Fairness in Class Action Litigation Act of 2015

Floor Speech

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Mr. TROTT. Mr. Chairman, I support H.R. 1927, as it will bring transparency to the asbestos claims process. This is an important goal, as the secrecy that currently surrounds the process has led to abuse and, in turn, compromised the benefits for future victims.

Those who oppose the bill have two arguments against passage. First, they suggest that there really is not a fraud problem. Well, when you leave the fox in charge of the henhouse, you typically end up with a problem.

The facts are pretty clear. A lack of transparency has allowed some law firms and individuals to manipulate the claims process. This should not surprise anyone. When you allow one of the ultimate beneficiaries to structure the trusts, administer the claims, with no accountability or oversight, of course there will be abuse.

Several policy studies, the GAO, and independent judges in at least 10 different States have found questionable claims, fraud, and abuse. So to those who vote against this solution, I say you are choosing to enrich unethical lawyers and claimants at the expense of victims who have legitimate injuries, injuries for which they deserve compensation.

The second argument against this bill is that it somehow compromises the privacy of claimants. Again, this is not true. The FACT Act has much stronger privacy protections than State court. Further, section 107 and rule 9037 of the Federal Rules of Bankruptcy Procedure offer additional safeguards. The reporting requirements do not require the disclosure of Social Security numbers or medical records. The act requires the disclosure of less information than would be required if the claimant were to start a lawsuit in State court.

A vote against this bill means you are okay with secrecy, you are not bothered by fraud or abuse, you don't mind allowing lawyers to use their positions as the architects of these trusts to line their own pockets, and you don't care about the victims who have legitimate claims of asbestos-related diseases.

It is, in fact, a problem that people have made this a political issue. To those who have argued against this bill, I ask: Who will be there and what resources will be available to our veterans when fraudulent claims and multiple claims have exhausted these trusts?

The rule contemplated in H.R. 1927 brings much-needed transparency to Bankruptcy Code section 524G.

I urge my colleagues to support the bill.

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