The uncertain, potentially bottomless liability associated with mass tort litigation, and specifically with asbestos litigation, not infrequently results in corporate defendants seeking protection under the Bankruptcy Code.
When a defendant seeks to consolidate mass tort cases in a bankruptcy court, the court must weigh the benefits of consolidating potentially thousands of cases against a state’s interest in applying its often well-developed body of mass tort law. When the party seeking consolidation is a non-debtor co-defendant relying on “related to” bankruptcy jurisdiction, state law may prove determinative.
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