Texas Senate Passes Asbestos Bill

The Texas State Senate reported that after 10 years of searching for a balanced, bipartisan asbestos litigation reform solution, it unanimously passed a measure that proposes to reduce the number of claims while protecting the rights of the afflicted. Senate Bill 15, by Senator Kyle Janek of Galves-ton, addresses a number of problems associated with asbestos and silica litigations.

The Senate approved the measure by a vote of 30-0 (with one excused absence).

“It’s going to protect those workers that have been impaired, and we’re going to protect those workers who have been exposed but are not yet impaired,” Janek said in the Senate’s announcement.

The state’s lieutenant governor and two national insurance carriers associations praised the bill’s passage.

Lt. Gov. David Dewhurst said the measure will finally help the true victims of asbestos and silica-induced illnesses receive the compensation they deserve.

“I’m proud the Senate passed historic legislation that that will compensate truly injured workers. By weeding out premature suits, we can ensure those who are truly ill from asbestos get first priority in our courts,” Lt. Gov. Dewhurst stated. “I compliment Senator Janek and Committee Chairman Robert Duncan for their leadership and tireless work to craft a bill that is fair to all sides. The fact that SB 15 passed 30-0 reflects that.”

Dewhurst’s office reported that SB 15 bill will ensure that individuals who are impaired from asbestos or silica exposure receive first priority in the courts, by requiring that persons first be diagnosed with asbestos or silica-related impairments.

To protect those individuals who are later diagnosed with impairments years after exposure, the legislation extends the statute of limitations, enabling those individuals to take their cases to court years after exposure to asbestos or silica. The legislation also specifies that an individual who files an asbestos or silica claim cannot be denied health, life or annuity insurance or charged higher premiums solely because of exposure.

To limit the flood of claims in Texas courts, SB 15 stipulates that bundling or grouping various asbestos or silica-related claims into a single trial will not be permitted, unless all parties agree.

The American Insurance Association said the bill should preserve the rights of victims, while also protecting Texas businesses from the scourge of rampant lawsuit abuse.

The Property Casualty Insurers Association of America maintained that the measure would protect the right of people with asbestos- and silica-related impairment to obtain compensation in a fair and efficient manner through the Texas court system.

“Texas needs to get its civil justice system in this area back in balance and this legislation should help do that,” said Fred Bosse, AIA vice president, southwest region. “We need a system that quickly, fairly and efficiently compensates people who are truly sick from asbestos and silica illnesses, and one that also provides more certainty and stability for defendants and insurers.”

Currently, when someone knows that they have been exposed to asbestos or silica, they must file a claim within two years or they forfeit their right to sue. Because many of the diseases associated with asbestos or silica exposure take years to develop, someone who sues before actual impairment can be demonstrated may receive damages that are less than they would have received if they were actually sick. That settlement might not cover the health-care costs incurred once actual illness develops.

“What’s happened over the years with the two-year statute of limitations is that workers who are exposed but not impaired were crowding the courtrooms, receiving only partial recovery, which hurt them later if in fact they became sick,” Dewhurst said.

Because of the sensitivity of this issue, Janek said he worked with all sides and parties in the Senate to ensure that all the Senators were comfortable with voting for SB 15.

Some Senators were concerned that the bill could be changed in the House. To allay these fears, Janek assured the body that the bill they voted out would be exactly the same as the bill signed into law, and that he would straighten out any changes made by the House in conference committee.

“Texas is taking an important step forward in achieving meaningful asbestos litigation reform,” said Joe Woods, assistant vice president and regional manager for PCI. “This bill provides the proper balance in the civil justice system. It will stop the abuses caused by mass screenings conducted by entrepreneurial law firms and screening companies that clog the courts with unimpaired claimants. In addition, it ends the abusive practice of consolidating cases, which brings together a large number of unimpaired individuals with a few truly sick asbestos claimants. This means cases will be tried as they should be–on an individual basis.”

Historically, Texas has had among the highest number of asbestos lawsuits in the nation, according to Dewhurst.