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Asbestos
The Dow Chemical Company and Union Carbide Corporation (UCC) continue defending asbestos lawsuits. These lawsuits have arisen even though both companies complied with government regulations and industry standards that were in effect for regulating the safe use and handling of asbestos. Particularly noteworthy is the sheer volume of personal injury claims (experts estimate between 80 percent and 90 percent) filed by plaintiffs who have no current health effects. As a result, the court system is clogged, significant resources must be devoted to defending against these claims, and the claims of those people who have contracted specific asbestos-related diseases due to exposure are not being met fairly or in a timely manner.
The runaway asbestos litigation in the U.S. is having a huge economic impact on companies and individuals. Most of the major manufacturers of asbestos-containing products – to date, nearly 70 companies – are in bankruptcy. A recent study co-authored by Nobel prize-winning economist Joseph Stiglitz said U.S. workers have borne up to $3 billion of the costs of soaring asbestos claims that pushed their employers into bankruptcy. The asbestos bankruptcies have led to a loss of as many as 60,000 jobs and the costs imposed on these displaced workers amount to between $1.4 billion and $3 billion in present value, or roughly $25,000 to $50,000 per displaced worker. These bankruptcies also increase the focus on solvent, but more peripheral, companies that would otherwise not bear a significant portion of the litigation burden.
We believe that federal legislation is needed to ensure justice for all those concerned. A bill establishing a privately funded trust is presently pending in the Senate, and the Company has urged Congress to act on this measure in 2004.
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