The Dana Corporation, now known as the Dana Holding Corporation, is an automotive parts manufacturer and supplier based in Maumee, Ohio. Dana has a long history of asbestos use in manufacturing vehicle components. Lawsuits over asbestos exposure brought by employees, contractors, and consumers led to Dana’s bankruptcy filing.
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Did Dana Use Asbestos?
Dana Corporation used asbestos in the auto parts it manufactured for many years. Most automotive companies used asbestos, primarily in friction parts like clutches and brakes.
Dana Corporation History
A young engineering student, Clarence Spicer, established the Dana Corporation in 1904 after he invented and patented an encased universal joint.
- Spicer created the joint while attending Cornell University. He moved to Plainfield, New Jersey, shortly after to set up and market his business.
- The first universal joints, “u-joints,” were shipped to Connecticut’s Corbin Motor Company.
- By 1906, business began to grow and acquire others, including American Motors, Kelly-Springfield Motor Truck Co., Buick Motor Co., Olds Motor Works, and more.
- Four years later, as his business grew, Spicer renamed it the Spicer Manufacturing Company.
- After many years of success, the company struggled financially in 1914. In 1928, the company relocated to Toledo, Ohio, to boost business.
- The company’s name was changed again to Dana Corporation, and the company once again began to grow.
- Dana Corporation then expanded its line to include more products. The company also purchased a few auto suppliers, including the Victor Gasket Manufacturing Company and the Perfect Circle Corporation.
- By 2006, Dana Corporation again faced financial troubles as numerous asbestos-related lawsuits and claims against it mounted. The lawsuits led Dana Corporation to file for Chapter 11 bankruptcy.
Dana reorganized after bankruptcy with a trust to compensate claimants. The trust is only for former Dana employees exposed to asbestos on the job.
Asbestos Products Made by Dana Corporation
Most companies that made automotive companies used amianto in the past. Asbestos is an efficient insulator and effective at fireproofing. These were important qualities for making friction car parts, like brakes and clutches.
Some body parts were also made with asbestos to manage heat and lower the risk of fires.
Dana Corporation manufactured numerous products that contained asbestos, including the following:
- Brake pads
- Brake linings
- Juntas
- focas
- Universal joints
- Driveshafts
- Transmissions
- Axles
- Thermal management products
Who Was Affected by Dana’s Asbestos Products?
Dana employees were at risk of exposure to asbestos. Workers in Dana manufacturing facilities handled or worked very near asbestos. When handled, asbestos releases small fibers that contaminate the air and cause exposure.
Once Dana products left the plant, they traveled far and wide to other companies and vehicle owners, putting many more people at risk of asbestos exposure:
- Automotive assembly plant workers
- Auto mechanics
- Home auto hobbyists
Workers in other industries also used Dana asbestos seals, gaskets, valves, and other components. These included pipefitters, plumbers, steamfitters, boiler workers, and others.
Asbestos Lawsuits Against Dana Corporation
Dana Corporation faced thousands of asbestos-related lawsuits from former workers and others exposed to asbestos in their products. Many of these people later developed illnesses like mesotelioma and sued to recover damages.
Louis Hicks
In Sept. 2002, Louis A. Hicks, a rope packer and construction laborer, filed an asbestos-related lawsuit against Dana Corporation and 11 other companies. He was diagnosed with malignant mesothelioma.
According to court documents, during his 40-year career, Hicks was exposed to asbestos that stemmed from Dana Corporation’s products.
In addition to working around pipefitters who installed asbestos-containing gaskets, he cut and packed rope filled with asbestos.
Hicks also handled the same type of gaskets that pipefitters installed, including four different kinds of gaskets manufactured by Dana Corporation.
During the trial, Dr. James C. Giudice, a board-certified internal medicine and pulmonary physician, testified that the three types of asbestos found in Dana Corporation’s products (chrysotile, amosite, and crocidolite) were all dangerous to human health.
Hicks passed away in 2003 from mesothelioma, but his daughter carried on with his trial. The Superior Court of Pennsylvania found Dana Corporation and the additional 11 manufacturers liable for Hicks’ illness in the lawsuit.
Dana Corporation was ordered to pay $464,605.650 for Hicks’ asbestos exposure via gaskets. The other manufacturers were ordered to pay $5,000,000.
Marlena Robaey
Marlena Robaey developed mesotelioma peritoneal, a rare form of this type of asbestos cancer. She and her husband worked on cars for many years.
Robaey’s husband also worked with boilers and brought asbestos fibers home on her clothing. She was exposed to asbestos secondhand and also through her own work with asbestos car parts.
Robaey filed a lawsuit against Dana and other companies whose products contained asbestos and contaminated her. A jury in the trial found Dana to be 40% liable for the expenses resulting from her illness. She received $75 million in total damages.
Dana Bankruptcy and Reorganization
The costs of these and other lawsuits forced Dana Corporation to seek bankruptcy protection in 2006. The company emerged in 2007 while continuing to resolve cases.
In 2007, the Ad Hoc Committee of Asbestos Claimants appealed the Dana Corporation reorganization plan. The plan included the creation of a subsidiary, Dana Companies, LLC, to which Dana would transfer its liabilities and $240 million to resolve them.
The Ad Hoc Committee felt that Dana Corporation didn’t set aside enough funds to compensate asbestos victims. The list of victims had reached over 80,000 claimants. Initially, the Dana Corporation said asbestos-related claims only equaled 3% of their total debt.
However, when replying to the Ad Hoc Committee, Dana Corporation said there was $240 million set aside in the trust fund for current and future asbestos-related claims. Ultimately, Ad Hoc’s appeal did not affect Dana Corporation’s emergence from bankruptcy.
Even after reorganization, Dana continued to face lawsuits over asbestos exposure. In 2016, Enstar Group acquired Dana Companies, LLC, and the asbestos liabilities. Enstar is now responsible for Dana’s asbestos liabilities and claims.
Dana Voluntary Employee Beneficiary Association
The company has never established an asbestos trust fund for claimants, but it did create the Voluntary Employee Beneficiary Association (VEBA). The fund is only for former Dana employees.
VEBA is a fund that covers long-term disability as well as medical expenses, including asbestos-related costs. The Dana Corporation placed around $800 million into the VEBA fund, as well as $80 million from the company stock.
If You Were Exposed to Dana Asbestos Products
Many people have been injured by Dana Corporation’s products, including car mechanics, pipefitters, maintenance workers, boiler workers, engine room workers, steamfitters, automobile production workers, and more. If this includes you, talk to un abogado especializado en mesotelioma about your rights.
An experienced lawyer can help you find options for compensation if you do not qualify for VEBA. Other companies could be held liable. You might be eligible for a lawsuit or a trust fund set up by another asbestos company.
Legal Resources and Additional Information for Asbestos Victims
There is currently over $30 billion in asbestos trust funds set up for those who are victims of asbestos-related diseases. Don’t forget to fill out our form for our free Financial Compensation Packet, filled with information on the experienced asbestos and mesothelioma attorneys in your area. If you have questions or need assistance, contact us toll-free at 800-793-4540.
