BorgWarner Inc. Trust Fund and Lawsuits

BorgWarner Asbestos Lawsuits and Compensation

Unlike most companies facing massive asbestos litigation, BorgWarner avoided bankruptcy and doesn’t have an asbestos trust fund. People can still sue for asbestos exposure related to BorgWarner products. Instead of Chapter 11, BorgWarner executed the largest legacy liabilities sale in U.S. history. Following this significant divestiture, people with mesothelioma or lung cancer from exposure to BorgWarner products now file lawsuits against a subsidiary company sold to an insurance company.

In October 2019, BorgWarner paid insurance company Enstar Holdings $172 million to take over BorgWarner Morse TEC, the subsidiary holding all its asbestos liabilities. This divestiture was only the second time Enstar acquired a company’s asbestos obligations. (The first was Dana Corporation in 2016.)

The sale transferred responsibility for managing all existing and future asbestos claims to Enstar, along with the rights to collect on existing insurance policies. “Enstar is a leading player in managing legacy liabilities and has specific expertise in asbestos,” said BorgWarner President and CEO Frédéric Lissalde in a company press release. This strategy allowed BorgWarner to remove liabilities from its balance sheet while keeping a specialized insurance company in charge of handling claims.

This divestiture doesn’t eliminate the legal pathway for seeking mesothelioma compensation. A key difference between the process with companies that haven’t divested and are sued directly or a company with an asbestos trust fund is that BorgWarner-related lawsuits continue, but now target Enstar-managed Morse TEC.

​Legal Help for People Exposed to BorgWarner Asbestos Products

People who developed mesothelioma or lung cancer from exposure to BorgWarner’s asbestos brake pads or clutches should seek expert legal counsel. Your mesothelioma lawyer can gather all of the evidence you need to build a solid case seeking compensation. They’ll manage all of the details of your case from filing to litigating and negotiating a settlement on your behalf.

Finding the right lawyer to manage your mesothelioma lawsuit can feel overwhelming, particularly while actively receiving mesothelioma treatment. A Patient Advocate can match you to a top lawyer with experience litigating against BorgWarner and similar defendants. Your lawyer will 

Your Patient Advocate will listen, offer ongoing support free of charge, connect you with  mesothelioma specialists and schedule your appointments. They’ll also assist you with insurance, VA benefits claims, send you free treatment and nutrition information and help you finding support groups for survivors and caregivers.

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Mesothelioma Lawsuits Involving BorgWarner 

Tens of thousands of lawsuits over asbestos exposure have been filed against BorgWarner. According to previous earnings reports, BorgWarner paid $54.7 million in 2015 and $45.3 million in 2016 in asbestos-related defense and litigation fees.

One case that ended in a $30.3 million jury verdict for the plaintiff, the wife of a former General Motors worker, Mark Buttitta, filed a lawsuit naming companies including BorgWarner and General Motors as defendants. Buttitta developed mesothelioma after exposure to BorgWarner asbestos brakes and clutches at a GM warehouse, along with earlier exposure through his father’s warehouse job. A New Jersey jury awarded this jury verdict in 2010, which an appeals court later upheld.

People diagnosed with asbestos diseases who worked around BorgWarner parts can talk with a mesothelioma attorney to explore their legal options. Many mesothelioma lawsuits end in negotiated settlements.

BorgWarner’s Connection to Asbestos

BorgWarner began making asbestos clutches in 1928 and added asbestos brake pads in 1971. These products remained in circulation for years, creating health risks for the workers who handled them.

The company supplied asbestos brake pads until 1975 and continued to manufacture asbestos clutches into the 1980s. These parts exposed many auto workers to asbestos fibers, which increased their risk of asbestos-related diseases such as malignant mesothelioma. 

Asbestos lawsuits have cost BorgWarner hundreds of millions of dollars, and the company once set aside more than $700 million to cover current and future asbestos claims over several decades. It later transferred the subsidiary that held its asbestos liabilities to an insurance group.

The company no longer manufactures asbestos-containing products. Today, BorgWarner, headquartered in Auburn Hills, Michigan, focuses on powertrain and other products for combustion, hybrid and electric vehicles.

Who Was at Risk of Asbestos Exposure From BorgWarner?

BorgWarner’s use of asbestos-containing clutches and brake pads created serious health risks for many people who worked in and around the auto industry. Workers who built, installed, removed or handled these parts often disturbed asbestos dust without proper protection, increasing their chances of breathing in dangerous fibers.

Higher Risk Occupations

• Automotive factory workers
• Automotive mechanics
• Automotive repair shop employees
• Automotive warehouse workers

People who worked in these roles often carried asbestos fibers home on their clothing, which also put family members at risk through secondhand exposure. Anyone who worked with or around BorgWarner clutches or brake pads or who lived with someone who did, should talk with a doctor about their exposure history.

BorgWarner’s Asbestos Products

The company’s asbestos products were used in automotive repair shops nationwide, exposing many auto mechanics to toxic asbestos fibers. BorgWarner manufactured the following asbestos-containing automotive products.

Borgwarner Asbestos-containing Products

• Brake pads
• Brake shoes
• Clutch discs
• Clutch pads

Other workers who handled these parts were also at risk, such as factory employees and warehouse staff. Additionally, do-it-yourself car owners who replaced their own brake pads may have been exposed to BorgWarner’s asbestos materials.

Today, the Occupational Safety and Health Administration recommends safety practices to reduce asbestos exposure among auto technicians. These practices include using pressurized enclosures and wetting asbestos-containing materials to lower the amount of asbestos fibers that become airborne.

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