Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

The Bankruptcy StrategistFeaturesBankruptcyLitigationMass Torts

Novel Issues of Chapter 11 Mass Tort and Complex Claims Cases Impact Claims Against Unrelated Debtors

By Francis J. Lawall and Brenden S. Dahrouge
September 01, 2023

Chapter 11 cases involving mass tort and complex personal injury claims often require the resolution of novel legal issues that stretch the bounds of existing precedent. As these cases evolve, they can also impact claims against other debtors unrelated to the case at hand through court-approved injunctions, releases or settlements. This is precisely the situation that presented itself in the Chapter 11 case involving the Roman Catholic Diocese of Rockville Centre. See In re Roman Catholic Diocese of Rockville Center, No. 20-12345(MG), 2023 Lexis 1751, at *6 (Bankr. S.D.N.Y. July 13, 2023). On July 13, following a series of responses to claim objections made by the debtor in the Rockville Chapter 11, the U.S. Bankruptcy Court for the Southern District of New York sustained Rockville's claim objections relying upon third-party releases originally issued in the unrelated Boy Scouts of America (BSA) bankruptcy case.

The issues in Rockville stem from the joint voluntary Chapter 11 petitions filed by the BSA and Delaware BSA in 2020 to address the growing number of sexual abuse claims asserted against those organizations. The BSA reorganization plan, which was confirmed by the Bankruptcy Court and later by a U.S. district court, faces pending appeals in the U.S. Court of Appeals for the Third Circuit. The Third Circuit, however, has denied motions to stay the effectiveness of the BSA plan pending these appeals.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
New York's Latest Cybersecurity Commitment Image

On Aug. 9, 2023, Gov. Kathy Hochul introduced New York's inaugural comprehensive cybersecurity strategy. In sum, the plan aims to update government networks, bolster county-level digital defenses, and regulate critical infrastructure.

The Bankruptcy Hotline Image

Recent cases of importance to your practice.

The DOJ's Corporate Enforcement Policy: One Year Later Image

The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.

How AI Has Affected PR Image

When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.

CLE Shouldn't Be the Only Mandatory Training for Attorneys Image

Each stage of an attorney's career offers opportunities for a curriculum that addresses both the individual's and the firm's need to drive success.