FAIR Act of 2005

The FAIR Act of 2005 (S. 852) proposed a major overhaul of how the United States handles legal claims related to asbestos exposure by replacing the traditional court system with a national no-fault compensation program. The bill would have established a $140 billion "Asbestos Injury Claims Resolution Fund," financed by contributions from defendant companies and insurers, to pay out standardized awards to victims based on the severity of their illness. For everyday citizens, this meant that individuals with asbestos-related diseases like mesothelioma would no longer have to sue companies in court; instead, they would submit medical evidence to a new federal office to receive guaranteed payments without needing to prove a specific company was at fault.

The legislation also sought to ban the future manufacture, processing, and distribution of most products containing asbestos in the United States, with limited exceptions for national security or critical industrial needs. While the bill aimed to provide faster payouts to victims and protect companies from unpredictable litigation costs, it ultimately did not pass the Senate due to concerns regarding the fund's long-term solvency and the removal of victims' rights to trial by jury.