Senators Debate Asbestos Suit ReformWashington

Congress should reject any asbestos litigation reform thatestablishes highly restrictive criteria before claimants areallowed to file lawsuits, a leading Senate Democrat said.

Sen. Max Baucus, D-Mont., who is the ranking Democrat on theSenate Finance Committee, said that a proposal to preventasbestos-related lawsuits unless claimants exhibit certain medicalconditions, such as mysothelioma, may do an injustice to thousandsof injured people.

Speaking at a Senate Judiciary Committee hearing, Sen. Baucussaid that establishing very strict medical criteria, a proposalwhich is backed by the American Bar Association as well as theinsurance industry, is arbitrary, unfair and excessivelyburdensome.

“It sounds clean, neat and logical,” Sen. Baucus said of theproposal. “People cant file for compensation until they areactually sick, theoretically allowing defendant companies toprotect their assets and ensuring a greater chance that victimswill be able to recover some compensation if and when they becomesick.”

However, he said, the proposal would have the effect of treatingall people in the same manner, regardless of their circumstances,regardless of when where and how they were exposed, and regardlessof the type of injury they suffered.

“The point is that no matter how a medical criteria standard isdeveloped, Congress will have to choose a more or less arbitrarystandard that will cut off people who have been injured,” Sen.Baucus said.

“We had better be very, very sure that this is the only just wayto address the asbestos litigation issue,” he added. “I just cantbelieve that we cant be creative about this.”

But Sen. George V. Voinovich, R-Ohio, endorsed the ABAsapproach. It would, he said, prevent resources from beingmisdirected because of a flood of premature claims.

Moreover, Sen. Voinovich said, it would help companies avoidbankruptcy while protecting the rights of victims who suffer from aserious or functionally impairing asbestos-related disease.

He cited companies in Ohio, such as Federal Mogul and OwensCorning, that have had to file for bankruptcy because of asbestoslitigation. Employees and retirees who owned stock in thesecompanies have seen their assets shrink dramatically, Sen.Voinovich said.

These companies, he said, are the backbone of Ohios economy.

“They dont want to shirk their responsibility to those victimswho have or will become truly sick because of asbestos exposure,”Sen. Voinovich said.

“They just want to know that they are compensating thoseindividuals who need it and not lining the pockets of personalinjury lawyers and their unimpaired plaintiffs,” he said.

Sen. Patrick Leahy, D-Vt., who is the ranking Democrat on theJudiciary Committee, said he believes that if everyone works ingood faith, a bipartisan solution to the problem can beachieved.

However, he said, special interest groups cannot overreach inseeking immunity from legitimate claims.

“For Congress to enact reforms this year, all the stakeholderswill have to come to the table willing to work with open mindstoward a realistic and reasonable solution,” Sen. Leahy said.

“The answer will require the full participation not only ofvictims and the corporate defendants, but of their insurers aswell,” he added. “It will not be a stacked solution that attemptsto shoot the moon for one side or the other.”

Judiciary Committee Chairman Orrin Hatch, R-Utah, said he isencouraged by recent developments, such as the ABAs position onmedical criteria. Congress, he added, must resolve this “trainwreck.”

He said he is keeping an open mind on the best approach. Sen.Hatch said that he has encouraged various interest groups toprovide the Committee with recommendations and he hopes thatprocess will be completed in the next two weeks.

“Folks, time is running out before literally thousands of ourmost productive companies in this country and hundreds of thousandsof jobs are put at serious risk by these suits,” Sen. Hatchsaid.

Reproduced from National Underwriter Edition, March 10, 2003.Copyright 2003 by The National Underwriter Company in the serialpublication. All rights reserved. Copyright in this article as anindependent work may be held by the author.