Quimbee logo
DMCA.com Protection Status
From our private database of 17,300+ case briefs...

In re: Dow Corning Corp., Bear Stearns Government Securities v. Dow Corning Corp.

United States Court of Appeals for the Sixth Circuit
419 F.3d 543 (2005)


Twenty-seven plaintiffs sued Dow Corning Corporation (Dow) (defendant), seeking recovery for injuries resulting from allegedly faulty breast implants manufactured by Dow. The parties entered into a settlement agreement, under which Dow agreed to pay the plaintiffs a total of $17,000,000 over several years in a series of installments. Dow also agreed to pay $100 for each day that Dow was late in paying any particular plaintiff. This provision was initially proposed as a penalty provision but was described in the final agreement as liquidated damages. Dow later filed for bankruptcy and stopped making settlement payments. The plaintiffs sold their rights to the settlement payments to Bear Stearns Investment Products, Inc. and related entities (Bear Stearns) (plaintiff). Years later, the bankruptcy court approved a reorganization plan for Dow that included payment to Bear Stearns of the remaining settlement amount of $13,000,000, plus interest of $9,600,000, but did not allow for the $8,750,000 that was requested as liquidated damages. Bear Stearns appealed the denial of its liquidated damages claim to the district court. The district court entered summary judgment in favor of Dow, finding that the damages clause was an unenforceable penalty provision. Bear Stearns appealed.

Rule of Law


Holding and Reasoning (Cole, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 457,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.

Here's why 457,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 17,300 briefs, keyed to 984 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Questions & Answers

Have a question about this case?

Sign up for a free 7-day trial and ask it

Sign up for a FREE 7-day trial