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| | Arkansas lawmakers see compromise for asbestos bill
Friday, Apr 23, 2004 By Alison Vekshin Stephens Washington Bureau WASHINGTON -- Although one effort to devise compensation for victims of asbestos failed on Thursday, Arkansas senators said they believed Congress still might be able to find a system that will aid people made sick by the toxic fibers while protecting companies from financially ruinous claims. Senate Republicans failed to gain the 60 votes needed to move forward with an asbestos bill. A cloture vote of 50-47 fell 10 votes short. The measure would have created a compensation fund containing up to $124 billion to pay claims of asbestos exposure victims. The fund would be financed by businesses and insurance companies. Payments would be offered to victims who forfeit their right to sue for compensation. Asbestos is a mineral fiber commonly used in building construction materials for insulation and fireproofing until the 1970s. Scientists have linked the inhalation of the fibers to cancer, lung scarring and other diseases. Sens. Blanche Lincoln and Mark Pryor, both D-Ark., voted to prevent the asbestos bill from moving forward. The Arkansas senators said they held out hope that new negotiations among Senate leaders will produce a better bill. "I think you will see a resolution to this because a lot of people want it," Lincoln said. "There is still hope for this legislation," Pryor spokesman Rodell Mollineau said. "It was unfortunate that there was a political decision to push for a vote that leaders knew would fail. Sen. Pryor believes that negotiators should be allowed to continue working out a solution that is acceptable to all parties." The bill drew opposition from Democrats and labor unions who said it amounted to a bailout for businesses facing asbestos lawsuits. Critics also questioned whether the fund would have enough money. The Congressional Budget Office issued a report showing the fund would be $15 billion in debt by 2014. Republicans argued the current system works in favor of trial lawyers, who pocket billions of dollars in litigation fees, while awarding compensation to a narrow group of litigants and placing financial strain on companies. The White House supported the bill, saying in a statement that "asbestos-related litigation has clogged the courts, depriving those with injuries of a meaningful remedy and resulting in the bankruptcy of at least 60 companies and the loss of tens of thousands of jobs." Senate Majority Leader Bill Frist, R-Tenn., and Minority Leader Tom Daschle, D-S.D., secured an agreement Wednesday to negotiate their differences on the bill. Q. Byrum Hurst, president of the Arkansas Trial Lawyers' Association, voiced opposition to the bill as it was written. "If you pass federal legislation that limits anyone to get into the court system, it's an injustice to the public," he said. Hurst dismissed charges that attorneys stand to profit from continued litigation of asbestos claims. "It's been a very difficult process to represent folks on asbestos claims as it was," he said. "Over the years, it has shown to be a difficult case to bring because you must tie in the injury to the exposure to asbestos." Tommy Nabholz, member of the Arkansas General Contractors Association, took an opposing view. "The lawsuits are frivolous and continue to mount," he said. The bill was "one way to bring about some fairness and streamline the system." Nabholz said more than 7,000 Arkansans are employed by companies that are either facing the threat of asbestos litigation or already are being sued. Atlanta-based Georgia-Pacific Corp., which operates a Fort Smith facility that manufactures Dixie cups and plates and employs 340 employees, had 64,300 asbestos claims pending against it at the end of 2003. The company supported the compensation bill, spokeswoman Robin Keegan said. "Georgia-Pacific has always been in favor of compensating those who are truly sick," Keegan said. The bill "would provide companies like Georgia-Pacific with some predictability so we can focus on our business of making and selling products." All of the asbestos complaints against Georgia-Pacific stem from a material called gypsum wallboard joint compound, which had been used in wall construction. Georgia-Pacific stopped manufacturing it in 1977. -- 30 -- |
