Asbestos Liability System Reform

As a result of the widespread use of asbestos in manufacturing before the 1970s, tens of thousands of Americans were subject to occupational exposure, placing them at risk for developing asbestos-related diseases, including asbestosis, lung cancer, and mesothelioma, an incurable cancer. The 1994 edition of the medical text Occupational Lung Disorders described asbestosis as a “disappearing disease”; but while asbestos-related diseases may be disappearing from American hospitals, lawsuits by alleged victims of asbestos are on the rise in American courthouses.

 

Under current law, asbestos lawsuits have become very profitable for personal injury lawyers. Companies have paid out an estimated $70 billion on some 730,000 asbestos injury claims, making it the most expensive type of litigation in U.S. history. Massive enterprises have been established to recruit asbestos “victims” to sue companies, although many of these recruits have had only passing exposure to asbestos and show no signs of illness. The asbestos litigation system is known to be rife with fraud and abuse.

 

Because the system is clogged with questionable asbestos lawsuits, people who truly have been injured by exposure to asbestos are not receiving the compensation they need and deserve in a timely fashion, if at all. Additionally, the asbestos litigation system has forced bankruptcy on more than 70 companies, costing as many as 60,000 Americans their jobs.

 

Total corporate asbestos liability is now expected to reach or exceed $200 billion. The bulk of the recent surge of asbestos-related litigation is occurring among claimants alleging nonmalignant asbestos-related conditions—the most subjective diagnoses. Unfortunately, the system is so skewed that some plaintiffs who are sick have their cases consolidated with those who are not yet showing signs of physical impairment.

 

The result is that those who are not showing signs of illness effectively hold hostage many of the plaintiffs who are sick, and the limited funds available for settlement payments for future claimants are exhausted. There is little debate over the need to do something about asbestos litigation; there is much disagreement, however, over the solution.

 

 

The U.S. Chamber is working to unify the business community in support of federal legislation to deal with the asbestos litigation crisis.