Over the last several years, mesothelioma victims and others diagnosed with asbestos-related diseases have been faced with a legal challenge on top of their illnesses: the companies they blame for their asbestos-related diseases have used a controversial legal strategy known as a Texas Two-Step to file for bankruptcy in the state of Texas and avoid legal liability. Last week, victims seeking compensation from Georgia-Pacific unit Bestwall asked a North Carolina federal judge to deny the company that legal avenue, calling it an abuse of the bankruptcy process.
Committee of Asbestos Claimants Files Motion to Appeal
The mesothelioma and asbestos-related disease victims seeking compensation from Bestwall LLC are represented by a group known as the Official Committee of Asbestos Claimants. The group filed a motion for leave to appeal a previous decision to allow the filing that was made by the bankruptcy court, arguing that the decision had made way for a system in which “no limits on who can be a debtor in a bankruptcy case” was established.
The asbestos victims’ point in support of their argument was that Bestwall has tens of billions of dollars in available uncapped funding. They assert that Bestwall is a company whose “economic viability is unthreatened and who has no need for bankruptcy.” The group wants to appeal the court’s decision to the Western District of North Carolina.
Bestwall was First Attempt at Texas Two-Step
In its representation of the mesothelioma victims, the Committee stated that Bestwall was the first instance in which “a multibillion-dollar, solvent corporation used the Texas Two-Step to gain all the benefits of bankruptcy while avoiding any controls over its huge assets.” The company filed for bankruptcy in 2017 in an attempt to shield its assets from asbestos injury liability.
The question of the Texas Two-Step’s use in asbestos injury cases has led to numerous attorneys general advocating against divisional mergers being approved for shirking liability and preventing victims from receiving the compensation they would otherwise be able to collect.
If you or someone you love has been diagnosed with malignant mesothelioma or any other asbestos-related disease, the Patient Advocates at Mesothelioma.net have the resources you need. Contact us today at 1-800-692-8608 to learn how we can help.
