Law Commons^™

Show Me The Money: How Bankruptcy Courts Could Become The Most Equitable Mass Tort Forum, Olivia Maier

Washington and Lee Journal of Civil Rights and Social Justice

The Texas Two-Step has emerged as a dangerous bankruptcy maneuver for companies to defend against mass tort liability. The process allows a company to allocate all of its tort liability to a newly created company which then files for bankruptcy. The Bankruptcy Code provides instantaneous benefits for that new company, which tort victims are left unable to proceed with their claims. This has resulted in an inequitable process, and outcomes, for those victims as seen by the recent Johnson & Johnson Texas Two-Step. While this process is unjust, it has raised an interesting question: could a bankruptcy court become the …

Uncertainty > Risk: Lessons For Legal Thought From The Insurance Runoff Market, Tom Baker

All Faculty Scholarship

Insurance ideas inform legal thought: from tort law, to health law and financial services regulation, to theories of distributive justice. Within that thought, insurance is conceived as an ideal type in which insurers distribute determinable risks through contracts that fix the parties’ obligations in advance. This ideal type has normative appeal, among other reasons because it explains how tort law might achieve in practice the objectives of tort theory. This ideal type also supports a restrictive vision of liability-based regulation that opposes expansions and supports cutbacks, on the grounds that uncertainty poses an existential threat to insurance markets.

Prior work …

Champions For Justice & Public Interest Auction 2019, Roger Williams University School Of Law

School of Law Public Interest Auction

No abstract provided.

Dust In The Wind: Revisiting Georgia’S Refusal To Extend Liability To Employers In Take-Home Asbestos Litigation, Phillips Workman

Georgia Law Review

No abstract provided.

Take-Home Toxin: Following Kesner’S Lead And Creating A Consistent Framework For Determining Duty Toward Victims Of Secondary Asbestos Exposure, Brendan Kelly

Maryland Law Review

No abstract provided.

Texas Supreme Court Rejects “Any Exposure” Causation In Asbestos Litigation, Richard O. Faulk

Richard Faulk

The Texas Supreme Court has firmly rejected the latest effort to reopen the floodgates for asbestos litigation in Texas. While the Court rejected a formalistic adherence to “but for” causation in mesothelioma, the essence of “but for” still survives because, “but for” legally sufficient proof of exposure to the particular defendant’s product, the defendant cannot be held liable. The requirement of legally sufficient proof applicable to exposure to each defendant’s product remains, and the challenges associated with meeting that requirement remain the same. Perhaps the cohesiveness of this holding will influence other states to define “substantial factor” similarly, or perhaps …

The Quest For The Next ‘Solvent Bystander’ In Asbestos Litigation: Will Texas Resume The Search?, Richard O. Faulk

Richard Faulk

Questions abound regarding the Bostic v. Georgia Pacific case. Is Texas preparing to resume the “endless search” for the next “solvent bystander?” Is the Texas Supreme Court considering a departure not only from Flores, but also from decades of settled Texas law regarding causation in tort cases? Hopefully, the memory of the disastrous and wasteful “cold war” of asbestos litigation will persist and rational common-law limits will not be sacrificed to resurrect a demonstrably abusive system.

An Experiment In Law Reform: Amchem Products V. Windsor, Patrick M. Hanlon

University of Michigan Journal of Law Reform

The Supreme Court's 1997 decision in Amchem Products, Inc. v. Windsor struck down the most ambitious settlement class action ever attempted. The settlement was, however, the logical outgrowth of the federal judiciary's efforts in the early 1990s to resolve a "disaster" of "critical proportions." Many factors, not least the Supreme Court's decision in Amchem, turned the tide against this trend. Ironically, however, the post-Amchem world has come to look a lot like Amchem. The settlement's central feature-deferral of unimpaired claims to assure the availability of resources to compensate the sick-was subsequently incorporated (either by statute or through judicial decision) into …

How Long Is Forever This Time? The Broken Promise Of Bankruptcy Trusts, S. Todd Brown

Journal Articles

Bankruptcy trusts consistently fail to protect the interests of future claimants as contemplated by Section 524(g) of the Bankruptcy Code. Although this reality is generally understood, the extent of this failure has not been examined. And, as demonstrated in this study, the degree to which trusts are failing future victims is greater than commonly realized. More than two-thirds of the trusts that have completed their initial claims processing are paying new asbestos personal injury victims at or near historically low rates, and several others appear to be defunct or inactive. Nearly two-thirds of the trusts that remain active have reduced …

The Manville Corporation Bankruptcy: An Abuse Of The Judicial Process?, Mark Kunkler

Pepperdine Law Review

Federal bankruptcy law offers a refuge to the honest debtor who is unable to pay his creditor's when his debts are due. Here, the twin aims of bankruptcy law, to give the debtor a fresh start and to provide roughly equal treatment for his! Creditors, are laudably accomplished. But what policies support the use of federal bankruptcy law when the "debtor" is in fact solvent and apparently seeks refuge only to escape liability for the products it manufactures? This comment examines the recent filing of the Manville Corporation for Chapter 11 protection under bankruptcy law with this question in mind.

Liability Cure-All For Insidious Disease Claims, Susan Frankewich

Pepperdine Law Review

Recent decisions handed down in various circuits have created virtual chaos in predicting the liability and damage amounts of insidious disease claims. At least three substantially divergent theories have been adopted to impute liability to the manufacturers of the disease catalysts. Additionally, a new trust fund concept has been used on a limited basis to reconcile differences in court decisions. The trust fund approach is relatively flexible and simple to apply in apportioning damages for insidious disease claims. The author examines and analyzes these three liability theories. In conclusion, the adoption of the trust fund concept is recommended.

Bankruptcy Trusts, Transparency And The Future Of Asbestos Compensation, S. Todd Brown

Journal Articles

As we enter the fifth decade of asbestos personal injury litigation, much of the debate over its immediate future centers on the operations of bankruptcy trusts and their relationship to the tort system. Roughly 100 companies have entered bankruptcy as a result of their unsustainable asbestos liabilities, and, from these bankruptcies, approximately 60 trusts have been established or are in the process of being established. Some critics contend that the trust system is plagued by fraud and abuse; allowing plaintiffs' lawyers to obtain compensation from the trusts for fraudulent claims and to evade relevant discovery obligations under applicable state law. …

Exposure, Manifestation Of Loss, Injury-In-Fact, Continuous Trigger: The Insurance Coverage Quagmire , Nicolas R. Andrea

Pepperdine Law Review

No abstract provided.

Addressing The "Elephantine Mass" Of Asbestos Cases: Consolidation Versus Inactive Dockets (Pleural Registries) And Case Management Plans That Defer Claims Filed By The Non-Sick, Victor E. Schwartz, Mark A, Behrens, Rochelle M. Tedesco

Pepperdine Law Review

No abstract provided.

The Cumulative Sources Of The Asbestos Litigation Phenomenon, George L. Priest

Pepperdine Law Review

No abstract provided.

Asbestos Legislation Ii: Section 524(G) Without Bankruptcy, Francis E. Mcgovern

Pepperdine Law Review

No abstract provided.

Legislative Attempts To Address Asbestos Litigation, Steven Kazan

Pepperdine Law Review

No abstract provided.

Asbestos Litigation And Bankruptcy: A Case Study For Ad Hoc Public Policy Limitations On Joint And Several Liability, Richard L. Cupp Jr

Pepperdine Law Review

Over a decade ago, the Federal Judicial Conference warned of an asbestos litigation “disaster of major proportions.” The Supreme Court of the United States has described the litigation as a “crisis.” According the RAND Institute for Civil Justice, by the end of 2000, more than 600,000 asbestos claims were filed. RAND estimates that as many as three million more plaintiffs may eventually file claims. Most new claimants are not sick. The flood of claims has forced almost sixty companies into bankruptcy; many of these bankruptcies are very recent. As a result, defendants with only remote connections to asbestos – known …

Lawyer Ethics On The Lunar Landscape Of Asbestos Litigation, Roger C. Cramton

Pepperdine Law Review

No abstract provided.

Judicial Efficiency In Asbestos Litigation, Alfred Chiantelli

Pepperdine Law Review

No abstract provided.

On The Theory Class's Theories Of Asbestos Litigation: The Disconnect Between Scholarship And Reality?, Lester Brickman

Pepperdine Law Review

More than 100,000 new asbestos claims were filed in 2003, the most ever in one year. Asbestos litigation thus continues to thrive even though 80-90% of claimants have no illness recognized by medical science, let alone suffer any lung impairment. To explain how this disconnect between medical science and tort litigation has come about, I cover the following subjects: 1) medical consequences of exposure to asbestos-containing materials; 2) the phenomenon of the unimpaired claimant; 3) medical evidence with regard to the incidence of asbestosis; 4) the effect on asbestos litigation of the failure of the Manville Trust audit to be …

Alternatives To Asbestos Impairment Standards, Alan Brayton

Pepperdine Law Review

No abstract provided.

Keeping Junk Science Out Of Asbestos Litigation, David E. Bernstein

Pepperdine Law Review

No abstract provided.

Asbestos & The Sleeping Constitution, Griffin B. Bell

Pepperdine Law Review

No abstract provided.

Is Silica The Next Asbestos? An Analysis Of Silica Litigation And The Sudden Resurgence Of Silica Lawsuit Filings, Melissa Shapiro

Pepperdine Law Review

No abstract provided.

A Rejoinder To Lester Brickman: On The Theory Class's Theories Of Asbestos Litigation, Charles Silver

Pepperdine Law Review

No abstract provided.

Specious Claims And Global Settlements, S. Todd Brown

Journal Articles

Few problems are more disruptive to the efficient negotiation and operation of comprehensive mass tort settlements than oversubscription, which, at times, appears to be fueled primarily by specious claims. In settlements with opt out rights, a flood of claims can generate a market for lemons, with the weakest claims submitted to the settlement and the strongest opting out and seeking recovery at trial or in private settlement. In binding settlements, they may result in a commons problem, requiring dramatic reductions in payment that effectively transfer recoveries from those with intrinsically strong claims to those with weak claims.

This Article evaluates …

The Peculiar Challenges Posed By Latent Diseases Resulting From Mass Products, Donald G. Gifford

Donald G Gifford

Legal actions against manufacturers of products that cause latent diseases, such as asbestos products, cigarettes, lead-pigment, and Agent Orange, are the signature torts of our time. Yet within this rather important subset of tort liability, it is unlikely that the imposition of liability actually results in loss prevention. Three factors, present in varying combinations in the context of latent diseases resulting from product exposure, frustrate the deterrent impact of liability. First, an extended period of time—sometimes decades—passes between the time of the manufacturer’s distribution of the product and the imposition of liability. Second, the accident compensation system frequently is unable …

Overlooking Tort Claimants' Best Interests: Non-Debtor Releases In Asbestos Bankruptcies , Joshua M. Silverstein

Faculty Scholarship

The asbestos crisis has spawned the development of extraordinary new remedies. One of the most dramatic and controversial is known as a "non-debtor release," a bankruptcy order extinguishing claims against a party who has not itself filed for bankruptcy. Also known as a "third-party release," this form of relief first found acceptance in early asbestos insolvencies. Since that time, Congress has passed a statute—§ 524(g) of the Bankruptcy Code—that expressly authorizes non-debtor releases in asbestos reorganizations. Powerful remedies are subject to abuse, and third-party releases are no exception. In this article, I argue that bankruptcy courts and litigants have overlooked …

The Effect Of Joint And Several Liability Under Superfund On Brownfields, Howard F. Chang, Hilary A. Sigman

All Faculty Scholarship

In response to claims that the threat of environmental liability under the Superfund law deters the acquisition of potentially contaminated sites (or "brownfields") for redevelopment, the federal government has adopted programs to protect purchasers from liability. This protection may be unwarranted, however, if sellers can simply adjust property prices downward to compensate buyers for this liability. We present a model of joint and several liability under Superfund that allows us to distinguish four different reasons that this liability may discourage the purchase of brownfields. The previous literature has overlooked the effects that we identify, which all arise because a sale …