Legal Environment – Potential Upside

Establishment of Reserve

• Assumes continuing unfavorable legal environment with no benefit from asbestos reform legislation

Reform is Needed

• Court congestion makes it difficult for sickest claimants to get compensation

  • Transaction costs are over 50%
  • Most compensation (65%) goes to nonmalignant claimants

Higher Likelihood of Reform that should:

• Help sickest claimants

• Lower transaction costs

• Provide more certainty of estimated future costs

(1)

(1)

(1) RAND Institute for Civil Justice , Documented Briefing, Asbestos Litigation Costs and Compensation, an Interim Report (September 2002)

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