A recent decision from the Delaware Supreme Court could have an impact on asbestos litigation and the way asbestos trust claim records are handled.

The case involved a dispute over whether certain asbestos bankruptcy trusts should be required to preserve records relating to claims filed with the trusts. The companies seeking the records argued that the information could be important in asbestos lawsuits, including cases involving people who developed mesothelioma after asbestos exposure.

But the Delaware Supreme Court ultimately ruled that the companies had not shown that there was a specific pending or anticipated lawsuit that justified the broad preservation order they were seeking.

Why Asbestos Trust Records Matter

Asbestos litigation can be complicated. Someone who develops mesothelioma may have been exposed to asbestos from multiple products, companies, jobs, or worksites over many years.

Many companies that faced large numbers of asbestos claims eventually filed for bankruptcy. As part of those bankruptcy proceedings, asbestos trusts were established to compensate people who developed asbestos-related diseases.

When someone files a claim with an asbestos trust, the claim may contain information about that person’s work history and alleged asbestos exposure. It can also identify products, companies, jobsites, and other details about where and how the person may have been exposed.

That information can be important in a mesothelioma lawsuit because identifying all potential sources of asbestos exposure is often a major part of the case.

The Dispute Over Preservation of Records

The Delaware case arose after companies involved in asbestos litigation learned that some trusts had policies allowing certain claim information to be deleted over time.

The companies asked the Delaware Court of Chancery to require the trusts to preserve their records. Their argument was essentially that the information could become relevant to current and future asbestos lawsuits.

The Court of Chancery initially allowed the case to move forward.

The Delaware Supreme Court, however, took a different view.

The Supreme Court found that the companies had not identified a specific lawsuit either already pending or reasonably anticipated that would support the broad equitable relief they were requesting.

In other words, the companies were asking for a preservation order covering a significant amount of asbestos trust information without tying that request to a particular lawsuit.

The Supreme Court concluded that was not enough.

The Decision Does Not Mean Asbestos Trust Records Can Simply Be Destroyed

This is an important distinction.

The decision should not be read to mean that asbestos trusts can automatically delete records whenever they choose or that asbestos trust claims can never be obtained in a mesothelioma lawsuit.

That was not the issue the Supreme Court decided.

Instead, the Court focused on whether the companies had established the legal basis for the specific preservation order they were requesting. Because they had not identified a specific pending or anticipated claim that supported the request, the Court reversed the lower court’s decision.

That leaves open other situations where asbestos trust records may become relevant in a particular case.

What This Could Mean for Mesothelioma Lawsuits

For people and families dealing with mesothelioma, asbestos trust claims can be one part of a much larger legal picture.

A mesothelioma case may involve exposure that happened decades ago. Employment records may be incomplete, companies may have changed names or gone out of business, and important evidence may be difficult to locate.

Asbestos trust claims can sometimes provide another source of information about a person’s alleged exposure.

At the same time, defendants in asbestos lawsuits have an interest in identifying other potential sources of exposure. That can lead to disputes about what information from asbestos trusts should be disclosed and how that information can be used.

The Delaware Supreme Court’s decision shows that those issues are not necessarily going to be resolved through one broad preservation order covering every asbestos trust claim.

Instead, courts may need to look at the specific lawsuit, the specific records being requested, and the reason those records are relevant to that case.

Why This Decision Is Worth Watching

Asbestos litigation involves questions about how bankruptcy trusts, traditional lawsuits, and discovery fit together.

This decision is important because it places limits on the ability to obtain broad preservation orders without identifying a particular legal claim. It also highlights the difference between saying that information could potentially be relevant to asbestos litigation and showing that the information is connected to a specific lawsuit.

For mesothelioma patients and their families, these issues can seem far removed from the underlying illness. But the history of asbestos exposure is often central to a case, and evidence about that exposure can make a significant difference.

If you or someone you know has been diagnosed with mesothelioma or another asbestos-related disease and is considering legal representation, the attorneys at BCBH can help you understand your legal options.

Asbestos cases can involve complicated exposure histories, multiple companies, and different sources of compensation. Speaking with an experienced asbestos attorney can help you understand what claims may be available and what steps you should consider taking.

If you or a loved one has been exposed to asbestos or diagnosed with an asbestos-related illness, you deserve legal support that doesn’t add financial stress.

Contact our firm today to discuss your situation and learn more about how our firm may be able to help.