Lawyer mesothelioma pleural

Bitter Senate fight begins today over asbestos bill

WASHINGTON--The U.S. Senate today begins what promises to be a bitter, partisan process of creating an industry-financed asbestos liability trust fund to compensate people made ill by the material and neutralizing trial lawyers who want to sue for more money.

At the center of the debate is a bill approved last week by the Senate Judiciary Committee that would require asbestos-related companies, such as USG Corp. of Chicago, to fund a $108 billion fund in exchange for a ban on more asbestos lawsuits, which have driven more than 60 companies into bankruptcy facing more than $300 billion in liability claims.

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.

A trade group representing insurers facing asbestos liability plans to ask Senate Republican Leader Bill Frist not to bring the measure up for debate, saying it is deeply flawed.

"The bill doesn't meet any of the objectives" it was supposed to achieve, said Julie Rochman, spokeswoman for the American Insurance Association, which represents Hartford Financial Services Group Inc. and Travelers Property Casualty Corp. "It is supposed to provide fairness and finality, and it doesn't do either."

Democrats, whose opposition hurts the bill's chances for Senate passage, said the measure failed to provide sufficient compensation for victims in return for ending lawsuits against more than 8,000 companies.

"More money should be on the table," said Illinois Democrat Dick Durbin.

Still, the panel raised the combined contribution of insurers and manufacturers from $90 billion to $104 billion over the objection of insurers.

Shares of USG, the biggest U.S. wallboard maker dropped 77 cents Friday to close at $16.83. USG shares have fallen 17 percent in the last two days.

Proponents say the bill would end a drag on economic growth caused by mounting asbestos claims.

The panel voted to increase the amount that manufacturers and insurance companies would contribute to $52 billion each from $45 billion, reducing the amount from such other sources as proposed bankruptcy settlements. The increase was intended to address concerns that the fund would fall short of $108 billion.

Peg Seminario of the AFL-CIO said organized labor isn't satisfied with the legislation. It would "leave the vast majority of asbestos victims" with inadequate compensation, she said.

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.

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.

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 (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 (D-Vt.).

Only one Democrat voted for the legislation, Sen. Dianne Feinstein 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.

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

Here are the amounts the proposed $108 billion asbestos liability trust fund would pay to claimants under an agreement that the U.S. Senate will consider today. The amounts would be payable without hiring a trial lawyer.

Level 1. Exposure to asbestos only: Medical monitoring only.

Level 2. Mixed diseases with impairments: $20,000.

Level 3. Asbestosis with some restrictions: $75,000.

Level 4. Severe asbestosis: $300,000.

Level 5. Disabling asbestosis: $750,000.

Level 6. Other malignant cancers: $150,000.

Level 7. Lung cancer (a) Active smokers: $25,000-$75,000 (b) Ex- smokers who have not smoked for 12 years before diagnosis: $75,000- $225,000, and (c) Nonsmokers: $225,000-$600,000.

Level 8. Lung cancer with pleural disease (a) Active smokers: $125,000-$225,000 (b) Ex-smokers: $400,000-$600,000, and (c) Nonsmokers: $600,000-$1 million.

Level 9. Lung cancer with asbestosis (a) Active smokers: $300,000- $400,000 (b) Ex-smokers: $550,000-$850,000 (c) Nonsmokers: $800,000- $1 million,

Level 10. Mesothelioma: $1 million.

SOURCE: Senate Judiciary Committee