Here is the definitive word, from factcheck.org, on Elizabeth Warrens work for victims of asbestos poisoning:
Warren’s Role in Asbestos Case
Posted on October 15, 2012
Massachusetts Sen. Scott Brown and challenger Elizabeth Warren are
accusing each other of “not telling the truth.” Brown says Warren worked
to “restrict payments” to asbestos victims, while Warren says she
worked to “get more money” for them. We find Warren
is correct; Brown’s ad is a distortion.
It may seem counter-intuitive that Warren’s work on behalf of an
insurance company that covered an asbestos manufacturer could be work on
the same side as the victims of the case. But Warren was brought in as a
bankruptcy expert on a case before the Supreme
Court to secure a $500 million trust to pay asbestos victims. As part
of a settlement that Warren worked to preserve, the insurance company
sought immunity from lawsuits in exchange for releasing the $500 million
trust. Attorneys for most of the asbestos victims
supported Warren’s efforts.
Here are the two narratives portrayed by the competing campaigns.
Brown’s Version
In recent TV and radio ads, the Brown campaign begins with a narrator
saying, “Elizabeth Warren’s not telling the truth about her career.” It
then cuts to a clip of Warren saying, “I’ve been out there working for
people who have been injured by big corporations.”
The narrator then says, “But the [Boston]
Globe says
Elizabeth Warren was a key lawyer in an asbestos case working for a big
corporation. Warren helped Travelers Insurance restrict payments to
victims of asbestos poisoning. The results were disastrous
for the victims. The insurance company saved millions. And Elizabeth
Warren got paid 40 times what they paid victims. Elizabeth Warren’s just
not who she says she is.”
Brown echoed those comments during a debate on Sept. 20, saying, “You
chose to side with one of the biggest corporations in the United
States: Travelers Insurance. When you worked to prohibit people who got
asbestos poisoning, and I hope all the asbestos
union workers are watching right now. She denied, she helped Travelers
deny those benefits for asbestos poisoning, made over $250,000 in an
effort to protect big corporations. There is only one person in this
debate, right now, Jon, who is protecting corporations.
She has a history of it.”
“It’s just not true,” Warren said at the debate. ”The facts speak for themselves.”
Warren’s Version
Although she didn’t elaborate during the debate, Warren’s camp later
fired back with two ads featuring family members of victims of
mesothelioma who describe Warren as a champion of their cause.
“I’ve been a widow since 1990 when my husband, Sam, died of
mesothelioma,” says Ginny Jackson. “He was exposed to asbestos when he
worked at the Quincy shipyard. It’s a terrible, terrible way to die.
Elizabeth Warren went all the way to the Supreme Court
to try to get more money for asbestos victims and families. Now Scott
Brown is attacking Elizabeth Warren about her work. Scott Brown is not
telling the truth. He’s trying to use our suffering to help himself. He
outta be ashamed.”
Warren’s version of the case has been publicly backed by several
attorneys representing the asbestos victims, as well as leaders of an
asbestos workers’ union.
“He’s flat out misrepresenting the facts,” Francis C. Boudrow,
business manager for the International Association of Heat and Frost
Insulators and Asbestos Workers Union, Local No. 6
told the Boston Globe. “It’s offensive to all these people who’ve lost lives” to asbestos-related illness, he said.
Warren’s Work
At the heart of this issue is an ongoing asbestos case involving the
nation’s largest asbestos manufacturer, Johns-Manville Corp. The company
ended up in bankruptcy, leaving some victims, who did not develop
symptoms until more than a decade after others,
seeking compensation from an ever-shrinking victims fund. By the time
Warren entered the case in 2008,
more than $3.2 billion had been paid out to over 600,000 claimants.
Warren was brought into the case by Travelers Insurance, one of the
insurers of Johns-Manville. Specifically, Warren worked on the case
Travelers v. Baily to preserve a $500 million trust from which
current and future victims would be paid — part of a settlement
agreement previously reached between lawyers for Travelers and the
victims.
According to Warren’s
financial disclosure forms, Warren was hired by Travelers in April
2008 and did work for the company through September 2010. By that time,
Travelers and the asbestos victims were working together on a common
goal: to preserve the $500 million trust both
sides had agreed to. Another insurance company, Chubb, was contesting
the settlement agreement, and Warren ended up making her one and only
appearance before the Supreme Court arguing on behalf of Travelers to
uphold the trust. As part of the deal, Travelers
would be permanently immune from future asbestos-related lawsuits
concerning Johns-Manville. Warren’s argument prevailed. According to the
Globe, Warren was paid $212,000 over three years by Travelers.
So it’s true, as the Brown ad says, that a
Boston Globe
headline on May 1 described Warren as playing a “key role in an asbestos
court case.” But the subhead of the story — “Worked for insurer on
fund for victims” — belies the ad’s claim about
her opposing the interest of the victims.
Specifically, the ad leaves out this pivotal paragraph from the same
Globe
story:
Boston Globe, May 1: Travelers won most of
what it wanted from the Supreme Court, and in doing so Warren helped
preserve an element of bankruptcy law that ensured that victims of
large-scale corporate malfeasance would have a better
chance of getting compensated, even when the responsible companies go
bankrupt.
Unfortunately for the asbestos victims, the Supreme Court’s decision
wasn’t the final word on this case. After Warren left the case, it took a
“disastrous” turn for the victims when a lower court issued a ruling on
Feb. 29, 2012, that, as the
Globe reported, took Travelers “off the hook for paying out the $500 million settlement.”
The
Globe noted that according to one judge who tried to
preserve the settlement, Travelers received “something for nothing” —
immunity from future lawsuits without having to pay out the $500 million
trust.
Warren has said she believes the lower court erred. The ruling is still under appeal.
Bruce Carter, an Ohio attorney whose firm has worked on behalf of
over 19,000 claimants in the case, told us Brown has simply
mischaracterized Warren’s role. The idea that Warren was working against
the interests of the victims, he said, is ”not true.”
“During the period she worked with Travelers, the claimants (the
victims) and Travelers were working together to do what was necessary to
get these funds approved and established,” Carter said. “We were all
working together for the benefit of the victims.
We were working together toward a common goal.”
The trust established through a settlement with Travelers avoided
further legal wrangling that “could have taken many, many more years, if
ever, to succeed,” Carter said. In other words, he said, the trust
provided a mechanism for victims to actually get
paid.
In an interview with the
Globe in May, Warren said, “The
issue I was focused on like a laser was the constitutionality of
preserving the trust, because the trust is a critical tool for making
sure that people who’ve been hurt have a fair shot at
compensation. Without it, millions of people who’ve already been
injured will get nothing, and millions more in the future will get
nothing.”
How close was the relationship between Travelers and victims? Before
the Supreme Court, the attorneys representing the victims gave
Travelers’ attorneys their time so they could provide a more complete
argument in favor of the settlement agreement, Carter
said.
“That tells you, we worked together toward a common goal,” Carter said. “We gave them our time to argue to the panel.” It was only after Warren left the case, he said, that Travelers
“tried to back out of the deal and try to get something for nothing.” Another lawyer representing victims in the case, Edwin L. Wallace
with the law firm Thornton & Naumes in Boston, echoed Carter’s
assessment.
“She was working for the victims,” Wallace said. “In order to pay the victims, we needed a settlement trust,” said
Wallace, who has contributed to Warren’s campaign. “She represented
Travelers for that argument.”
Warren’s work for Travelers was over by the time a lower court ruled
that Travelers would not have to pay the $500 million trust. So no one —
including Ginny Jackson, the woman featured in the Warren ad — has been
paid yet.
Carter and Wallace both said that — contrary to what the Brown
campaign is now saying — neither they nor Warren could have foreseen the
lower court ruling that let Travelers off the hook for the $500 million
trust.
And Wallace is confident that ruling will be overturned. “They
will get paid,” Wallace predicted.
– Robert Farley