HCS HB 261 -- ASBESTOS LIABILITY

SPONSOR:  Yates

COMMITTEE ACTION:  Voted "do pass" by the Committee on Insurance
Policy by a vote of 7 to 4.

This substitute establishes the Missouri Successor
Asbestos-Related Liability Fairness Act.  In its main provisions,
the substitute:

(1)  Defines "asbestos claim" as any claim, wherever or whenever
made, for damages, losses, indemnification, contribution, or
other relief arising out of, based on, or in any way related to
asbestos;

(2)  Defines "corporation," "successor," "successor
asbestos-related liabilities," and "transferor";

(3)  Limits the cumulative successor liability of a corporation
to the fair market value of the total gross assets of the
transferor determined at the time of the merger or consolidation;

(4)  Specifies methods for calculating a successor corporation's
fair market value of total gross assets;

(5)  Establishes the coefficient for increasing the fair market
value of total gross assets on a year-by-year basis by taking the
sum of the prime rate of interest plus 1%; and

(6)  Makes the act applicable to all asbestos claims filed on or
after the effective date of the substitute and any pending
asbestos claims in which the trial has not commenced by the
substitute's effective date.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of Less than
$100,000 in FY 2008, FY 2009, and FY 2010.  No impact on Other
State Funds in FY 2008, FY 2009, and FY 2010.

PROPONENTS:  Supporters say that the bill will reform successor
liability laws and help those that have done no wrong.  Similar
legislation has been passed and is working in other states.  It
is not fair to make a company pay for asbestos lawsuits for a
business that they purchased which manufactured items using
asbestos at one time, but didn't when they bought it.

Testifying for the bill were Representative Yates; Mark Behrens,
American Legislative Exchange Council; Missouri Merchants and
Manufacturers Association; Associated Industries of Missouri;
Missouri Insurance Coalition; and Missouri Chamber of Commerce
and Industry.

OPPONENTS:  Those who oppose the bill say that when you purchase
a company, it includes the assets and the liabilities.  You have
to look at all the aspects of an investment before buying it.

Testifying against the bill was Woody Cozad, Missouri Republican
Attorneys for Civil Justice.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:18 am