Kelly-Moore Paints Compensation and Lawsuits

Overview of Kelly-Moore Asbestos Compensation

Kelly-Moore abruptly stopped all operations and dissolved as a company in early 2024. It didn’t file for bankruptcy, so there is no asbestos trust fund available for existing or future mesothelioma claims. 

For decades, Kelly-Moore Paints faced thousands of lawsuits related to mesothelioma, lung cancer and asbestosis from exposure to asbestos in its products. Plaintiffs secured several high-profile court victories in the early 2000s, but the company settled most lawsuits privately outside of court.

With Kelly-Moore closing its business without an available asbestos trust fund, it’s important to speak with a knowledgeable asbestos attorney. They can help you assess what other options you may have to secure asbestos compensation. 

Legal Help for People Exposed to Kelly-Moore Asbestos Products

If your mesothelioma diagnosis is the result of exposure to asbestos in Kelly-Moore paints, it’s important to contact a trusted mesothelioma lawyer to discuss your available compensation options. Liability issues when a company is purchased and then liquidated can be complex, so it’s important to discuss what legal action is possible. 

Your lawyer will do a comprehensive review of your employment and medical records to potentially identify any other products and asbestos companies that may be responsible for your exposure. If other companies are involved, you may be able to file a claim with their asbestos trust funds or lawsuits against solvent companies. You may also qualify for workers’ compensation.

A Patient Advocate can connect you with a lawyer who has a record of success in complex cases like yours. They’ll ensure they match you with someone you and your family are comfortable working with. Your Patient Advocate will also offer ongoing support, free resources and assistance scheduling appointments with top mesothelioma doctors, insurance and VA benefits claims.

Mesothelioma Lawsuits Involving Kelly-Moore

More than 48,000 lawsuits were filed against Kelly-Moore seeking compensation for asbestos-related diseases. The company commissioned a study that estimated future asbestos liabilities to exceed $170 million. At the time of its closure, Kelly-Moore leadership said that neither Chapter 11 bankruptcy nor in-court liquidation was an option.

Notable Kelly-More Asbestos Litigation

• $600 million: After spending this amount on asbestos settlements over the years, Kelly-Moore decided to close all retail locations in 2024.
• $36.6 million: A jury found Kelly-More responsible for 14% of the verdict in favor of the plaintiff. Robert Tregget used Kelly-Moore’s Paco Quik-Set joint compound to remodel his home in the 1970s. 
• $55.5 million: Alfredo Hernandez, a 47-year-old construction worker diagnosed with mesothelioma, was awarded this amount for exposure to asbestos through a Kelly-Moore joint compound product.

Kelly-Moore filed a $4.1 billion lawsuit against Union Carbide in 2002, claiming the company failed to inform Kelly-Moore about hazards in the asbestos-containing products it sold between 1963 and 1978. Union Carbide argued that Kelly-Moore was aware of the hazards. At trial, the Texas court sided with Union Carbide. A follow-up Kelly-Moore appeal in 2005 also failed.

Kelly-Moore’s History With Asbestos

Kelly-Moore Paints sold asbestos products for painting, cementing, texturizing and filling drywall between 1960 and 1978. The company used asbestos fibers as a thickener, filler and fire retardant in its Paco texture products and other interior finishing materials. Union Carbide supplied at least 750 tons of asbestos to Kelly-Moore during this period.

By 1984, Kelly-Moore had grown to 80 stores with more than $136 million in revenue. The company spent approximately $600 million settling asbestos lawsuits between 2004 and 2024. In 2022, Flacks Group purchased Kelly-Moore, which then operated 157 stores with 1,200 employees and $400 million in annual revenue.

Flacks Group closed all Kelly-Moore retail locations in 2024. The company blamed decades of asbestos litigation, though Flacks Group specializes in acquiring companies facing legacy health exposure claims. The firm acquires assets from businesses with asbestos liabilities, including Imerys, Flowserve and Corizon Health, and structures transactions to prevent liabilities from reverting to sellers.

Kelly-Moore’s Asbestos Products

Until 1978, much of Kelly-Moore’s range of products contained asbestos, such as spackling and taping compounds. Some products the company manufactured had as much as 10% asbestos. When painters or drywall installers sanded walls with asbestos-contaminated Kelly Moore products, unprotected workers could inhale the toxic fibers.

Kelly-Moore’s Asbestos-Containing Products

• Bedding cement
• Deco-Tex ceiling texture
• Paco All-Purpose point compound
• Paco finishing compound
• Paco joint cement
• Paco joint compound
• Paco Quik-Set joint compound
• Paco Ready Mix joint compound
• Paco spray texture
• Paco taping compound
• Paco texture
• Paco texture paint
• Paco topping compound
• Paco wall texture

According to the International Agency for Research on Cancer, “Asbestos was used as a filler to improve the technical properties of paints.” Asbestos-containing textured products were widely used in home decoration until the early 1990s. These textured paints often contained chrysotile, a type of asbestos responsible for most mesothelioma cases in North America.

Who Was at Risk of Asbestos Exposure From Kelly-Moore’s Products?

Workers encountered asbestos fibers through Kelly-Moore’s products in several ways. Employees who worked in the company’s manufacturing facilities faced asbestos exposure on the job.

Commercial and industrial contractors also had a high risk of exposure when mixing Kelly-Moore asbestos products. Unaware of the dangers of asbestos, painters often worked without any respiratory protection close to asbestos-containing materials and surfaces.

Occupations at Risk From Kelly-Moore Products

• Carpenters
• Construction workers
• Drywallers
• Kelly-Moore employees
• Painters
• Plasterers
• Shipyard workers

The process of installing and finishing drywall during residential and commercial building projects and renovations could release asbestos fibers into the air. Shipyard laborers faced exposure when applying paints and finishes to vessel surfaces.

Asbestos-related illnesses such as mesothelioma can develop 20 to 60 years after exposure. In 2018, an International Journal of Epidemiology study looked at asbestos-related cancer risks for British workers. Painters were one of the highest risk categories, with a risk of mesothelioma almost 16 times higher than in the general population.

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