Mass Torts

Do bankruptcy courts have jurisdiction to enter nonconsensual releases under any circumstance? This panel will explore this question and more.

The Supreme Court on Aug. 10 granted an emergency application for a stay and granted certiorari in the case of Harrington v. Purdue Pharma L.P. The Court will consider whether the Bankruptcy Code authorizes a court to approve, as part of a plan of reorganization under chapter 11 of the Bankruptcy Code, a release that extinguishes claims held by nondebtors against nondebtor third parties without the claimants’ consent. The case is scheduled to be argued in the December 2023 argument session.

Regional judges will strive to answer questions on current issues.

The petition is filed. At the § 341 meeting, the trustee asks the debtor whether there have been any personal-injury actions, whether the debtor has the right to sue someone, and whether the debtor inherited any assets 180 days prior to the petition date or within 180 days after the petition date. However, debtor clients often intentionally or inadvertently fail to disclose an asset. This panel will explore best practices for dealing with these and other post-filing litigation pitfalls, and for handling cases where there are undisclosed or undiscovered assets.