The Washington Legislature has failed to pass a bill that would have limited a successor corporation’s liability for asbestos-related claims to an amount equal to the predecessor corporation’s adjusted total gross assets.
According to the American Insurance Association, “Manufacturers would have seen dramatically higher liability costs and a flood of litigation if SB 5964 had been enacted,” said Steve Suchil, AIA assistant vice president, state affairs. “The bill would have greatly expanded asbestos liability for manufacturers who produced a product that later had asbestos added to it.”
AIA applauded the defeat of the bill. “Given the state of the economy, now is not the time to encourage more lawsuits or expand product liability,” Suchil added.
To view the bill, visit http://apps.leg.wa.gov/billinfo/summary.aspx?bill=5964#history.
Sources: AIA, Washington Legislature.
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