In its support for the Fairness in Asbestos Injury Resolution Act, ("Approve asbestos fund to stop lawsuit abuse," Feb. 6), The Detroit News neglected to consider two key problems with the bill, both of which will harm thousands of asbestos victims:


First, there are thousands of asbestos exposure victims who are receiving - or will receive - settlement money from existing asbestos trusts that were formed to implement Chapter 11 reorganization plans that were approved by federal courts. The act would immediately and irrevocably take that agreed-upon settlement money away from those victims of asbestos exposure by taking that private trust money to start up the federal asbestos fund.
Thus, abruptly, these victims will be told their settlements are no longer valid, forcing them to wait months, even years, to receive money from a new national fund administered by the federal government - if they receive any money at all.


Second, by taking money away from the existing asbestos settlement trusts and their beneficiaries, the act violates the "takings" clause of the Fifth Amendment of the U.S. Constitution.

To fund the start-up of its new national fund, the act would confiscate the assets of private asbestos settlement trusts, which were formed as part of bankruptcy settlements.
At a minimum, the Fairness in Asbestos Injury Resolution Act must be amended to allow existing asbestos settlement trusts to opt out of the national fund.

Doing so would fix that constitutional issue while allowing trust beneficiaries to continue receiving the benefits they've negotiated in good faith.


Letter to The Detroit News from:
Steve Snyder

Managing Trustee
Western Asbestos Settlement Trust

San Francisco