Mesothelioma lawyer assistance for financial recovery

Greenwire - 24 January 2003 - New research unveiled yesterday examines how asbestos lawsuits adversely affect not just the companies facing litigation but also other businesses and communities. A study released last month estimated the direct costs of asbestos litigation at $325 million to $650 million and the indirect costs at $1.4 billion to $3 billion, but the new study conducted by NERA Economic Consulting for the U.S. Chamber of Commerce indicates there could be $600 million to $2.1 billion in additional costs nationwide related to indirect company closings.

Local real estate values will fall, per capita income will decline and tax coffers will dwindle from plant closures and mass layoffs related to asbestos lawsuits, the study says. Increased costs from worker retraining could rise as high as $3,000 per worker, it notes.

The study shows the devastating trickle-down effect of the closings on towns and businesses across the country, said Michael Schick, a spokesman for the U.S. Chamber of Commerce Institute of Legal Reform. Schick pointed to a case study in the research on Licking County, Ohio, where Owens-Corning layoffs of 275 workers led to the eventual loss of almost as many jobs elsewhere in the county.

"It certainly adds another element, more data to the clear and convincing group of data out there already that we have a crisis, a crisis that's hurting people across the country," said Gary Karr of the American Insurance Association, which sponsored the first study.

But Fred Baron of a Dallas law firm, one of the nation's leading attorneys for asbestos victims, said he's not aware of anyone who lost a job as part of a reorganization in the 60 asbestos cases that resulted in Chapter 11 bankruptcy he's been actively involved with. "The real economic impact is the hundreds of thousands of families who've been devastated by the loss of workers and family members from asbestos diseases," he said.

Between 2,000 and 5,000 people a year die because of asbestos, mostly from mesothelioma and lung cancers. "Why doesn't the Chamber study that statistic?" Baron asked.

The study comes as part of an industry-led push for legislation restricting asbestos claims to sick people, rather than those who merely have been exposed to asbestos. Industry supporters say the prospects for passing such legislation this year are good. Senate Judiciary Chairman Orrin Hatch (R-Utah) has indicated his support for a bill and could introduce one this year, sources said.

Although Democrats have traditionally sided with their allies at the Association of Trial Lawyers of America, industry supporters say there is a bipartisan group of legislators interested in pursuing legislation aimed at asbestos litigation. Senate Democrats Zell Miller (Ga.), Ben Nelson (Neb.) and Tom Carper (Del.) agree there must be some legislation to tackle the tide of asbestos lawsuits, Karr said. And House Judiciary Committee Chairman James Sensenbrenner (R-Wis.) may introduce an asbestos litigation bill, he said.

Although industry has been lobbying unsuccessfully for an asbestos litigation bill for more than two decades, supporters say the narrow scope of the bill they're pushing now will increase its chances for success. "It's not a terribly aggressive agenda and it's definitely one we think is achievable," said Jan Amundson, general counsel for the National Association of Manufacturers.

Baron said he didn't believe Congress would pass the type of legislation industry is seeking. But, he said, "there's room to pass legislation that streamlines the way asbestos litigation is handled."

Both sides are working together on legislation that works out a way for companies to pay fair sums to affected workers without having to go through litigation, Baron said. He anticipates that Hatch will work toward a resolution that works, as opposed to legislation that hurts one side or the other.