(1) The Legislature finds that: (a) approximately 100 employers have declared bankruptcy at least partially due to asbestos-related liability; (b) these bankruptcies have resulted in a search for more solvent companies by claimants, resulting in over 10,000 companies being named as asbestos defendants, including many small- and medium-sized companies, in industries that cover 85% of the United States economy; (c) scores of trusts have been established in asbestos-related bankruptcy proceedings to form a multi-billion dollar asbestos bankruptcy trust compensation system outside of the tort system, and new asbestos trusts continue to be formed; (d) asbestos claimants often seek compensation from solvent defendants in civil actions and trusts or claims facilities formed in asbestos-related bankruptcy proceedings; (e) there is limited coordination and transparency between these two paths to recovery, which has resulted in the suppression of evidence in asbestos actions and potential fraud; and (f) justice is promoted by transparency with respect to asbestos bankruptcy trust claims in civil asbestos actions.
(a) approximately 100 employers have declared bankruptcy at least partially due to asbestos-related liability;
(b) these bankruptcies have resulted in a search for more solvent companies by claimants, resulting in over 10,000 companies being named as asbestos defendants, including many small- and medium-sized companies, in industries that cover 85% of the United States economy;
(c) scores of trusts have been established in asbestos-related bankruptcy proceedings to form a multi-billion dollar asbestos bankruptcy trust compensation system outside of the tort system, and new asbestos trusts continue to be formed;
(d) asbestos claimants often seek compensation from solvent defendants in civil actions and trusts or claims facilities formed in asbestos-related bankruptcy proceedings;
(e) there is limited coordination and transparency between these two paths to recovery, which has resulted in the suppression of evidence in asbestos actions and potential fraud; and
(f) justice is promoted by transparency with respect to asbestos bankruptcy trust claims in civil asbestos actions.
(2) This part is enacted to: (a) provide transparency with respect to asbestos bankruptcy trust claims in civil asbestos actions; and (b) reduce the opportunity for fraud or suppression of evidence in asbestos actions.
(a) provide transparency with respect to asbestos bankruptcy trust claims in civil asbestos actions; and
(b) reduce the opportunity for fraud or suppression of evidence in asbestos actions.
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