We and others (above all Prof. Lester Brickman) have been consistently critical of the gamesmanship and power plays involved in the "prepackaged" bankruptcies of various companies sued in asbestos litigation, in which asbestos plaintiff's lawyers have sometimes effectively seized control of the bankruptcy process (in cooperation with current management) to frustrate the legitimate interests of non-asbestos creditors and insurers. Now New Jersey bankruptcy judge Kathryn Ferguson has dismissed the attempted prepack of the Congoleum Corporation, a flooring manufacturer, in what American Lawyer's David Bario calls a "feisty" ruling (PDF) that could discourage such attempts in future. Check out Bario's article for reminders of the far from attractive conduct of (among others) Joe Rice of Motley Rice and Perry Weitz of the Sheldon Silver law firm, Weitz & Luxenberg.
No more prepack asbestos bankruptcies?
Related Entries:
- "Attorney fee-only" bankruptcy plans
- Judge orders end to trial reservation system in Madison County asbestos docket
- Romney is right about the auto bailout
- California rejects tertiary asbestos liability in O'Neill v. Crane
- Madison County's controversial asbestos litigation system under fire yet again
- Ohio union vote
- What's in the water in Wisconsin?
- Congressional hearing on asbestos fraud
- Judge orders lawyers to mandatory Labor-Day weekend seminar
- Around the web, August 22
- "CSX claims racketeering in Pittsburgh law firm's legal tactics"
- Around the web, July 29
- Around the web, June 18
- Around the web, June 13
- $322M verdict for phantom asbestosis
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| Isaac Gorodetski Project Manager, Center for Legal Policy at the Manhattan Institute igorodetski@manhattan-institute.org |
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| Laura Eyi Press Officer, Manhattan Institute leyi@manhattan-institute.org |



