Sen. Dodd's remarks were made after a meeting the president had with lawmakers from both parties in an apparent effort to generate momentum behind legislation that would set limits on class-action lawsuits.

Sen. Dodd said work on the bill could be completed by Easter if legislators turned to a previous compromise worked out more than a year ago. Sen. George Voinovich, R-Ohio, said President Bush was supportive of this strategy. Sen.
Voinovich stated the compromise had enough support to clear the Senate but was stalled by amendments.

The president was quoted by Lehman Brothers Washington analysts in an investment note as saying after the meeting that, "It's a discussion that says to me that it is very possible that a good piece of legislation can move quickly this year out of both the Senate and the House; get it to conference quickly and get it to my desk quickly."

The Lehman analysts added that Sen. Bill Frist, R-Tenn., the majority leader, "has indicated that class action will likely come to the floor the first week of February."

David Winston, senior vice president of federal affairs at the National Association of Mutual Insurance Companies, said class action reform is one of the trade group's top priorities in the New Year.

Mr. Winston said, "Due to the dramatic increase in the filing of class action lawsuits in the U.S. in the last decade?many of which are frivolous?our member companies, as well as other businesses in other industries, have been forced to divert their valuable resources from their businesses."

Mr. Winston added, "This vitally important measure almost made it through the Senate in the 108th Congress and had the support of 62 Senators. The legislation is a balanced, commonsense solution that addresses the worst abuses of the class action process and rationalizes procedures, while preserving plaintiffs' legal rights and providing additional protections for consumers."

Lehman Brothers analysts also said that President Bush will visit Macomb County's Clinton Township in Michigan today to deliver a speech devoted entirely to asbestos injury litigation reform.

The White House press office could not confirm the time, though the speech is expected in the afternoon. The analysts said this was perhaps the first major speech he has ever given solely on asbestos reform.

"A forceful push from the president could boost asbestos-affected names," the Lehman analysts said. However, they cautioned, "Despite the president's effort, we reiterate that substantial challenges remain to pass an asbestos bill, as evidenced by Senator Arlen Specter, R-Pa., pulling back from his aggressive timetable on passage of the bill."

Meanwhile, ACE Ltd. CEO Evan Greenberg, in comments to analysts after ACE added $298 million to company investment reserves, said he thought "legal reform has some legs in Congress right now."

Mr. Greenberg said in response to a question from an analyst. "I won't say we are not basing our strategy on it passing, but I think the president has made clear that it is high on his agenda to achieve class-action reform, medical malpractice and asbestos."

Mr. Greenberg added, "Class-action reform probably has the best chance of a success and a better chance than it has ever had, though medical mal as well has legs. As far as asbestos goes, well, it is not dead but it's anybody's guess right now as to where that goes."

In his comments about asbestos legislation, Mr. Winston said his group fully supports "having standard medical criteria that would prioritize compensation for asbestos victims."

NAMIC, he said, "has long supported legislation that would make actual impairment an essential element of a claim by requiring evidence of physical impairment and specifies criteria to make such judgments."