In a pivotal ruling, a New Jersey bankruptcy cbriefs prepared by legal and bankruptcy professors to be submitted in the Chapter 11 proceeding of Johnson & Johnson’s bankrupt talc unit, LTL Management LLC. The decision comes as a hearing over the talc claimants’ motion to dismiss the case approaches.
During a teleconference hearing, U.S. Bankruptcy Judge Michael B. Kaplan expressed hesitation but ultimately adhered to the Third Circuit’s preference for allowing amicus briefs. The briefs, prepared by law and bankruptcy professors, raise issues concerning the constitutionality of LTL Management’s reorganization plans and the corporate mechanisms employed by Johnson & Johnson to create LTL and initiate bankruptcy proceedings.
While Judge Kaplan had reservations about the relevance of the proposed briefs to the specific issues before the court, he granted the professors’ motions, emphasizing the need for a fair opportunity for all parties to respond to the arguments presented in the briefs.
LTL Management, a spinoff from Johnson & Johnson, faces over 38,000 personal injury claims related to alleged asbestos contamination in the company’s talc products. The bankruptcy case, initiated in a North Carolina court, has since been transferred to the New Jersey bankruptcy court, where J&J is headquartered.
The decision to permit the amicus briefs adds complexity to the ongoing proceedings, as the court prepares to hear motions to dismiss the case and enjoin the prosecution of talc claims against J&J and other related parties. A multiday trial on these motions is scheduled to commence on Feb. 14, with Judge Kaplan committed to issuing a decision by the end of the month.
LTL is represented by legal counsel from Jones Day and Wollmuth Maher & Deutsch LLP.
