NYC 9/11 Public Portal Document
Asbestos Makers, Litigants: Uneasy Allies
Partial Alliance Prioritizes Seriously III Victims, Eases Firms' Financial Burden
develop after exposure, so that only now any other given day that we don’t have
By Greg Hitt are many people learning they are vic much to agree on,” says AIA lobbyist ers about embracing a legislative solu
tims. Meantime, the long lag time also Leigh Ann Pusey, once'a top aide to tion to the asbestos problem. “Adam Is
Washington not the kind of person who jumps in both
has spawned claims from relatively former GO^ Speaker Newt Gingrich.
•y T TARS HAVE MADE allies of old healthy individuals who fear local stat “This is an unholy alliance in many re guns blazing,” a spokeswoman says.
\/\/ enemies before, but big busi- utes of limitations will run out If they spects.” i “It’s a long slow process,” Mr. Kazan
▼ ▼ ness and trial lawyers? Even says. “It’s an issue of building consen
the two sides are still stupefied at their don’t file now. The stancte of the attorneys in the coa sus, to change the status quo.”
Tens of billions of dollars have gone lition -has set off a civil war within the
new alliance in a long-running conflict out to victims, and the prospect of contin The coalition began forming early in
over asbestos claims. plaintiffs bar, pitting them against other 2001, soon after the companles-recognlz-
ued payouts is taking a toll in American trial lawyers; involved In asbestos litiga
“Look up 'strange bedfellows’ In the industry. During the past two years, the tion, and niore broadly against (heir Ing the split among asbestos victlms-be-
dictionary, and you’ll find our picture,” hangover of asbestos-liability costs has gan reaching out to attorneys represent
brethren in the powerful American Trial ing the most seriously ill. They saw that
says San Diego-based attorney Steve Ka forced dozens of companies, among them Lawyers Association. The association
zan, who spent much of last week strid USG Corp, and W.R. Grace & Co., to seek there were “grounds for an alliance,”
vows to oppose the initiative, arguing it says Mike Baroody, a top NAM lobbyist.
ing the halls of Congi'ess with insurance bankruptcy-court protection. would arbitrarily curtail the rights of
lobbyists. “It makes me catch my breath Rep. Christopher Cannon (R., Utah) those who have been exposed but are not The discussions eventually led to a
and wonder if I’ve got this right.” has proposed legislation to allow compa yet sick. ' pledge from the business groups to set
To be sure, not all trial lawyers bless nies in bankruptcy court to pay claims Former ATLA President Fred Baron, aside their broader agenda to change
this union. But a group representing criti based on medical need. The Asbestos Alli tort law, to limit lawsuits, when it comes
who represents such asbestos victims, to asbestos suits. The trade-off leaves
cally ill victims of asbestos exposure ance seeks something broader. It pro says the backers of the legislation want
have broken with the broad plaintiffs law poses to establish medical criteria for to eliminate 80% to 90% of pending business in support of compensatlon-for
yers lobby here, allying instead with the claims against all companies with asbes claims. “1 don't see that there’S any the most sympathetic victims. For the
very manufacturers and insurance inter tos liability, not just those in bankruptcy. trial lawyers, the agreement ultimately
chance (or this legislation to pass,” he puts their clients at the front of any line
ests that they have historically battled to The group also would ease statutes of says.
win big victims’ awards. They have come limitations and other court rules that for payments.
But no one in the coalition pretends At bottom, for both sides it reflected a
together as the potential compensation have given people not yet ill an incentive passage is the goal this year. Getting
tor victims dwindles along with the num recognition that if the current spiral of
to file claims. sponsors In the House and Senate, and lawsuits and bankruptcies continues,
ber of companies associated with asbes The coalition’s effort differs from past perhaps a committee hearing, would be a
tos production and use. legislative initiatives, which mostly have “there would be no defendants left in a
major accomplishment in the slow legis short period of time” to sue, says Mat
The Asbestos Alliance, composed of involved corporations seeking to limit lative process. The real alm, for now, is thew Bergman, a Seattle victims attor
the breakaway lawyers, the American In lawsuits and get what are seen as bail to lay the groundwork (or major action In ney.
surance Association and the National As outs. The coalition’s initiative would help the next Confess that convenes next Jan Despite the overlapping interests, ef
sociation of Manufacturers, is asking both companies and victims, if only those uary. “If I thought it was a colossal waste forts to bring the coalition together
Congress for a law that would give prior who are very ill. of time,” Mr. Kazan says, “I’d be back in ! haven’t always been comfortable. At one
ity to the claims of the most seriously ill. The mutual interests of the trial law my office preparing cases to go to trial.” planning meeting at the AIA in Washing
They contend that cash-strapped corpora yers and businesses aside, their coalition Last week, coalition representatives ton, D.C., Peter Kraus, a Dallas attorney
tions then could better manage their as also reflects political reality going into networked together at a dinner that the for asbestos victims, slipped into a chair
bestos liabilities, ensuring a steady the 2002 midterm election: Regardless of New Democrat Network, a centrist next to an old) courtroom nemesis, John
stream of payments to the most needy. who wins in Novembel-, control of Con group, sponsored. Many of their visits to Aldock, a lawyer who has long repre
The lobbying campaign is an exten gress probably will continue to be closely Capitol Hilliwere to moderates who can sented asbestos firms. “I looked at him
sion of battles in local courts across the divided between the two parties. Any in bridge partisan differences in Congress; and said I can’t believe we’re sitting next
country, where victims increasingly are terest group knows it needs friends in among the stops were the offices of Demo to one another,” Mr. Kraus recalls.
pitted against one another. The insula both. ;i cratic Reps.' Adam Smith of Washington Mr. Aldock replied, “Well, maybe for
Politically, of course, trial lawyers'* and Jim Moran of Virginia.
tion fiber was banned as a carcinogen once we can both agree that we’re on the .
more than two decades ag-o, but claims such as Mr. Kazan mostly support Demo-, Mr. Moran is interested in the initia right side.” ■ ]
continue to mount. Asbestos-related sick crats with their votes and wallets, while tive. Mr. Smith remains reticent, reflect
nesses can take a,s long as 40 years to the business community generally favors ing the broader concerns among lawmak-
Republicans. “We probably know that oil
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