CFIF Corporate Counsel Makes the Case at the 2006 Conservative Political Action Conference

CFIF Corporate Counsel & Senior Vice President Renee Giachino recently debated a representative from the National Taxpayers Union on the Fairness in Asbestos Injury Resolution Act (the "FAIR Act"), which is currently being considered in the United States Senate.  The debate took place in Washington, D.C., at the 2006 Conservative Political Action Conference (CPAC), the largest annual gathering of conservatives.

In her opening remarks, Ms. Giachino argued that "while no legislation is perfect, the FAIR Act presents the best opportunity in decades to finally resolve the asbestos litigation crisis. Passage of the trust fund would not only take care of asbestos victims and provide stability to the U.S. economy and stimulate growth,
it would end the trail lawyers' asbestos gravy train."

Opening Remarks of Renee Giachino during a debate on asbestos litigation reform at CPAC 2006:

A national crisis is upon us and it needs a national solution.

The current asbestos litigation system is badly broken,
disserving victims and U.S. companies, workers, retirees and the U.S.
economy.

Right now, real victims of asbestos exposure are also
victims of a protracted litigation climate plaguing our nation's civil
justice system.

Because of a litigation explosion, truly sick asbestos
victims are waiting years for relief because our courts are clogged with claims of dubious merit. To put the problem into perspective, as many as 90 percent of claims filed are on behalf of plaintiffs who are not even sick. It's no wonder that real victims of asbestos exposure die before they receive justice. Some asbestos victims, such as our own veterans, are prohibited under current law from seeking compensation in the courts.

As if it is not enough for real victims of asbestos exposure
to suffer the health consequences and then get lost in the civil justice system, those real victims fortunate enough to receive a settlement of judgment never see the entire compensation to which they are entitled. That is because much of that compensation is going directly into the pockets of the trial lawyers who claim to represent them.

Remarkably, through 2002, roughly $70 billion has been spent on asbestos litigation, with more than 60% of that money having gone to pay transaction costs and lawyers' fees, not to help victims.  The reality is that only about 42 cents of every dollar spent on asbestos litigation goes to compensating victims.

And there are other victims under the current and badly
broken system. The flood of asbestos litigation has resulted in over 75 defendant companies, many of them small businesses, declaring bankruptcy and 60,000 people losing their jobs. Tens of thousands more have seen their retirement accounts dwindle to nearly zero. To put this issue in perspective, in 1983 a mere 300 companies were defending themselves against asbestos litigation; today 8,400 companies are defending themselves, representing every sector of the U.S. economy.

In fact, it is estimated that asbestos litigation, if it continues under the current system, will result in a $200 billion drain on the U.S. economy. That needs to change.

Currently the U.S. Senate is debating a bill, S.852, the Fairness in Asbestos Injury Resolution Act (the "FAIR Act") that will set up a $140 billion victim compensation trust fund, paid for by defendant companies and insurers -- NOT TAXPAYERS.

The trust fund solution will provide fair, timely and certain compensation for all deserving victims of asbestos exposure. A federal trust fund will bring predictability to an irrational system and the U.S. economy.

Indeed, the only losers under the FAIR Act are the trial lawyers who will no longer be able to collect their hefty contingent fees.

That's why they are spending millions of dollars to oppose
this legislation.

We need to fight for changes in our legal system. We need
to eliminate frivolous lawsuits that are clogging up our courts. We need to overhaul the laws governing liability in lawsuits. We need asbestos litigation reform.

While no legislation is perfect, the FAIR Act presents the
best opportunity in decades to finally resolve the asbestos litigation crisis. Passage of the trust fund would not only take care of asbestos victims and provide stability to the U.S. economy and stimulate growth, it would end the trail lawyers' asbestos gravy train.