Asbestos Settlements Legislation

Senator Orrin Hatch has introduced legislation that would impose a nationwide asbestos settlement. The Hatch bill appears to be a wish list from the companies being sued for asbestos liability. Several of them would come out paying much less under the Hatch proposal than they have already agreed to pay in settlements. Payments to claimants under the Hatch bill would be less than the average awards in trials and most settlements. Even then, the assessments that the companies would pay into the fund probably would not fully fund the claims even at the level in the bill.

More than 600,000 people have filed asbestos related suits, and more are filed every week. In most cases, the plaintiffs sue a dozen or more defendants, so there are millions of potential personal injury claims at varying stages in the courts. To date, it is estimated that defendant companies and their insurers have spent about $54 billion on asbestos litigation, with more of it paying the legal expenses on both sides than going to the claimants who suffered from exposure to asbestos.

In the earliest asbestosis cases, the defendant businesses contested whether workers were really injured, whether asbestos was responsible, and whether their own products and practices were at fault. Eventually, courts established standards for determining injury and liability, and many cases were consolidated. In consolidated cases, a few cases would go to trial, with the results being applied to the larger group of individuals based on their illness, exposure, and other variables. After a few large awards against them, defendant companies began negotiating settlements with attorneys representing thousands of claimants at a time, with payments made according to schedules of diseases and symptoms.

Two attempts at global settlements were overturned by the Supreme Court over procedural issues. Justices Souter and Ginsburg both suggested that national legislation was needed to provide for a nationwide settlement with an administrative structure capable of processing all the claims. The pressure for a legislated settlement comes from the realization that the defendant companies will not have enough funds to fully pay all the claims against them.

Sixty companies have filed bankruptcy as a result of asbestos liability. Bankruptcy courts have allowed firms to establish trusts to take responsibility for their pending and future asbestos liability. Bankruptcy judges often allow companies to pay less than the full value of claims against them. In recent years, several corporations have had their asbestos-related subsidiaries file bankruptcy while the parent corporation remained solvent and outside the reach of the bankruptcy court.

Concerns regarding the ability of companies to pay all claimants has encouraged even more claims to be filed. Attorneys file suits for clients who were exposed to asbestos but currently have only minor symptoms, in order to get into court sooner rather than later. However, these claimants want to be assured that their compensation could be increased if they later suffer from a severe asbestos-related illness. Attorneys and claimants may have different opinions about the need for a national settlement depending on whether their cases are near the front of the line or the back of the line in the court system.

Senator Orrin Hatch introduced a bill, S. 1125, that would specify medical criteria and establish a schedule of benefits based on the diagnosis of specific illnesses. Payments would range from $20,000 to $1,000,000, considerably less than the average award for cases that have gone to trial. Defendant companies would pay an assessment into the compensation fund, but no company would be forced to pay more than $25 million per year for 27 years. Thus, the most a company would have to pay would be $675 million.

In December 2002, Halliburton Company filed a "pre-packaged" Chapter 11 bankruptcy that could cost as much as $4 billion to pay current and future asbestos claims. Currently, bankruptcy proceedings are the only sure means for a company to settle future claims. A pre-packaged bankruptcy is one in which the company has already reached agreement with its creditors before the filing. The company press release announced that the settlement was good news for Halliburton stockholders.

In 1998, while Dick Cheney was CEO of Halliburton, the company purchased Dresser Industries. Dresser had a large number of asbestos claims against it. Kellogg Brown & Root, another subsidiary of Halliburton, also had a substantial number of asbestos claims against it.

Under the terms agreed to by the bankruptcy court, only Dresser Industries and Kellogg Brown & Root filed bankruptcy. The subsidiaries will continue to be wholly-owned and operated by Halliburton, with the bankruptcy court supervising the trust set up to pay asbestos claims against them. The asbestos trust will be funded by up to $2.775 billion in cash and 59.5 million shares of Halliburton stock, although the company is proceeding with claims to have its insurance companies pay most of the costs.

Senator Hatch's bill would limit Halliburton's total payout to $675 million over a 27-year period, in effect giving them back more than $3 billion that they promised the bankruptcy court that they would pay. I could not support such an absurd proposal and will oppose it if it comes to a vote in the House of Representatives.

Asbestos Settlements:

$5.2 Million
A law firm represented the family of a Texas tradesman who died of asbestos-related mesothelioma at the age of 77. The jury found defendant Quigley Co. liable to a law firms client because of his asbestos exposure to the company's "Insulag" brand insulation and awarded $2.7 million in compensatory damages and $2.5 million in punitive damages. Final judgement is pending.

$6.4 Million
A law firm represented the family of an Ohio pipefitter and steamfitter who died of asbestos-related mesothelioma at the age of 75. The jury found defendant Garlock Sealing Technologies liable to a law firms client because of his asbestos exposure to the company's gaskets and awarded $6.4 million in compensatory damages.

$2 Million
A law firms client, age 69, was diagnosed with asbestosis as a result of his exposure to asbestos as a self-employed contractor. The jury found defendant The Synkoloid Company liable to a law firms client because of his exposure to its joint compound product. The case ultimately settled.

$3.5 Million
A law firm represented the family of an Ohio steelworker who died of asbestos-related mesothelioma at the age of 49. The jury found defendant North American Refractories Co. (NARCO) liable, and awarded $2.5 million in compensatory damages and $1 million in punitive damages. NARCO filed for bankruptcy soon after the judgment was entered. The case subsequently settled.

$55.5 Million
A law firms client, age 47, developed malignant mesothelioma as a result of his exposure to asbestos as a construction worker. The jury found defendant Kelly-Moore Paint Co., Inc., the manufacturer of Paco-brand joint compound, liable to a law firms client, his wife and four children.

$18 Million
A law firm represented a gentleman who developed asbestosis as a result of his 30-year career as a laborer at a copper smelter. The jury found defendant Quigley Corporation responsible for his asbestos-related disease, and awarded him $3 million in compensatory damages and $15 million in punitive damages. On appeal, compensatory damages award was confirmed, but punitive damages award was reversed. Appeal is pending to Texas Supreme Court.

$9.25 Million
A law firm represented the families of two men - one an iron worker and the other a pipefitter and insulator - who developed mesothelioma as a result of their exposure to asbestos at an Exxon refinery and other industrial sites in Louisiana. The jury found Exxon and others liable and awarded $9.25 million in combined damages to the victims' families. Appeal is pending.

$1.5 Million
A law firms client, who developed mesothelioma as a result of his exposure to asbestos-containing products he bought at Sears in the 1950s, was awarded $1.5 million in damages by a New York jury. Judgment was affirmed on appeal.

$17 Million
Less than a week after a Tyler, Texas jury awarded over $9 million to eight of their co-workers, a Dallas, Texas jury awarded $17.035 million to seven foundry workers who developed asbestosis as a result of their exposure to asbestos at the Tyler Pipe Foundry in Tyler, Texas. The jury found that the defendant, Swan Transportation, failed to provide a safe work place to these gentlemen, and that their hazardous work conditions resulted in the development of their asbestos-related diseases. Defendant filed for bankruptcy after filing an appeal.

$9.18 Million
A law firm represented eight foundry workers with asbestosis (one of whom also suffered from colon cancer), all of whom were exposed to asbestos while working at the Tyler Pipe Foundry in Tyler, Texas. The jury found defendant Swan Transportation was negligent in failing to provide a safe place to work, which resulted in these workers' asbestos-related diseases. Defendant filed for bankruptcy after filing an appeal.

$10.4 Million
A law firm represented the family of a union pipefitter who died of colon cancer as a result of his occupational exposure to asbestos products, including asbestos-containing Garlock gaskets. Suit was filed against Garlock and other manufacturers of asbestos-containing products. The jury awarded the family members a total of $7.4 million in compensatory damages and found Garlock liable for 10% of those damages. The jury also found that Garlock was liable for $3 million in punitive damages (because of Texas law's "cap" on such damages, this award was reduced to $750,000.00).

$6.3 Million
During his working career as a custodian, a law firms client was exposed to asbestos-containing products during the construction and remodeling of three school buildings. At times, he would personally use the asbestos-containing joint compounds Gold Bond and Dura Bond to make repairs at the schools. He developed malignant mesothelioma as a result of his exposure to asbestos and died at the age of 60. Following a two-week trial, a law firm obtained a verdict of $6.3 million against defendants U.S. Gypsum Co. and National Gypsum Co.

$4.55 Million
A law firms client began his working career in the construction industry in the 1940s as a latherer/plasterer, and eventually formed his own construction company. At the age of 70, he contracted mesothelioma as a result of his exposure to asbestos-containing products manufactured by Georgia Pacific and other companies. A law firm filed suit against 35 manufacturers of asbestos-containing products; all settled prior to verdict with the exception of Georgia Pacific. The jury found that Georgia Pacific was liable and acted with malice for failing to warn of the dangers in using its products, and awarded $4.55 million in compensatory damages. Georgia Pacific settled the case before the jury decided the amount of punitive damages to award.

$9.17 Million
A law firms client was an aircraft mechanic who worked around construction projects at two Texas airports throughout his career. He developed malignant mesothelioma as a result of his exposure to asbestos at the airports. He and his wife brought suit against eighteen manufacturers and suppliers of asbestos-containing products; one of them, Pittsburgh-Corning, remained in the case by the end of trial. The jury found Pittsburgh Corning was liable and that it acted with malice by not warning of the dangers of it products, awarding $6.5 million in compensatory damages and $2.5 million in punitive damages. Pittsburgh Corning has settled the case.

$2 Million
A law firms client developed malignant mesothelioma and asbestosis as a result of his exposure to asbestos while working as a sheet metal worker in the 1960s and 1970s at several job sites, including Entergy Gulf States' Willow Glen power plant in Iberville Parish, Louisiana. After settling with several other defendants, a law firm took his case to verdict against Entergy Gulf States. The jury found that Entergy Gulf States and 17 other entities were liable and awarded him $2 million in compensatory damages. The trial court entered judgment against Entergy in the amount of $105,263.16. The case has settled.

$3 Million
A law firms client, a victim of mesothelioma, was an insulator who worked at various industrial sites in the El Paso area, including Asarco and Chevron Refinery, as well as numerous other commercial and residential construction sites. During his career he was exposed to several asbestos-containing products, including Unibestos pipecovering manufactured by Pittsburgh Corning Corporation. He died at the age of 69. A law firm settled with several defendants before taking the case to trial against Pittsburgh Corning. The jury found Pittsburgh Corning liable and awarded $3,005,000 in damages. But because the amount of the settlements with the other defendants exceeded the amount of the verdict, the trial court entered a take-nothing judgment against Pittsburgh Corning.

$9.1 Million
A law firms client was exposed to asbestos in 1968 while working as a security guard at a San Antonio construction site. He developed mesothelioma and died at the age of 52. A law firm took defendant National Gypsum to trial. While the jury was deliberating, National Gypsum settled the case. Soon after settlement was reached, the jury found the company liable for a law firms client's disease and returned a verdict of $9.1 million.

$855,000
A law firms client, age 54 at the time of trial, has asbestosis. He worked as an insulator from 1965 to 1970 for Anco Insulation, for which he performed insulation services at the Exxon refinery. The jury awarded a law firms client and his wife $855,000 in damages, and found Exxon Corporation 25% liable for the development of his disease. The case was affirmed on appeal.

$1 Million
A law firms client, who worked as an auto mechanic in Alabama in the 1960s, developed asbestosis as a result of his exposure to asbestos, including asbestos-containing clutch facings manufactured by Borg Warner. The jury found Borg Warner liable for his disease, and awarded $800,000 in compensatory damages and $200,000 in punitive damages. The case was affirmed on appeal.

$9.35 Million
Our two clients, an Alabama longshoreman and an employee of Scott Paper Mill, were exposed to asbestos-containing products while on the job. One died of mesothelioma at the age of 63; the other, age 69 at time of trial, suffers from asbestosis. The jury found that a fireproofing product was a cause of these gentlemen's diseases and awarded a total of $6 million and $3,350,000 respectively. Both cases settled shortly after the verdict.

$1.7 Million
A law firms client, age 61 at the time of trial, developed mesothelioma as a result of his exposure to asbestos while working as a laborer and fork lift driver for a corrugated box manufacturer in the Dallas, Texas area. As part of his treatment for the disease, he had a lung and half of his diaphragm removed. The jury awarded this gentleman and his wife a total of $1,704,000 in damages. Trial defendant Pittsburgh Corning settled the case shortly after trial

$8.55 Million
A law firms client died at the age of 50 after developing asbestos-related mesothelioma. He was exposed to asbestos -- including asbestos-containing Unibestos pipecovering manufactured by Pittsburgh Corning Corporation -- while serving in the Navy in the 1960s aboard the George Washington Carver and Andrew Jackson nuclear submarines. The jury awarded a total of $8.55 million to his estate and to his widow and parents for their loss of consortium. The trial court entered a judgment against Pittsburgh Corning in the amount of $8,158,900 to reflect settlements made by other defendants. The judgment was affirmed on appeal. The defendant's petition for review was filed in the Texas Supreme Court but was abated due to Pittsburgh Corning's bankruptcy proceedings. Plaintiffs subsequently collected on the bond and the appeal was dismissed.

$8.5 Million
This trial involved three Alabama gentlemen who developed asbestos-related diseases. One developed mesothelioma as a result of his exposure to asbestos while working as a construction engineer for U.S. Steel in Alabama. Another died of mesothelioma as a result of his exposure to asbestos while working as an engineer for Alabama Power. A third, who worked as a boilermaker at Alabama Power and other sites, suffered from asbestosis as a result of his exposure to asbestos. The jury found that all three gentlemen were exposed to refractory products manufactured by North American Refractories Company ("NARCO") and awarded a total of $5.5 million to the widow and estate of the deceased gentleman, $2 million to the gentleman with mesothelioma and asbestosis and his wife, and $1 million to the gentleman with asbestosis. The trial court entered a total judgment in the amount of $7,283,077, to reflect settlements with other defendants. The judgment was affirmed on appeal and the Texas Supreme Court denied review.

$968,000
A law firms client, who worked as an insulator from 1959 to 1972, developed asbestosis as a result of his exposure to asbestos-containing products, including pipecovering. The jury awarded him $768,000 in compensatory damages and $100,000 to his wife for her loss of consortium. The case settled while the appeal was pending.

$980,000
A law firm represented two Texas gentlemen and their wives in this Austin, Texas trial. One developed asbestosis as a result of his exposure to asbestos while working as a boiler insulator, welder, millwright, and mechanic at various sites in Texas. The other was diagnosed with pleural plaques resulting from his exposure to asbestos as a truck driver, clay dresser, tow motor operator and warehouseman at various sites in Texas. Both men were exposed to asbestos-containing millboard during their careers. The jury awarded a total of $800,000 to one gentleman and his wife, and $380,000 to the other gentleman and his wife. The case settled before the jury determined the amount of punitive damages. Click here for more information about recovery and settlement in this case.

$3.5 Million
A law firms client, a mechanic for Union Carbide in Tulsa, Oklahoma, was exposed to fireproofing spray on the job between 1970 and 1972. He developed mesothelioma as a result of his exposure to asbestos. The jury found the manufacturer liable to this gentleman and his wife and awarded $1.75 million to him and $1.75 million to his wife for her loss of consortium. The case settled shortly after verdict. Click here for more information about recovery and settlement in this case.

$2.05 Million
Five Alabama workers and their wives brought suit against several manufacturers for their asbestos-related injuries. These gentlemen worked at power plants, chemical plants, and steel mills in various trades. All were occupationally exposed to asbestos-containing pipe covering. Two developed lung cancer as a result of their exposure to asbestos on the job; three suffered from asbestosis. The jury returned a verdict in favor of these gentlemen and their wives for a total of $2.05 million in compensatory damages. The case settled in 1997, pending appeal. Click here for more information about recovery and settlement in this case.

$1.55 Million
A law firm represented the widow of a career Navy officer who was exposed to asbestos while aboard various ships and who died of mesothelioma at the age of 59. The jury found a pipecover manufacturer liable for his death, and awarded $1.55 million to his estate and $300,000 to his wife for her loss of consortium. The case was affirmed on appeal.

$1.8 Million
A law firm represented two Alabama shipyard workers in this trial against Keene Corporation. One developed mesothelioma as a result of his exposure to asbestos at the shipyards; the other developed asbestosis. The jury awarded a total verdict to these gentlemen and their wives in the amount of $1.8 million, which was affirmed on appeal. Keene eventually paid the amount on the bond pending writ to the Texas Supreme Court.

$1,060,000
Four Alabama men who worked in the construction trades developed asbestosis as a result of their exposure to asbestos at the jobsite. The jury found that Keene Corporation was responsible for their illnesses and awarded a total of $1,060,000 in damages to these gentlemen and their wives. The case was affirmed on appeal.

$2,374,000
A law firms clients in this trial were union insulators in the Atlanta area who developed asbestosis as a result of their exposure to asbestos-containing insulation materials. The award of $2,374,000.00 was reduced by the judge post-trial to $1,154,400. The case was affirmed on appeal.

$200,000
A law firms client, age 50 at time of trial, developed asbestosis as a result of his exposure to asbestos as an insulator at various sites in New Mexico beginning in the mid-1960s. In this first-ever asbestos trial in New Mexico, the jury found two manufacturers of asbestos-containing products liable to a law firms client for his injuries and awarded him $150,000 in compensatory damages and $50,000 in punitive damages.

Asbestos Settlements Legislation