Chrysler Trust Fund and Lawsuits

What Is the Chrysler Asbestos Trust Fund?

The UAW Retiree Medical Benefits Trust helps former Chrysler employees with medical issues. It launched in January 2010, a year after Chrysler filed for bankruptcy. The trust includes diseases linked to asbestos, like mesothelioma. However, it doesn’t cover non-Chrysler workers who used Chrysler’s asbestos products. Those who never worked for the company still pursue compensation via lawsuits.

Key Facts About Chrysler’s Employee-Only Trust

1. Initial funding (2009–2010): Chrysler’s Voluntary Employees’ Beneficiary Association funding included a $4.587 billion note plus 55% of the equity in “new Chrysler.”
2. Debt update: Chrysler paid back the VEBA Trust Note completely, repaying about $5 billion, which included interest that had accumulated on the original $4.587 billion debt.
3. Equity sale update: VEBA sold its remaining 41.4616% Chrysler stake to Fiat for $3.65 billion (about $1.9 billion special distribution plus $1.75 billion cash).
4. How much remains for payouts: A recent Trust update reports about $60.2 billion in net assets at the end of 2024, with the Chrysler portion at $12.2 billion. The trust pays retiree medical benefits, not set cash payouts for mesothelioma.

For claims from non-former employees, Chrysler tried to move its active asbestos lawsuits to the bankruptcy court. It hoped to dismiss the claims nationwide, but a federal judge denied Chrysler’s request. The judge sent all asbestos claims back to the state courts where they were filed.

The Second Circuit Court of Appeals didn’t define the bankruptcy court’s power to block future asbestos claims. Chrysler has since fought asbestos lawsuits in courts throughout the U.S.

Legal Help for People Exposed to Chrysler Asbestos Products

If you were diagnosed with mesothelioma after exposure to Chrysler’s asbestos parts, you may be eligible to file an asbestos lawsuit. If you worked for Chrysler, you may qualify for a claim with their employee-specific asbestos trust fund. Compensation from claims can help with medical expenses and lost earnings.

Your lawyer will ensure your lawsuit is filed in the correct jurisdiction and within its statute of limitations or deadline for filing. Your mesothelioma lawyer will manage your case, working to negotiate a favorable settlement or litigate on your behalf in court.

Our Patient Advocates can match you with the right lawyer to manage your specific type of case and help you explore all compensation opportunities for you and your family. They can also connect you with mesothelioma and lung cancer specialists, scheduling appointments for you and providing extensive free resources covering treatment options and nutrition guidance. Your Patient Advocate can help you navigate insurance, VA benefits claims and other financial assistance, offering steady support throughout your mesothelioma journey.

Mesothelioma Lawsuits Involving Chrysler

Before its bankruptcy and trust for former Chrysler employees, they also filed mesothelioma lawsuits against the company to pursue compensation. Automotive workers who used their products and family members who experienced secondary asbestos exposure have also filed lawsuits, and continue to do so.

Notable Chrysler Settlements and Verdicts

• $40.6 million: A Delaware jury ordered Chrysler to pay 20% of the damages awarded to Larry Knecht in 2018. Knecht developed mesothelioma after working with asbestos brakes for 30 years.
• $25 million: A New York jury awarded damages to Alfred D’Ulisse in 2007. He claimed he got mesothelioma from exposure to Chrysler’s asbestos brakes.
• $18 million: In a 2025 Florida case, the jury awarded damages to Denise Cook. She developed mesothelioma from secondary asbestos exposure.

In Alfred D’Ulisse’s case, his lawyers presented evidence that Chrysler knew about the dangers of asbestos. The New York jury said Chrysler was 10% responsible for damages. But since the company acted “with reckless disregard for the safety of others,” it was held liable for 80% of the verdict.

In Denise Cook’s case, her dad and brother had worked with Chrysler asbestos brake pads in auto repair shops using an AMMCO grinder releasing fibers exceeding safety limits. They accidentally brought home fibers on their clothes. The jury ordered Chrysler to pay 8% of the verdict.

Chrysler’s Connection to Asbestos and Asbestos Products

Chrysler made asbestos brake and clutch linings used on its cars and also sold them to other automotive companies. Chrysler made asbestos auto parts from 1925 through the 1970s.

Asbestos fibers were used to help make these friction products resist heat. But this mineral causes serious health issues, including mesothelioma and lung cancer.

Chrysler’s Asbestos Products

• Mopar brake linings
• Mopar clutch facings

Workers who installed and repaired these parts were exposed to asbestos. Some of them went on to file lawsuits against Chrysler. The suits allege they became ill from exposure to Chrysler’s asbestos products. The company went bankrupt in 2009, which is when it set up a trust fund for its former employees.

Who Was at Risk of Asbestos Exposure From Chrysler?

Workers who made Chrysler’s asbestos brake and clutch linings faced heavy exposure and a higher risk of mesothelioma. Auto assembly line workers who installed them were also at a greater risk.

Brake and clutch mechanics also inhaled asbestos dust from Chrysler parts. These occupations were exposed to asbestos in car repair shops.

Workers at Risk

• Auto assembly line workers
• Auto body shop workers
• Auto mechanics
• Auto supply shop workers
• Chrysler manufacturing plant workers

Do-it-yourself home mechanics were exposed as well. Peritoneal mesothelioma survivor Epifanio Figueroa tells us, “My father sold used auto parts. Then I became a mechanic in our household, disassembling cars. I was in contact with asbestos in the clutches and brakes.”

Anyone who made, installed or repaired these products could also accidentally expose their family. Secondary asbestos exposure can also lead to mesothelioma and lung cancer.

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