Expert Perspectives

“We are pleased that LTL’s bankruptcy will be allowed to proceed, which allows for the continuation of a fair and efficient resolution for current and future claims. The attempt to block what is a legitimate use of the Chapter 11 system was motivated by plaintiffs’ lawyers’ desire to bring their cases in a flawed mass tort system where high-dollar awards, low evidentiary standards, and low barriers of entry are the norm. Their profit motives should not be given priority over the interests of both claimants and debtors operating in good faith.”

“Bankruptcy avoids the lottery effects we see when mass tort cases are resolved through jury trials; some plaintiffs receive a windfall and others receive nothing. Bankruptcy resolution is more equitable to the victims collective. Further, without class aggregation, litigating tens of thousands of mass tort cases would take decades and ultimately disadvantage all stakeholders. Funds meant for victims would go to attorneys.”

“Claimant trusts have been an accepted method of addressing asbestos claims since at least 1994, when Congress added section 524(g) to the Bankruptcy Code. They are fair: they can only be established if approved by at least 75% of the claimants themselves; they are efficient: bankruptcy provides a single, centralized forum to resolve and pay all claims; and they are equitable: lottery-like results of a pot of gold for some and little or nothing for others is not allowed in bankruptcy.”

“Over the last forty years, Chapter 11 has been invoked to facilitate settlement in dozens of large mass tort cases.”