Ohio Supreme Court Upholds Asbestos Legislation

The American Insurance Association (AIA) today praised an Ohio Supreme Court ruling that upholds the nation’s first asbestos litigation reform legislation, thereby helping truly sick victims of asbestos exposure get compensated quickly and fairly for their injuries.

“The Court’s ruling upholds a process that prioritizes the handling and resolution of asbestos claims and litigation,” said Lynda Mounts, AIA vice president, and deputy general counsel. “For too long, the bulk of asbestos claims that have caused dozens of Ohio companies to go bankrupt were specious. The reform measure, now validated by the court, simply requires plaintiffs to provide solid medical evidence of an asbestos-related illness for a lawsuit to proceed. The truly sick will still get compensated and for those that, thankfully, are not sick but may become sick, they can still have their day in court.”

In a 6-1 decision authored by Justice Cupp, the Court held that the legislative changes in the reform bill were “remedial and procedural” in nature and therefore may be applied to cases that were filed before the effective date of the legislation (September 2, 2004) without offending the Ohio Constitution’s prohibition against retroactive laws.

“The Court recognized that the Legislature’s intent was not to take rights away, but more clearly define a reasonable process to address the asbestos litigation crisis that has for too long unfairly penalized citizens, businesses and the state’s court system,” added Mounts.

The landmark asbestos reform measure passed in 2004, HB 292, requires asbestos claimants to meet a minimum level of medical criteria before filing an action. The measure tolls the statute of limitations, so that individuals who do not yet show signs of impairment would be able to file a claim when and if they ever do get sick. Currently, thousands of claims involve people who are not currently sick or had minimal exposure to the substance, clogging the state’s courts, forcing those truly sick to wait in line or get lost in the process while area businesses close or go bankrupt.

Asbestos was phased out of most non-essential uses in the United States by the late 1970s, yet thousands of claims continue to stress state courts. Studies indicate that up to 90 percent of all asbestos claims are filed on behalf of individuals who are not sick from asbestos – and may never become sick – and many of these claims are driven by mass screenings. Asbestos litigation has bankrupted more than 80 companies nationwide in the past twenty years and clogged the courts with hundreds of thousands of pending cases.

A copy of the decision, in the case of Ackison v. Anchor Packing Company, can be found at the following link: http://www.sconet.state.oh.us/rod/docs/pdf/0/2008/2008-Ohio-5243.pdf