The Double-Dipping Legal Scam
House Speaker John Boehner says asbestos legal reform is a priority in the New Year, and it can’t come soon enough. Based on the details emerging from federal bankruptcy court, asbestos litigation fraud has reached new heights.
Garlock Sealing Technologies is a maker of gaskets that since its bankruptcy in 2010 has become a symbol of the corrupt practices of the plaintiffs bar. Lawyers demanded $1.3 billion in payouts from Garlock for mesothelioma patients until federal Judge George Hodges reviewed evidence showing that many of the claims were a sham. The judge in January slashed the company’s liability to $125 million and slammed the trial bar for “misrepresenting” the facts.
Then in October he moved to unseal that evidence, and now we’re getting a glimpse of what has become a widespread tort-bar con. Court documents show the ugly specifics of “double-dipping”—in which lawyers sue a company and claim its products caused their clients’ disease, even as they file claims with asbestos trusts blaming other products for the harm. This lets them get double or multiple payouts for a single illness, with a huge cut for the lawyers each time.
Garlock unveiled how this worked in at least 15 different cases that it had previously settled or lost after Judge Hodges allowed for belated discovery. In a case called Torres, the plaintiff claimed the only asbestos he handled was in Garlock gaskets, even as he told multiple trusts that he regularly handled raw asbestos.