10 Tips For Corporate Counsel Facing Asbestos Suits

Would readers working for companies that are subject to no conceivable risk of asbestos litigation please step forward? Dear reader, not so fast ...

The number of companies targeted by asbestos claimants continues to rise, with lawsuits currently involving about 10,000 different companies. Lawsuits remain pending against a range of companies far wider than the manufacturers of asbestos products.

Defendants include companies that used asbestos in any way, whether directly in their products or incidental to their operations. The mere existence of asbestos on a company's premises has subjected it to lawsuits. In one suit filed in Texas in November 2009, a truck driver who had contracted lung cancer sued more than 100 companies whose premises he claimed to have visited regularly.

Furthermore, even if a company didn't deal with asbestos directly, dealing with another company that did use asbestos can subject it to liability based upon allegations of conspiring to hide the danger of asbestos or failing to provide adequate advice on safety procedures.

Despite more recent indications that claims filings have declined slightly, the cost to resolve those claims show no signs of abating and are estimated to potentially exceed $250 billion. As a result, over 90 companies have filed for bankruptcy protection thus far.

Asbestos-related litigation differs greatly from other forms of litigation and presents unique challenges for companies forced to defend asbestos claims. Here are some basics tips we recommend that will help you navigate the insurance component of what one U.S. Supreme Court Justice has called the "elephantine mass" of asbestos litigation.

Notify the Insurance Companies

The first and most important step is notifying your insurance company that you have been named in an asbestos lawsuit. Insurance funds are vital to defending asbestos claims, and placing your insurance company on notice as soon as possible is essential to recovering the money necessary to adequately defend asbestos actions. If you rely upon your broker to provide notice, make sure to follow up and keep updated on all correspondence. Reliance upon your broker is not always a defense to late notice.

Develop Partnerships Among Your Allies

Experienced liability defense counsel is necessary to provide you with assistance in preparing and coordinating your efforts to successfully defend what often is a deluge of claims. Handling this unique and complex litigation, however, only...