Korean Claimants v. Dow Silicones Corp.
- Summarized by J. Debbeler , Bricker Graydon LLP
- 1 month 3 weeks ago
- Case Type:
- Consumer
- Case Status:
- Affirmed
- Citation:
- 23-193c; File No. 24a0447n.06 (6th Circuit, Nov 07,2024) Not Published
- Tag(s):
-
- Ruling:
- Claimants who failed to timely cash settlement checks from the Dow Corning Settlement Facility (Facility) are now barred from receiving payment by the district court order finalizing time for payment and re-presentation of stale checks, The claimants had sufficient notice and an opportunity to receive payment.
- Procedural context:
- Due to a flood of problems with silicone gel breast implants, Dow Corning Corp. (Dow) filed a Chapter 11 bankruptcy in 1995. in 1999 the bankruptcy court confirmed the Amended Joint Plan (Plan) of Dow. The Plan established a Facility for claimants wishing to settle their claims. the Facility contained a then-net present value of 1.95 billion dollars. The district court appointed a Claims Administrator to oversee disbursement of the fund and the district court created a new case. Certain Korean residents opted for settlement and received a "first priority" ranking. Most of the thousand such claimants received checks but 200 of them (Korean Claimants) failed to cash their checks within 180 days and the checks became stale.
The district court established June 3, 2019 (Claim Date) as the last date to file a claim. There were 2 exceptions - if the claimant was deceased or could show good cause. The court established December 1, 2023 as the final distribution deadline and stated that checks that expired before the Claim Date could not be honored despite any good cause showing. The Korean Claimants failed to act timely. The Claims Administrator denied the Korean Claimants demand for payment and they appealed that determination, rather than seek further relief in the district court.
- Facts:
- The Sixth Circuit found it has jurisdiction to resolve the dispute. The Korean Claimants claimed a due process violation. The Court found that the Korean Claimants had notice on multiple occasions of the duty to comply with the Claims Date. No hearing was required. They knew for over 4 years that the district court planed to set a final deadline.
Next, the Korean Claimants sought relief under 11U.S.C. Section 1129(b)(1). The Court found no discrimination and that the Korean Claimants were treated justly. Finally, they claimed that Dow promised to pay them. The Court found that Dow kept that promise through the Facility. The Court found no abuse of discretion.
- Judge(s):
- Sutton, Chief Judge, and Readler, and Bloomkatz, Circuit Judges
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