This week, the House of Representative took a big step towards reining in the out of control litigation nightmare that has plagued a number of small businesses, including a many in ASA. The bill, the Furthering Asbestos Claim Transparency
(FACT) Act would require the 60 asbestos trusts around the country to file quarterly reports about who is filing claims for compensation.
According to supporters, the reporting required by the legislation is meant to make it easier for trusts to see who has already filed for or received money from an asbestos injury claim, in order to stop duplicative or fraudulent claims. In addition, it is believed that this type of reporting will allow judges and still solvent companies in the court system to know whether a case filed in the courts conflicts with claims already filed with the trusts. According to the U.S. Chamber of Commerce’s Institute of Legal Reform, an average of $2.5 billion dollars is paid out each year as a result of asbestos court cases and money paid on fraudulent or inflated claims hurts shareholders and costs jobs.
Now that the legislation has passed the House, ASA looks forward to working with other supporters of the FACT Act to inform members of the Senate how this is impacting our members. To learn more about this issue, click here