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Extra info for Asbestos Litigation Costs and Compensation: An Interim Report

Example text

Such procedures typically call for minim al information necessary to determine a claimant’s eligibility to collect from the trust and to categorize the claim with regard to severity in order to determine the amount of money to be paid (Peterson, 1990; Smith, 1990). As the number of bankruptcy trusts increased, the total amount of money available to claimants and their lawyers in return for minim al claim preparation effort also increased. Although the trusts paid only modest sums to each claimant, the total fees available to law firms for representing large numbers of claimants on their trust filings could be substantial.

We include only five defendants on the chart so as not to obscure the details of each defendant’s experience. The sharp year-to-year changes in annual filings against each of these defendants reflect events in the litigation in general or in the circumstances of a particular defendant. The general pattern, however, is the same for all of them: Over the past decade, the number of claims filed annually against each of these defendants increased substantially. Four of them were each receiving 15,000 to 20,000 claims per year at the beginning of the 1990s.

The number of defendants typically named in claims is growing as well. , 1983) found the list of defendants named on asbestos claims included approximately 300 firms. As the litigation has continued, the number of companies named by asbestos claimants has grown dramatically. A number of defendants, insurers, and plaintiff and defense attorneys have provided lists of asbestos defendants to us on a confidential basis. We have worked through the lists provided us to combine related corporate entities—subsidiaries, branches, divisions, and so on.

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