AAJ warns against asbestos-claim legislation

Listen to this article

Legislation pending in the House that would require private asbestos bankruptcy trusts to publicly release information about asbestos victims would delay claims and help companies avoid liability, the nation’s largest trial attorney group has warned.

The Furthering Asbestos Claim Transparency Act of 2013, H.R. 982, would prevent asbestos companies from being held responsible for the roughly 10,000 deaths caused by the substance each year, said Linda Lipsen, CEO of the American Association for Justice in Washington, D.C.

“This is unnecessary legislation that would allow the asbestos industry to delay and deny justice for dying asbestos victims,” Lipsen said in a statement.

The measure would require asbestos personal injury settlement trusts authorized by bankruptcy courts to disclose information about their claims on a quarterly basis and upon requests by parties to asbestos litigation.

Organizations supporting the measure, including the U.S. Chamber of Commerce, say it will bring transparency to the asbestos trust system and prevent fraud and abuse. The measure, supporters say, will not affect the rights of victims to make claims.

But opponents, including the AAJ, say the measure, if passed, would slow the resolution of asbestos claims by allowing defendants to bury the trusts in information requests.

“This is unnecessary legislation that would allow the asbestos industry to delay and deny justice for dying asbestos victims,” Lipsen said.”