Mass tort claiming continues to drive numerous chapter 11 cases. The latest addition to the list is Insys filing due to opioid claims. Some of the prior posturing by the company is reviewed and linked in this June 10, 2019 article at BioSpace.
Bankruptcy
From Canada and Japan: Yet Another Mass Tort Bankruptcy, and Possible Fraudulent Conveyance: Big Tobacco Responds to the Class Action Verdict in Quebec
By Kirk Hartley on
A tobacco company is the latest entity to use bankruptcy to try to limit its obligations for a mass tort. This instance, however, is different because the bankruptcy is in Canada, ownership of the tobacco entities ties to Japan, and the bankruptcy follows on after restructuring efforts that a trial judge viewed as probably illegal…
Chapter 11 After Failure to Appreciate the Scale of Risk: “PG&E Sparked at Least 1,500 California Fires. Now the Utility Faces Collapse”
By Kirk Hartley on
Posted in Bankruptcy
January 14, 2019 articles around the web describe PG&E moving to file chapter 11 due to risks and potential liabilities. One of the articles, at the WSJ, describes PG&E equipment as playing a role in some 1,500 fires, some massive.
As with numerous past filers of chapter 11, one of the key problems…
State Law Property Rights – What are They?
By Kirk Hartley on
What are property interests; how do we know them when we think we see them? That’s a fascinating question that’s been animating due process and takings case law for many decades. Board of Regents v. Roth, 408 US 564 (1972), was one of the key cases in the area when I was a…
Takata Is Headed for Chapter 11 Due to Exploding Air Bags
By Kirk Hartley on
Posted in Bankruptcy
It’s been a long time coming, but it appears Takata is now headed for chapter 11 to address the many problems arising from its exploding airbags, as explained in a June 15, 2017 article from Reuters. If the numbers in the article are accurate, this could prove an interesting contrast to the typical “mass…
Equitable Mootness – Yet Another Due Process Violation in Chapter 11 Proceedings
By Kirk Hartley on
Posted in Bankruptcy, Due Process
Every litigant faces the possibility of trial and appeal. But Wall Street finds that risk annoying. So, bankruptcy courts invented the doctrine of “equitable mootness” to cut off appeals. The doctrine is still alive and kicking in the east coast circuits, but took at least a flesh wound in a recent Ninth Circuit ruling. The…
Lyondell Claims Benzene Claims are Barred by Prior Chapter 11 Plan and Injunction
By Kirk Hartley on
Defendants related to uber-sized Lyondell Chemical are now seeking to use a recent chapter 11 injunction to try to bar claims that benzene caused a blood cancer. The defense motion makes no mention of the chapter 11 proceeding including any “futures representative” type of person acting on behalf of future claimants. The motion also makes…
SCOTUS and Bankruptcy Court Jurisdiction Regarding Adjudication of Claims Related to Mass Tort Bankruptcies
By Kirk Hartley on
The Stern related opinions continue from SCOTUS. It will be interesting to see the impact for mass tort bankruptcies. A May 26, 2015 article from LAW360 explains:
“Law360, New York (May 26, 2015, 10:33 AM ET) — The U.S. Supreme Court ruled Tuesday that bankruptcy courts have the authority to make final decisions on…
“The Computer Did It” Is NOT a Legal Defense, At Least In Bankruptcy Court
By Kirk Hartley on
Ever had an idiotic business tell you: “Not our fault – the computer did it? ” Say, for example, maybe an irresponsible company such as CapitalOne?
A federal bankruptcy judge recently ruled that “the computer did it” is NOT a legal defense to a charge of violating the automatic stay rule. That outcome of…
Bankruptcy Court Secrecy – the Apple Version
By Kirk Hartley on
Posted in Bankruptcy, Secrecy
How about a secret chapter 11 proceeding, to benefit Apple’s penchant for secrecy? The issues are arising in the context of a chapter 11 filing by a would-be supplier to Apple of sapphire glass, GT Advanced. The secrecy sought for Apple seems contrary to law, and contrary to demands by the US Chamber of Commerce…