Signed by Governor Jeff Colyer

Vote Smart's Synopsis:

A vote to pass a bill that establishes the asbestos trust claims transparency act.

Highlights:

• Defines “asbestos trust” as a government-approved or court-approved trust, qualified settlement fund, compensation fund or claims facility created as a result of an administrative or legal action, a court-approved bankruptcy, or other applicable provision of law, that is intended, in whole or in part, to provide compensation to claimants arising out of, based on, or related to the health effects of exposure to asbestos (Sec. 2).

• Requires, no later than 30 days prior to the date the court establishes for the completion of all fact discovery, the plaintiff and any person who represents them or has a fiduciary duty to the plaintiff with respect to the asbestos claim, to do all of the following (Sec. 3):

• Conduct an investigation and file all asbesto trust claims that can be made by the plaintiff;

• Provide the court and parties with a sworn statement signed by the plaintiff and the plaintiff’s counsel in the asbestos claim, under penalty of perjury, indicating that an investigation of asbestos trust claims has been conducted by the required people, and further indicating that all asbestos trust claims that can be made by the plaintiff or on the plaintiff’s behalf have been completed and filed;

• Provide all parties with all trust claim materials, including trust claim materials that relate to conditions other than those that are the basis for the asbestos claim and all trust claim materials from all law firms connected to the plaintiff in relation to exposure to asbestos, including anyone at a law firm or any fiduciaries involved in the asbestos claim, any referring law firm, and any other firm or fiduciary that has filed an asbestos trust claim for the plaintiff or on the plaintiff’s behalf; and

• If the plaintiff’s asbestos trust claim is based on exposure to asbestos through another individual, the plaintiff shall produce all trust claim materials submitted by or on behalf of the other individual to any asbestos trust if the plaintiff is in possession, control or custody of those trust claim materials, or if the plaintiff, plaintiff’s counsel or any of the plaintiff’s fiduciaries are legally entitled to obtain those trust claim materials.

• Authorizes a defendant to file a motion no later than the date established by court for the completion of all fact discovery identifying the asbestos trust claims the defendant believes the plaintiff can file and include information supporting the asbestos trust claims (Sec. 4).

• Requires the plaintiff, within 10 days after receiving the defendant’s motion, to (Sec. 4):

• File the asbestos trust claims;

• File a written response with the court stating why there is insufficient evidence for the plaintiff to file the asbestos trust claims; or

• File a written response with the court requesting a determination that the cost to file the asbestos trust claims exceed the plaintiff’s reasonably anticipated recovery.

• Specifies that trust claim materials and trust governance documents are presumed to be relevant and authentic, and are admissible in evidence in an asbestos claim, and that a claim of privilege does not apply to any trust claim materials or trust governance documents (Sec. 5).

Full Bill Text