Lawmakers urged to pass FAIR Act
There is broad agreement among thoughtful people in this country that the asbestos litigation system is broken. More than $80 billion has already been spent on asbestos litigation and nearly half of that has gone to lawyers rather than the true victims of asbestos -- individuals suffering from deadly mesothelioma and other forms of lung cancer linked directly to exposure to asbestos. These costs are rising and won't stop until the system is fixed.
Many businesses with only a remote connection to asbestos have found themselves named as defendants in asbestos lawsuits across the country. And why are these businesses with little or no connection to asbestos being sued? Because most of the companies that produced asbestos have long ago disappeared into bankruptcy.
To date, almost 100 companies have already been driven into bankruptcy by asbestos lawsuits and tens of thousands of U.S. jobs have disappeared as a result of asbestos-related bankruptcies. Scores of additional companies -- many of which never made, sold or distributed products containing asbestos -- today teeter on the brink bankruptcy. Clearly, a broad, national solution to this legal and business crisis is needed.
The Fairness in Asbestos Injury Resolution Act (FAIR Act), which has already been approved by a bipartisan margin in the Senate Judiciary Committee, will put an end to the inequity in the current system and finally provide relief to sick victims. The bill would take asbestos claims out of the courts and compensate the truly sick on a no-fault basis from a trust fund financed by defendant companies and their insurers.
Some opponents of the bill would have you believe that this bill will harm small businesses, but small businesses needn't be worried that the trust fund will drain them of their necessary capital funds.
First, small businesses, as defined under the Small Business Administration Act, and businesses with less than $1 million in previous asbestos expenditures, will be exempt from any funding obligations under the FAIR Act. And the fund administrator would be required to grant hardship and inequity relief to companies that can demonstrate that its FAIR Act funding obligations would lead to insolvency.
Without this important bill for sick victims and the many economic victims of out-of-control asbestos litigation, greedy trial lawyers will continue to milk the system for profits and victims of asbestos exposure will continue to get only a fraction of the compensation they deserve. What's more, many American workers and retirees will continue to suffer the economic consequences of a system that creates serious financial uncertainty for employers.
We call on Senators Debbie Stabenow and Carl Levin to do what's right for Michigan's workers and for the many thousands of sick asbestos victims trapped in today's broken legal system. I urge both Michigan senators to support the FAIR Act when it comes up for full Senate consideration this fall.
John "Mac" MacIlroy is the president and CEO of Michigan Manufacturers Association, 620 South Capitol Avenue, Lansing, MI 48901-4247.
Many businesses with only a remote connection to asbestos have found themselves named as defendants in asbestos lawsuits across the country. And why are these businesses with little or no connection to asbestos being sued? Because most of the companies that produced asbestos have long ago disappeared into bankruptcy.
To date, almost 100 companies have already been driven into bankruptcy by asbestos lawsuits and tens of thousands of U.S. jobs have disappeared as a result of asbestos-related bankruptcies. Scores of additional companies -- many of which never made, sold or distributed products containing asbestos -- today teeter on the brink bankruptcy. Clearly, a broad, national solution to this legal and business crisis is needed.
The Fairness in Asbestos Injury Resolution Act (FAIR Act), which has already been approved by a bipartisan margin in the Senate Judiciary Committee, will put an end to the inequity in the current system and finally provide relief to sick victims. The bill would take asbestos claims out of the courts and compensate the truly sick on a no-fault basis from a trust fund financed by defendant companies and their insurers.
Some opponents of the bill would have you believe that this bill will harm small businesses, but small businesses needn't be worried that the trust fund will drain them of their necessary capital funds.
First, small businesses, as defined under the Small Business Administration Act, and businesses with less than $1 million in previous asbestos expenditures, will be exempt from any funding obligations under the FAIR Act. And the fund administrator would be required to grant hardship and inequity relief to companies that can demonstrate that its FAIR Act funding obligations would lead to insolvency.
Without this important bill for sick victims and the many economic victims of out-of-control asbestos litigation, greedy trial lawyers will continue to milk the system for profits and victims of asbestos exposure will continue to get only a fraction of the compensation they deserve. What's more, many American workers and retirees will continue to suffer the economic consequences of a system that creates serious financial uncertainty for employers.
We call on Senators Debbie Stabenow and Carl Levin to do what's right for Michigan's workers and for the many thousands of sick asbestos victims trapped in today's broken legal system. I urge both Michigan senators to support the FAIR Act when it comes up for full Senate consideration this fall.
John "Mac" MacIlroy is the president and CEO of Michigan Manufacturers Association, 620 South Capitol Avenue, Lansing, MI 48901-4247.
posted by Chris Placitella at 8:34 AM
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