Asbestos Reform Legislation Could Be Enacted by Year’s End

Originally published June 1, 2005

After a month-long mark-up, on May 31, 2005, the Senate Judiciary Committee favorably reported S.852, the "Fairness in Asbestos Injury Compensation Act of 2005" or "FAIR" Act out of committee for consideration by the full Senate. Goodwin Procter attorneys are playing a key role in shaping the asbestos reform debate and legislation, and we will provide additional information as S.852 winds its way through the Congress.

The bill, sponsored jointly by Committee Chairman Arlen Specter (R-PA) and ranking member Patrick Leahy (D-VT), would establish an administrative compensation program for people impaired by asbestos-related diseases, funded by insurers, defendants, and bankruptcy trusts. The total cost of the program could reach $140 billion, although many projections show the cost of the program to be less. Once the program is underway, it would provide an exclusive remedy for asbestos claims, preempting civil actions in state and federal courts.