Over the past several decades asbestos litigation has often been in the news, and has experienced a number of substantive changes over the course of the last thirty or more years. One estimate suggests that throughout the twentieth century, more than 110 million Americans were exposed to asbestos in an occupational setting. The majority of those exposed were blue collar workers. Manufacturers of asbestos products and related entities are liable for asbestos-related injuries because they were long aware of the hazards associated with asbestos exposure, yet chose not to adequately warn or protect employees for fear of injuring profits. This criminal and mercenary attitude on the part of the asbestos industry is viewed by many to be the greatest occupational disaster in the history of the United States as welll as a number of other countries like Great Britain and Canada. Asbestos is still in use in countries like India where poor workers often have no protection at all other than a dirty rag covering their mouth and nose.
Asbestos litigation was born out of the desire to provide compensation for asbestos injury victims and their families. Another important goal was to punish the companies responsible for this disaster. It is important that asbestos product manufacturers not retain the profits they attained at the cost of employee health and safety. It is vitally important to send a message to corporate America that these kinds of callous activities will cost them more in the long run than they hope to gain.
The first asbestos litigation case was brought against eleven asbestos product manufacturers (including Johns-Manville, Fibreboard, and Owens Corning Fiberglass) on December 10th, 1966 in Beaumont, Texas. The plaintiff had been diagnosed with a severe case of asbestosis in July of 1966 after having been exposed to asbestos materials and products for years at work. It took the court less than a week to rule in favor of the defendants; however, the lawyer suing the asbestos companies would not be dissuaded.
Three years after the initial defeat, the same lawyer filed another asbestos lawsuit on behalf of a coworker of his 1966 client. The case, Borel vs. Fibreboard Paper Products Corporation, went to trial in October of 1969. This time, the court ruled in favor of the plaintiff, awarding him an $79,000 in compensation (nearly half a million dollars today). This was to be the first time that asbestos product manufacturers were held accountable for their failure to warn employees of the dangers associated with asbestos exposure. This case started an onslaught of asbestos litigation cases. By 1980, more than 16,000 asbestos-related claims had been filed, making asbestos litigation the largest area of product liability litigation.
As of 2002, more than 730,000 asbestos-related lawsuits had been filed against more than 8,400 liable entities, resulting in settlements and victories totaling around $70 billion. A study conducted by the nonprofit RAND Institute for Civil Justice estimates that the eventual cost of asbestos litigation will exceed $200 billion.
Asbestos Litigation and Bankruptcy
Asbestos litigation was initially dealt with through the federal court system because cases were limited in number. Over time, asbestos litigation grew as a result of increased public awareness over the hazards associated with asbestos exposure, requiring a shift from the federal court system down to the state court system. Today, asbestos litigation is handled through bankruptcy court because most of the liable asbestos product manufacturers have long since filed for Chapter 11, a specific type of banruptcy law.
Between 1970 and 2000, approximately 37 companies having significant liabilities related to asbestos exposure were driven to bankruptcy after successive verdicts affirmed their liability. Between 2000 and 2004, 36 such companies were driven to bankruptcy.
Reforming Asbestos Litigation
With all of the original asbestos companies having been driven to bankruptcy, asbestos litigation has been forced to focus its efforts on entities with peripheral connections to asbestos product manufacturers. While many experts believe that the 1990s saw the peak of asbestos-related injuries and claims, many suggest otherwise, believing that the worst is yet to come.
Concerns have been raised about whether future asbestos injury victims will be able to receive compensation. Some believe that the current rate of asbestos litigation could potentially "dry up the well" in terms of generating sources through which to receive restitution.
Reforming asbestos litigation has proven a difficult task as it requires the acceptance of plaintiff attorneys, liable entities and insurance companies. The most recent attempt at reform has been Congress' Fairness in Asbestos Injury Resolution Act (2005) legislation introduced by Senator Arlen Spector that would establish a $140 billion trust fund through which asbestos victims would be compensated. This act would establish a trust fund through which victims would be compensated and asbestos companies would be protected from future lawsuits. As of September 2007 passing of the "FAIR" act has not seen much progress.
Legal Questions
If you or a loved one has been diagnosed with non-Hodgkin’s Lymphoma (NHL) and think it may be caused by toxic exposure to organic solvents like benzene, and you have legal questions or require legal assistance, contact Paul & Hanley LLP.
Our firm has an outstanding track record of success in cases across the country, and our lawyers are known for their honesty, integrity and compassion. We've built our reputation on toxic tort litigation representing individuals diagnosed with NHL, mesothelioma and other serious diseases with dignity and respect.
We handle a select number of cases at a time and represent workers and families with the extra special attention required for the best possible outcome in each case. We understand your case is unique, so we take the time to get to know you and your family. Contact us today for a free and confidential consultation. We'll discuss your specific case and give you honest answers to your important questions. Our toll free telephone number is 800 933-2244. We look forward to helping you.