S. 758, the “Fairness in Asbestos Compensation Act of 1999," is consistent with principles of federalism enshrined in the Tenth Amendment and with the Seventh Amendment of the Constitution.

Federalism. Under the Commerce Clause, Congress may enact a national solution to the asbestos litigation crisis, which is both a consequence of and affects interstate commerce. Because of their special role in our federal system, state courts have the obligation to apply such federal law. S. 758 is thus fully consistent with recent Supreme Court decisions protecting state legislatures and administrative personnel from commandeering by the Congress.

Seventh Amendment. The administrative scheme established by S. 758 is consistent with the Seventh Amendment. Since the right to a jury trial applies only in judicial proceedings, the key question is whether Congress can establish an administrative claims resolution process without violating Article III of the Constitution. The answer to that question is clearly yes. Under the public rights doctrine, Congress can confer upon administrative tribunals the power to decide cases involving “public rights” under a Federal regulatory program. Medical eligibility determinations under S. 758 clearly fall within this doctrine, since they involve a Federal regulatory program and since the government is a participant in the proceeding. In this respect, such determinations are comparable to similar determinations made by the Social Security Administration and the VA in disability cases. Moreover, arbitrations under the statutory scheme (which are optional to the claimant in any event) are also acceptable as long as there is no threat to separation of powers. There is no such threat here.