RS22081
S. 852: The Fairness in Asbestos Injury Resolution Act of 2005
September 20, 2006

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National Council for Science and the Environment

Summary:

This report provides an overview of S. 852, the Fairness in Asbestos Injury Resolution (FAIR) Act of 2005. The bill would largely remove asbestos claims from the courts in favor of the no-fault administrative process set out in the bill. The bill would establish the Office of Asbestos Disease Compensation to award damages to asbestos claimants from the Asbestos Injury Claims Resolution Fund. Companies that have previously been sued for asbestos-related injuries -- and insurers of such companies -- would be required to make contributions totaling roughly $140 billion to this Fund. Claims of asbestos-related injury1 have flooded the courts since the 1970s, but litigation has proven to be an inadequate means to resolving all the claims. The Supreme Court has twice struck down attempted global asbestos settlements,2 in both instances inviting Congress to craft a legislative solution.3 In an attempt to resolve this problem, Senator Arlen Specter introduced S. 852, the Fairness in Asbestos Injury Resolution (FAIR) Act. The bill was reported out of the Senate Judiciary Committee on June 16 (S.Rept. 109-97).