House of Lords Asbestos Ruling to Be Overturned

June 21, 2006 - Succumbing to pressure from the United Kingdom’s many trade unions, the government of Britain agreed to amend the compensation bill currently before the Commons to overturn a House of Lords ruling that stopped victims from claiming full compensation from only one of several negligent employers.

The original House of Lords law, passed in May, stated that mesothelioma victims would have to seek damages from each company that caused their exposure, proportionate to the level of exposure while on that particular job.  Because many of the companies in question are already out of business, it would have been difficult for mesothelioma patients to collect from these particular companies or their insurers.

Lord Falconer, the Lord Chancellor, said the compensation bill would be amended "to provide that in these cases negligent employers should be jointly and severally liable, so that the claimant can recover full compensation from any relevant employer".
It would then be the responsibility of that employer to seek from other negligent employers involved a contribution to the damages awarded.

Insurers are unhappy with the turn-around and are pushing for a central compensation fund, not unlike the one that may be passed by the Senate in the United States.  The major difference, however, is that the British fund will be partially financed by the taxpayers. 

There are about 1,800 new cases of mesothelioma diagnosed each year in the United Kingdom, notes an article in The Financial times, with more than half of those cases resulting in claims.  The rate of asbestos-related diseases continues to climb here and public health experts don’t expect the numbers to peak for at least another 10 years.