1Providing for transparency of claims made against asbestos-
2related bankruptcy trusts, for compensation and allocation of
3responsibility, for the preservation of resources and for the
4imposition of liabilities.

5The General Assembly of the Commonwealth of Pennsylvania
6hereby enacts as follows:

7Section 1. Short title.

8This act shall be known and may be cited as the Fairness in
9Claims and Transparency (FaCT) Act.

10Section 2. Purpose.

11The purposes of this act are:

12(1) To provide transparency of claims made against
13bankruptcy trusts and in the tort system.

14(2) To facilitate fair and appropriate compensation to
15plaintiffs with a rational allocation of responsibility to
16all persons, whether current defendants or not, consistent
17with existing State law.

1(3) To preserve the resources of defendants involved in
2tort claims and bankruptcy trusts to help promote adequate
3recoveries for deserving plaintiffs.

4(4) To ensure that liabilities properly borne by
5bankruptcy trusts are not imposed upon defendants in the tort
6system.

7Section 3. Definitions.

8The following words and phrases when used in this act shall
9have the meanings given to them in this section unless the
10context clearly indicates otherwise:

11"Apportionment nonparty." An entity, regardless of solvency,
12which establishes or has established an asbestos trust against
13which the plaintiff has filed a claim or has a reasonable basis
14for filing a claim.

15"Asbestos action." Any civil lawsuit in which the plaintiff
16seeks damages for an asbestos-related injury.

17"Asbestos trust." Any trust or claims facility created or in
18the process of being created as a result of bankruptcies or
19other settlements that are intended to provide compensation to
20plaintiffs alleging asbestos-related injuries, including trusts
21created under 11 U.S.C. § 524(g) (relating to effect of
22discharge).

23"Defendant." Any party to an asbestos action other than a
24plaintiff, an apportionment nonparty or an asbestos trust.

25"Plaintiff." Any of the following:

26(1) An individual filing an asbestos action on the
27individual's behalf.

28(2) A person permitted by law to represent an individual
29filing an asbestos action during the individual's lifetime or
30as the legal representative of the estate of an individual

1claiming injury from asbestos during the individual's
2lifetime.

3"Settlement credit." The amount paid by an apportionment
4nonparty through an asbestos trust in excess of the asbestos
5trust's apportioned liability at trial.

6Section 4. Apportionment of responsibility.

7(a) General rule.--An apportionment nonparty shall be
8apportioned responsibility, for liability purposes, in an
9asbestos action pursuant to 42 Pa.C.S. § 7102(a.2) (relating to
10comparative negligence) and this section.

11(b) Designation of apportionment nonparty.--A defendant in
12an asbestos action may, at any time, move to designate an
13asbestos trust as an apportionment nonparty. If the court
14determines by a preponderance of the evidence that the plaintiff
15has filed or has a reasonable basis for filing a claim with the
16asbestos trust, the court shall make the designation and
17liability shall be apportioned pursuant to 42 Pa.C.S. §
187102(a.2) and this section.

19(c) Settlement credits.--

20(1) If liability is apportioned in an asbestos action
21among defendants and apportionment nonparties, the court
22shall calculate the amount of any settlement credits and mold
23the verdict to reflect all appropriate credits.

24(2) Each apportionment nonparty that has compensated a
25plaintiff for more than its apportioned share of the verdict
26shall be awarded a settlement credit, and the damages awarded
27to the plaintiff shall be reduced by the amount of each
28settlement credit.

29(3) Each apportionment nonparty that has compensated a
30plaintiff for less than its apportioned share of the verdict

1shall not be awarded a settlement credit.

2(4) If an asbestos action proceeds to verdict before the
3plaintiff has received a final decision as to payment of the
4plaintiff's claim from an apportionment nonparty, there shall
5be a rebuttable presumption that the plaintiff will receive
6the maximum possible value of the claim available for the
7plaintiff's asbestos-related injury, as published in the
8applicable trust governance documents. If a verdict in favor
9of the plaintiff is entered, the court shall establish for
10each pending apportionment nonparty claim the maximum
11possible value as set forth in the trust governance
12documents, which value, when applicable, shall be used for
13purposes of calculating settlement credit.

14(5) An apportionment of settlement credits provided for
15under this section shall be governed by this section and 42
16Pa.C.S. § 7102 and shall not be subject to the limitations of
1742 Pa.C.S. § 8326 (relating to effect of release as to other
18tort-feasors).

19Section 5. Disclosure of information from asbestos trusts.

20(a) File.--Not later than 90 days prior to trial of an
21asbestos action, or at another time as ordered by the court,
22whichever is earlier, a plaintiff shall file with the court and
23serve on all parties:

24(1) a statement listing all existing or potential claims
25the plaintiff has filed or has a reasonable basis to file
26against any asbestos trust; and

27(2) a statement listing all payments or funds the
28plaintiff has received or reasonably believes the plaintiff
29may be entitled to receive from each asbestos trust.

30(b) Statement.--The statement provided under subsection (a)

1shall:

2(1) be supported by a certification made subject to the
3penalties of 18 Pa.C.S. § 4904 (relating to unsworn
4falsification to authorities) from the plaintiff that the
5plaintiff has conducted a reasonable investigation and has
6disclosed all claims the plaintiff has filed or has a
7reasonable basis to file against an asbestos trust;

8(2) disclose when each claim was or will be submitted to
9each asbestos trust and the status of each claim, including
10whether there has been a response from the asbestos trust and
11whether the plaintiff has requested deferral, delay or
12tolling of any aspect of the asbestos trust claims process;
13and

14(3) disclose the amount of compensation, if any, the
15plaintiff has received or reasonably believes the plaintiff
16may receive from the asbestos trust along with a statement
17explaining any contingencies that may cause the amount of
18compensation to change in the future.

19(c) Service.--When the plaintiff files and serves the
20statement required under subsection (a), the plaintiff shall
21serve on all parties to the asbestos action copies of the
22plaintiff's submissions to and communications with each asbestos
23trust identified, including copies of electronic data and e-
24mails, proof-of-claim forms and all other materials or
25information provided to the asbestos trust or received from the
26asbestos trust in relation to a claim, including all of the
27following:

28(1) Work histories, exposure allegations, affidavits,
29depositions and trial testimony of the plaintiff and others
30knowledgeable about the plaintiff's exposure history.

1(2) All medical documentation relating to the
2plaintiff's claim, including, but not limited to, x-rays,
3test results, diagnostic reports, CT reports, cytology
4reports, all other medical reports and pathology results.

5(3) The trust governance documents, including the
6payment amounts specified in the documents.

7(d) Duty.--The plaintiff shall have a continuing duty, until
8final resolution of the action, to supplement the statement
9provided under subsection (a) and the production of materials
10under subsection (c), as follows:

11(1) If the plaintiff learns that the statement filed
12under subsection (a) was incomplete or incorrect when filed,
13or although complete and correct when filed, is no longer
14complete and correct, the plaintiff shall file and serve a
15supplemental statement on all parties to an asbestos action.
16The supplemental statement must be filed and served within 30
17days after the plaintiff discovers the necessity for
18supplementation, or within the time as ordered by the court.

19(2) If the plaintiff files or provides a claim form or
20other materials to an asbestos trust after the plaintiff's
21initial service of materials under subsection (c), the
22plaintiff must serve copies of the additional materials on
23all parties to the action. The supplemental materials must be
24served within 30 days after the plaintiff provides the
25materials to the asbestos trust.

26(3) A plaintiff's asbestos action shall be stayed in its
27entirety until the plaintiff certifies that all existing or
28potential claims identified in the statement provided under
29subsection (a), as supplemented, have been filed and
30identified. Unless all defendants in an asbestos action

1consent, an asbestos action may not begin trial until at
2least 30 days after a statement is supplemented under
3paragraph (l) or mandatory disclosures are supplemented under
4paragraph (2).

5(e) Discovery.--A defendant in an asbestos action may seek
6discovery from an asbestos trust identified by the plaintiff in
7the plaintiff's statement under subsection (a), as supplemented.
8If a defendant seeks discovery from an asbestos trust, the
9plaintiff shall provide consent, a signed authorization and
10permission for the release of relevant information and
11materials, if required by the asbestos trust.

12(f) Sanctions.--Failure by a plaintiff to comply with the
13disclosure and discovery requirements under this section shall
14be a basis for the imposition of sanctions.

15Section 40. Effective date.

16This act shall take effect in 90 days.