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UK asbestos ruling cuts payout

Sufferers of the asbestos-caused cancer mesothelioma face a huge cut in compensation following a decision by Britain’s highest court on May 3.

The case involved an appeal by UK building firm Coral and its insurers against two widows whose husbands died from mesothelioma.

The Law Lords ruled that where several employers had negligently exposed an employee to asbestos, each should have to contribute to compensation on the basis of how long they exposed the employee to the material.

Previously, any one employer could have been liable to pay all compensation, even if several employers had been negligent, or if the plaintiff had been self-employed for part of the period they were exposed.

Thompsons Solicitors, which acts for one of the widows on behalf of her husband’s trade union, claimed the court had based its decision on a legal technicality that would make sense only to the driest of lawyers.

The real winner was the insurance industry, which now stands to save billions of pounds, the law firm says. It will be urging unions and asbestos victim support groups to press for legislation to overturn what it believes is a great injustice.

A Labour MP raised the issue in the House of Commons the next day, labelling the Law Lords’ decision disgraceful and asking the Minister for Employment and Welfare Reform to introduce legislation to fight the ruling.

The Association of British Insurers called the judgement fairer than the previous approach but was careful not to crow over the controversial decision. The association called the ruling detailed and complex and said it needed to be picked over in coming weeks. The industry’s main concern was that claimants receive fair rates of compensation as quickly as possible.