By Kirk Hartley on Posted in Asbestos Bankruptcy,Constitutional Law/Mass Tort Law,Due Process,GM BkHurray, equitable mootness appears to be dead, at least in the 3rd Circuit. What is it? In short form, it’s a (nonsensical) rationale for denial of the opportunity to appeal bankruptcy court decisions. Is it in the bankruptcy code? No. Then why does it exist? Because bankruptcy lawyers invented an outcome liked by some, and… Continue Reading
By Kirk Hartley on Posted in Asbestos Bankruptcy,GM Bk,Mass Tort BankruptcyAre bankruptcy court injunctions enforceable when they cut off personal injury claims and related rights of co-defendants without meaningful prior notice or adequate representation of the interests of the rights holders? Such persons include 1) the physical victim as well as 2) co-defendants also sued by the physical victim, and 3) may include an insurer.… Continue Reading
By Kirk Hartley on Posted in GM Bk,Reputation RiskThe NYT ran a weekend article suggesting GM’s lawyers are “a focus” of the ongoing internal investigation by Anton Valukas regarding GM’s failures related to the ignition switch. It will be interesting to see the outcome. Lawyers become central when the dominant question is framed as “what do we have to do,” as opposed to… Continue Reading
By Kirk Hartley on Posted in GM BkGM now faces a new twist in its ongoing problems arising from the switch fiasco. The twist is a new lawsuit seeking to undo a prior settlement based on alleged fraudulent concealment and failure to provide accurate discovery responses. The story is covered in a May 12, 2014 post by by Amanda Bronstad at the… Continue Reading
By Kirk Hartley on Posted in Asbestos Trusts,GM BkGM has been in the news of late as to the implications of its 2009 bankruptcy for the switch recall litigation. So, a brief overview of its asbestos trust. The Trust is online at http://mlc.mfrclaims.com/Resources.html. As is true for most other asbestos trusts, there is very little transparency. The web site, for example: does not identify… Continue Reading
By Kirk Hartley on Posted in Bankruptcy,GM Bk,Litigation Industry,Mass Tort Issues April 30, 2014 news reports say that the US treasury now reports losing $11.2 billion on the GM takeover fiasco, and has written off its “investment” in old GM. (See below for cut and paste.) The government obviously went into the “deal” knowing that the big picture was that jobs and industries would be saved, but… Continue Reading
By Kirk Hartley on Posted in Asbestos Bankruptcy,Constitutional Law/Mass Tort Law,GM BkAs a result of bugging the clerk’s office and the court reporter’s office, the transparency-blocking 90 day veil has now been lifted from some of the General Motors bankruptcy hearing transcripts. Here is the June 25, 2009 transcript that reflects the asbestos plaintiff’s lawyers withdrawing the request for appointment of a futures representative. The withdrawal… Continue Reading
By Kirk Hartley on Posted in Constitutional Law/Mass Tort Law,GM BkIn GM, Judge Gerber denied a stay of the asset sale and denied a direct appeal to the 2d Circuit; the order is here (Docket No. 3046). Basic news articles are here (WSJ) and here (NYT). What the news articles do not mention is a bankruptcy appeal doctrine known as the “equitable mootness” doctrine. Under… Continue Reading
By Kirk Hartley on Posted in Bankruptcy,Constitutional Law/Mass Tort Law,GM BkAn AmLaw blog article here reports some GM bondholders are not appealing because they lack funds to fight after Judge Gerber refused to appoint an official committee for which legal fees would be paid by the estate. The article includes a helpful link back to a prior article regarding the refusal to allow an official… Continue Reading
By Kirk Hartley on Posted in Asbestos Bankruptcy,Constitutional Law/Mass Tort Law,GM BkThe Ad Hoc Committee of Asbestos Claimants notice of appeal in GM is here but says only that an appeal is taken (Docket No. 2988). The appeal lists as counsel both Stutzman, Bromberg, Esserman + Plifka, as well as the Caplin + Drysdale firm. Like the other product liability claimants, the Ad Hoc Asbestos Claimants… Continue Reading
By Kirk Hartley on Posted in Constitutional Law/Mass Tort Law,GM Bk,Mass Tort BankruptcyThe General Motors chapter 11 asset sale was approved on Sunday night in an opinion that is 50 pages, plus appendices. The opinion is here. A first read of the opinion indicates that Judge Gerber agreed with GM on all material issues regarding freeing GM from liability for tort claims except to the extent “New… Continue Reading
By Kirk Hartley on Posted in Asbestos Bankruptcy,GM BkYesterday, representatives of the asbestos plaintiff’s bar argued in opposition to the terms of GM’s proposed asset sale, as briefly described in the NYT article here. The WSJ covered it here, but said even less. Accounts of the hearing and other information sources also indicated that New GM will be aiming for an IPO next year,… Continue Reading
By Kirk Hartley on Posted in Asbestos Bankruptcy,Constitutional Law/Mass Tort Law,GM BkIn the GM bankruptcy, Judge Gerber has entered today his order [Docket No. 2857] denying the asbestos claimant’s motion for appointment of a futures representative for asbestos claimants. He also adjourned to another day the motion requesting appointment of a separate official committee to represent asbestos claimants against GM. The latter motion may be put… Continue Reading
By Kirk Hartley on Posted in Bankruptcy,GM BkThe Wall Street Journal for June 29 is reporting that GM agreed to assume the financial burden of future product liability claims. The article, by Mike Spector. is here. Meanwhile, Docket Number 2609 is a Rule 30(b)(6) deposition notice from counsel for an asbestos creditor to take depositions of persons designated to speak by the… Continue Reading
By Kirk Hartley on Posted in Asbestos Bankruptcy,Futures Reps,GM BkThe Ad Hoc Committee seeking to represent the interests of asbestos claimants in GM filed a motion [Docket 478] requesting appointment of a futures representative to represent future asbestos claimants. The Ad Hoc Committee has now expanded; footnote 1 of the motion identifies the committee members as consisting of asbestos claimants with lawyers described as… Continue Reading
By Kirk Hartley on Posted in Asbestos Bankruptcy,Asbestos litigation,GM BkThe free version of the GM docket is located here. The case is assigned to Judge Gerber, who has been handling the Thompson-Hayward asbestos bankruptcy. An Am Law Daily article here provides a nice summary of the lawyers and parties, except that somehow it missed the lawyers for the asbestos claimants. At least some of… Continue Reading
