In a written communication dated January 10, U.S. Bankruptcy Chief Judge Michael Kaplan of the District of New Jersey requested the Federal Committee on Rules of Practice and Procedure to consider amending a regulation that currently denies bankruptcy judges the capacity to appoint special masters. The request comes in the wake of the hotly debated Johnson & Johnson talc bankruptcies where disputes over mediators, discovery, and the aggregate claims value were prevalent.
The talc bankruptcies, particularly Johnson & Johnson’s cases, have been notably contentious with thousands of claims associating its baby powder with cancer. The request for a rule change emphasises a need for additional tools and flexibility within the bankruptcy process to manage such multifaceted and contentious cases.
To find out more about the specifics of the proposed rule change and its potential impact on future complex bankruptcy cases, you are encouraged to read the Law.com’s article covering detailed information on Judge Kaplan’s letter and the concerns underlying this request.