Jesse J. Holland

The Associated Press

04-13-2005

Legislation aimed at ending asbestos liability lawsuits in exchange for a $140 billion victims trust fund is near completion, Senate Judiciary Chairman Arlen Specter, R-Pa., said Tuesday.

The Senate has been stuck for years on how much money insurers and business groups should put into a trust fund in exchange for ending the lawsuits. In exchange for the fund, asbestos victims would give up their right to sue.

After negotiations with all sides, Specter said he likely would move forward with a compromise soon that could get enough support from Democrats and Republican.

"I'm more than hopeful; I'm optimistic we'll have a bill which will get out of committee and beyond," Specter said.

Specter planned to present the bill to both Democrats and Republicans this week to gauge their reactions. He already has made several compromises with both sides, including a decision that would allow people to go back to court if the fund runs out of money.

However, people would only be allowed to go to federal court, or to a state court where the injury happened or where they live, Specter said.

Also, Specter said they have targeted money in the bill only for people who are sick from asbestos, eliminating people who smoke and have other illnesses.

"You have to be able to prove that the problem you have is caused by asbestos," Specter said. "And we have $140 billion, but we have a lot of claimants, and we're concerned that the people who are really sick get paid."

Asbestos is a fibrous mineral that was commonly used until the mid-1970s in insulation and fireproofing material. It has tiny fibers that can cause cancer and other ailments when inhaled, but the diseases often take decades to develop.

Senators say asbestos liability is driving companies out of business and leaving victims with little or no money for medical bills. A trust fund would speed money to those people and assure companies they would not be sued out of existence, supporters of the plan say.