2011 House Bill 4601 / 2012 Public Act 84

Limit certain asbestos liability

Introduced in the House

April 28, 2011

Introduced by Rep. Joseph Haveman (R-90)

To limit the liability of a company that had acquired another company which may have produced or sold asbestos in the past. The bill would prohibit a court from imposing asbestos damage judgments that exceed the value of the acquired company. Under current law a court can order damages up to the value of the entire enterprise, even if the acquired subsidiary represents only a small part of the overall firm's value.

Referred to the Committee on Judiciary

Dec. 1, 2011

Reported without amendment

With the recommendation that the amendment be adopted and that the bill then pass.

Feb. 15, 2012

Amendment offered

To allow higher damage judgments if the new company (the combination of the acquiring firm and one it bought) is still in the asbestos business.

The amendment passed by voice vote

Amendment offered by Rep. Mark Meadows (D-69)

To still allow higher damage judgments if the merger with the former asbestos producing firm happened any time from 1968 on. The bill's liability limits only apply if the merger happened before 1972.

The amendment failed by voice vote

Amendment offered by Rep. Mark Meadows (D-69)

To only allow the lower liability if the acquiring firm did not know about the potential asbestos claim after making a diligent inquiry at the time of the merger.

The amendment failed by voice vote

Amendment offered by Rep. Mark Meadows (D-69)

To allow higher interest on damages.

The amendment failed by voice vote

Amendment offered by Rep. Mark Meadows (D-69)

To only apply the bill's liability cap to damage claims filed after the bill becomes law.

The amendment failed by voice vote

Amendment offered by Rep. Mark Meadows (D-69)

To only allow the liability cap on lawsuits filed after the bill becomes law.

The amendment failed by voice vote

Amendment offered by Rep. Mark Meadows (D-69)

To make asbestos lawsuit defendants "jointly and severally" liable for damages, which means a plaintiff can force a company with "deep pockets" to pay the full amount even if it was only a little bit responsible compared to other defendants.

The amendment failed by voice vote

Feb. 16, 2012

Passed in the House 62 to 46 (details)

Received in the Senate

Feb. 21, 2012

Referred to the Committee on Judiciary

Feb. 22, 2012

Referred to the Committee on Reforms, Restructuring, and Reinventing

March 15, 2012

Reported without amendment

With the recommendation that the substitute (S-1) be adopted and that the bill then pass.

March 29, 2012

Amendment offered by Sen. Rebekah Warren (D-18)

To establish that the proposed liability limits do not apply if the firm employs fewer than 1,000 people in Michigan.

The amendment failed 13 to 25 (details)

Amendment offered by Sen. Rebekah Warren (D-18)

To not include any liability of the company to repay government Medicare or Medicaid for medical assistance.

The amendment failed 13 to 25 (details)

Amendment offered by Sen. Rebekah Warren (D-18)

To clarify that a exception to the proposed liability for a firm that remained in the asbestos business after a merger also applies if the was part of an "acquisition".

The amendment failed 13 to 25 (details)

Passed in the Senate 25 to 13 (details)

To limit the liability of a company that had acquired another company which may have produced or sold asbestos in the past. The bill would prohibit a court from imposing asbestos damage judgments that exceed the value of the acquired company. Under current law a court can order damages up to the value of the entire enterprise, even if the acquired subsidiary represents only a small part of the overall firm's value.

Signed by Gov. Rick Snyder

April 10, 2012