January 18th, 2005
Pennsylvania republican and Senate Judiciary Committee Chairman, Arlen Specter, is preparing to introduce legislation to restart the asbestos trust fund that some other senators have been battling to get off the ground for years. Specter has proposed a $140 billion fund, which is the same amount that was decided upon by Senators Frist and Daschle last year, before their talks finally fizzled out altogether.
Businesses have already stated that this amount is the most that they can collectively contribute to the fund. However, concerns have been raised in the business world because Mr Specter has stated that any claims not dealt with because the cash I the trust fund runs dry will have to go to court, which means that in some cases companies may still be liable for further claims. The original trust fund was to ensure that the participating companies would have no further liability for claims, therefore reducing the number of asbestos related bankruptcies that have already swept America.
Specter stated that he thought $140 billion was "within the parameters of what is realistic to ask the manufacturers and the insurers to pay.” He added: "We have preserved a safety valve for the claimants, that in the event that the funds are insufficient, the claimants can go back to their constitutional right to a jury trial."
One insurance firm expressed concerns about the possibility of having to pay out again in court after already paying t the trust fund. A spokesperson for the insurance firm stated: "If it's a $140 billion fund that is very tight, so that all the claims are being paid out of the fund, that's quite different from a $140 billion fund where there is a lot of leakage and the tort system is still operating business as usual."
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