FEDERAL ASBESTOS LEGISLATION UPDATE

By Scott Hendler, HENDLERLAW, P.C.
November 10, 2005

The federal legislation, commonly known as the Asbestos Trust Fund Bill, was voted out of the Senate Judiciary Committee last Spring. The official number of the bill is Senate Bill 852. There are a couple of key problems with this legislation:

1. The bill proposes to divert all the money ear-marked to set up bankruptcy trusts.
   
   Many of our clients have settlements that were owed to them when the companies filed for bankruptcy, and the money to pay those claims will go instead to fund the Asbestos Trust. However the maximum any mesothelioma victim or their family can receive under the proposed fund is $1.1 million, which means that almost none of our clients will qualify even if they are still owed settlement money.
2. The cost of the trust is estimated by its sponsors at $140 billion - an amount that independent studies have concluded is ridiculously low.
   
   A recent study commissioned by a group of Conservative State Lawmakers concluded that the fund will really require $300 - $560 billion to pay all the future claims. When the fund runs out of money, the shortfall will fall onto the backs of taxpayers. In other words taxpayers, including Asbestos Survivors, will end up paying for the liability of the asbestos industry.

Senator Frist has stated that this legislation will be the first major bill brought to the floor for a vote in early 2006. Defeating this bill is critical to protecting your interests in the bankruptcy trusts and protecting the rights of future victims to hold the responsible companies accountable. Now is the time to contact your United States Senators and urge them to oppose the bill. You can get your Senator's contact information online at www.senate.us.gov.