Mass Torts in Bankruptcy: Confirmation Strategies and the Role of Insurance

Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
- work Practice Area
Bankruptcy
- event Date
Wednesday, March 1, 2023
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
-
This 90-minute webinar is eligible in most states for 1.5 CLE credits.
This CLE webinar will discuss emerging strategies for confirming a Chapter 11 plan in a case filed to address mass-tort liability. The panel will address the pivotal role of insurance and channeling injunctions as well as options for dealing with impasses among various constituencies.
Faculty

Mr. Burns combines a deep understanding of insurance law and the insurance industry with a broad understanding of the civil litigation system that allows him to bring creative solutions to high-stakes problems.

Mr. Brownstein provides turnaround management and advisory services to companies and their stakeholders, as well as investment banking services, fiduciary services, and litigation consulting, investigations and valuation services. He also serves as an independent corporate board member for publicly-owned and privately-held companies, as well as large nonprofits.

Ms. Malik is Partner in Orrick's Washington, D.C., office and a member of the firm's Complex Litigation and Dispute Resolution group. With a focus on mass torts and product liability, her practice involves defending companies in a variety of industries against complex tort suits. Ms. Malik also works with Orrick's Public Policy group advising clients on strategies for solving key state legislative issues.

Ms. Parson is the managing partner of the firm’s New Jersey office. She has experience representing clients in complex commercial litigation, focusing on insurance coverage, litigation general commercial litigation, personal injury liability, products liability, environmental liability, mass torts, professional negligence, medical malpractice, and employment liability; as well as in New Jersey’s Municipal Court. Ms. Parson also has experience in providing coverage opinions and advice to insurance carriers concerning their coverage obligations under various types of insurance policies including, comprehensive general liability, group property and casualty lines, public entity insurance, specialty and professional risk, excess, contractors, automobile liability, and workers’ compensation and/or employer’s liability coverage. In addition, she represents clients with municipal court liability and is a former New Jersey Municipal Court Prosecutor.

Mr. Scharf specializes in financial restructuring and bankruptcy litigation, with a particular focus on representing creditors' committees of nonprofit entities. He has experience representing debtors, creditors’ committees, equity holders, asset purchasers, trade creditors, chapter 11 trustees, and other parties in business reorganizations and related litigation. Mr. Scharf has experience before bankruptcy courts in New York, Delaware, New Jersey and Pennsylvania. He was named a Rising Star by Super Lawyers magazine in 2012, and has been selected as a Super Lawyer every year since. Mr. Scharf is a graduate of Yeshiva University and received his J.D. from the University of Pennsylvania. He was a law clerk to the Honorable Robert E. Gerber in the United States Bankruptcy Court for the Southern District of New York. Mr. Scharf is admitted to practice in New York, and is resident in our New York office.
Description
For over 40 years, since 1982 when Johns-Manville filed Chapter 11, debtors facing massive liability for personal injuries have turned to bankruptcy to aggregate, manage, settle, and discharge claims. At least one class of impaired claimants must vote to approve the plan, which is difficult to achieve when the case involves numerous classes of complex class claims.
As disputes arise over both the value and validity of claims, the debtors, personal-injury plaintiffs, creditor committees, and insurers often reach an impasse. One option for resolving these cases has been to provide a cash payment and then assign claims against third parties. When the claims being assigned under a plan are claims to insurance proceeds, additional issues arise.
Listen as this experienced panel discusses the intersection of bankruptcy reorganization, tort claims, and insurance and how these issues can affect both large- and small-scale reorganization.
Outline
- Overview of mass tort bankruptcies
- Parties in a mass tort Chapter 11 case
- Sources of funding for mass tort claims
- Confirmation issues
Benefits
The panel will discuss these and other key issues:
- Do insurers have a duty to settle in bankruptcy and are they subject to bad faith claims if they do not?
- Is the insurance contract an executory contract that can be assumed and assigned under Section 365?
- To whom are claims against the insurer potentially transferred: individuals or trusts?
- What law governs?
Related Courses

Chapter 11 Fundamentals: Debtor-In-Possession Financing and Use of Cash Collateral
Tuesday, February 11, 2025
1:00 p.m. ET./10:00 a.m. PT
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