There is a trend in congress to create new policy promoting transparency in both public and private financial affairs. Proponents of the currently proposed HR 4369 bill, or the FACT ACT, and its companion bill in the Senate, S 3076 are falsely representing this trend. This proposed legislation threatens to place new undue burdens on victims suffering from asbestos exposure.
Under the guise of financial transparency, HR 4369 and S 3076 is an attempt to minimize the liability of asbestos companies in order to decrease their accountability and compensation to present and future victims. The companies, however, do not deny the irrefutable proof of the harmful and often deadly effects of asbestos exposure. So just how harmful are HR 4369 and S 3076 to asbestos victims? Here is the information you need to know.
The Creation of Asbestos Trusts
In the wake of the harmful and often deadly effects of asbestos exposure, Congress amended the United States Bankruptcy Code and created asbestos trusts. Asbestos companies filing for bankruptcy could now establish trusts for asbestos victims and shift all liability for present and future asbestos exposure claims in order to emerge from bankruptcy without liability. These trusts exist solely for the benefit of asbestos victims, and payments from these trusts represent settlements from asbestos companies. These trusts make payments based on agreements negotiated by the asbestos companies and approved by the courts. All documentation pertaining to trust settlements for asbestos victims is public information.
What HR 4369 and S 3076 Will Change
It is common for asbestos victims to receive joint settlements from more than one asbestos company. State law already accounts for more than one settlement collected by the asbestos victim by requiring the plaintiff to disclose any and all trust payments and settlements. The defendant is then provided with a reduced collective sum of amounts received. The defendant is currently allowed to request any relevant information to a plaintiff's trust claim.
HR 4369 and S 3076 aim to amend title 11 of the United States Code, allowing for bankruptcy trusts to request detailed information regarding the receipt and disposition of claims for injuries based on exposure to asbestos. This will allow the asbestos companies to request any additional information from the trusts at any time and for virtually any reason. It would also place unreasonable burdens on the trusts that would make the claims processes longer and more complex for mesothelioma patients who are already fighting for their lives. The asbestos companies hope that they can discourage victims from making claims by over-complicating the system.
The Potential Harm of HR 4369 and S 3076
Asbestos victims are often struggling with life threatening diseases such as mesothelioma and other types of thoracic cancer. Passage of this bill will mean many victims will be struggling to obtain settlement funding into the last moments of their lives. All trust information is public under current state law and allows for complete transparency in asbestos settlements. HR 4369, or the "Furthering Asbestos Claim Transparency Act," only serves to give asbestos companies the ability to reduce or delay asbestos victims the settlements they are entitled to.
