Though she is dying from mesothelioma, Kimberly A. Naranjo spent yesterday testifying to a Senate subcommittee of the Senate Judiciary Committee. She was joined by bankruptcy experts and others concerned about mass tort Chapter 11 cases that allow companies like Johnson & Johnson to evade their liability to victims of their negligence.
Bankruptcy Hearing Spurred by J & J Evasion of Mesothelioma Claims
The subcommittee meeting was held to address the “Texas two-step”, a controversial legal strategy that attracted public attention after Johnson & Johnson used it to evade almost 40,000 personal injury claims filed against it by mesothelioma and ovarian cancer victims.
After several multi-million-dollar mesothelioma verdicts against them, J & J created a new subsidiary entity, then assigned all of its asbestos liabilities into the new company and initiated a Chapter 11 filing. Their claim is currently under consideration, and attorneys representing victims are working to block its approval.
Mother of Seven Says Mesothelioma Victims “Deserve to Be Heard”
Speaking to the congressional leaders, Ms. Naranjo explained that because mesothelioma is so aggressive she is only expected to live another 13 months. The mother of seven explained that Johnson & Johnson’s bankruptcy move will keep her from being heard on her claim, and that if the company is successful it will keep her family from getting the justice it deserves.
“I am here because I am a voice for the thousands of people which Johnson & Johnson has harmed. I wish that Johnson & Johnson would listen, too, but they took that right away from me along with thousands of other people with their own families and stories that also deserve to be heard.”
Response to Mesothelioma Claims Exemplifies Bankruptcy Abuse
Johnson & Johnson’s actions to protect itself against mesothelioma claims have spurred Congress to consider solutions to what University of Pennsylvania Law School corporate law professor David A. Skeel Jr. calls “nefarious, bad faith bankruptcy filings.” Skeel went on to say, “The opportunity for abuse and for undercutting the rights of victims and other creditors is obvious.”
Senator Sheldon Whitehouse, D-R.I., chairman of the subcommittee, noted, “It looks like big companies are getting away with dodging responsibilities by using options that ordinary people don’t have access to. That’s neither efficient nor fair.” Though legislative action is being considered, Professor Skeel suggests providing bankruptcy judges the ability to weigh whether a bankruptcy is being commenced in bad faith, and if so to dismiss the case.
If you or someone you love has been diagnosed with mesothelioma or another asbestos-related disease, the Patient Advocates at Mesothelioma.net can help you access information and resources. Contact us today at 1-800-692-8608.
