Texas Limits Asbestos Litigation

The state of Texas has enacted a new asbestos litigation law the governor says improves the justice system both for victims of asbestos exposure and defendant employers, but critics say the legislation actually hurts plaintiffs' rights.

Gov. Rick Perry (R) said in a May 19 statement that about 40 percent of asbestos lawsuits nationwide are filed in Texas, many of them "questionable and frivolous," and under the new law, suits can only be brought by claimants "who show legitimate illness or impairment."

A consumer advocacy group, Texas Watch, stood against the bill. It said in a report posted on its Web site that the new law "strips away the legal rights of victims and their families."

According to Alex Winslow, the group's executive director, the right place for sorting out who can and cannot sue should be the courts and not the Legislature. He said the bill preempts the authority of judges and juries.

The insurance industry, however, praised the new law.

The National Association of Mutual Insurance Companies said in a statement the legislation protects businesses from non-meritorious claims and "ensure[s] that individuals who have been physically impaired due to asbestos exposure are properly compensated for their injuries."

The new law establishes medical criteria for pending and future claims and requires a showing of illness or impairment related to asbestos exposure.

Claims would no longer allowed to be "bundled," according to the American Tort Reform Association, but would be tried separately and "on their own merits."

Supporters of the measure say this provision means "truly sick" claimants cannot have their cases tried along with unimpaired plaintiffs.

Impaired and unimpaired claimants will be distinguished with a pulmonary function test.

The new law allows for expedited trials for more seriously ill plaintiffs and would end "mass screenings" of potential asbestos claimants.

The reform also extends the limitations period for filing claims because it changes the status of pending suits and may require them to be refiled.