Thorpe Insulation Co. & Pacific Insulation Co. Asbestos Trust Claims

Thorpe and Pacific Insulation Trust Facts

Bankruptcy and Trust History

The official Trust website states that Thorpe Insulation Company and Pacific Insulation Company emerged from bankruptcy and that the Trust was created pursuant to an order of the U.S. Bankruptcy Court for the Central District of California. The Trust processes asbestos claims of both entities.

The 2025 annual report identifies the cases as 2:07-bk-19271-BB and 2:07-bk-20016-BB, jointly administered under the Pacific Insulation case. It also identifies the Sixth Amended Joint Plan of Reorganization and the May 8, 2013 confirmation order as governing bankruptcy documents.

The Trust’s official history states that Thorpe’s asbestos-related operations included distributing asbestos-containing thermal insulation products and contracting to install and remove those products at Southern California oil refineries, power plants, industrial sites, commercial buildings, schools, hospitals and some shipyards.

Who May Qualify for a Thorpe Insulation Claim?

The current Matrix recognizes compensable categories including Mesothelioma, Lung Cancer, Other Cancer, Grade I Non-Malignancy and Grade II Non-Malignancy. The May 2026 official update also revised the criteria for Serious Asbestosis within Grade I Non-Malignancy for claims submitted on or after June 1, 2026.

Eligibility and valuation depend on disease, medical proof, Thorpe-related exposure, exposure intensity and location, age, living status, economic loss, medical expenses and other Matrix factors. The Trust therefore cannot be accurately described using a single disease schedule like trusts that pay a fixed Scheduled Value.

Current Case Valuation Framework

The current governing Matrix included with the Trust’s 2025 annual report lists these base case values:

These are not guaranteed settlement amounts. The Matrix applies claim-specific multipliers and adjustments. For example, a mesothelioma claim can be adjusted for age, whether the injured person is living, spouse/dependent circumstances, exposure rating, economic loss, medical expenses and other factors. The Matrix generally provides a minimum of 10% of the applicable Average Value and a maximum of four times the applicable Average Value, subject to its detailed rules and Extraordinary Claim provisions.

For payments made in 2026, the Trust’s annual report states that a 49.94% cumulative inflation adjustment is added to the payment amount. Current 2026 indexed thresholds include $299,887 for Economic Loss, $298,049 for Medical Loss and $111,769 for Assumed Future Medical Loss and Funeral Expenses.

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Current 58.6% Funds Received Ratio

Thorpe uses the term Funds Received Ratio rather than the more common “Payment Percentage.” The Trust increased the ratio from 51.8% to 58.6% in April 2023. It was reviewed in April 2024 and left unchanged, and the filed 2025 annual report states that it was reviewed again on February 21, 2025 and maintained at 58.6%.

The 2025 Claim Report confirms that, as of December 31, 2025, Trust Claims were paid at the approved 58.6% Funds Received Ratio. The report further states that 2025 payments included a 46.14% cumulative CPI-W inflation adjustment. For 2026 payments, the cumulative inflation adjustment increased to 49.94%.

Because Thorpe first calculates a claim-specific liquidated value under its Matrix and then applies the Funds Received Ratio and applicable inflation provisions, a simplistic “Scheduled Value × percentage” example would not accurately represent many Thorpe claims. No guaranteed payment estimate is therefore presented.

Claim Filing and Review Procedures

The Trust evaluates claims under its current Trust Distribution Procedures and Case Valuation Matrix. Claimants submit a Trust Claim form with required medical, exposure and valuation documentation. The Matrix then determines a liquidated value using the applicable disease category and claim-specific adjustment factors.

The Matrix includes an Individual Review process for claims or circumstances requiring individualized evaluation. It also provides minimum and maximum valuation rules and separate provisions for Extraordinary Claims.

The 2025 annual report states that the filing fee remained $250 after review at the November 7, 2025 Trustees’ meeting. Trust policy states that claim-processing deposits are refunded if the claim is paid. Current Trust policy also requires claim payments and filing-fee refunds to be disbursed by ACH.

Medical and Exposure Requirements

The Matrix generally requires a 10-year latency period between first asbestos exposure and diagnosis for malignancy categories. Medical proof requirements vary by disease and can require diagnosis by an appropriately qualified pathologist, internist, pulmonologist or occupational medicine physician.

Thorpe’s Matrix uses exposure ratings that can materially change claim value. Traditional occupational exposure at identified shipyards, refineries, power plants and other sites can be classified as Very High, High, Standard, Low or Very Low exposure. For mesothelioma, the current Matrix uses exposure multipliers ranging from 3.0 for Very High exposure to 0.25 for Very Low exposure.

The Trust’s May 28, 2026 update modified Serious Asbestosis criteria for claims submitted on or after June 1, 2026, including provisions addressing severe asbestosis, oxygen use and asbestosis-related death. Current claimants should therefore use the latest Matrix and current Trust policies rather than older claim summaries.

2025 Financial and Claims Information

The Trust’s Sixteenth Annual Report contains audited financial statements for the year ended December 31, 2025. It reports $369,363,019 in total assets, $30,601,231 in total liabilities and $338,761,788 in net claimants’ equity.

The 2025 Claim Report states that the Trust received 356 claims, issued offers to 280 claimants and paid 237 claims. The paid claims consisted of 91 mesothelioma claims, 35 lung-cancer claims, 5 other-cancer claims, 6 Grade I Serious Asbestosis claims, 75 other Grade I/Enhanced Asbestosis claims and 25 Grade II Non-Malignant claims.

The same official Claim Report states that $433,982,311 had been paid since inception through December 31, 2025 for trust-processed, pre-petition and increase payments. The audited financial statements separately report $23,755,404 in claims settled during 2025. These figures are kept in their stated accounting contexts rather than treated as interchangeable.

The Trustees set the 2026 Maximum Annual Payment at $24,440,761. That annual limit is a Trust-wide payment-management figure and is not a maximum award for an individual claimant.

Confirmed Primary Sources for Trust Facts

No law-firm or lead-generation website was used as factual authority for this page. Primary Trust and bankruptcy materials reviewed include:

• Official Thorpe Insulation Settlement Trust website.
• Official About the Trust page identifying Thorpe Insulation Company and Pacific Insulation Company.
• Official current Trust Documents library.
• Official annual-report archive.
• Sixteenth Annual Report and Accounting, Audited Financial Statements, and Claim Report for 2025, filed April 28, 2026.
• Official current Trust policies.
• Official 2024 Funds Received Ratio notice.

Get Help Reviewing a Thorpe or Pacific Insulation Asbestos Claim

Call 800.291.0963

Live chat is available 24/7, 365 days a year.

Submit Your Case

Prior asbestos exposure does not automatically establish eligibility for a Thorpe Insulation Settlement Trust claim or asbestos lawsuit. Eligibility and valuation depend on medical evidence, exposure history, current Trust procedures, the Case Valuation Matrix and individual circumstances. Compensation is not guaranteed.