Limits

Supreme Court Limits Bankruptcy Shield, Forcing Companies to Reassess Settlement Strategies in Mass Tort Cases

by

Washington — The recent U.S. Supreme Court ruling has significantly impacted how bankruptcy can be employed, particularly in mass tort litigations involving organizations like Purdue Pharma, the makers of OxyContin. The court has curtailed the scope of bankruptcy courts, specifically rescinding their authority to dismiss legal claims against non-debtors without the explicit consent of the involved parties. Historically, bankruptcy proceedings have provided a robust mechanism for organizations to manage and settle widespread legal challenges, including cases related to sexual abuse and consumer products linked to health issues. Such procedures allowed for the automatic halting of … Read more

Supreme Court Decision Reshapes Bankruptcy Strategy, Limits Liability Shields for Non-Debtors in Mass Tort Settlements

by

New York — A recent Supreme Court decision has potentially narrowed the utility of bankruptcy as a tactic for resolving extensive lawsuits, impacting strategies employed by large organizations such as the Catholic dioceses, Boy Scouts of America, and opioid manufacturers. The ruling denied the ability of bankruptcy courts to clear legal claims against affiliated parties that have not themselves sought bankruptcy protection, a strategy previously available and frequently utilized in mass tort litigation. Historically, bankruptcy courts have offered valuable tools for entities crushed by substantial legal challenges. These tools include a stay on existing litigation, … Read more

Federal Lawsuit Over Credit Card Late Fee Limits Returns to Texas Court

by

Fort Worth, Texas – A federal lawsuit challenging the new limits on credit card late fees will continue to be heard in Texas. The U.S. Court of Appeals for the Fifth Circuit decided on Friday to reverse the previous ruling by federal Judge Mark Pittman, who had moved the case to Washington, D.C. Pittman had argued that the case should not be heard in Texas since the majority of the plaintiffs and attorneys involved, as well as the Consumer Financial Protection Bureau (CFPB), have ties to D.C. The lawsuit was filed by the U.S. Chamber … Read more

Colorado Oilfield Worker Awarded $30 Million After Fracking Tank Explosion, But State Law Limits Payout

by

GREELEY, Colorado — A Colorado jury has awarded $30 million to an oilfield worker who suffered severe injuries in a fracking tank explosion in Weld County four years ago. However, due to state law limitations on damage payouts, the worker will not be able to collect the full amount. This verdict comes as a group called Coloradans for Accountability, supported by the Colorado Trial Lawyers Association, is pushing for a ballot initiative to eliminate the cap on non-economic damages in personal injury and wrongful death lawsuits. The injured worker, Steven Straughen, who is a married … Read more