Sepco Asbestos Trust

About the Sepco Asbestos Trust

Southern Equipment Co. — known throughout the Gulf Coast industrial corridor as Sepco — was a regional distributor and supplier of industrial insulation products, mechanical packing materials, and sealing components. The company served oil refineries, petrochemical plants, chemical manufacturing facilities, paper mills, and a wide range of heavy industrial clients primarily across Texas, Louisiana, Mississippi, Alabama, and Florida. For decades, Sepco supplied asbestos-containing pipe insulation, block insulation, rope packing, sheet packing, and compressed gasket materials that were standard components of the industrial maintenance supplies used throughout the Gulf Coast's massive energy and chemical processing industries.

The workers who installed, maintained, replaced, and removed Sepco insulation and packing products were exposed to asbestos fibers on a daily basis. Maintenance mechanics who repacked pump and valve glands with Sepco asbestos rope packing, pipefitters who removed and replaced Sepco pipe insulation during turnaround shutdowns, and boilermakers who worked on Sepco-insulated equipment all faced significant occupational asbestos exposure. These exposures accumulated invisibly over careers spanning decades, with mesothelioma and asbestos-related lung cancer diagnoses appearing 20 to 50 years after first exposure.

Sepco filed for Chapter 11 bankruptcy protection in 2002 as the volume of asbestos personal injury claims against the company exceeded its ability to manage them through normal operations. Following extensive proceedings, the Sepco Asbestos Trust was established in 2005 pursuant to Section 524(g) of the U.S. Bankruptcy Code. The trust currently pays 10% of the scheduled value of qualifying claims — a payment percentage significantly higher than many other asbestos trusts — reflecting the trust's asset base and total claim liability ratio. For mesothelioma claimants, the estimated actual payment is approximately $25,000.

Trust Fund Details

Note: The 10% payment percentage is among the higher rates for asbestos trusts. Payment percentages may be adjusted periodically. Consult an attorney for current rates.

Who Is Eligible to File a Sepco Trust Claim?

The Sepco Trust's eligibility criteria require both a qualifying asbestos-related diagnosis and documented exposure to Sepco industrial insulation or packing products. Workers across a wide range of industrial trades in the Gulf Coast region commonly qualify:

• Pipefitters and Steamfitters: Workers at Gulf Coast refineries and chemical plants who installed, maintained, or removed Sepco asbestos pipe insulation as part of regular maintenance and turnaround operations.
• Industrial Maintenance Mechanics: Plant maintenance personnel who repacked pump and valve glands with Sepco asbestos rope packing materials, disturbing asbestos fibers in the process.
• Boilermakers: Tradespeople who worked on Sepco-insulated boilers, heat exchangers, and associated equipment in refinery and chemical plant settings.
• Insulators: Workers who installed and removed Sepco block and pipe insulation on industrial equipment and piping systems throughout Gulf Coast facilities.
• Refinery Process Operators: Plant operators who worked in proximity to Sepco-insulated equipment and were regularly exposed to asbestos fibers during maintenance operations on their units.
• Chemical Plant Workers: Employees at petrochemical and specialty chemical manufacturing facilities where Sepco products were used in plant construction and ongoing maintenance.
• Paper Mill Workers: Employees at Gulf South paper and pulp mills where Sepco insulation and packing materials were used on steam lines, digesters, and other high-temperature equipment.
• Power Plant Workers: Operators and maintenance staff at coal, oil, gas, and nuclear generating facilities in the Gulf Coast region where Sepco supplied maintenance materials.
• Shipyard Workers: Workers at Gulf Coast naval and commercial shipyards where Sepco materials were used in ship construction and repair.
• Family Members (Secondary Exposure): Household members of Sepco-exposed workers who were exposed to asbestos fibers on work clothing brought home.

Exposure must be connected specifically to Sepco products. Your attorney will gather evidence — facility purchasing records, invoices, maintenance logs, co-worker testimony — to establish the product identification component of the claim.

How to File a Sepco Trust Claim

The Sepco Trust claim process follows the standard framework established under the trust's Trust Distribution Procedures. An experienced asbestos attorney handles each step on your behalf. The process typically proceeds as follows:

1. Get a Free Consultation With a Mesothelioma Attorney

   An attorney will review your diagnosis, your work history in the Gulf Coast industrial sector, and your exposure to Sepco products. This evaluation costs nothing and creates no obligation. The attorney will also identify every other trust for which you may qualify.

2. Obtain Comprehensive Medical Documentation

   You will need pathology and biopsy reports, CT scan or other imaging results, oncology and pulmonology records confirming your diagnosis, and — for claims filed on behalf of a deceased worker — certified death certificates and available autopsy reports.

3. Document Your Occupational History in Detail

   Compile a complete work history covering all employers, job titles, facilities, and dates of employment. Specifically identify time periods and facilities where you worked with or near Sepco insulation and packing products. Union membership records, Social Security earnings histories, and former co-worker affidavits all contribute to this documentation.

4. Establish Sepco Product Identification Evidence

   The trust requires evidence linking your asbestos exposure specifically to Sepco products. Facility purchasing records, maintenance department invoices, product specification sheets, or testimony from colleagues who can identify Sepco materials at the work site are useful forms of product identification evidence.

5. Complete and Submit the Trust Claim Forms

   Your attorney will prepare the standardized Sepco Trust claim forms per the TDP requirements and compile all supporting documentation into a complete, compliant submission package.

6. Select the Appropriate Review Track

   Most mesothelioma claimants opt for Expedited Review, which provides faster processing and a fixed payment. Individual Review is available for claims with unusual circumstances or where additional evidence supports a higher scheduled value.

7. Respond to Trust Deficiency Notices

   The trust may request additional information or clarification. Your attorney will respond promptly to maintain processing momentum.

8. Accept the Payment Offer

   Upon approval, the Sepco Trust will issue a payment offer. At the current 10% payment percentage, mesothelioma claimants can expect approximately $25,000. Your attorney will advise on whether to accept or seek Individual Review for potential additional recovery.

Can You File Claims With Other Trusts Too?

Yes. Workers who were exposed to Sepco products at Gulf Coast refineries, chemical plants, and industrial facilities were typically also exposed to asbestos-containing materials from many other manufacturers. Pipe insulation from Owens Corning or Armstrong, gaskets from Garlock or Flexitallic, boiler components from Combustion Engineering or Babcock & Wilcox, and refractory products from dozens of manufacturers were common companion exposures in the same industrial environments where Sepco products were used. Each company that manufactured asbestos-containing products and later went through bankruptcy may have established its own trust fund.

A comprehensive asbestos litigation strategy typically involves filing simultaneously with every applicable trust. The Sepco Trust's 10% payment percentage is relatively favorable compared to many trusts — but even at $25,000, the Sepco payment alone is unlikely to constitute a full and fair recovery for a mesothelioma victim. Combining Sepco payments with payments from other trusts, and with civil lawsuit settlements against solvent defendants, is how mesothelioma victims and their families build meaningful total compensation packages.

Your attorney will coordinate all trust filings and any civil litigation on your behalf, ensuring that trust claims are disclosed as required during litigation and that the combined strategy maximizes every available source of recovery.

Frequently Asked Questions