Asbestos Litigation To Be Limited By New Bill

By Ramsay Crooks

Published on July 22, 2005

After gaining unprecedented bipartisan support in the Senate Judiciary Committee, the plan would severely curtail the number of new asbestos exposure cases brought against manufacturers. Instead, the targeted companies and their insurers would pay an annual amount into a trust fund, which would then be used to award set amounts of money to victims who have contracted asbestos-related diseases such as asbestosis and mesothelioma.

Mesothelioma, a fast-moving and extremely lethal form of cancer, sometimes takes decades to develop. Since asbestos was freely used in making fire-retardant and insulation materials through the 1970s, this means that mesothelioma cases are now exploding in number.

The new bill is intended to soften the blow for asbestos manufacturers somewhat; under the current system, individual claims are producing highly unpredictable settlements, with certain cases and states awarding damages that are far above the average. Of the estimated 8,400 defendants in United States asbestos cases, 70 of those companies have gone out of business due to litigation.

Despite its strong support in the Senate, the bill's critics seem to come from all corners. Even some manufacturers are against the new proposition, saying that they will have to contribute an unfairly high amount of money in order to compensate for the more egregious exposure cases.

The bill is expected to reach the Senate floor by the end of the summer.

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