Asbestos

Over the past forty years, asbestos-related litigation has forced over 100 companies into bankruptcy – devastating workers, retirees, shareholders and affected communities. Some estimates project the total cost of asbestos litigation (including future claims) at more than $260 billion. Unfortunately, asbestos litigation has long been plagued by fraud. Reform is needed to protect job-creating businesses from lawsuit abuse and to ensure that legitimate victims receive the compensation they deserve. Read More...

Significant litigation over asbestos-related ailments began in the 1970s and has continued unabated ever since. Indeed, asbestos litigation has developed into a billion-dollar enterprise for plaintiffs’ lawyers – as evidenced by the endless TV and online advertising targeted at potential plaintiffs. 

While asbestos lawsuits originally focused on companies that mined asbestos or manufactured asbestos-based insulation products, the collapse of these early asbestos defendants forced plaintiffs’ attorneys to begin targeting new companies, including many that had little, if anything, to do with the manufacture or supply of asbestos-containing products. Many of these lawsuits are filed in plaintiff-friendly “magnet” jurisdictions such as Madison County, Illinois – even if neither the plaintiff nor the defendant has any real connection to the jurisdiction.

The bankruptcies of major asbestos companies also gave rise to trust funds intended to compensate future asbestos victims. Today, these trusts control assets with an estimated value of more than $30 billion. But the existence of the asbestos trusts has not slowed the wave of lawsuits against American businesses. In fact, one prominent plaintiffs' lawyer described asbestos litigation as an "endless search for a solvent bystander."

The asbestos trusts operate in parallel to the traditional tort system and offer only rudimentary reports on the claims they receive and pay. As a result, plaintiffs’ attorneys are sometimes able to hide the fact that a single individual is making multiple claims, citing different and contradictory exposure facts, against multiple trusts and solvent companies. This “double dipping” exposes innocent businesses to abusive lawsuits and deprives the trusts of funds intended for legitimate victims.

Reforms

Federal and state legislation is needed to discourage questionable claims against asbestos trusts, protect businesses from abusive lawsuits and ensure that asbestos trusts are able to compensate legitimate victims.

The Furthering Asbestos Claim Transparency (FACT) Act is federal legislation that would require asbestos personal injury settlement trusts to disclose information on their claims on a quarterly basis (H.R. 906, H.R. 985). This would allow trusts and businesses to identify and contest questionable claims.

The PROTECT Asbestos Victims Act, S. 2564, would authorize independent audits and oversight of asbestos bankruptcy trusts to discourage fraud and protect future victims’ access to compensation. The legislation would also ensure that future victims’ interests are adequately represented as courts consider approving new asbestos trust funds and discourage abusive “double dip” claims against solvent companies.

In addition, several states have proposed legislation or changes to court rules that would mandate greater transparency for trust claims. In 2012, Ohio became the first state in the nation to enact a law that requires plaintiffs to file and disclose trust claims before proceeding to trial. Arizona, Iowa, Oklahoma, Mississippi, North Dakota, South Dakota, Tennessee, Texas, Utah, West Virginia, and Wisconsin have since enacted similar laws.

Suggested Resources

Research
  • Dubious Distribution: Asbestos Bankruptcy Trust Assets and Compensation

    Dubious Distribution: Asbestos Bankruptcy Trust Assets and Compensation

    March 08, 2018

    The asbestos bankruptcy trusts, created with the goal of sustainably processing and paying valid asbestos personal injury claims, are quickly being depleted. ILR's research finds that of the 35 asbestos trusts operating as of early 2008, 21 are paying an average of 40 percent less today than in 2008, putting future compensation for asbestos victims in doubt. The paper documents the causes of this rapid depletion, including the highly significant impact of attorney contingency fees. Read More

  • On the Edge: New York County Asbestos Litigation at a Tipping Point

    On the Edge: New York County Asbestos Litigation at a Tipping Point

    August 03, 2017

    This report examines the history and current state of the New York County Asbestos Litigation (NYCAL) unit of New York City's state trial court. The analysis concludes that the procedural features that have driven verdicts and settlements higher than those in other jurisdictions are likely to continue under the Revised Case Management Order, absent fresh judicial interpretation and methods of implementation that correct current problems. Read More

Additional Resources

All Results for Asbestos

  1. In the News Today - July 17, 2018

    July 17, 2018 | News

    Defense Attorney Says SCOTUS Decision on Personal Jurisdiction in Class Actions is "Inevitable;" Illinois Appellate Judge Reverses Lower Court Decision on Personal Jurisdiction in Asbestos Case... Read More

  2. In the News Today - July 11, 2018

    July 11, 2018 | News

    Bestwall Lawyers Push Back on Asbestos Plaintiffs' Lawyers Attempt to Hire Four New Firms; New Report Finds Cost of Securities Litigation Has Skyrocketed in Recent Years... Read More

  3. In the News Today - June 6, 2018

    June 06, 2018 | News

    Showtime's "Billions" Outlines Lucrative Work of Running an Asbestos Bankruptcy Trusts; Man Loses TCPA Lawsuit after Filing 83 of Them... Read More

  4. ILR Research Review - Spring 2018

    May 31, 2018 | Research

    The Spring 2018 ILR Research Review explores a wide range of long-standing and emerging issues in legislation, regulation, and litigation, including artificial intelligence and other emerging technologies, state qui tam False Claims Acts, West Virginia legal reforms, and asbestos bankruptcy trusts.... Read More

  5. Arizona Supreme Court Says Employers Aren't Liable for "Take-Home" Asbestos Exposure

    May 14, 2018 | News

    : A five-justice majority of the Arizona Supreme Court ruled that employers cannot be held liable for "take-home" asbestos exposure, the Associated Press reports.... Read More

  6. In the News Today - May 8, 2018

    May 08, 2018 | News

    Fight Over N.Y. Asbestos Court's New Punitive Damages Rules To Undergo Major Test... Read More

  7. In the News Today - May 1, 2018

    May 01, 2018 | News

    Sheldon Silver "Blinded by Greed," Prosecutor Says as Retrial Opens; Attorney Dispute Over Asbestos Lawsuit Fees to Continue ... Read More

  8. In the News Today - April 20, 2018

    April 20, 2018 | News

    Self-Driving Cars, Thinking Machines Will Test Limits Of Tort Law; Texas Panel Told To Revive Asbestos Depo 'Coaching' Row... Read More

  9. In the News Today - April 4, 2018

    April 04, 2018 | News

    Cleaning Up The Asbestos Litigation Mess: A Role For The Department Of Justice?; "Follow-On" Securities Lawsuits Face Formidable Obstacles... Read More

  10. In the News Today - March 28, 2018

    March 28, 2018 | News

    "Congress: Please protect us from frivolous lawsuits"; Justices approve individual appeals in combined cases... Read More