Asbestos Bill Revived by GOP Leaders

Washington, DC, Apr. 9--Top Senate Republicans are taking another stab at ending asbestos-related lawsuits by creating a nationwide trust fund to compensate victims. Senate Majority Leader Bill Frist introduced legislation late Wednesday in an effort to overcome a logjam among Republicans and Democrats, who have negotiating for months over how best to reform the asbestos litigation system. "We must move forward," said Frist, R-Tenn. "I believe a fair and reasonable solution in a bill that can pass this body is possible." Frist said he would try to bring the legislation to a floor vote in late April. Still, Republicans will have to gain the support of organized labor and the insurance industry if the legislation is to have any change of passage. The bill has been re-worked since it was passed out of the Senate Judiciary Committee last July, gaining approval on a narrow ten to eight vote. The legislation includes amendments that would provide more compensation to victims, revised funding provisions to keep the fund solvent, and a new administrative system to speed claims. The compensation concessions were made at the request of Democrats and organized labor, Senate Republicans said. Under the new plan, payout increases were made in several disease categories such as "severe and disabling asbestosis." "This legislation offers a fair and efficient solution," said Sen. Orrin Hatch, R-Utah, on the Senate floor late Wednesday. "The bill provides a clear monetary gain for legitimate victims with faster and more certain compensation." The bill would create a trust fund of at least $108 billion financed by manufacturers and insurers. Republicans and Democrats agree that the current system for compensating asbestos victims is ineffective. It also has driven about 70 companies in bankruptcy due to liability claims. Armstrong World Industries, Halliburton, Georgia-Pacific, USG, Owens-Illinois are among a host of companies engulfed in asbestos-related suits. Last November, Travelers Property Casualty Corp. agreed to settle all asbestos-related class-action suits brought against it. Meanwhile, Hartford Financial Services Group agreed to pay $1.15 billion in the first quarter of 2004 to settle asbestos claims by MacArthur Co. and subsidiary Western MacArthur Co. Asbestos is an industrial toxic fiber that was widely used in building materials until the 1970s, when it was linked to lung cancer and respiratory diseases. It is estimated that nearly 28 million U.S. workers have been exposed to asbestos since 1940. In 2003, a record 100,000 asbestos claims were filed, Hatch said.

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