According to an editorial on the Wall Street Journal’s website on asbestos and mesothelioma, W.R. Grace is on the verge of making legal history with a trial proceeding that could alter the federal asbestos bankruptcy landscape forever.
A building materials company, W.R. Grace was among the firms swept up in a second round of asbestos litigation in the late 1990s. Having chewed their way through asbestos manufacturers, trial lawyers went after companies that had only a marginal asbestos link. By blanketing these firms with an avalanche of claims they recruited, the tort bar pushed at least 30 of these second-tier players into bankruptcy.
The company entered Chapter 11 with some 120,000 pending claims. But Judge Fitzgerald allowed it to send a medical questionnaire to those plaintiffs, and to request proof of a claim. Some 35,000 didn't bother to finish that process.
The vast majority of asbestos claims are bogus. The plaintiffs lawyers know it, which is why, instead of trying to defend these claims, they've fought every attempt by Grace to examine them. Now that they've lost that battle, they argue that because Grace settled such claims in the past, they should continue to pay them going forward.
A building materials company, W.R. Grace was among the firms swept up in a second round of asbestos litigation in the late 1990s. Having chewed their way through asbestos manufacturers, trial lawyers went after companies that had only a marginal asbestos link. By blanketing these firms with an avalanche of claims they recruited, the tort bar pushed at least 30 of these second-tier players into bankruptcy.
The company entered Chapter 11 with some 120,000 pending claims. But Judge Fitzgerald allowed it to send a medical questionnaire to those plaintiffs, and to request proof of a claim. Some 35,000 didn't bother to finish that process.
The vast majority of asbestos claims are bogus. The plaintiffs lawyers know it, which is why, instead of trying to defend these claims, they've fought every attempt by Grace to examine them. Now that they've lost that battle, they argue that because Grace settled such claims in the past, they should continue to pay them going forward.
If Judge Fitzgerald does discount most of these claims, it could mark the beginning of the end of the bankruptcy racket. Other judges will find it difficult to ignore the evidence and procedures here. As important, trial lawyers might be reluctant to push more companies (in asbestos or other mass torts) into bankruptcy court if they think false claims may be exposed.
This clean-up would obviously come too late for the dozens of companies that have already surrendered to asbestos trusts now run by the tort bar. But it's encouraging that courts are finally investigating sham asbestos claims. It's never too late for real justice.
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