Asbestos

As a result of the widespread use of asbestos in manufacturing prior to the 1970s, tens of thousands of Americans were subject to occupational exposure to asbestos. This exposure placed them at particular risk for developing asbestos-related diseases, including asbestosis, lung cancer, and mesothelioma, an incurable cancer linked to asbestos. Somewhat similarly, the use of sand and silica in manufacturing processes has harmed some workers in the form of a disease known as silicosis or other impairment.

Although advancements in science and workplace safety have helped reduce the impact of asbestos and silica on workers, a large number of lawsuits are still filed over asbestos and silica exposure.

Fraud Allegations
The asbestos and silica litigation systems have become extremely profitable for mass-tort trial lawyers representing claimants, and thus have resulted in suits known to be rife with fraud and abuse.

Trial lawyers have aggressively recruited plaintiffs for lawsuits, set up mass-screening enterprises known as “lawsuit mills,” and paid select doctors millions of dollars to conduct mass screenings of “patients,” some of whom they never saw in person. Many of the plaintiffs recruited for the lawsuits have had only a passing exposure to asbestos or silica and shown no signs of illness. Thousands of silicosis plaintiffs have been identified as prior asbestos plaintiffs, even though experts have found that an illness from exposure to both substances is medically rare.

The extent of asbestos and silica lawsuit abuse came to light in 2005 when U.S. District Court Judge Janis Graham Jack of Texas issued a scathing opinion in re: Silica Products Liability Litigation that dismissed thousands of potentially fraudulent silicosis claims from court, writing that “these diagnoses were driven by neither health nor justice: they were manufactured for money.” Judge Jack also exposed the collaboration among certain trial lawyers, doctors, and screening companies in bringing these allegedly fraudulent claims to court.

One doctor involved in diagnosing asbestos and silica claimants, Ray Harron, was paid more than $5 million to diagnose more than 53,000 claims. The U.S. House of Representatives Energy and Commerce Subcommittee on Oversight and Investigations held 19 hearings in 2006 on fraud in asbestos and silica lawsuit mills to further expose the problem. (Read Subcommittee Press Release

Litigation Impact

Asbestos lawsuits have been crippling to American businesses and workers. Thousands of companies have been named as defendants in asbestos cases, making this type of litigation the most expensive in U.S. history:

– Companies have paid out an estimated $70 billion on over 730,000 asbestos personal injury claims.
– To date 78 companies have filed for bankruptcy due to asbestos litigation liabilities, costing as many as 60,000 Americans their jobs.
– Total corporate asbestos liability to U.S. plaintiffs is expected to reach or exceed anywhere from $150 - $210 billion.

While silicosis causes, on average, fewer than 200 deaths per year in the United States, the number of silicosis plaintiffs jumped to close to 20,000 in lawsuits filed in a few southern states.

But the scope of asbestos and silica litigation isn't just a problem for business. Truly injured victims of asbestos- and silica-related diseases are being under-compensated because plaintiffs with little or no evidence of impairment are receiving payments, resulting in a reduced pool of available funds and the possible bankruptcy of other companies.

Reform Measures

Legislation to reform the asbestos and silica litigation systems has been proposed at both the state and national levels, and even some trial lawyers representing the victims of asbestos-related diseases have called for reform. The U.S. Supreme Court has also recognized the problem and has struck down asbestos class action cases in 1997 and 1999 as "too large and diverse to be represented in a single action." Justice David Souter wrote, "The elephantine mass of asbestos cases ... defies customary judicial administration and calls for national legislation."

The states of Texas, Ohio, Florida, South Carolina, Kansas and Georgia have passed legislation in recent years establishing medical criteria for asbestos and silica exposure, and the state of Tennessee passed a bill establishing medical criteria solely for silica exposure. The U.S. Congress has considered various reforms as well.

Issues/Research: Asbestos

101 Ways To Improve State Legal Systems

This user's guide to promoting fair and effective civil justice provides policymakers with a compilation of some of the many avenues available to fostering a sound legal system that promotes states’ economies. The reforms are organized into five areas. The first section highlights five reforms that have gained momentum and should be of particular interest to state legislators. The report then considers fair and effective measures that would improve the litigation process, improve product liability law, promote rational liability rules, and rein in excessive damage awards. LEARN MORE »

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Trends in Litigation

The business community needs to be aware of the latest trends in litigation.  So what are they?  At the 12th Annual Legal Reform Summit on October 26, 2011, we posed that question to several key practitioners.  This brief 3-minute video includes the responses of John H. Beisner, Practice Co-Leader, Mass Torts/Insurance Litigation Practice Area, Skadden, Arps, Slate, Meagher & Flom LLP; The Honorable Thurbert E. Baker, Former Attorney General of Georgia, and Partner, McKenna Long & Aldridge; Katherine L. Adams, Senior Vice President and General Counsel, Honeywell International, Inc.; and Lisa S. Blatt, Partner, Arnold & Porter LLP.

Source: U.S. Chamber Institute for Legal Reform
Released: Jan 20, 2012

Trends We Don’t Want To Continue: A Look at the Latest Lawsuits and Theories from The Trial Bar

This panel at the 12th Annual Legal Reform Summit on October 26, 2011 spotlighted litigation trends in a variety of areas such as asbestos and the use of civil conspiracy, transnational torts, and the use of outside contingency fee counsel by certain state attorneys general in recent litigation.

Source: U.S. Chamber Institute for Legal Reform
Released: Oct 26, 2011

Litigating in the Field of Dreams: Asbestos Cases in Madison County, Illinois

The Madison County asbestos litigation story involves the creation of a national clearinghouse for asbestos malignancy claims by first suspending normal rules about which courts should hear these cases, and second, by adopting procedures to facilitate the “processing” of large numbers of those claims. These factors combine to facilitate the process of extracting maximum value from the defendants. LEARN MORE »

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Litigating in the Field of Dreams: Asbestos Cases in Madison County, Illinois

Harold Kim, Senior Vice President at the U.S. Chamber Institute for Legal Reform, discusses the paper "Litigating in the Field of Dreams," which analyzes asbestos litigation trends in the perennially problematic jurisdiction of Madison County, IL.

Source: Institute for Legal Reform
Released: Oct 27, 2010

The Abuse of Medical Diagnostic Practices in Mass Litigation: The Case of Silica

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Trial Lawyers Inc. Asbestos

Sales v. Weyerhaeuser Co., 163 Wash.2d 14