Comments will be accepted for two weeks in asbestos case
The Western News
Upon hearing statements from asbestos victims Friday, 19th Judicial District Court Judge James B. Wheelis said he will accept for two weeks written comments from those affected with asbestos before ruling on whether lawyers should receive money meant for asbestos victims.
Wheelis made the comment Friday during a hearing as to whether attorneys from three law firms should be able to receive up to 20 percent of a $19.5 million medical trust fund created as the result of a bankruptcy settlement with W.R. Grace. The fund was meant to assist those with asbestos-related diseases pay medical expenses, specifically Medicare premiums.
The Libby Medical Fund replaces the old W.R. Grace insurance plan that served the same purpose and was on the verge of being discontinued. The Libby Medical Fund payments are earmarked for the payment of Medicare premiums for victims. The trust has an administrator and a three-person local board.
Speaking on behalf of all attorneys involved, Roger Sullivan, addressed Wheelis’ questions of jurisdiction, the doctrine of common fund, spoke to client and nonclient comments and, generally, defended the lawyer’s position of entitlement to 20 percent of the settlement.
Sullivan said the three firms have accumulated more than 18,000 hours of work during 11 years to bankruptcy litigation. Some 45,000 hours have been spent in other Libby litigation.
Sullivan said the Wheelis jurisdiction was handed down to the 19th District Court as part the bankruptcy-court settlement that awarded funds creating the trust.
The doctrine of common fund was created for those times when the legal effort of a few benefits a larger group than just the original few clients, so the cost is borne by clients and non clients who benefit.
Sullivan said the first distribution of funds has already occurred, estimating the current payout rate will have the $19.5 million trust depleted in three to five years.
Wheelis allowed beneficiaries of the trust to make public comment. Most spoke of high out-of-pocket medical bills.