Washington, January 31, 2006--The Council for Citizens Against Government Waste (CCAGW) today criticized Senate Minority Leader Harry Reid (D-Nev.) for his comments about S. 852, the Fairness in Asbestos Injury Resolution Act (FAIR Act).
The legislation establishes a trust fund to reimburse true victims of asbestos exposure while limiting the actions of trial lawyers. On January 25, Sen. Reid was quoted as saying that the bill would leave victims "out in the cold." What follows are excerpts from a letter sent by CCAGW President Tom Schatz to Sen. Reid:
As supporters of S. 852, CCAGW is concerned about the statements you made to the press on the January 25, claiming that the bill would leave victims "out in the cold." Nothing could be further from the truth. In fact, this bill is much better for victims than the current system.
The FAIR Act would set up a trust fund to compensate anyone who can prove he or she is suffering health problems because of asbestos exposure. Because of the flood of asbestos lawsuits, today victims must wait for years for compensation. Many die waiting for their day in court. Of course, since many asbestos-producing companies have already gone bankrupt, victims often find it difficult to collect any judgment they receive.
When they are able to receive financial remuneration, in some cases attorneys may take up half of the judgment when the victim finally receives it. The FAIR Act, however, would cap any attorney fees at 5 percent. That is certainly a preferred outcome for the victims, but not for the attorneys.
You also claimed that the cost of the FAIR Act to U.S. businesses would be $900 billion instead of the $140 billion which has twice been reviewed and verified by the Congressional Budget Office (CBO). There have been studies that claim otherwise, but CBO examined these studies and found they were replete with methodological errors.
While there are numerous misconceptions about the FAIR Act, it will put in place a system that is far superior to the asbestos litigation we are facing today. You have a chance to help victims, businesses, and taxpayers by passing the FAIR Act in February.
The Council for Citizens Against Government Waste is the lobbying arm of Citizens Against Government Waste, a nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.
