Nashville, Tenn. – Ellie Olson, a student at Vanderbilt University, has been declared the recipient of the prestigious 2025 Nagareda Prize for her scholarly work in litigation and dispute resolution. Olson’s impressive paper, titled “Wealthy Corporate Debtors: Aligning the Bankruptcy Code with Modern Mass-Tort Bankruptcies,” was selected for its innovative approach to complex legal challenges in corporate America.
The award, which pays homage to the significant contributions of Richard Nagareda, the original director of the Branstetter Litigation and Dispute Resolution Program, is earmarked for the most notable scholarly document penned by a graduating student. According to Edward Cheng, director of the program and holder of the Hess Chair in Law at Vanderbilt, this accolade continues to highlight the evolving challenges in litigation and the need for creative legal frameworks.
In her note, Olson delves into a technique known as the “Texas Two-Step,” a strategic corporate restructuring that allows solvent entities to address mass tort claims under the umbrella of bankruptcy protection. Her analysis not only maps out the method but also critically examines its implications for the tort system and suggests a new perspective on interpreting the Bankruptcy Code to ensure fair treatment of tort claimants.
She argues that if defendants are using bankruptcy as a strategic alternative to litigation, then the Bankruptcy Code must adapt to ensure tort claimants are not disadvantaged compared to their potential outcomes in direct litigation. Olson posits that should the defendants’ claims hold — that tort creditors would fare better in bankruptcy — the code should explicitly protect tort claimants based on this premise.
The inspiration for Olson’s research stemmed from class discussions around high-profile corporate bankruptcies such as those involving Johnson & Johnson and Purdue Pharma. These discussions highlighted the role of strategic litigation choices in modern corporate law, encouraging Olson to explore how these decisions impact the broader legal landscape.
Olson, who not only excels in her studies but also actively participates in extracurricular law activities, serves as an Articles Editor for the Vanderbilt Law Review and a member of the Moot Court Board. Her prominent role in these activities follows her standout performance in the 2L Moot Court Competition. Upon graduation, Olson is set to join the respected firm Lieff, Cabraser, Heimann & Bernstein LLP, based in Nashville, where she will commence her legal career.
The award and Olson’s resulting study underscore the critical nature of adaptability and forward-thinking in the practice of law, particularly within the realms of corporate bankruptcy and litigation. Her exploration of the “Texas Two-Step” not only sheds light on a nuanced strategy but also opens the dialogue for future legal interpretations that could better balance corporate strategy and creditor rights.
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