Unease Over Asbestos Legal Fees

Clear Answers lawyers, Thompsons Solicitors have expressed growing concern over a £70 million legal bill paid to the administrators and lawyers of Federal Mogul, the US parent company of Turner and Newell, in connection with a compensation deal for asbestos victims.

Administrators Kroll were the company charged with negotiating a compensation payment scheme for former employees of the company that had been exposed to asbestos throughout their working lives.

Many employees of Federal Mogul went on to develop diseases such as mesothelioma and asbestosis as a result of working for the company and a number of the employees died before they were awarded any compensation at all.

Federal Mogul went into administration in 2001 freezing all compensation payments for those that were suffering from asbestos related industrial diseases. At the time this happened Federal Mogul were facing compensation claims totalling up to £340 million.

Compensation Payment Process

After five years of dialogue between the two sides a compensation package was agreed earlier this month and claimants accepted an offer of 20p in the £1. This means that former employees will share a £69 million payout with some victims claims that are worth £100,000 only receiving £20,000 in damages.

However it has also transpired that the administrators, Kroll, charged £40 million for their services with their legal and professional advisors receiving an extra £30 Million between them.

Ian McFall head of asbestos litigation for Clear Answers lawyers Thompsons Solicitors remarks: " I gave my time as an unpaid volunteer on the creditors committee to argue that victims should receive the best possible compensation deal from the administration of Federal Mogul."

"Originally asbestos claimants were offered just 7% of what their claim was worth, but through negotiations most people will be likely to receive payments of around 20%. For those families who have suffered, it will be hard to accept that they get only 20% while the administrators and their lawyers will be paid their bill of £70 million in full."

Compensation Claim

If you or a member of your family has suffered as a result of an asbestos related illness you may be able to proceed with a personal injury compensation claim. Contact Clear Answers now on 0800 783 9019 or complete one of our online compensation claim forms.

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