Korean Claimants V. Dow Silicones Corp
- Summarized by J. Debbeler , Bricker Graydon LLP
- 10 months 2 weeks ago
- Case Type:
- Business
- Case Status:
- Affirmed
- Citation:
- Case No. 25-1004; File Name: 25a194n.06 (6th Circuit, Apr 10,2025) Not Published
- Tag(s):
-
- Ruling:
- The district court granted a motion by Dow Corning Corp. (Dow) to terminate certain funding obligations of Dow under the confirmed bankruptcy plan which established a trust to pay silicone-get breast implant claimants. The self described Korean Claimants objected to the motion to terminate Dow's funding obligations on grounds including that not all the Korean Claimants had been paid on their claims. The Sixth Circuit affirmed the district court finding that all of the Korean Claimants' claims had been paid or "otherwise finally resolved".
- Procedural context:
- On February 13, 2025 the Sixth Circuit in In re Settlement Facility Dow Corning Tr., No. 24-1653, 2025 WL 488635 (6th Cir. Feb. 13, 2025) approved procedures established by the district court that determined that many of the Korean Claimants had failed to timely pursue their claims despite sufficient opportunities to do so. Following that ruling, The Claims Administrator confirmed that all eligible claimants who complied with the deadlines and procedures had received their checks. The Independent Assessor determined that all timely claims that were eligible for payment and have met the requirements established by the district court had been sent a payment. The time for asserting a claim had passed.
The bankruptcy plan is a contract which must be interpreted according to contract principles and NY law applied. It requires interpretation by plain meaning of the words used. The plan says Dow's funding obligations stop when all Allowed Claims and other obligations have been paid, liquidated or otherwise finally resolved.
- Facts:
- Th Korean Claimants argue their claims have not been paid. The Sixth Circuit emphasized that the plan said paid "or otherwise finally resolved". That include having claims determined to be ineligible for payment based on untimely filing.
The Korean Claimants argued that the recently made a demand for payment and that shows the funding obligations should not stop. A demand is not a claim. The fact that the Korean Claimants intend to "continue fighting" is not relevant. Per the Sixth Circuit: there is nothing left to fight.
- Judge(s):
- Sutton, Chief Judge; Readler and Bloomekatz
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