Furthering Asbestos Claim Transparency Act of 2013

Great Seal of the United States (obverse)

Furthering Asbestos Claim Transparency (FACT) Act of 2013 was a legislative bill introduced in the United States Congress aimed at amending the federal bankruptcy code to increase transparency in the process of compensation for victims of asbestos exposure. The bill, officially known as H.R. 982, sought to modify the way asbestos trusts operate in the United States. Asbestos trusts are legal entities established to provide compensation to victims of asbestos-related diseases, such as mesothelioma, asbestosis, and lung cancer, resulting from exposure to asbestos.

Background

Asbestos is a group of naturally occurring fibrous minerals that were widely used in construction, automotive, and other industries for their strength, heat resistance, and insulating properties. However, asbestos exposure has been linked to serious health issues, leading to its regulation and phased-out use in many countries. In the United States, companies that produced or used asbestos have faced numerous lawsuits from individuals affected by asbestos-related diseases. To manage the liabilities from these lawsuits, many companies have filed for Chapter 11 bankruptcy and established asbestos trusts to compensate victims.

Provisions of the FACT Act

The FACT Act proposed several key changes to the operation of asbestos trusts, including:

• Requiring asbestos trusts to file quarterly reports with the bankruptcy court, detailing each demand for payment from the trust and the basis for any payment made.
• Mandating that asbestos trusts provide information on claims to any party in a lawsuit concerning liability for asbestos exposure upon request, subject to a protective order to prevent the disclosure of confidential information.

Support and Opposition

Supporters of the FACT Act, including various business groups and insurance companies, argued that the bill would prevent fraud and abuse in the asbestos claims process, ensuring that funds would be available for future claimants who are legitimately sick. They contended that increased transparency would help identify and reduce duplicate claims and fraudulent activities.

Opponents of the bill, including many veterans' groups, labor unions, and public health organizations, argued that the FACT Act would violate victims' privacy and make it more difficult for asbestos victims to obtain fair compensation. They expressed concerns that the bill's reporting requirements would place an undue burden on asbestos trusts, potentially delaying compensation to victims.

Legislative History

The Furthering Asbestos Claim Transparency Act of 2013 was introduced in the House of Representatives and passed by the House. However, it faced significant opposition in the United States Senate and ultimately did not become law.

Impact and Controversy

The debate over the FACT Act highlighted the ongoing controversy surrounding asbestos litigation and compensation in the United States. Proponents viewed the bill as a necessary step to protect the integrity of asbestos trusts and ensure their solvency for future claimants. Critics, however, saw the bill as an attempt to limit compensation for asbestos victims and protect corporate interests at the expense of individuals suffering from asbestos-related diseases.

See Also

• Asbestos
• Mesothelioma
• Asbestosis
• Chapter 11 bankruptcy
• United States Congress