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 Canadian
Medical Association Journal
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Asbestos manufacturers dodge litigation
Companies that are otherwise financially fit are declaring bankruptcy in a bid to escape endless asbestos-related litigation (pages 489, 491, 495). Twenty-five of the 140 businesses that once sold asbestos products in the US have already filed for bankruptcy, the Wall Street Journal reported in December. In the US bankruptcy is an expensive proposition, since American law requires companies declaring bankruptcy to create a "qualified settlement fund" or trust for future claimants. This generally amounts to at least 51% of the company's net worth. Financial claims made in lawsuits can be debilitating. For example, Owens Corning settled 240 000 asbestos-related claims for $1.7 billion before it filed for bankruptcy protection. Closer to home, members of Parliament are moving out of the Wellington Building on Parliament Hill in Ottawa after an environmental assessment in November revealed that there were large amounts of asbestos dust in ventilation ducts, stairwells and elsewhere. — Barbara Sibbald, CMAJ
Copyright 2001 Canadian Medical Association or its licensors |
