Mich. Supreme Court’s stand on asbestos cases could impact other states

The Michigan Supreme Court’s decision to preclude trial courts from bundling asbestos cases for trial or settlement is an excellent first step toward restoring balanced justice in asbestos cases in the state, one national insurance trade group said.

Dave Golden, director of commercial lines for the Property Casualty Insurers Association of America, told Insurance Journal that the Michigan ruling could have an impact on other states’ approach to the issue.

“Other states, such as Ohio, are grappling with the asbestos cases and may look at the different approach Michigan has taken and review the process they have in place,” Golden said. He added that Michigan is also unique because both the judicial system and the legislature are addressing the issue at the same time.

“In Michigan from now on, each case will be tried or settled on its own merits, rather than bundling a large number of people who are not sick with one or two truly sick people,” Golden said. “This also means that people sick from asbestos will get the individual attention they deserve. We may see faster resolution of those cases where the facts and injuries are clear.”

As the majority wrote, the decision was made with the pending medical criteria bill in mind. The justices addressed what they thought was appropriate within judicial rulemaking, without intruding on what they felt was the Legislature’s right and responsibility to make laws. The court’s order leaves open the Legislature’s option to enact medical criteria legislation.

Earlier this year, Michigan House Bill 5851 passed from the Committee on Tort Reform to the floor. This bill preserves the ability of people who are actually sick from asbestos exposure to seek compensation while preserving the rights of other workers should they eventually become sick from asbestos or silica exposure. However, the bill has not moved since late May. Legislative committees continue to study the issue through the summer.

“We applaud the wisdom of the Michigan Supreme Court,” Golden stated. “PCI is hopeful that the Michigan Legislature will continue its work on medical criteria legislation to prioritize sick claimants, while protecting the rights of other people exposed to asbestos, if they should ever become sick themselves.”

PCI identifies itself as a national trade association comprised of more than 1,000 member companies. PCI members write more than $184 billion in annual premium, 40.7 percent of the nation’s property/casualty insurance.

Topics Michigan