Panel OKs Bill Creating Asbestos Fund

Fri Jul 11, 5:07 AM ET

By JESSE J. HOLLAND, Associated Press Writer

WASHINGTON - Senators closed in on creating a $108 billion asbestos liability trust fund in exchange for an end to litigation - but Congress is still far from resolving how to pay people made ill by the material.

The Senate Judiciary Committee (news - web sites) approved legislation creating the fund and banning asbestos lawsuits, but the close vote foreshadows problems when the bill gets to the full Senate.

The House has not yet considered the legislation. Without Democratic support or full Republican support, the bill is unlikely to even make it through the Senate, where Republicans hold only a two-vote margin.

Several Judiciary Republicans and Democrats have already said the legislation still needs more work before they would vote for it.

"I'm not confident that this is the quality of bill that we need to pass," said Sen. Jeff Sessions (news, bio, voting record), R-Ala., who voted for the measure in committee but would not commit to supporting the bill in the full Senate. "I think we've compensated people without impairments and we may be compensating people whose diseases or illnesses are not caused by asbestos more than is justified."

Democrats said the bill didn't provide enough money for victims who give up their right to sue.

"I still feel that victims are giving up too much to guarantee finality to those who are responsible for the diseases they inherit," said Sen. Patrick Leahy (news, bio, voting record), D-Vt.

Only one Democrat voted for the legislation, Sen. Dianne Feinstein (news, bio, voting record) of California. She cited the amendments she helped add to the legislation - a ban on most uses of asbestos in America, a backup fund in case the main asbestos fund begins to run out of money and Thursday's payout limits.

"I happen to believe they were substantial improvements on the bill and I believe that I can defend them," she said.

The committee approved the legislation after agreeing on a list of payments to people who have been exposed to asbestos, which was the last major hurdle on the bill.

The fund would recognize 10 levels of asbestos-related diseases: five levels of nonmalignant disease and five levels of cancer, including colorectal cancer and lung cancer.

A claimant with mesothelioma, the most lethal of the asbestos-caused cancers, would get $1 million. People with other cancers and at other levels of exposures would get less, and smokers, ex-smokers and nonsmokers who are sick from asbestos-related diseases would get different amounts of money.

"We're getting the money to the people who really need it," said Sen. Lindsey Graham, R-S.C.

Republicans and Democrats both say legislation is needed because asbestos liability is driving companies out of business and leaving asbestos victims with little or no money for medical bills.

Asbestos is a fibrous mineral commonly used until the mid-1970s for insulation and fireproofing. When inhaled, its tiny fibers can cause cancer and other ailments. The diseases often take decades to develop.

A trust fund would speed money to those people and give companies assurance that they will not be sued out of existence, supporters of the plan say.

Under the bill, insurers would contribute $45 billion and companies that have been sued would pay $45 billion to the trust fund, and the fund would pay people who are sick from asbestos without them having to go to court. Asbestos victims would lose their right to sue.

*** POSTED JULY 11, 2003 ***