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Kane v. Johns-Manville Corp.
United States Court of Appeals for the Second Circuit
843 F.2d 636 (1988)
The Johns-Manville Corporation (Manville) (debtor) was a manufacturer of asbestos products. Manville filed for reorganization under chapter 11 of the bankruptcy code as a result of multiple asbestos-related personal-injury lawsuits. Manville proposed a reorganization plan that included a trust to compensate the asbestos-injury victims. Claimants currently afflicted with asbestos-related illnesses were classed as creditors in the bankruptcy proceedings. A class of potential future claimants, which included those individuals who had been exposed to Manville’s asbestos but had not yet developed asbestos-related illnesses, were represented in the proceedings by a court-appointed legal representative and would be eligible to file claims against the trust in the future. The bankruptcy court confirmed the reorganization plan, and the district court affirmed. Lawrence Kane (creditor) was a current claimant. Kane appealed the plan’s confirmation, arguing that the plan discharged the rights of future victims who do not have claims.
Rule of Law
Holding and Reasoning (Newman, J.)
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