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Asbestos litigation prospects for legislative resolution

CRS Report for Congress

Order Code RL32286

Asbestos Litigation: Prospects for Legislative Resolution

Updated February 8, 2005

Edward B. Rappaport Analyst in Industry Economics and Finance Domestic Social Policy Division

Congressional Research Service •:• The Library of Congress

CRS-9

Table 1. Asbestos Disease Categories and Compensable Amounts

Level

Disease or Condition

Award Amount

I Asbestosis - normal lung function Medical monitoring only
II Mixed disease (asbestosis + other) with impairment $20,000
III Asbestosis - TLCa 60-80% $85,000
IV Severe asbestosis - TLC 50-60% $400,000
V Disabling asbestosis - TLC < 50% $850,000
VI "Other" cancers (non-lung) $150,000
VII A Lung cancer - smokers $25,000 - $75,000
VII B
  • former smokers
$75,000 - $225,000
VII C
  • non-smokers
$225,000 - $600,000
VIII A Lung cancer with pleural disease--smokers $150,000 - $250,000
VIII B
  • former smokers
$400,000 - $600,000
VIII C
  • non-smokers
$600,000 - $1,000,000
IX A Lung cancer with asbestosis --smokers $450,000 - $550,000
IX B
  • former smokers
$650,000 - $950,000
IX C
  • non-smokers
$800,000 - $1,000,000
X Mesothelioma $1,000,000

Source: S. 2290, Sections 121(d), 131.

a. TLC means Total Lung Capacity. For full diagnostic descriptions, see bill, subsection 121(d).

Some of those who voted against S. 1125 in committee advocated that award values should be higher, promoting instead a schedule known as the Leahy/Kennedy claims value amendment. That schedule would have increased benefits for the lower disease levels the most in proportional terms (e.g., nearly doubling the benefit for Level II and raising by about 50% the Level III benefit). Many of the higher levels would be raised by $100,000 or so; some raises similar to these were incorporated in S. 2290. The biggest differences in dollar terms were the benefits for smokers in the cancer levels. (See Committee report, pp. 202-205.) But supporters of the bill as reported emphasize that each dollar of benefits under this scheme is worth more than under the court-operated tort system. Under the tort system about 40% of total spending is reaching plaintiffs, whereas the administrative system is intended to be more efficient than that.