The Senate Judiciary and Labor Committee has scheduled an executive session on Wednesday, October 9 to vote on AB 19/SB 13, Personal Injury Trust Claims Transparency. The legislation will prevent double-dipping in personal injury cases that also involve potential compensation from trust funds created under the federal bankruptcy law. The most common types of lawsuits that also include potential compensation from federal trust funds are those involving asbestos exposure.

As explained in a Wall Street Journal editorial and article, with the proliferation of asbestos lawsuits and claims filed with trust funds, some unscrupulous plaintiff attorneys are double-dipping by withholding evidence from courts whether the plaintiff has received a trust claim payment, or whether they are eligible to receive such compensation. This allows plaintiff attorneys to double dip by recovering once against a business and then against the trusts. The bill would prevent this from happening.

For more information about AB 19/SB 13, please see WCJC’s legislation webpage.