Asbestos reform gaining momentum in the states

The issue of asbestos claims is still a complex legal and emotional one that continues to be grappled with in the courts and now state legislatures. The state of Michigan is looking to join the ranks of Georgia, Florida and Texas, all states that have worked to lower the numbers of frivolous asbestos lawsuits, hoping to prevent companies that did not produce asbestos from being sued into bankruptcy.

According to the Property Casualty Insurers Association of America, the Michigan House and Senate held hearings recently to explore legislative reform. The Michigan Senate conducted a hearing on Senate Bill 1123 before the Senate Judiciary Committee and House Bill 585 had its first hearing before the House Tort Reform Committee.

The national insurer group contends that both bills establish reasonable medical standards for asbestos and silicosis claims necessary to verify these illnesses; they place no additional burden on mesothelioma victims and suspend the statute of limitations, preserving the right of claimants to sue should they become ill.

These bills also allow each asbestos case to be tried on its own merits, not as part of a “bundle” of claims that may include a few truly sick claimants and dozens of unimpaired claimants, according to the PCI.

The measures under consideration provide a fair and reasonable approach to asbestos litigation by prioritizing the ability of people who are actually sick from asbestos exposure to seek compensation, yet preserving the rights of other workers should they eventually become sick from asbestos or silica exposure, supporters say.

In fact since 1988, more and more lawsuits alleging asbestos-related disease have filled state courts. In Texas, it is estimated that up to 90 percent of the cases are filed by people who are not impaired.

Insurers who support the bills now being considered in Michigan say that with reform, resources could be properly allocated to those who are truly ill, and that courts won’t be overburdened with cases that often seek to bankrupt defendants.

There is a momentum in many state legislatures to seek some solutions. For example, in Tennessee, a bill moved out committee. In Missouri, there was a hearing and the committee chair decided to form a subcommittee to get a bill sponsored for the next session. And, the Kansas Legislature passed a measure that is now in conference committee waiting for the next move. Additional legislation is pending in Louisiana, Pennsylvania and South Carolina.

With the hundreds of insurance-related proposals on the dockets in state legislatures around the country, officials are finally realizing that the asbestos issue will not just go away or be handled in the courts. This is a win for the insurance industry, but it is clear the fight must go on. The momentum is high right now for real reform … and that is a very good thing.