January 3, 2008

Forbes's Daniel Fisher profiles efforts of lawyer David Bernick, representing W.R. Grace, to persuade a federal bankruptcy judge to assess at zero tens of thousands of asbestos claims where product-exposure or medical evidence is in Grace's view lacking. It's not just a question of whether Grace winds up paying money to the marginal claimants; it's also a question of whether their lawyers will be allowed to retain veto power over Grace's plan of bankruptcy reorganization, which must pass muster with 75 percent of claimants, a flimsy case getting the same vote as a strong one.