Georgia: High Court Overturns Asbestos Law

Last month, the Georgia Supreme Court struck down a state law passed last year that makes it more difficult for people to file a lawsuit against companies for asbestos-related illnesses. In its decision, the court ruled unanimously that the law retroactively limited cases that were filed before the law was passed. The court’s decision allows 860 lawsuits, the majority against Georgia-Pacific Corporation, to continue.

“Asbestos litigation and its repercussions have loomed large over manufacturers and businesses and their insurers for years,” Marsha Harrison, NAMIC’s regulatory affairs counsel, said. “Dozens of businesses have become bankrupt as a result of asbestos lawsuits.”

According to Harrison, many of the more recent claims have been filed by individuals who are asymptomatic. “Attempts to fashion a federal legislative solution have thus far been unsuccessful and, as a result, a number of state legislatures have enacted laws that limit state asbestos liability litigation to plaintiffs who are ill,” she said. “It is unfortunate that the Georgia Supreme Court overturned the state's asbestos reform law. States have enacted laws placing limitations on asbestos litigation as a way to prevent fraudulent claims and to help those most in need to recover damages. Allowing suits by healthy plaintiffs to go forward does a disservice to those who are ill.”

Direct questions to NAMIC’s Regulatory Affairs Counsel Marsha Harrison.

Posted: Monday, December 04, 2006 12:00:00 AM. Modified: Monday, December 04, 2006 10:35:21 AM.

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We are 1,400 property/casualty insurance companies serving more than 135 million auto, home and business policyholders, with more than $196 billion in premiums accounting for 50 percent of the automobile/homeowners market and 31 percent of the business insurance market. We are the largest and most diverse property/casualty trade association in the country, with regional and local mutual insurance companies on main streets across America joining many of the country’s largest national insurers who also call NAMIC their home. More than 200,000 people are employed by NAMIC members.