Title Goes Here Asbestos Litigation Bill Up After Senate Class Action Debate

By Emily Heil and Susan Davis
(Jan. 28, 2004)

Senate Majority Leader Frist is planning to bring up asbestos litigation reform legislation after the chamber considers the class action bill, and he hopes that the asbestos bill that will get a floor vote will draw broader support than the committee version did. "We're going to lay the best possible compromise legislation on the table," he said. Frist had given a March deadline for a vote, but Tuesday said the asbestos bill would follow the legislation on class action and reauthorizing federal surface transportation programs.

Senate Judiciary Chairman Hatch, who authored the original bill, said he and Frist are in touch about the legislation. Hatch's bill would replace the current court system with a "trust fund" used to compensate victims of asbestos-related illnesses and would also set medical criteria and awards to victims with varying levels of illness.

Hatch said negotiations would resume over the bill -- which failed to garner consensus among insurers, defendant companies in asbestos litigation, labor unions, and victims' groups -- because of disagreements over financing and awards to victims.

But if negotiations fail, Hatch said senators would be put to a difficult vote.

"Sometimes you have to face the music," Hatch said. "We're going to have to bring it to a boil here, and people are going to have to realize that they have to vote on it." The asbestos bill will "hopefully" be a stand-alone measure, he added.

Hatch said that a "fairly strong consensus" to vote on the bill is developing among members of the Republican Conference.

He argued that Senate Democrats are impeding further action because they are "very afraid of [the legislation] because they can't pacify all of their base constituents," citing trial lawyers, unions and some corporate interests who have lobbied against the bill.

Despite plans to bring the bill to the Senate floor, divisions among stakeholders remain. When negotiations over the bill broke down last year, Frist called a $114 billion deal he brokered with insurers and defendant companies a "final offer."

But labor unions balked at the figure, saying a minimum fund of $153.8 billion was needed to ensure just compensation.

Meanwhile, USAction, a labor-affiliated consumer group, is hoping to press the case for higher compensation for victims, reminding lawmakers in a national advertising campaign about the impact of asbestos on workers.

Helen Gonzales -- USAction's policy director -- said the ads, which are running nationally, are intended to turn Congress' attention to the issue early in the session.

The group also sponsored ads and news conferences featuring asbestos victims in nine states during the week of Jan. 13-19.

*** POSTED FEBRUARY 2, 2004 ***