Asbestos bill figure can't vouch all firms can afford to pay into fund

By Ted A. Knutson

Washington, May 12 - A key figure behind the asbestos trust fund bill pending in the Senate said he cannot guarantee all asbestos-related companies can afford to pay into the fund.

"However, the ability of a single company of many companies to pay will not impact the viability of the fund since the entire group of defendant companies jointly guaranty that $3 billion will be collected per year," said judge Edward Becker, former chief judge of the U.S. Court of Appeals for the 3rd Circuit, in a May 10 letter to Senate Judiciary Committee member Richard Durbin, D.-Ill.

The letter was released following a committee hearing on the Fairness in Asbestos Injury Resolution Act, S. 852. The bill would set up a $140 billion trust fund for asbestos victims paid for by asbestos companies and their insurers.

At the behest of Judiciary Committee chairman Sen. Arlen Specter, R.-Pa., judge Becker has acted as a mediator between asbestos victim trial lawyers, organized labor, manufacturers and insurers in trying to draft a bill that would be as acceptable as possible to all of the parties.

Judge Becker noted in his letter that if an off-shore insurer refuses to contribute to the fund, the insurer would lose its ability to do business in the United States.

The judge also pointed out there is an "orphan share provision" in the bill that if any insurer of an asbestos company does not pay into the fund, other insurers are required to make up the difference

In his letter, Becker said the assets of the existing bankruptcy trusts currently exceed $4 billion.

Becker added that Early, Ludwick, Sweeney and Strauss, a law firm that specializes in representing alleged victims, has published a list of companies that manufactured and distributed asbestos. The list is at http://www.elslaw.com/companies.htm

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