One of the biggest problems for asbestos sufferers is the reluctance of culpable companies to pay out the compensation they should.
A common tactic companies use to evade paying compensation is known as the Texas two-step. Here is how it works:
- Company A realizes it could face serious lawsuits over a matter such as exposing people to asbestos.
- It decides to separate out the part of the company that was responsible for any asbestos-related issues and pretends it is a separate entity, called Company B.
- Then, when someone comes to sue, Company A says, “Your illness is nothing to do with us. You need to sue Company B.”
As Company B was set up solely for the sole purpose of diverting such claims, they lack the massive financial resources of Company A. Hence, once a few claims come in, they declare bankruptcy, leaving the claimants wondering where to turn.
A recent judgment ruled this is not acceptable
Earlier this year, a Philadelphia court ruled against Johnson and Johnson’s attempt to use the Texas two-step to avoid payments. The court ruled the pharmaceutical giant was still responsible for the harm done, as the division it created was essentially still the same company.
Claimants in several other states have asked courts to review the validity of cases where companies successfully used the Texas two-step to deprive them of compensation.
It’s easy to give up hope when faced with terminal illnesses because of asbestos exposure, especially when you know the companies responsible have far more resources than you. Yet, with the right legal representation, you always have a chance to get the compensation you deserve.
Free Initial Consultation
Our attorneys have decades of experience helping victims with mesothelioma get compensation for their illness. If you have been diagnosed with mesothelioma and used J & J baby powder with talc, contact our firm today. We provide a free initial consultation to discuss if you have a claim. Call 651-377-4740.
