Grassley Seeks Fair Solution for Asbestos Victims

Grassley Seeks Fair Solution for Asbestos Victims

? Sen. Chuck Grassley conducted a hearing this morning to review legislation offering a solution to the asbestos litigation problem.

The bipartisan Fairness in Asbestos Compensation Act of 1999 would create a nationwide administrative claims resolution process to compensate victims of asbestos exposure. Grassley said it is important for Congress to hold hearings on the issue to address the problem of how to resolve the multitude of asbestos claims in a manner that is fair, gets money to the sick, and speeds up the victims' compensation process.

"While most agree something needs to be done to fix this problem, there's disagreement about how to do it. For the sake of the victims and their families, we need to do the hard work necessary to come up with a fair process so that compensation is delivered to people who have been injured by asbestos," Grassley said.

Asbestos litigation has vexed the federal and state court systems for almost 30 years. The problem has exacerbated during the last decade with the number of asbestos suits filed in the federal courts between 1997 and 1998 increasing by over 27 percent. Today, more than 200,000 pending cases await action in the federal courts. Existing judicial rules and procedures have not resolved these claims in an effective manner.

Asbestos litigation also comes with staggeringly high costs. According to a study completed by the Rand Corporation, 60 cents of every dollar paid by asbestos defendants goes to transaction costs and attorneys' fees.

"The huge payments paid out to claimants and lawyers for plaintiffs who are not sick have bankrupt many of defendant companies and, in turn, prevent many victims who are sick and in need from ever receiving their just compensation," Grassley said.

Calls for legislative action to address this problem have come as a result of previous congressional hearings and twice from the U.S. Supreme Court itself in 1997 and 1999 decisions.

Grassley said the problem is an expensive burden for "the court system, the taxpayers, and especially the victims." He said that an alternative dispute resolution would cut down on wasteful litigation costs and allow compensation to reach victims in a more expeditious manner, rather than by going through the "litigation lottery."

The following witnesses testified at today's hearing:

"Finding Solutions to the Asbestos Litigation Problem:S.758, the Fairness in Asbestos Litigation Act of 1999