Signed by Governor Rick Snyder

Vote Smart's Synopsis:

Vote to concur with Senate amendments and to pass a bill that establishes asbestos bankruptcy trust claims act.

Highlights:

• Defines “asbestos” as chrysotile, amosite, crocidolite, tremolite asbestos, anthophyllite asbestos, actinolite asbestos, asbestiform winchite, asbestiform richterite, asbestiform amphibole minerals, and any of these minerals that have been chemically treated altered (Sec. 3011).

• Defines “asbestos action” as a claim for damages or other civil or equitable relief presented in a civil action that arises out of, in based on, or is related to the health effects of exposure to asbestos, and any other derivative claim made by or on behalf of an individual exposed to asbestos or a representative, spouse, parent, child, or other relative or the individual (Sec. 3011).

• Defines “asbestos trust” as a government-approved or court-approved trust, qualified settlement fund, compensation fund, or claims facility that is created as a result of an administrative or legal action, a court-approved bankruptcy, or another applicable provision of law and that is intended to provide compensation to claimants arising out of, based on, or related to the health effects of exposure to asbestos (Sec. 3011).

• Defines “person” as an individual, partnership, corporation, association, government entity, or other legal entity (Sec. 3011).

• Defines “Plaintiff” as the person bringing the asbestos action, including a personal representative if the asbestos action is brought by an estate, or a conservator or next friend if the asbestos action is brought on behalf of a minor or legally incapacitated individual (Sec. 3011).

• Defines “trust claims materials” as a final executed proof of claim and all other documents and information related to a claim against an asbestos trust, including claims from and supplementary materials, affidavits, depositions and trial testimony, work history, and medical and health records, all documents that reflect the status of a claim against an asbestos trust, and, if the trust claim has settled, all documents that relate to the settlement of the trust claim (Sec. 3011).

• Defines “trust governance documents” as all documents that relate to eligibility and payment levels, including claims payment matrices, trust distribution procedures, and plans for reorganization, for an asbestos trust (Sec. 3011).

• Requires the plaintiff to do all of the following no later than 180 days before the initial date set for the trial of an asbestos action (Sec. 3012):

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

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

• If the plaintiff’s asbestos trust claim is based on exposure to asbestos through another individual, produce all trust claims materials submitted by the other individual to any asbestos trust if the materials are available to the plaintiff or plaintiff’s counsel.

• Requires that a plaintiff has a continuing duty to supplement the information and materials required to be provided within 30 days after the plaintiff or a person on the plaintiff’s behalf supplements an existing asbestos trust claim, receives additional information or materials related to an asbestos trust claim, or files an additional asbestos trust claim (Sec. 3012).

• Requires the defendant to confer with the plaintiff if the defendant believes the plaintiff has not filed all asbestos trust claims not less than 60 days before the trial (Sec. 3013).

• Requires the motion to identify the asbestos trust claims not previously identified that the defendant believes the plaintiff can file (Sec. 3013).

• Requires the plaintiff to do one of the following within in 10 days after receiving a motion (Sec. 3013):

• File the asbestos trust claims;

• File a 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 exceeds the plaintiff’s reasonably anticipated recovery.

• Requires the court to determine if there is sufficient basis for the plaintiff to file the asbestos trust claims within 10 days after the plaintiff files a written response to the defendant’s motion (Sec. 3013).

• Requires the court to stay the asbestos action until the plaintiff files the asbestos trust claim and produces all related trust claims materials, if the court determines that there is a sufficient basis for the plaintiff to file an asbestos trust claim (Sec. 3013).

• Requires the court to stay the asbestos action until the plaintiff files with the court and provide all parties with a verified statement of the plaintiff’s history of exposure to, usage of, or other connection to asbestos covered by the asbestos trust if the court determines that the cost of submitting an asbestos trust claim that is the subject of a motion exceeds the plaintiff’s reasonably anticipated recovery (Sec. 3013).

• Requires that trust claims materials and trust governance documents are presumed to be relevant and authentic, and are admissible in evidence in an asbestos action (Sec. 3014).

• Authorizes a defendant in an asbestos action to seek discovery from an asbestos trust (Sec. 3014).

• Prohibits a plaintiff to claim privilege or confidentiality to bar discovery (Sec. 3014).

• Requires a plaintiff to provide consent at the time of asbestos trust identification, including but not limited to, authorization for release of trust materials or other expression of permission that may be required by the asbestos trust to release information and materials sought be a defendant (Sec. 3014).

• Specifies that if a plaintiff or person on the plaintiff’s behalf files an additional asbestos trust claim after obtaining a judgement in an asbestos action, and if that asbestos claim after obtaining a judgement in an asbestos action, and if that asbestos trust was in existence at the time the plaintiff obtained the judgement, the trial court, on a motion by a defendant or judgement debtor seeking sanctions or other relief, has jurisdiction to reopen and adjust the judgement (Sec. 3015).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that establishes asbestos bankruptcy trust claims act.

Highlights:

• Defines “asbestos” as chrysotile, amosite, crocidolite, tremolite asbestos, anthophyllite asbestos, actinolite asbestos, asbestiform winchite, asbestiform richterite, asbestiform amphibole minerals, and any of these minerals that have been chemically treated altered (Sec. 3011).

• Defines “asbestos action” as a claim for damages or other civil or equitable relief presented in a civil action that arises out of, in based on, or is related to the health effects of exposure to asbestos, and any other derivative claim made by or on behalf of an individual exposed to asbestos or a representative, spouse, parent, child, or other relative or the individual (Sec. 3011).

• Defines “asbestos trust” as a government-approved or court-approved trust, qualified settlement fund, compensation fund, or claims facility that is created as a result of an administrative or legal action, a court-approved bankruptcy, or another applicable provision of law and that is intended to provide compensation to claimants arising out of, based on, or related to the health effects of exposure to asbestos (Sec. 3011).

• Defines “person” as an individual, partnership, corporation, association, government entity, or other legal entity (Sec. 3011).

• Defines “Plaintiff” as the person bringing the asbestos action, including a personal representative if the asbestos action is brought by an estate, or a conservator or next friend if the asbestos action is brought on behalf of a minor or legally incapacitated individual (Sec. 3011).

• Defines “trust claims materials” as a final executed proof of claim and all other documents and information related to a claim against an asbestos trust, including claims from and supplementary materials, affidavits, depositions and trial testimony, work history, and medical and health records, all documents that reflect the status of a claim against an asbestos trust, and, if the trust claim has settled, all documents that relate to the settlement of the trust claim (Sec. 3011).

• Defines “trust governance documents” as all documents that relate to eligibility and payment levels, including claims payment matrices, trust distribution procedures, and plans for reorganization, for an asbestos trust (Sec. 3011).

• Requires the plaintiff to do all of the following no later than 180 days before the initial date set for the trial of an asbestos action (Sec. 3012):

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

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

• If the plaintiff’s asbestos trust claim is based on exposure to asbestos through another individual, produce all trust claims materials submitted by the other individual to any asbestos trust if the materials are available to the plaintiff or plaintiff’s counsel.

• Requires that a plaintiff has a continuing duty to supplement the information and materials required to be provided within 30 days after the plaintiff or a person on the plaintiff’s behalf supplements an existing asbestos trust claim, receives additional information or materials related to an asbestos trust claim, or files an additional asbestos trust claim (Sec. 3012).

• Requires the defendant to confer with the plaintiff if the defendant believes the plaintiff has not filed all asbestos trust claims not less than 60 days before the trial (Sec. 3013).

• Requires the motion to identify the asbestos trust claims not previously identified that the defendant believes the plaintiff can file (Sec. 3013).

• Requires the plaintiff to do one of the following within in 10 days after receiving a motion (Sec. 3013):

• File the asbestos trust claims;

• File a 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 exceeds the plaintiff’s reasonably anticipated recovery.

• Requires the court to determine if there is sufficient basis for the plaintiff to file the asbestos trust claims within 10 days after the plaintiff files a written response to the defendant’s motion (Sec. 3013).

• Requires the court to stay the asbestos action until the plaintiff files the asbestos trust claim and produces all related trust claims materials, if the court determines that there is a sufficient basis for the plaintiff to file an asbestos trust claim (Sec. 3013).

• Requires the court to stay the asbestos action until the plaintiff files with the court and provide all parties with a verified statement of the plaintiff’s history of exposure to, usage of, or other connection to asbestos covered by the asbestos trust if the court determines that the cost of submitting an asbestos trust claim that is the subject of a motion exceeds the plaintiff’s reasonably anticipated recovery (Sec. 3013).

• Requires that trust claims materials and trust governance documents are presumed to be relevant and authentic, and are admissible in evidence in an asbestos action (Sec. 3014).

• Authorizes a defendant in an asbestos action to seek discovery from an asbestos trust (Sec. 3014).

• Prohibits a plaintiff to claim privilege or confidentiality to bar discovery (Sec. 3014).

• Requires a plaintiff to provide consent at the time of asbestos trust identification, including but not limited to, authorization for release of trust materials or other expression of permission that may be required by the asbestos trust to release information and materials sought be a defendant (Sec. 3014).

• Specifies that if a plaintiff or person on the plaintiff’s behalf files an additional asbestos trust claim after obtaining a judgement in an asbestos action, and if that asbestos claim after obtaining a judgement in an asbestos action, and if that asbestos trust was in existence at the time the plaintiff obtained the judgement, the trial court, on a motion by a defendant or judgement debtor seeking sanctions or other relief, has jurisdiction to reopen and adjust the judgement (Sec. 3015).

Full Bill Text