Mass Tort Bankruptcies: Overview | Practical Law
A Practice Note discussing mass tort bankruptcy cases. This Note provides an overview of Chapter 11's advantages in addressing mass tort liability. It includes a discussion of the elements of the Chapter 11 process that deserve special consideration in a mass tort bankruptcy case, including the resolution of current and future mass tort claims through the use of a section 524(g) or 105(a) channeling injunction; third-party releases; funding trusts for the benefit of tort claimants; the roles of the future claimants representative, tort claimants committee, and insurance; the process for confirming a chapter 11 plan resolving mass tort claims, including establishing a bar date for filing claims, soliciting votes on claims, estimating claims, classifying claims; and the strategic considerations and litigation tactics relevant to a mass tort bankruptcy, such as pre-bankruptcy strategies for isolating mass tort liability, potential challenges to a bankruptcy filing, and bankruptcy court jurisdiction and abstention.