Christian Schneider’s most recent piece in the Milwaukee Journal Sentinel exposes the questionable legal action Congresswoman Carolyn McCarthy (D-N.Y.) is taking to seek remedy for her lung cancer – suing 70 companies that she believes contributed to her exposure to asbestos when she was a child while not mentioning she has been a smoker for 40 years. As Schneider explains, lawsuits like this threaten the solvency of trusts set up to compensate actual asbestos victims by firms that went bankrupt, while also placing a burden on solvent companies.

…McCarthy’s story isn’t an anomaly: Even though the government began regulating asbestos in the 1980s, it recently has become more of a lucrative target for plaintiffs’ attorneys looking to score large settlements. According to the National Cancer Society, cases of mesothelioma have dropped by 22% since 1992; yet claims against asbestos-related businesses have risen during that time.

The evidence suggests that many of the new claims are the result of fraud. A Wall Street Journal review recently found that more than 2,000 people applying for awards from the Manville asbestos trust claimed they were exposed to asbestos while working in industrial jobs before they were 12 years old. In some cases, nurses have said they were exposed to asbestos while chipping paint from boilers — odd work for nurses. Law firms have been rumored to be seeking distant relatives of dead people who can help assemble lists detailing where victims worked decades ago.

In order to satisfy the growing number of claims, companies have been able to set up trusts to pay victims of asbestos-related illnesses. Currently, there are more than 60 such trusts in America, which hold $36 billion in assets. In 2010, these trusts paid out $3 billion to claimants. In fact, since it’s nearly impossible to determine which company manufactured the asbestos a claimant came in contact with, individuals can file claims with dozens of trusts at a time, regardless of whether any of the companies actually manufactured the offending materials.

In addition to trust claims, victims also are allowed to sue the companies directly, often “double dipping” in their efforts to extract money.

It is a growing problem, and one Wisconsin can prevent from happening here. Wisconsin legislation (AB 19/SB 13) would preserve money for future claimants by requiring plaintiffs’ attorneys to disclose whether they have received claims from trust funds before they sue a solvent Wisconsin business. This will help prevent trial attorneys from double-dipping: receiving compensation once from a trust fund and second time from a solvent Wisconsin business for the same claim.

AB 19 has passed the Assembly and was recommended for passage by the Senate Judiciary Committee. WCJC is urging the Wisconsin Senate to schedule a vote to enact this important piece of legislation to protect current and future asbestos victims.