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A Utah judge has dismissed a complaint from a number of states that the four biggest asbestos trusts and the trial lawyers who run them failed to answer claims they were mismanaging the funds, Legal Newsline has found.
The complaint, first filed by Utah's attorney general, was dismissed by a Salt Lake City-based judge Sept. 11 and targets the actions of the trusts' Future Claims Representatives and Trust Advisory Committees.
"The TACs, comprised of asbestos plaintiffs’ attorneys largely from a handful of prominent firms, have outsized power over the billions of dollars in the trust system," it says.
"They represent a large proportion of current asbestos claimants, and so vote on their behalf in approving the governing documents. Thus, the evidentiary requirements for claims — such as the claimant’s work history and proof of exposure — are primarily controlled by the same attorneys who collect contingency fees on millions of dollars of claims paid from a trust each year."
No written order has been issued, but one of the arguments made by the defendants was that a landmark U.S. Supreme Court ruling, handed down after the complaint was filed, meant that Utah lacked jurisdiction to handle the complaint.
That ruling, in a case involving drug company Bristol-Myers Squibb, bars plaintiffs from suing in a state in which they have little or no connection. It means that the four trusts do not have to reply to the civil investigation demands (CIDs) sent by 13 states asking for detailed information on how they are managed.
The trusts – set up by bankruptcy courts to manage claims against Armstrong World Industries, Babcock & Wilcox, DII Industries and Owens Corning/Fibreboard – were sent the demands as Utah and the other states believed they were being mismanaged and abuse was occurring.
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The CFMEU criticised John Holland while the state Labor opposition blamed the government for awarding them the tender, amid widespread complaints over tens of millions of dollars in alleged late and non-payments owed to the subcontractors building it.
Mr Day defended John Holland, saying he thought it had acted appropriately in ensuring proper materials that met Australian standards were being used but said the possible presence of asbestos was unacceptable.
“I would agree that it’s not good enough if asbestos is being used in any building projects private or public in WA or Australian in 2016 ... it is very disappointing if that is the case.
“It will be the responsibility of the suppliers and builders to replace the panels if asbestos is confirmed to be present. I don’t expect there to be any cost to West Australian taxpayers.” Treasurer Mike Nahan has previously said he was not happy with John Holland over process problems plaguing the hospital.
Opposition health spokesman Roger Cook said it was “gobsmacking” that the government would allow a major public project, such as a children’s hospital, being built in 2016 to involve the use of asbestos and questioned whether future repairs and maintenance would further expose people.
CFMEU WA secretary Mick Buchan said the appointment of the John Holland Group to build such an important project for the state was an unmitigated disaster.
“We allege that Holland’s have gone for a cheaper product to cut costs and in doing so have put the health and welfare of workers at risk, let alone future occupants of the hospital,” he said.
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ASBESTOS has been found in a roof panel at Perth’s new $1.2 billion children’s hospital, which will force the replacement of the entire eighth floor atrium roof and require workers to undergo testing for exposure.
The hospital is scheduled to officially open in October
Asbestos is banned in Australia because of its links to cancer and other health risks.
WA Health Minister John Day said workers exposed to the substance called chrysotile will be tested.
The detection of asbestos has stopped work at Perth’s new children’s hospital and put more heat on the project’s contractor.
Mr Day said it was very disappointing that it had occurred and the difficult task of replacing 150 panels, which were imported from China and imported by a company called Yuanda, was contractor John Holland’s responsibility.
Mr Day said he was hopeful the scare wouldn’t delay the hospital’s opening but said a full assessment would need to be undertaken.
A worker discovered a white powder in a panel while installing a ceiling fan that looked like hazardous white asbestos, or chrysotile, which can cause cancer and is banned in Australia.
The Construction, Forestry, Mining and Energy Union said its own independent tests had also found asbestos was present.
