Chamber Commends ABA Action on Legal Reform

WASHINGTON, D.C. - The United States Chamber of Commerce commended the American Bar Association for its recent calls to repair problems with both the class action system and the out-of-control asbestos litigation crisis.

"The decision of the nation's largest association of lawyers to seek a solution to the asbestos situation is a welcome addition to the chorus of calls for reform and I commend them for recognizing the urgency of the issue," said Thomas Donohue, Chamber President and CEO. "I am also pleased to see that the ABA recognizes the great need for increased federal court involvement in dealing with large interstate class actions."

The Class Action Fairness Act (S. 274) was introduced last week in the U.S. Senate. The legislation would help move large, interstate class action cases from state to federal court.

Asbestos litigation has cost the economy as much as $2 billion from company closings, according to a recent study conducted for the Chamber by NERA Economic Consulting. "The Secondary Impacts of Asbestos Liabilities" studied plant closures resulting in mass layoffs, causing local real estate values to fall, per capita income to decline, and federal, state and local tax receipts to dwindle, in addition to increased costs for worker retraining. A recent RAND study estimated that costs associated with asbestos litigation could rise to more than $250 billion in the absence of reform.

With its public recommendation for asbestos reform, the ABA joins the U.S. Supreme Court — whose previous rulings have called for a legislative fix for asbestos lawsuits — and the business community in recognizing an urgent need for congressional action, according to the Chamber. "There is no single legal issue more potentially damaging to the U.S. business community and our country as a whole than asbestos litigation," said Donohue in a recent speech to business leaders.

"While there are different approaches to finding a remedy to the asbestos crisis, I believe that a viable consensus solution can - and must - be found this year," Donohue said. "Runaway asbestos litigation has already caused the bankruptcy of more than 60 companies and the loss of over 60,000 jobs. Unless a solution is reached soon, more harm to businesses, communities and individuals will follow."

The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector and region.

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03-26