RS22081
S. 852: The Fairness in Asbestos Injury Resolution Act of 2005
April 26, 2005

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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 administrative process set out in the bill. The bill would establish the Office of Asbestos Disease Compensation to award damages to asbestos claimants on a no-fault basis 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 response, various bills have been introduced in past Congresses that would have removed asbestos claims from the tort system in favor of an administrative claims resolution process,4 although none has passed. On April 19, 2005, Senator Arlen Specter introduced S. 852, a bill building on earlier efforts.