State lawmakers continue to review a bill Thursday that would modify the legal process for victims of asbestos exposure to receive compensation.

The legislation proposes two substantial changes to the way Montana has historically handled asbestos-related lawsuits. The first section of House Bill 803 requires plaintiffs to disclose any claims they have made to asbestos trusts, and the second provision increases the evidentiary standards for a defendant to be named in a case. 

Rep. Greg Overstreet, R-Stevensville, who sponsored the legislation, characterized the changes as “modest reforms” that would pose little to no barrier for plaintiffs in asbestos cases.  

“It does not bar asbestos claims. Not at all,” said Overstreet at an April 3 Senate Judiciary Committee hearing. 

Instead, Overstreet claimed the bill took aim at fraudulent claims from lawyers and plaintiffs looking to capitalize on payouts, ultimately making courts more efficient. The Montana Chamber of Commerce, U.S. Chamber of Commerce and a handful of other legal associations backed Overstreet’s assertions, but Northwest Montana residents and local lawyers said the legislation would allow large corporations to skirt responsibility. 

“What we’re really talking about here is delay, deny until they die,” said Al Smith, a representative of the Montana Trial Lawyers Association. 

Smith and other opponents argued that the bill would likely increase the burdens plaintiffs face before court proceedings, potentially stalemating legal proceedings before they even begin. In the case of asbestos-related diseases, even a small delay in the filing of a lawsuit could be detrimental, as Leslie Kerr testified. 

Kerr’s father, George “Herb” Kerr, was exposed to asbestos while working as a lineman out of Ekalaka and received a mesothelioma diagnosis in the summer of 2021. The family immediately started pursuing legal action, but Kerr’s health declined so quickly that lawyers were unable to record a disposition before his passing in January 2022.  

Without his testimony, Kerr said that her family has faced an uphill legal battle, and she worried that HB 803 would delay court processes for other families affected by asbestos exposure.  

“This is not intended to help anybody get a quicker settlement,” added Kurtis Hafferman, one of the over 2,500 Libby residents diagnosed with an asbestos-related disease. “How can they even say that? It’s already been 20 plus years. People are dying and they continue to die.” 

Opponents also questioned the need for state reforms. While proponents referenced several cases filed in other states, there were no examples of Montana’s courts dealing with fraudulent cases Montana-based cases. 

Most cases of asbestos exposure in Montana can be traced back to a mine near Libby, which was operated by W.R. Grace between 1963 and 1990. The vermiculite from the mine contained an especially dangerous form of asbestos that has been linked to mesothelioma and other lung diseases.  

The company subsequently set up a trust to compensate victims, but Kalispell-based attorney Roger Sullivan said only 40 of the 2,700 claims made have been paid out. He worried that the required disclosure in HB 803 would further stymy victims’ ability to receive compensation through court processes as juries may assume that a plaintiff’s claim was paid out, and that there was therefore less need for compensation. 

“It’s an absolute unjust mechanism,” said Sullivan. 

Overstreet said he planned to introduce an amendment that exempted the Libby asbestos cases from the bill’s provisions, but other asbestos claimants, such as the Kerr family, would still fall under the new rules. 

The Senate Judiciary Committee has yet to vote on HB 803.  

Four other bills that aimed to change asbestos litigation procedures have faced similarly widespread opposition from Northwest Montana residents and lawmakers.  

The Senate Judiciary Committee unanimously tabled House Bills 301, 302 and 303 after opponents voiced concerns about the legislation’s effect on ongoing litigation against the railroad company that transported much of the vermiculite from the Libby mine. 

On March 21, the Senate Finance and Claims Committee voted down Senate Bill 385, which would consolidate the state’s asbestos claims court, along with several other specialized courts, into a single government claims court system. The bill has not yet been tabled, so the committee may still vote on the legislation. 

Reporter Hailey Smalley can be reached at [email protected] or 758-4433.