Wisconsin Governor Signs Controversial Asbestos Lawsuit Bill

March 31, 2014

Gov. Scott Walker quietly signed into law a bill that critics say would delay and deny justice to those who seek damages in court after falling ill from exposure to asbestos.

The asbestos bill, which was introduced last year and which is opposed by veterans groups and Democrats, has been one of the most heavily lobbied bills of the two-year legislative session. Records from the Government Accountability Board show that last year alone, supporters and opponents spent nearly 2,000 hours lobbying lawmakers about the bill. Records for this year haven’t been filed yet.

The new law requires plaintiffs who have suffered from asbestos exposure to reveal how many businesses their attorneys plan to sue. They also would have to go after money from an asbestos trust before they could sue for more in court.

Proponents, including Wisconsin’s chamber of commerce and Republican sponsors, argued that the changes were needed to prevent people from filing multiple claims against both trust funds set up to pay victims of asbestos exposure as well as individual businesses.

“Governor Walker signed this law to ensure transparency in the lawsuit process and stop trial lawyers from double dipping,” said Walker’s spokeswoman Laurel Patrick. “Preventing double dipping will help make sure there will be resources available for the truly injured down the road.”

Veterans groups and trial attorneys were among those who lobbied most forcefully against the bill, saying a disproportionate number of people sickened by asbestos are service members.

Jason Johns, a lobbyist for three veterans groups who urged Walker to veto the measure last week, issued a statement expressing disappointment that the governor signed it, saying it would be devastating to veterans.

“Many of our members recognize the great things that the governor and the state Legislature have done for veterans this legislative session but unfortunately all of the good will now be overshadowed by the ignoring of our pleas to stop this devastating legislation to our veterans and their families from becoming law,” Johns said.

He represents the American Legion, Veterans of Foreign Wars, and the Military Order of the Purple Heart.

Asbestos, a building material linked with cancer and other health problems, has been the subject of lawsuits awarding billions of dollars in damages. As the health concerns became clearer and the number of lawsuits swelled, companies forced into bankruptcy because of asbestos litigation transferred their assets and liabilities to trusts established to pay current and future asbestos victims.

At least 100 companies have gone into bankruptcy in part from liabilities tied to asbestos, according to a 2011 Government Accountability Office report. There are 60 asbestos trusts, with about $37 billion in assets, according to the GAO report.

The Senate passed the bill 17-16, with all Democrats and Republican Sen. Dale Schultz opposing it. The Assembly passed it 55-38, with all Democrats against it and all Republicans supporting it.

 

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