Michigan Supreme Court Issues Order Regarding Asbestos Cases; NAMIC Comments

The Michigan Supreme Court this week issued an order barring the “bundling” or consolidation of asbestos cases for settlement or trial.

The court’s 4 to 3 decision requires lower courts to hear asbestos cases individually, prohibiting the “bundling” of cases. The result of the decision is that very serious cases will not be used as “leverage” to settle less serious cases. “It is the opinion of this Court that each case should be decided on its own merits, and not in conjunction with other cases. Thus, no asbestos-related disease personal injury action shall be joined with any other such case for settlement or for any other purpose, with exception of discovery,” the court’s majority opinion states.

Justice Stephen J. Markman’s concurring majority opinion states that the court’s order will allow the state legislature to more accurately assess the “true costs” of asbestos litigation, which has been obscured by the “bundling” of claims.

Currently, there are 2,500 asbestos-related lawsuits pending in Michigan. There has not been an asbestos case trial verdict in Michigan since 1999.

“The Michigan General Assembly, several other states and the U.S. Congress are currently debating various approaches to asbestos and silica litigation. To date, seven states (Florida, Kansas, Georgia, Ohio, South Carolina, Tennessee and Texas) have enacted some form of asbestos reform legislation. In 2004, Ohio became the first state to enact asbestos reforms creating medical requirements for filing asbestos claims,” stated NAMIC State Affairs Manager Joe Thesing.

“Asbestos claims are inundating U.S. courts at an alarming rate. To date, over 700,000 asbestos liability claims have been filed. One reason for the drastic increase in asbestos lawsuits is that the scope of defendants has widened to companies with only peripheral involvement with asbestos. Previously, the majority of asbestos claims centered on companies that manufactured asbestos-containing materials,” stated Marliss Browder, NAMIC’s federal affairs director.

Source: NAMIC

Posted: Friday, August 11, 2006 12:00:00 AM. Modified: Friday, August 11, 2006 3:36:34 PM.

(317) 875-5250 - Indianapolis | (202) 628-1558 - Washington, D.C.

Contact NAMIC | Press | Advertise | Sponsor

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.