ATRA Reiterates Support for Chapter 11 Bankruptcy Use to Address Mass Tort Litigation, Urges Meaningful Dialogue Amid Senate Judiciary Committee Hearing
ATRA Files Amicus Brief in In re LTL Management, LLC
August 22, 2022 (WASHINGTON) – Today, the American Tort Reform Association joined the U.S. Chamber Litigation Center in filing an amicus brief in In re LTL Management, LLC before the U.S. Court of Appeals for […]
August 22, 2022 (WASHINGTON) – Today, the American Tort Reform Association joined the U.S. Chamber Litigation Center in filing an amicus brief in In re LTL Management, LLC before the U.S. Court of Appeals for the Third Circuit. Claimants are appealing Chief Judge Michael Kaplan, U.S. Bankruptcy Judge for the District of New Jersey, decision to deny their motion to dismiss LTL’s bankruptcy proceedings. The lower court found LTL’s Chapter 11 bankruptcy filing was not in bad faith and should be allowed to continue.
The amicus brief highlights how the use of bankruptcy to address litigation claims is a valid bankruptcy purpose that has been historically recognized by courts across the country. Resolution of mass-tort liabilities in bankruptcy court has been a key tool for U.S. businesses since the Bankruptcy Code was first enacted in 1978.
Statement from American Tort Reform Association (ATRA) President Tiger Joyce:
“The bankruptcy process provides a fair and efficient resolution for current and future claims in this case. The attempt to block what is a legitimate use of the Chapter 11 system is motivated by plaintiffs’ lawyers’ desire to bring their cases in a flawed mass tort system where high-dollar awards, low evidentiary standards, and low barriers of entry are the norm.
“The funds approved in bankruptcy to pay legal claims create a level playing field for all claimants, whereas litigation often results in a “race to the courthouse,” in which some may receive windfalls while others may fare poorly. The plaintiffs’ lawyers’ profit motives should not be given priority over the interests of both claimants and debtors operating in good faith.”
The lack of oversight and transparency around third-party litigation funding threatens the integrity of our legal system
Together, let’s forge a legal landscape that makes equitable access to justice a living reality for all Georgians.
This is an opportunity to reassess the practices and regulations surrounding private-attorney contracting and to enact reforms that promote fairness, transparency and value for taxpayer dollars.
Allowing the company to continue the bankruptcy process will help ensure equitable and efficient resolution in complex mass tort claims