[Congressional Record (Bound Edition), Volume 152 (2006), Part 1]
[Senate]
[Page 750]
[From the U.S. Government Publishing Office, www.gpo.gov]




               FAIRNESS IN ASBESTOS INJURY RESOLUTION ACT

  Mr. ALEXANDER. Mr. President, I rise today to express my support for 
the Fairness in Asbestos Injury Resolution Act sponsored by Senators 
Specter and Leahy. The FAIR Act is a bill about American jobs. It will 
have a substantial effect on a number of jobs at Tennessee 
manufacturers such as Nissan, Saturn, and Eastman as well as hundreds 
of their Tennessee suppliers. That is because while it means faster, 
more efficient resolution of claims for those harmed by asbestos 
exposure, it also means certainty for manufacturers so that they can 
spend more of their money investing in their businesses and creating 
more American jobs.
  Americans injured by asbestos are waiting too long and paying too 
much to adjudicate these claims. According to estimates from the RAND 
Institute, of the $70 billion expended on asbestos litigation through 
2002, nearly 60 percent was spent on attorneys' fees and other 
transaction costs. Put another way, asbestos victims are only getting a 
little more than 40 cents of every dollar that is being paid out on 
asbestos claims. In addition, in many cases, these claimants are 
waiting more 3 years to collect this compensation as their cases wind 
their way through the tort system. As a result, many of these victims 
are not able to cover the costs of medical treatments that cannot be 
delayed. The FAIR Act will help claimants by capping attorneys' fees at 
5 percent--and thereby putting 95 percent of the compensation paid out 
into the pockets of the victims. It will also ensure that victims get a 
ruling on their claim within 90 to 180 days from the Department of 
Labor--not 3 years or more.
  Since the 1980s, the number of companies defending themselves from 
asbestos claims has risen from 300 to more than 8,400. More than 70 
companies have gone bankrupt, resulting in more than 60,000 workers 
losing their jobs and retirees seeing their retirement funds shrink. In 
Tennessee, according to the 2002 Economic Census, more than 400,000 
jobs are in the manufacturing sector. Without this bill, tens of 
thousands of those jobs may be shipped overseas as companies struggle 
to afford the enormous payouts that result under the current system.
  The Senate Judiciary Committee has considered this issue for more 
than 20 years. Senator Specter and Senator Hatch before him held 
numerous meetings with stakeholders and members of the Judiciary 
Committee. The bill has gone through numerous revisions to accommodate 
issues raised by parties on all sides. Senator Specter and Senator 
Leahy have been cooperative, accommodating, flexible, and generous with 
their time. And they have produced a bill that has garnered support 
from a broad spectrum of manufacturers, insurers, and claimants.
  The FAIR Act may not be perfect, but it will start us on the road 
toward achieving two critical goals: it allow people injured by 
asbestos to receive compensation quickly and efficiently, without 
spending years tied up in the courts and losing a large chunk of their 
award to attorneys' fees; and it will save jobs by giving American 
companies certainty with regard to the costs of compensating claimants.
  I urge my colleagues to support this important legislation.

                          ____________________