The House of Lords, Britain’s top court, on Wednesday morning turned down an appeal by a group of employees in four test-cases against an earlier Court of Appeal decision. This had concluded that pleural plaques – scars on the lungs that indicate asbestos exposure – did not amount to a compensatable injury.

The long legal battle has been closely watched because of the implications for thousand of similar claims, and the financial ramifications for the insurance industry.

Wednesday’s decision could save insurers hundreds of millions of pounds over the next few decades.

According the Association of British Insurers, about £.4bn had been paid out in respect of pleural plaques since the 1970s by last year. However, as with other asbestos-related conditions, it has taken time for claims to come through. As a result pleural plaque claims are expected to peak only in 2010-2015.

In the past, it was standard practice to provide compensation in pleural plaque cases. But about three years ago, insurers brought the test-case challenges, arguing that there was now better medical understanding of asbestos-related conditions. Pleural plaques, they contended, did not have any symptoms and did not impact directly on the lives of people who developed them.

Employees’ lawyers, however, argued that the plaques did amount to evidence of damage and that victims usually suffered anxiety – sometime severe – because of the asbestos cancer risk.

The decision brought angry reaction from both unions and personal injury lawyers. ”This is a harsh decision which will affect thousands of people with pleural plaques now and in the future,” said Derek Simpson, joint general secretary of Unite, the UK’s largest union.

”I am absolutely staggered the Law Lords have dashed the hopes of these men who have been negligently exposed to asbestos,” said Martin Bare, president of the Assocition of Personal Injury Lawyers.

But Zurich, one of the insurers involved in the test-cases, defended its action. ”The insurance industry has a responsibility to compensate people who’ve suffered an injury and not to pay out policyholders’ money for a condition that causes no symptoms”, it said.

See also:

Asbestos condition claims stopped

BBC News: 17 October 2007

Thousands of British workers suffering from an asbestos-related condition will not be able to claim compensation, the Law Lords have ruled.

Asbestos exposure can cause pleural plaques

The move only applies to sufferers of pleural plaques, a scarring of the lungs, leaving other asbestos compensation claims unaffected.

Union leaders have attacked the decision, saying it will lead to "massive savings" for insurance firms.

Unions had appealed against a January 2006 ruling by the Court of Appeal.

The Law Lords ruled that pleural plaques was not a disease.

"They will be baffled and offended that the House of Lords has decided that pleural plaques is not worthy of any compensation" - Ian McFall, Thompsons Solicitors

Derek Simpson, joint general secretary of Unite, said it was a "harsh" decision which will affect thousands of people with pleural plaques now and in the future.

"The judgment will disadvantage many of our members who have been exposed to asbestos in their work by denying them the right to sue their former employers for developing pleural plaques," he said.

Ian McFall, head of asbestos policy at Thompsons Solicitors, representing the union, added: "This decision is very disappointing for the thousands of people who are living with the worry of knowing that their lungs have been scarred by asbestos.

"They will be baffled and offended that the House of Lords has decided that pleural plaques is not worthy of any compensation."

Past rulings

Pleural plaques are areas of thick scar tissue which form in the chest lining and diaphragm and are caused by asbestos exposure.

Over time, this thickening of the pleural membrane, which lines the lungs, can make breathing difficult and can, in some cases, be accompanied by the development of serious respiratory diseases including mesothelioma and lung cancer.

The insurance firms said they should not be liable because pleural plaques was not a disease as it had no symptoms.

"The Lords accepted that employers had been negligent but denied the workers the right to any form of redress" - Brendan Barber, TUC general secretary

The case dates back to November 2004 when 10 men went to court seeking compensation from insurance companies which wanted to stop payments.

In February 2005, the High Court ruled that people suffering from pleural plaques should receive compensation.

It found there was an increased risk of developing other asbestos-related diseases, and that having the plaques caused anxiety.

However, it reduced payment from between £5,000 and £15,000 to £3,000 and £7,000.

Speaking about the latest ruling, TUC general secretary Brendan Barber said: "This is yet another attack, spearheaded by the insurance industry, on workers' ability to claim compensation for exposure to dangerous hazards at work.

"The Lords accepted that employers had been negligent but denied the workers the right to any form of redress."