Johns Manville vs Owens Corning: Trust Payouts and Filing

The Johns Manville and Owens Corning asbestos trust claims process runs on the same legal framework, but the payouts differ: the Johns Manville trust currently pays 5.1% of a claim’s scheduled value, the Owens Corning sub-fund pays 4.7%, and the Fibreboard sub-fund pays 3.7%. Both were created under Section 524(g) of the Bankruptcy Code, both use scheduled disease values and payment percentages, and you can file with both if you were exposed to products from each company. The differences that matter to a claimant are the payout rate, the disease values, and the proof of exposure each trust requires.

What Each Trust Actually Pays

The “payment percentage” is the fraction of a claim’s scheduled value the trust writes a check for. Trusts hold the number well below 100% so money remains for claimants diagnosed years from now, and the trustees revisit it periodically based on the trust’s assets and projected liabilities.

On a mesothelioma claim carrying a $350,000 scheduled value under the Manville trust, the actual payment works out to $17,850. The same $350,000 value processed through the Owens Corning sub-fund pays $16,450, and through the Fibreboard sub-fund, $12,950.

The Manville trust has been operating since November 28, 1988, and through September 2025 had liquidated more than 1,027,000 claims and paid out over $5.3 billion.1Manville Trust. Manville Trust Quarterly Report – Third Quarter 2025 The Owens Corning/Fibreboard trust was established after Owens Corning emerged from bankruptcy in 2006 and holds two separate accounts: one for Owens Corning’s own products and one for Fibreboard, a company Owens Corning acquired that also made asbestos-containing materials.3U.S. Securities and Exchange Commission. Owens Corning/Fibreboard Asbestos Personal Injury Trust Agreement Which sub-fund handles your claim depends on which company’s products you were exposed to.

Scheduled Values by Disease

Before the payment percentage is applied, each claim is assigned a scheduled value based on disease severity. The Manville trust uses eight levels:

  • Level VIII, Mesothelioma: $350,000
  • Level VII, Lung Cancer Two: $95,000
  • Level VI, Lung Cancer One: individual review only, with payments averaging around $40,000 and capped at $50,000
  • Level V, Other Cancer: $45,000
  • Level IV, Severe Asbestosis: $95,000
  • Level III, Asbestosis/Pleural Disease: $25,000
  • Level II, Asbestosis/Pleural Disease: $12,000
  • Level I, Other Asbestos Disease: $600 cash discount payment

The Owens Corning/Fibreboard trust uses its own disease categories and its own scheduled values, laid out in the trust’s distribution procedures. They do not match Manville’s figures.

Expedited Review or Individual Review

Both trusts offer two evaluation paths, and picking between them is one of the few real choices a claimant makes.

Expedited review is faster and largely administrative. If your medical evidence and exposure history meet the predetermined criteria for a given disease level, the trust assigns that level’s scheduled value and pays at the current percentage. Most straightforward claims go this route.

Individual review is a closer look. The trust weighs facts specific to your case, and the resulting payment can be higher than the scheduled value, up to a cap, or lower. It fits situations that do not slot neatly into the expedited criteria, or claims a claimant believes are worth more than the standard amount. Level VI lung cancer claims under the Manville trust can only be handled through individual review.

There is a tradeoff worth naming plainly: individual review can also come in below what expedited review would have paid. When your documentation is solid and you clearly meet the exposure standard, expedited review is usually the more predictable outcome.

Proving Exposure to the Right Products

Every claim needs a completed claim form and supporting documents. Medical records must show the diagnosis, and most trusts require that at least 10 years passed between first asbestos exposure and diagnosis. If the claim is filed for someone who died, a death certificate is required, and a personal representative needs letters of administration or equivalent proof of authority.

The step where claims most often stall is exposure proof. You have to show contact with that specific trust’s products, not asbestos exposure in general. For the Manville trust, that means Johns Manville insulation, roofing, or pipe products. For the Owens Corning trust, that typically means Kaylo insulation or other Owens Corning-branded materials. Employment records, union documents, purchase orders identifying the products used at your worksite, sworn statements, and witness statements from coworkers all help build the connection.

Claims are generally processed in the order received. Depending on complexity and requests for additional documentation, timelines run from several months to over a year.

Filing With Both Trusts and Pursuing Lawsuits

If you were exposed to products from multiple manufacturers, you can file with multiple trusts at the same time. Each trust operates independently under its own distribution procedures, and receiving payment from one does not disqualify you from another. There is no legal cap on the number of trust claims you can pursue.

Trust claims also do not block lawsuits against solvent companies that never set up trusts. Some defendants in active litigation, though, argue that trust payments should offset what they owe. These setoff rules vary by state, so the interaction between trust filings and any lawsuit is worth working through with an attorney before you file.

Secondary Exposure and Wrongful Death

Eligibility is not limited to people who handled asbestos directly. Family members who developed asbestos-related diseases through take-home exposure may also qualify. Workers carried fibers home on clothing, skin, and hair, and household members who laundered work clothes or simply lived in the home breathed fibers that settled into carpets, furniture, and ventilation.

When a worker or exposed family member has died of an asbestos-related disease, surviving relatives can generally file a wrongful death claim. Each trust has its own estate procedures, and filings typically require the death certificate and documentation of the representative’s authority. State statutes of limitations for wrongful death usually run one to three years from the date of death, so timing matters.

Taxes and Medicare Recovery

Trust payments for personal physical injuries or illness are generally not taxable. Under Section 104(a)(2) of the Internal Revenue Code, damages received on account of personal physical injuries or physical sickness are excluded from gross income, whether they arrive through a settlement, a court judgment, or a trust.4Office of the Law Revision Counsel. 26 U.S. Code 104 – Compensation for Injuries or Sickness That exclusion covers medical expenses, lost wages, pain and suffering, and wrongful death damages.

Two pieces of a payment can still be taxable. Punitive damages are generally subject to income tax, with a narrow exception when state law only permits punitive damages in a wrongful death action. Any interest that accrues while a payment is pending is also taxable as ordinary interest income.

Medicare is the other item to plan for. Medicare has the right to recover payments it made for asbestos-related medical treatment out of your trust recovery, operating as a secondary payer. The right applies to anyone over 65, or under 65 if receiving Social Security disability benefits, and it extends to claims filed through 524(g) asbestos trusts. If all of your asbestos exposure ended before December 5, 1980, Medicare’s recovery right may not apply, but you carry the burden of proving that cutoff.