In re UNR Industries, Inc.
United States Court of Appeals for the Seventh Circuit
725 F.2d 1111 (1984)
- Written by Abby Roughton, JD
Facts
Asbestos manufacturer UNR Industries, Inc. (UNR) filed for Chapter 11 bankruptcy in 1982 because it could not satisfy its present and potential tort liability to the thousands of individuals who had exposure to UNR-manufactured asbestos fibers. UNR asked the bankruptcy court to appoint a legal representative for all unknown putative asbestos claimants (i.e., claimants who had been exposed to UNR’s asbestos but who had not yet been diagnosed with asbestosis). UNR hoped that the representative could negotiate an arrangement with UNR so that all potential asbestos claims could be fixed and discharged in UNR’s reorganization plan. The judge denied UNR’s application for a representative after concluding that people who had not yet been diagnosed with asbestosis did not have claims that could be proved in the bankruptcy. UNR appealed the denial to the United States Court of Appeals for the Seventh Circuit, which considered the appealability of the judge’s order.
Rule of Law
Issue
Holding and Reasoning (Posner, J.)
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