WASHINGTON – One of the nation’s leading
constitutional law experts, Harvard professor Lawrence
Tribe, told lawmakers Wednesday that the proposed
federal trust fund for asbestos victims did not exceed
Congress’ authority under the Constitution.
“The reality of approximate justice, swiftly and
surely delivered, is vastly preferable to the illusion
of precise justice,” Tribe told the Senate Judiciary
Committee.
Committee Chairman Orrin G. Hatch, R-Utah, chief
sponsor of the Fairness in Asbestos Injury Resolution,
or FAIR act, called the hearing a critical step in
reaching a politically feasible solution to a problem
that the U.S. Supreme Court has repeatedly asked
Congress to resolve, and urged a swift compromise to get
the bill passed before support for the initiative dies.
The bill would establish a $108 billion trust fund,
to be paid into by defendant companies and their
insurers, which would disburse compensation to people
who have become ill due to workplace asbestos. Payments
would be made over a 25-year period. The largest payment
would be about three-quarters of a million dollars –
relatively small compared to other multi-million dollar
litigation judgments.
Hatch and other advocates of the trust fund
legislation see it as the best way to ensure that those
who have been actually harmed by asbestos get some kind
of compensation. They’ve been critical of recent huge
awards courts have awarded to claimants who have been
exposed to asbestos, but haven’t actually fallen ill.
Opponents say the bill lets corporations whose workers
were exposed to asbestos get off too lightly by limiting
their liability and that the medical criteria for
establishing a claim are too stringent, besides the
potential bureaucratic costs to manage the trust fund
being too high. Some also complain that the bill does
not include provisions to provide reimbursement to
people who have been exposed to asbestos outside the
workplace.
Sen. Patrick J. Leahy, D-Vt., said he would not
support the bill unless a provision were added to
provide compensation to spouses and children of workers
who may have been harmed secondhand by the deadly
asbestos dust.
Senator Patty Murray, D-Wash., went beyond the
debate, saying Congress should consider outright banning
the manufacture and sale of asbestos-containing products
that are still in use in the United States, such as
roofing and floor coverings.
Although members of the Judiciary Committee remained
far apart on the legislation, Hatch said he was
determined to seek a formal committee vote, perhaps as
soon as next week.
Litigation to recover damages for workplace exposure
to asbestos has been a political issue for nearly 20
years. During that time, according to a study conducted
by the RAND Corporation, over 600,000 people have filed
asbestos-related lawsuits. Many of the claimants are
people who have not developed health problems as a
result of their exposure.
More than 6,000 companies, from nearly every industry
in the United States, have been named as defendants, and
56 have gone bankrupt in paying damages. More than half
of the damages recovered in the mass of lawsuits have
gone to pay court costs and lawyers’ fees, RAND said,
and 65 percent of damages were won by still-healthy
plaintiffs.
Last month, the Hartford Financial Services group
blamed a wave of layoffs on the costs of asbestos
claims.
Tribe said he feared that under the current system,
severely injured plaintiffs may have to go through years
of waiting to get court-awarded damages, which may never
come if the defendant companies go bankrupt paying
claims. Hatch and other backers of the trust-fund plan
agreed.
Mark Peterson of RAND testified that some claimants
would go uncompensated at any rate, because a $108
billion trust fund was not enough, he said, to
compensate all the victims of asbestos-related disease.