Shipbuilding Asbestos Cases Proceed Despite Bankruptcies

A federal judge has allowed a series of shipbuilding-related asbestos cases to proceed, despite the defendants’ assertion that the plaintiffs were barred from bringing them because the cases were not listed as assets in the plaintiffs’ respective bankruptcies.

In similar memorandums for 11 cases, U.S. District Judge Eduardo C. Robreno of the Eastern District of Pennsylvania denied the defendants’ motion for summary judgment.

The plaintiffs had been part of an asbestos MDL until their claims had been administratively dismissed in 1997. The plaintiffs entered separate bankruptcy litigations after the claims had been dismissed and eventually had their asbestos cases reinstated in 2009 after the bankruptcy litigations had ended.

According to Robreno’s opinion in one of the cases, Tesser v. A-C Product Liability Trust, the defendant shipowners, represented by the Thompson Hine firm in Cleveland, argued the plaintiff’s asbestos case was barred because he failed to disclose it as an asset in bad faith and that he could not pursue the action because it is now owned by the bankruptcy estate.

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Source: Shipbuilding Asbestos Cases Proceed Despite Bankruptcies


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