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Minutes for HB2457 - Committee on Judiciary

Short Title

Enacting the asbestos trust claims transparency act.

Minutes Content for Thu, Mar 8, 2018

Chairman Wilborn opened the hearing on HB2457 - Enacting the asbestos trust claims transparency act.  Jason Thompson provided an overview of the bill and answered questions from the committee.  (Attachment 1)

Eric Stafford spoke in favor of HB2457 and explained how the bill compared to the one passed the Senate at the end of the 2017 legislative session when there was not time for the House to give it attention.  He indicated the 2018 bill establishes clear guidelines for filing an asbestos claim in Kansas, requiring a plaintiff to file a claim with the federally established asbestos trust funds before proceeding with a suit in the state tort system.  (Attachment 2)

Mark Behrens supported HB2457 and gave a brief history of asbestos litigation beginning in 1970's; by 2002 all asbestos producers were in bankruptcy and were required to set aside money in trust funds to pay settlements.  Mr. Behrens handed out to committee members a sample trust funds claim submission form and gave examples of cases being handled in a way that allows the plaintiffs to recover claims at the state level without making a full disclosure of past exposures to asbestos.  He believes the guidelines established by the bill would allow juries to have access to all pertinent information and make fair settlements based on all the evidence.  He also believes the guidelines would avoid delays in the payment of settlements and help deal with fraud. (Attachment 3)  (Attachment 4)

The Chairman noted written testimony in favor of HB2457 submitted by Mark Johnston for the National Association of Mutual Insurance Companies (Attachment 5), by Marlee Carpenter for the Kansas Association of Property & Casualty Insurance Companies (Attachment 6), and by Zach Chaffee-McClure for the Kansas Association of Defense Counsel (Attachment 7).

Proponent conferees answered questions from the committee.

Dennis Phillips opposed HB2457 and explained the asbestos hazard firefighters face whenever they deal with a fire in a building built prior to 1980.  He is concerned the bill would cause delays in settlements for firefighters. (Attachment 8)

Callie Denton spoke against HB2457.  She believes the process is already regulated, making the bill unnecessary. (Attachment 9)

Andrew Schermerhorn opposed HB2457.  He agreed that Kansas law already provides appropriate regulation and expressed his concern about requiring more paperwork of terminally ill clients who often do not live long enough to see the process completed.  He believes the requirements of the bill will cause delays in settling claims. (Attachment 10)

Chairman Wilborn pointed written testimony opposing HB2457 submitted by Robert Callahan for the Military Order of the Purple Heart, Department of Kansas (Attachment 11), and by Andy Sanchez for the Kansas AFL-CIO (Attachment 12).

Conferees opposing HB2457 answered questions from committee members.

The Chairman closed the hearing on HB2457.