January 25 , 2006

A legislative bill proposing a $140 billion compensation fund for asbestos victims will go to the Senate floor on February 6. The bill is designed not only to compensate the many people who have been adversely affected by asbestos, but also to alleviate the myriad of high price lawsuits ensuing against companies culpable for asbestos exposure.

Efforts to postpone the bill have been ended by Senate Majority Leader Bill Frist who is determined to expedite the process. "To postpone debate on this issue is to blatantly ignore a very real problem," commented Frist in regards to the bill.

The asbestos compensation fund bill would prevent victims from suing companies for asbestos damages and instead would entitle them to compensation from the $140 billion fund, financed by insurance companies and corporate defendants, involved in the case.

Though seemingly an expert remedy to benefit both parties, many are concerned about the bill. The bill fails to proportionally address the funding issue and may present a situation whereby smaller companies are exhausting their available resources to pay off victims, while larger companies are not paying their fair share.

Similarly, insurance companies who are already financing $46 billion of the compensation fund, will continue to pay off remaining asbestos court claims in addition to exorbitant expenses towards the funds. The American Insurance Association issued a statement to Senator Frist alleging that the proposed bill as it is does not provide insurance providers with "certainty" and "finality" at an affordable cost.

Asbestos is a fibrous mineral found around the world that has been linked mesothelioma and other various lung cancers. Asbestos legal claims are bombarding the court system and costing insurance companies and corporations billions of dollars annually.

The asbestos compensation fun bill is expected to take a substantial amount of time before a definitive decision is reached.

For more information on asbestos related illnesses and death, please contact us to confer with an attorney.

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