Businesses Ask For Relief From Burden Of Asbestos Litigation
MACKINAC ISLAND, Mich., The Detroit economy could benefit substantially from asbestos litigation legislation currently being considered in Congress. The FAIR Act (S.852), introduced in the Senate in April, would effectively lessen the burden of asbestos litigation on Detroit companies.
Proponents of the legislation say it would not only provide relief to businesses, but also ensure that people with
asbestos-related health issues are compensated more quickly than they currently are under the court system. The bill provides a
$140 billion trust fund for potential asbestos-related illnesses.
The Detroit Regional Chamber, a member of the Michigan Asbestos Litigation Reform Coalition, has a number of member companies which have been negatively impacted by asbestos litigation. Richard E. Blouse, Jr., CCE, President and CEO for the Detroit Regional Chamber, said that there has been a massive influx of asbestos claims over the past several years.
"This is an issue that is affecting the backbone of Michigan's economy -- the auto industry. The Big 3 and the auto-part manufacturers have been inundated with asbestos lawsuits," Blouse said. "At one point, 3,500 new asbestos-related lawsuits were being filed against GM, Ford and DCX per month."
"People that have asbestos-related illnesses are really the victims here. Anecdotal evidence suggests that the majority of the claims being filed are by people that have no symptoms of asbestos-related illness," Blouse continued. "These claimants are exhausting the resources that could be used to compensate seriously ill individuals."
According to a recent study by the RAND Institute, more than 75 U.S. companies have gone bankrupt due to asbestos-related claims, resulting in a net loss of 60,000 jobs. The study estimates that the current asbestos litigation system represents a $200 billion drain on the economy.
The FAIR Act (S.852) was introduced in the Senate by Senator Specter and Senator Leahy in April. The Senate Judiciary Committee voted the bill out of Committee on May 26th with bipartisan support. Negotiations are expected to be ongoing as the bill reaches the floor. Blouse said that reform couldn't come soon enough. "In past congressional sessions, reform legislation has gained momentum but ultimately stalled. Detroit businesses deserve a resolution to this problem. We hope that Senators Levin and Stabenow support this historic opportunity to enact reform."
6 Jun 2005
Detroit Regional Chamber
|
Mesothelioma Attorneys
|
