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The $140 billion industry-funded asbestos trust fund bill was temporarily defeated on Tuesday with a 58 to 41 vote by the Senate Judiciary committee.
The bill''s strong proponents—namely the industry and big business interests—believe this defeat is just another obstacle that has been typical in the proposal''s long life and will be brought back to the Senate floor for another vote.
The asbestos-injury trust fund would be generated by contributions from companies and their insurers who have asbestos injury liabilities. The measure would provide workers who have suffered asbestos-related injuries to be rewarded a set sum, which would be contingent on the seriousness of injuries suffered. A victim suffering from mesothelioma, a particularly dangerous form of lung cancer, would be eligible to receive up to $1.1 million under the proposed bill.
Co-author of the bill, Patrick Leahy said to the senators who voted against the measure, “You are telling thousands upon thousands of victims ‘You are on your own and probably have no chance of recovering the recovery you''d have here (under the bill).''”
However, the trust fund would take possession of the assets of private asbestos injury trusts and excuse companies and insurers future responsibility for any asbestos-injury claims.
Budget issues were also a concern at the meeting. The majority of contributions expected from companies would be paid gradually so the fund would need to borrow money from the federal government, which would expose it to certain budget rules.
The defeat of the bill will benefit small and mid-size businesses who would have expected an increase in their asbestos-injury liabilities and defendant company insurers.
However, 10 asbestos companies including Owen Corning, USG and W.R. Grace and eight Fortune 500 companies including Ford Motor and Viacom, Inc will reap many financial benefits if the measure passes. According to Public Citizen, a consumer advocacy group, future liabilities of these companies may drop approximately $20 billion.
Asbestos, a chemical-resistant mineral used for electric insulation, building materials, and fireproofing, is common in the automotive and construction companies and has been connected to a number of lung diseases and other injuries.
In the last three decades, more than 730,000 Americans have filed claims for asbestos-related injuries that have cost companies and their insurers over $70 billion.
Public Citizen legislative council Jillian Aldebron said the bill''s defeat “means that asbestos victims will get their day in court.” This is currently the only way that a majority of asbestos injury victims have a chance of obtaining the compensation they deserve from liable parties.
Until the measure passes, victims of asbestos-related injuries, consumers, and people who reside near asbestos operations can still file claims to recover compensation for damages caused by asbestos.
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