once through a lawsuit. But since trust fund claims and lawsuits target different companies, this is rarely an issue. Your attorney ensures that each responsible party is pursued through the appropriate channel.