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Special Report

Republicans, Democrats differ on asbestos compensation

03-27-2005
Many parties have a stake in the current asbestos trust fund legislation being discussed in Congress. The interests, from victims to Congress, are entwined in the business, insurance and legal industries.

If campaign contributions are a litmus test of legislators’ positions, they could map out the vote on a version of The Fairness in Asbestos Injury Resolution Act of 2004.

Republicans, backed by business and insurance companies, want a bill to create one trust fund to compensate victims. It would protect businesses by taking asbestos claims out of the courts.

Democrats, supported by trial lawyer and labor interests, offer numerous amendments in support of the victims of asbestos disease.

Insurance companies say lawsuits drive up premiums. Asbestos companies want financial stability and a stop to large, punitive damages, which cause stocks to plunge.

Labor unions want to make sure workers have full compensation for injuries and preventive medical exams, and trial lawyers press the cases at a usual fee of 30 percent of a client’s award, according to the Rand Institute for Civil Justice.

The interest groups at the forefront of the legislative fight are among the top spenders, federal campaign disclosure records show.

Businesses and insurance companies gave almost twice as much to committee Republicans than to Democrats in 2004, reflecting a similar ratio of contributions across Congress as a whole.

For trial lawyers and labor groups, the opposite is true; they gave more than two-thirds of their contributions to Democrats.

Their votes in recent years on the asbestos legislation show the measure of this influence:

• In July 2003, the Senate Judiciary Committee held hearings on the asbestos trust fund legislation, which had eight Republican co-sponsors. It passed committee largely along party lines.

• On April 22, 2004, the committee sent a revised version of the bill to the Senate. It failed to gain the vote of Democrats and thus the 60 votes necessary to end a filibuster.

Another version of the bill is expected to be introduced in the Senate in the next few weeks.

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