Asbestos victims relatives win Supreme Court battle for compensation

Relatives of asbestos victims won a landmark victory in the Supreme Court yesterday that could lead to £600million of insurance payouts.

Thousands of new claims are now expected to be made after judges ruled that insurance liability was triggered when employees were exposed to asbestos dust – not when the symptoms emerged.

It means families of workers who died of asbestos-related cancer can claim on policies dating back to the 1940s.

Lawyers say the ruling will have implications for all workplace illnesses.

The Association of British Insurers welcomed the decision because it will ensure that “claimants get the compensation they reasonably expect”. ABI director Nick Starling said: “We are committed to paying compensation as quickly as possible to people with mesothelioma who have been exposed to asbestos in the workplace.”

He said the case had been pursued by a small group of insurers whose views were opposed by the majority of firms in the ABI.

In Britain around 2,000 people die of asbestos-related cancers every year. The average compensation payout is £100,000.

Jason Addy, Co - ordinator, Save Spodden Valley Campaign, said: "This landmark ruling welcomed as a common-sense victory for people power.

"For over 4 years the plight of asbestos cancer victims lay in the balance against the legal tactics of some insurance companies.

"Many of those who are now succumbing to this terrible disease were not asbestos workers but those who merely came into contact with asbestos products as a result of their work: builders, electricians, plumbers and even school teachers.

"This judgement is a clear legal re-statement to ensure that asbestos, and those it harms, are treated with utmost respect. "

It is also a very poignant reminder for Rochdale, the birthplace of the world's asbestos industry, as we seek a safe, permanent solution for the former TBA site in the Spodden Valley."

A spokesperson for the Asbestos Victims Support Groups Forum - UK said: "The Supreme Court handed down its decision in favour of claimants suffering from the asbestos cancer, mesothelioma, in the ‘Trigger’ case which has been ongoing for 6 years.

"The ruling means that the insurer who was ‘on risk’ when the exposure to asbestos occurred is liable to pay compensation. This maintains the status quo. Four insurers argued that the date when the cancer, mesothelioma, develops should be the date when the insurer’s liability is triggered.

"A judgment in favour of the insurers would have had a devastating effect because so many employers are no longer trading when mesothelioma is diagnosed and, as a result, there would be no insurers to satisfy thousands of claims."

Tracy Garlic, Edwin Leigh’s niece, says: “My uncle was a proud, caring and principled man who faced his diagnosis of mesothelioma with great courage. He believed strongly in justice and fairness and I dearly wish he had lived to witness the outcome of this case. Justice came too late for him, but I will mark this day for him as a day when justice was done, because that is what this case is all about.”

"Tony Whitston, Forum Chairman, says: “Thousands of claimants never lived to the just outcome of this case. Their grieving families have had to wait years for justice while this case was dragged by insurers through every court in the land. They will greet this judgment with relief rather than joy. This case is the latest in a series of shameful attempts by insurers to limit their liability to pay compensation. Let us hope it is the last.”

Peter Rhodes, Senior Partner at Rochdale law firm Molesworths Bright Clegg, who have recently negotiated a substantial settlement for a former Rochdale Council employee who worked at the Ellenroad site as part of a Manpower Services Commission Scheme back in 1986, said: "The judgment comes at a time when we are seeing a dramatic increase in people suffering from this terrible disease. These people are not asbestos workers but just people going about their normal everyday jobs, like builders, electricians, plumbers and even teachers, who merely came into contact with asbestos products as a result of their work.

"As our recent case demonstrates, the symptoms of Mesothelioma can take many years to materialise and although our client contracted the disease back in 1986 it was not until July 2010 that he consulted his doctor after he noticed abnormal abdominal swelling. He was referred to hospital and diagnosed with Mesothelioma of the peritoneum, which is the protective lining of the abdomen. At the time of his diagnosis he was 76 years old, his exposure having occurred some 24 years earlier when he would have been 52.

"Our dedicated and experienced team of solicitors were able to successfully settle the claim for a substantial settlement within just ten months of the client first contacting us and we were extremely pleased that we were able to settle this claim for him during what must be a very difficult time for him and his family.”