The Asbestos Alliance

The Scope of the Asbestos Litigation Problem

Asbestos by the Numbers: Read the latest figures on the asbestos crisis (PDF)

The impact of what Supreme Court Justice David Souter terms the "elephantine mass" of asbestos litigation is vast and far-reaching. Nearly forty years have passed since the first lawsuit was filed, but hundreds of thousands of claims are still pending and new claims are accelerating, especially by those who are not sick. The flood of claims and resulting settlements are forcing companies into bankruptcy and putting at risk compensation for those who are sick today or may become sick in the future. The "elephantine mass {is} still growing" (Chicago Tribune, July 22, 2001) and there is no end in sight.

Number of Claims

An estimated 200,000 asbestos claims are pending in state and Federal courts across the country. The total number of claims filed from the onset of asbestos litigation exceeds 730,000 (RAND). Filings have increased dramatically, an estimated 100,000 in 2003. It is estimated that as many as one to three million claims could be filed before the litigation ends. Who is filing the majority of these claims? "Up to half of asbestos claims are now being filed by people who have little or no physical impairment," said Supreme Court Justice Stephen Breyer. According to a more recent estimate by RAND, non-cancer asbestos claims account for "about 90%" of annual claims.

Costs

So far, companies have paid approximately $70 billion in claims and related costs. And claimants are getting only 43 cents of every dollar spent on asbestos litigation. Remaining asbestos liability has been estimated at $145 billion to $210 billion. Milliman projects that the total cost of settlements ultimately could reach $265 billion. The weight of the claims and size of settlements have caused or contributed to the bankruptcies of more than 70 companies. The number of asbestos defendants also has risen sharply, from about 300 in the 1980s, to 8,400 today and most are users of the product, not manufacturers (RAND). These companies span 85% of the U.S. economy and nearly every U.S industry (RAND) and include automakers, shipbuilders, textile mills, retailers, insurers, shipbuilders, electric utilities and virtually any company involved in manufacturing or construction in the last thirty years (Wall Street Journal).

Impacts

Asbestos leaves many victims in its wake. First and foremost, the sick and their families have suffered. But the flawed asbestos litigation system, which the Wall Street Journal terms "The Asbestos Blob," not only hurts the sick and their chance at receiving fair compensation, but also claims other victims. These include employees, retirees and shareholders of affected companies whose jobs, savings and retirement plans are also jeopardized by the tide of asbestos cases. With asbestos litigation affecting so many companies, this also impacts the overall economy due to the trickle-down effects, including jobs, pensions, stock prices, tax revenues and insurance costs. According to a 2002 study by Nobel laureate Joseph Stiglitz, asbestos bankruptcies have cost nearly 60,000 workers their jobs and $200 million in lost wages. Employees' retirement funds have shrunken by 25%. Read the study (PDF).

The Supreme Court has repeatedly called for Congressional action on asbestos. It's time to heed their call and solve this problem before it's too late.