Burns & Roe

Burns & Roe: A Case Study in Asbestos Litigation and Corporate Responsibility

Introduction Burns & Roe, a prominent engineering and construction firm, became a significant name in asbestos litigation due to its involvement in projects that exposed workers and consumers to asbestos-containing materials. The company’s role in designing and constructing facilities where asbestos was widely used has made it a focal point in discussions about occupational hazards, corporate liability, and the long-term health impacts of asbestos exposure. Burns & Roe’s legal battles and eventual bankruptcy highlight the broader implications of asbestos-related liabilities for corporations and the individuals affected by exposure.

Historical Background Founded in 1932, Burns & Roe specialized in engineering, procurement, and construction services, particularly in the energy and industrial sectors. During the mid-20th century, asbestos was a common material in construction due to its heat resistance and durability. Burns & Roe’s projects often involved the use of asbestos-containing materials, particularly in power plants, industrial facilities, and other large-scale infrastructure projects.

By the late 20th century, the health risks associated with asbestos exposure became widely recognized, leading to a surge in lawsuits against companies involved in its use. Burns & Roe faced numerous claims from workers and contractors who developed asbestos-related diseases, such as mesothelioma and asbestosis, after working on projects where asbestos was present. These lawsuits alleged that the company failed to warn workers about the dangers of asbestos or implement adequate safety measures.

In 2000, Burns & Roe filed for Chapter 11 bankruptcy protection to manage its mounting asbestos liabilities. The bankruptcy process included the establishment of an asbestos trust fund to compensate victims, a common strategy for companies overwhelmed by asbestos-related claims.

Legal and Scientific Context Burns & Roe’s involvement in asbestos litigation underscores the intersection of corporate practices, occupational safety, and public health. The lawsuits against the company were based on well-documented evidence linking asbestos exposure to severe health conditions. Plaintiffs argued that Burns & Roe had a duty to warn workers and contractors about the risks of asbestos and to ensure safe working conditions.

The company’s bankruptcy proceedings and the creation of an asbestos trust fund were part of a broader trend in asbestos litigation. Under U.S. bankruptcy law, companies facing overwhelming asbestos liabilities can establish trust funds to compensate victims while continuing their operations. Burns & Roe’s trust fund was designed to provide financial relief to individuals affected by asbestos exposure, though critics have argued that such funds often limit the amount of compensation available to victims.

From a scientific perspective, the cases against Burns & Roe relied on extensive medical research linking asbestos exposure to diseases such as mesothelioma, lung cancer, and asbestosis. These diseases often have long latency periods, meaning that individuals exposed to asbestos decades ago are only now experiencing symptoms and seeking compensation.

Impact and Modern Relevance Burns & Roe’s bankruptcy and the establishment of its asbestos trust fund have had a lasting impact on asbestos litigation and corporate practices. The company’s case highlights the financial and legal challenges faced by corporations involved in asbestos-related industries, as well as the difficulties faced by victims seeking compensation.

Today, Burns & Roe serves as a cautionary tale for companies about the long-term consequences of failing to address occupational health risks. Its case has also contributed to ongoing debates about the fairness and effectiveness of asbestos trust funds, as well as the need for stronger regulations to protect workers and consumers from hazardous materials.

Example or Case Study One notable aspect of Burns & Roe’s asbestos litigation is its bankruptcy filing and the subsequent creation of an asbestos trust fund. The trust fund was established as part of the company’s reorganization plan and was designed to compensate individuals who developed asbestos-related diseases after working on Burns & Roe projects. This case illustrates how companies can use bankruptcy protections to manage asbestos liabilities while continuing their operations, though it also raises questions about the adequacy of compensation for victims.