[Congressional Record (Bound Edition), Volume 150 (2004), Part 3]
[Senate]
[Page 2912]
[From the U.S. Government Publishing Office, www.gpo.gov]




                          ASBESTOS LITIGATION

  Mr. FRIST. Mr. President, I rise this afternoon to discuss the 
progress that has been made to date in my efforts to resolve a 
critically important issue; that is, the issue of asbestos litigation--
a crisis that is currently playing out and has been playing out over 
the last several years, an issue I have addressed on the floor of the 
Senate. I wanted to give an update of where we are, a little bit about 
where we have been, but also what my expectations will be as we look to 
the future.
  First and foremost, we have made good progress toward enacting 
Chairman Hatch's FAIR Act, which is the Fairness In Asbestos Injury 
Resolution Act. I have made this a personal priority in that the Senate 
must resolve this issue.
  First of all, the crisis itself, the asbestos crisis. As I mentioned 
on the floor last fall, the magnitude of the asbestos crisis is truly 
overwhelming. The torrent of litigation has wreaked havoc on victims, 
on American jobs, and on the economy. The 600,000 claims that have been 
filed have already cost $54 billion in settlements, in judgments, and 
in litigation costs.
  Even with those billions being spent, the current asbestos tort 
system has today become nothing more than a litigation lottery. A few 
victims receive adequate compensation, and far more suffer long delays 
for unpredictable and inequitable awards, if they receive anything at 
all. Today, it is a system with only one real winner; that is, the 
plaintiffs' trial lawyers. They are taking half of every dollar that is 
awarded to victims. One-half of every dollar that is awarded to victims 
ends up going to plaintiffs' trial lawyers.
  The future prospect for people who have been victimized even gets 
worse. But let me say it is not only the victims who suffer--that is 
clear--but workers lose their jobs. Asbestos-related bankruptcies spell 
doom for workers' jobs, for their incomes and, of course, for their 
retirement savings. It has already cost more than 60,000 Americans 
their jobs. For those who lose their jobs, the average personal loss in 
wages over a career is as much as $50,000. That $50,000 does not 
include lost retirement and lost health benefits.
  Workers at asbestos-related bankrupt firms with 401(k) plans lost 
about 25 percent of the value of their 401(k) plans. The victims; yes. 
They have been hurt by the current system but, indeed, with the 
bankruptcy of these companies, employees are hurt all around the 
country.
  The problem is there. It is a crisis. It is a crisis that is getting 
worse. It is not getting better. Thus, it is incumbent upon us to act.
  I asked a simple question during my remarks last year. That question 
was, Can we create a system that is better than the status quo? The 
answer is, of course, yes. But time is running short. That is what 
brings me to the floor today.
  First of all, progress to date: The crisis is there, it is getting 
worse, and it demands a response from us. As an update on what we have 
accomplished to date, the FAIR Act--Fairness In Asbestos Injury 
Resolution Act--has already made significant headway. Under the 
leadership of Chairman Hatch, it was passed by the Senate Judiciary 
Committee last July, and there have been ongoing discussions and 
negotiations ever since.
  I commend Senator Hatch and the ranking minority member, Senator 
Leahy, for their tremendous hard work on this bill.
  I also want to recognize my colleague from Pennsylvania, Senator 
Specter, who has done hard work in conjunction with Judge Becker on 
this particular issue.
  A strong bill, steady progress, and constant discussion.
  I want to note that my Democratic colleagues as well as organized 
labor and other stakeholders have been deeply involved throughout the 
process.
  Led by Senator Hatch, bipartisan breakthroughs were made on issues 
that previously have proved irreconcilable. These included a whole 
range of issues but included the linchpin issue of medical criteria 
that has proven historically to be so difficult and controversial.
  In addition, much work was done over the winter recess to resolve 
outstanding issues regarding the appropriate administrative structures 
of the system for resolving current and future asbestos claims.
  What has emerged under S. 1125 and the current negotiations is a 
streamlined national trust fund for paying asbestos claimants quickly, 
fairly, and efficiently. The new system will provide more certainty and 
efficiency for claimants, and more certainty and predictability for 
businesses.
  Passing this bill will create enormous economic benefits. Certainty 
that flows from a bill will stimulate capital investment, preserving 
existing jobs and creating new ones. I had hoped to bring this bill to 
a floor vote before the end of last session, but we were simply unable 
to achieve that goal.
  Chairman Hatch and Senator Leahy worked hard to resolve many 
difficult issues at the committee level. Senator Daschle and I, along 
with our staffs, have continued to work with stakeholders to put more 
issues behind us over the past months. In fact, there have been more 
than 20 meetings starting last July at which my staff, Senator Hatch's 
staff, Senator Specter's staff, and staff representing the minority 
have negotiated these issues.
  While there are many issues which remain outstanding, the core 
principles of an effective bill are now clear. The crisis is there, the 
crisis is getting worse, the bill has been delivered, continued 
progress, continued discussions with improvement of the bill.
  Then the question is, Where do we go from here?
  If we intend to make good on our collective hope to pass legislation, 
at some point the ongoing discussions and negotiations must end and a 
bill must be brought to the floor.
  In addition to the months of work that have been put in by my staff 
and others on these discussions last year, we had an additional 90 days 
since the winter recess, and I am prepared to have talks go on for 
another 30 days through the end of March. But at some point, talking 
must end. As I made clear last fall, I am committed to bringing a bill 
to the floor by the end of March.
  Victims are still going uncompensated. Companies are still going 
bankrupt, and the economy is still being unnecessarily burdened.
  The minority leader, as well as Senator Leahy, Senator Dodd and other 
Democratic Members have made clear to me their interest in working 
toward consensus legislation.
  I ask all participants in the process to work during these remaining 
days to bring these discussions to a close and to reach consensus on 
the remaining outstanding issues.
  I am not interested in forcing a vote on this bill. But the victims 
and the workers who are being hurt by these delays deserve closure. 
They deserve a bill that puts an end to this ongoing crisis. I will 
begin floor action on an asbestos bill either the last week of March or 
the first week in April. Again, I will begin floor action on an 
asbestos bill either the last week of March or the first week in April.
  There is no perfect solution to the current asbestos litigation 
crisis. But it is clear that maintaining the status quo is simply 
unacceptable. We must not let this historic opportunity to enact fair 
and meaningful reform pass in order to pursue a perfect solution that 
is unachievable. The time has come for the Senate to fashion the right 
solution for one of the most pressing issues facing us, facing our 
economy, and facing this Nation today.

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