Antonin Scalia Law School Bankruptcy and Mass Torts: Examining the Economics, Purposes, and Structure of Bankruptcy Law in Light of Developments in Congress and the Courts

The panel discussion will include an analysis of case law developments, including the February 25, 2022 opinion in In Re LTL Management, LLC denying a motion to dismiss one such bankruptcy filing. In that February 25 opinion, U.S. Bankruptcy Chief Judge Michael B. Kaplan explained that “this Court has little trouble finding that the chapter 11 filing serves to maximize the property available to satisfy creditors by employing the tools available under the Bankruptcy Code to ensure that all present and future tort claimants will share distributions through the court-administered claims assessment process. Movants’ challenge to the manner the estate is to be maximized does not alter the fact that a successful reorganization and implementation of a settlement trust will dramatically reduce costs and ensure balanced recoveries for present and future claimants.” Was the court correct?  What does this mean for other challenges being brought to seek dismissal of similarly situated bankruptcy filers? And, how should these caselaw developments fit into the legislative debate?