J.T. Thorpe Settlement Trust
Executive Summary
The J.T. Thorpe Settlement Trust is the asbestos personal injury trust created for J.T. Thorpe, Inc., a California refractory contractor that, in the trust's own description, "did work primarily at southern California shipyards, oil refineries, power plants, and other major industrial sites."[4] The bankruptcy cases are jointly administered in the U.S. Bankruptcy Court for the Central District of California, Los Angeles Division, under Case No. LA 02-14216-BB, and the trust's distribution procedures set the Petition Date at February 12, 2002.[3] They emerged from bankruptcy in the summer of 2006, and the trust was started on June 29, 2006.[4]
On September 18, 2026, the trust posted that its Trustees, with the consent of the Trust Advisory Committee and the Futures Representative, raised the payment percentage from 50% to 53.7% of the total liquidated claim value. The trust says "All eligible previously paid claims should receive the additional amounts due by the end of November 2026."[1] The initial payment percentage was 50%, and the trust's 2025 annual report says a review on February 21, 2025 left it at 50%.[3]
The trust values claims with a Case Valuation Matrix that starts from a base case value for each disease, $102,647 for mesothelioma, and multiplies it by adjustment factors for features such as age, dependents and whether the injured person was living when the claim was filed.[3] In 2025 the trust received 293 claims and paid 119, including 43 mesothelioma claims; by December 31, 2025 it had paid $189,960,646 since inception.[3] This trust is a different entity from the J.T. Thorpe Company Successor Trust in Texas, which handles claims for the separate Texas company's work in Texas and Louisiana.[4]
At a Glance
J.T. Thorpe Settlement Trust at a glance:
- 53.7% payment percentage (of the total liquidated claim value), raised from 50% in a notice posted September 18, 2026[1]
- Previously paid claims: the trust says eligible claims it already paid "should receive the additional amounts due by the end of November 2026"[1]
- Refractory contractor that worked primarily at southern California shipyards, oil refineries, power plants and other major industrial sites[4]
- Not the Texas trust: claims for the separate Texas company, J.T. Thorpe Company, go to the J.T. Thorpe Company Successor Trust in Texas[4]
- $102,647 mesothelioma base case value under the Case Valuation Matrix, before case-specific multipliers[3]
- $6,315,501 Maximum Annual Payment set for 2026[3]
- 293 claims received, 119 paid in 2025, 43 of them mesothelioma[3]
- $250 filing fee per claim, refunded if the claim is allowed and paid[2]
- Secondary exposure claims (exposure through another occupationally exposed person) are allowed[2]
Key Facts
| Measure | Finding (Source) |
|---|---|
| Payment percentage | 53.7% of the total liquidated claim value, from 50% (trust notice posted September 18, 2026)[1] |
| Initial payment percentage | 50%, under an agreement dated June 29, 2006 (TDP Section 2.3)[3] |
| Review in the 2025 annual report | February 21, 2025; remained at 50% (Twentieth Annual Report)[3] |
| Mesothelioma values (Matrix) | Average Value $150,000; base case value $102,647 (Case Valuation Matrix)[3] |
| Inflation adjustment, 2026 payments | Cumulative 60.9% added to the payment amount (CPI-W; Twentieth Annual Report)[3] |
| Maximum Annual Payment, 2026 | $6,315,501 (set November 7, 2025)[3] |
| Claims activity, 2025 | 293 received; offers to 140 claimants; 119 paid (43 mesothelioma, 21 lung cancer) (Claim Report)[3] |
| Claims settled, 2025 | $5,439,294 (audited statements, Eide Bailly LLP)[3] |
| Paid since inception | $189,960,646 for trust-processed, pre-petition and increase payments, as of December 31, 2025[3] |
| Net claimants' equity | $116,383,926 at December 31, 2025 ($114,591,344 a year earlier)[3] |
| Attorney fee cap | 25% of the net recovery (TDP Section 8.4)[2] |
| Projected trust life | Initial projections assumed a 40-year trust life[2] |
What Is the J.T. Thorpe Settlement Trust?
The J.T. Thorpe Settlement Trust processes asbestos personal injury claims against J.T. Thorpe, Inc., Thorpe Holding Company and Thorpe Technologies, Inc.[2] Under an order of the U.S. Bankruptcy Court for the Central District of California, Los Angeles Division, the trust was created "to process the asbestos claims of these entities."[4] It was established under the debtors' First Amended Joint Plan of Reorganization, dated August 5, 2005, and it is organized under the laws of Nevada, with its office in Reno.[3]
J.T. Thorpe, Inc. was a refractory contractor. The trust describes the company's work as "primarily at southern California shipyards, oil refineries, power plants, and other major industrial sites."[4]
The trust shares its claims operation with another Reno trust. It entered a Trust Facilities and Services Sharing Agreement with the Western Asbestos Settlement Trust in Reno, and it uses that trust's management, staff and facilities for administration and claims processing.[4] Under that agreement the J.T. Thorpe trust paid the Western trust $311,263 for 2025, after accounts were reconciled.[3]
How Is It Different from the J.T. Thorpe Company Successor Trust?
Two asbestos trusts carry the J.T. Thorpe name, and they are not interchangeable. The trust's own About page says it "is not to be confused with the 'J.T. Thorpe Company Successor Trust', which is a bankruptcy trust operating in Texas and accepting claims for the work of a separate and wholly independent company called JT Thorpe Company, a Texas corporation, which did refractory work in Texas and Louisiana."[4]
The trust's instruction is direct: claims for J.T. Thorpe Company work in Texas and Louisiana "should be directed to that Trust in Texas and not the J.T. Thorpe Settlement Trust located in Reno, Nevada."[4]
What Is the J.T. Thorpe Trust's Payment Percentage?
The trust decides the full value of a claim, then pays a share of it. That share is the payment percentage. Under Section 2.3 of the trust's distribution procedures (TDP), the initial payment percentage was 50%, set by an agreement dated June 29, 2006, and it may be adjusted up or down with the consent of the Trust Advisory Committee and the Futures Representative.[3]
Section 4.2 of the TDP requires the Trustees to reconsider the percentage no less than once every three years. The trust's FAQ says the review looks at "the forecasts of estimated future claims to actual claims filed and paid, as well as the Trust's investments and expenses."[2] The review on February 21, 2025 left the percentage at 50%.[3]
On September 18, 2026, the trust posted that the Trustees, with the consent of the Trust Advisory Committee and the Futures Representative, "have increased the Payment Percentage from 50% to 53.7% of the total liquidated claim value." It added that claims will be paid under the change "After necessary updates to the claims processing system and payment procedures have been completed."[1]
What happens to claims the trust already paid?
Section 2.3 of the TDP says that if the payment percentage increases, "claimants who have previously been paid by the Trust will receive a proportional additional payment," unless the trust, with consent of the Trust Advisory Committee and the Futures Representative, concludes the amount is so modest, and the administrative costs so great, that the payments should be omitted or deferred.[3] For the 2026 increase, the trust says: "All eligible previously paid claims should receive the additional amounts due by the end of November 2026."[1] "Eligible" and "should" are the trust's words.
How Does the Trust Value a Mesothelioma Claim?
The trust values claims with its Case Valuation Matrix, which it says "is designed to approximate historical settlement values in the tort system."[3] The Matrix lists an Average Value of $150,000 for mesothelioma and sets a base case value, called "M," of $102,647.[3]
A base case mesothelioma claim under the Matrix is one where the injured person was diagnosed with malignant mesothelioma by a pathologist, internist, pulmonologist or occupational medicine physician; was deceased when litigation began or the claim was filed; was 75 at death; had a spouse and no other dependents; had Standard Exposure to Thorpe asbestos-containing products at traditional jobsites such as shipyards, refineries and power plants; and had at least 10 years between first exposure and diagnosis.[3]
Features of a real claim move its value above or below M. The Matrix gives the example that "an adjustment of 1.3 M for a Living 55-year-old mesothelioma Injured Person indicates that such an Injured Person would receive 1.3 times the base case Mesothelioma value," and where several adjustments apply, the multipliers are multiplied together.[3] The trust also indexes the base case values for economic loss, medical loss and funeral expenses each year, and for 2026 it adds a cumulative inflation adjustment of 60.9% to claim payments.[3]
A claim that does not meet the Matrix criteria but "would be cognizable and valid in the tort system" can go to Individual Review. An Extraordinary Claim is one where Thorpe exposure was over 80% of the person's asbestos exposure, or where the claimant has exceptionally large special damages.[2]
How Do You File a Claim with the J.T. Thorpe Trust?
The trust's FAQ says it "requires a claim form, supporting documents, and a filing fee." Supporting documents include the signed signature page, interrogatories, medical records, a death certificate where applicable, economic or medical loss reports where applicable, and litigation documents. The trust may ask for more, such as deposition testimony, Social Security records or military records.[2]
- Filing fee: $250 for each claim, refunded if the claim is allowed and paid (TDP Section 6.5).[2]
- Order of processing: first-in-first-out (FIFO), except Hardship Claims.[2]
- Timing: claims with no deficiencies "generally receive an offer letter within six to eight weeks," and the trust usually sends payments on approved new claims every six to eight weeks.[2]
- Offers expire: offers are valid for six months, and may be extended six more months for good cause.[2]
- Declarations: a declaration used to show presence at a site or exposure must be written by someone with direct knowledge, in the declarant's own words, signed under penalty of perjury, and the trust may interview the declarant.[5]
- Disputes: the trust uses arbitration for disputes over a rejected or denied claim, or over the claimant's medical condition or exposure.[2]
Who Runs the Trust?
The trust's current Trustees are John F. Luikart, the Managing Trustee, and Sandra R. Hernández, M.D. The Futures Representative, who represents people who will file claims in the future, is the Honorable David F. Levi.[6] A three-member Trust Advisory Committee represents current claimants.[3] Changes to the payment percentage need the consent of both the Trust Advisory Committee and the Futures Representative.[3]
Each year the trust files an annual report, audited financial statements and a claim report with the bankruptcy court. The Twentieth Annual Report, covering 2025, was filed on April 28, 2026.[3]
Frequently Asked Questions
What is the J.T. Thorpe Settlement Trust's payment percentage in 2026?
53.7% of the total liquidated claim value, raised from 50% in a notice the trust posted on September 18, 2026.[1]
Will claims the trust already paid at 50% get more?
The trust says "All eligible previously paid claims should receive the additional amounts due by the end of November 2026." Its distribution procedures provide for a proportional additional payment after an increase, unless the amount is too modest to justify the administrative cost.[1][3]
Is this the same as the J.T. Thorpe trust in Texas?
No. The J.T. Thorpe Company Successor Trust in Texas handles claims for a separate Texas company that did refractory work in Texas and Louisiana. The trust says those claims belong with the Texas trust.[4]
What kind of work did J.T. Thorpe, Inc. do?
It was a refractory contractor that worked primarily at southern California shipyards, oil refineries, power plants and other major industrial sites.[4]
Does the trust accept secondary exposure claims?
Yes. The trust's FAQ says it allows claims for secondary (derivative) exposure, meaning exposure through another occupationally exposed person.[2]
How much does it cost to file?
The filing fee is $250 per claim, and it is refunded if the claim is allowed and paid.[2]
How long will the trust operate?
The trust says it is unknown exactly when it will end, but initial projections assumed a 40-year trust life. Under Section 7.2 of the Trust Agreement, the Trustees may, in their discretion, terminate the trust once all filed claims have been paid or disallowed, no more claims are likely to be filed, and 12 consecutive months have passed with no new claims.[2]
Quick Statistics
- 53.7%: payment percentage, from 50% (posted September 18, 2026)[1]
- February 12, 2002: Petition Date[3]
- June 29, 2006: trust started[4]
- $102,647: mesothelioma base case value under the Matrix[3]
- $6,315,501: Maximum Annual Payment for 2026[3]
- 60.9%: cumulative inflation adjustment added to 2026 payments[3]
- 119: claims paid in 2025, 43 of them mesothelioma[3]
- $189,960,646: paid since inception, as of December 31, 2025[3]
- $116,383,926: net claimants' equity at December 31, 2025[3]
External Links
- J.T. Thorpe Settlement Trust, official website: notices, trust documents, annual reports and the claims packet
- Danziger & De Llano: Asbestos Bankruptcy Trust List 2026, an overview of active asbestos bankruptcy trusts
- Danziger & De Llano: Asbestos Trust Fund Claims, an overview of the trust claim process
Related Pages
- Asbestos_Trust_Funds: active asbestos trusts and their payment percentages
- Section_524(g)_Bankruptcy_Trusts: the bankruptcy framework behind asbestos trusts
- Trust_Fund_Filing_Guidance: how trust claims are filed
- Asbestos_Trust_Fund_Payout_Timeline: how long trust payments take
- Shipyard_Workers: shipyard worker exposure profile
- Oil_Refinery_Workers: refinery worker exposure profile
- Power_Plant_Workers: power plant worker exposure profile
References
- ↑ 1.00 1.01 1.02 1.03 1.04 1.05 1.06 1.07 1.08 1.09 J.T. Thorpe Settlement Trust, "J.T. Thorpe Payment Percentage Review," posted 09/18/2026, on the trust home page (jttstrust.com): the Trustees, "with the consent of the Trust Advisory Committee and the Futures Representative, have increased the Payment Percentage from 50% to 53.7% of the total liquidated claim value" and "All eligible previously paid claims should receive the additional amounts due by the end of November 2026." Retrieved October 3, 2026.
- ↑ 2.00 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 Frequently Asked Questions, J.T. Thorpe Settlement Trust. Debtor names, payment percentage review, attorney fee cap (TDP Section 8.4), Individual Review and Extraordinary Claims, $250 filing fee (TDP Section 6.5), FIFO processing, offer and payment timing, secondary exposure, arbitration, and projected trust life. Retrieved October 3, 2026.
- ↑ 3.00 3.01 3.02 3.03 3.04 3.05 3.06 3.07 3.08 3.09 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 3.34 3.35 3.36 3.37 3.38 3.39 3.40 3.41 3.42 Twentieth Annual Report and Accounting, Audited Financial Statements, and Claim Report, J.T. Thorpe Settlement Trust, filed April 28, 2026, In re J.T. Thorpe, Inc., Case No. 2:02-bk-14216-BB (Bankr. C.D. Cal.), Doc 1901. Includes the Trust Distribution Procedures (Exhibit C; Petition Date, Sections 2.3 and 4.2), the Case Valuation Matrix (Exhibit D), audited financial statements by Eide Bailly LLP (Exhibit E), the Claim Report as of December 31, 2025 (Exhibit F), and the Investment Policy Statement (Exhibit G; Nevada organization, plan dated August 5, 2005). Retrieved October 3, 2026.
- ↑ 4.00 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 4.11 4.12 4.13 About The Trust, J.T. Thorpe Settlement Trust. Debtors, Central District of California order, refractory contractor description, June 29, 2006 start date, Western Asbestos Settlement Trust sharing agreement, and the distinction from the J.T. Thorpe Company Successor Trust. Retrieved October 3, 2026.
- ↑ Current Policies, J.T. Thorpe Settlement Trust. Declaration Policy (Matrix Section I(d)). Retrieved October 3, 2026.
- ↑ Trust Representatives, J.T. Thorpe Settlement Trust. Trustees and Futures Representative. Retrieved October 3, 2026.