Angelika Weiss and Angelika Weiss as Executor of the Estate of Wilson Buckingham v. Bestwall, LLC; In re Bestwall LLC

CourtDistrict Court, W.D. North Carolina
DecidedMarch 16, 2026
Docket3:24-cv-00297
StatusUnknown

This text of Angelika Weiss and Angelika Weiss as Executor of the Estate of Wilson Buckingham v. Bestwall, LLC; In re Bestwall LLC (Angelika Weiss and Angelika Weiss as Executor of the Estate of Wilson Buckingham v. Bestwall, LLC; In re Bestwall LLC) is published on Counsel Stack Legal Research, covering District Court, W.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Angelika Weiss and Angelika Weiss as Executor of the Estate of Wilson Buckingham v. Bestwall, LLC; In re Bestwall LLC, (W.D.N.C. 2026).

Opinion

UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF NORTH CAROLINA AT CHARLOTTE

ANGELIKA WEISS and ANGELIKA WEISS as Executor of the Estate of WILSON BUCKINGHAM,

Appellants,

v. CIVIL ACTION NO. 3:24-cv-00297

BESTWALL, LLC,

Appellee.

In re Chapter 11 BESTWALL LLC, Case No. 17-31795

Debtor.

MEMORANDUM OPINION AND ORDER

Pending is Appellant Angelika Weiss’ -- both individually and in her capacity of Executor of the Estate of Wilson Buckingham -- Appeal of the Bankruptcy Court for the Western District of North Carolina’s (the “Bankruptcy Court”) Order Denying Wilson Buckingham and Angelika Weiss’ Motion for Relief from the Automatic Stay Pursuant to 11 U.S.C. § 362(d) [ECF 1], filed March 11, 2024.1 On June 10, 2024, Ms. Weiss filed her brief in support of her appeal.

1 Unfortunately, Mr. Buckingham passed away on May 2, 2024. Ms. Weiss, as executor of Mr. Buckingham’s estate, has since been substituted in his place. [See ECF 20]. [ECF 7]. On July 10, 2024, Appellee Bestwall, LLC (“Bestwall”), responded in opposition [ECF 13], to which Ms. Weiss replied [ECF 15] on July 24, 2024.

I.

In July 2017, Bestwall was formed through a divisional merger of Georgia-Pacific LLC (“Georgia-Pacific”), an entity formerly engaged in the manufacture and sale of asbestos- containing products since 1965. Georgia-Pacific’s business resulted in a lengthy history of asbestos-related litigation. Indeed, “[f]rom 2014 to 2017, for example, Bestwall paid $558 million in defense and indemnity costs for asbestos litigation.” Bestwall LLC v. Off. Comm. of Asbestos Claimants of Bestwall, LLC, 148 F.4th 233, 236 (4th Cir. 2025). By 2017, “Bestwall faced around 64,000 pending asbestos claims, with tens of thousands more anticipated through at least 2050.” Id. Due to this sprawling and seemingly limitless litigation, in July 2017, Georgia- Pacific underwent a corporate, two-part restructuring, in which two new entities were formed in its place: Bestwall and the New Georgia-Pacific LLC (“New GP”). This type of restructuring is commonly referred to as the “Texas Two-Step,” a “maneuver [that] ‘splits a legal entity into two,

divides its assets and liabilities between the two new entities, and terminates the original entity.’” Id. at 237 (quoting In re LTL Mgmt., LLC, 64 F.4th 84, 96 (3d Cir. 2023)). As a result, “[t]he lion’s share of assets—and indeed many liabilities—go into a new company, while the asbestos liabilities fall into a separate company, whose primary purpose is to resolve the asbestos claims.” Id. Thereafter, “[t]he company holding the asbestos liabilities . . . files for bankruptcy[,]” and “[t]he bankruptcy court issues an injunction channeling all asbestos-related claims into a personal injury trust, known as an 11 U.S.C. § 524(g) trust.” Id. (citing In re Combustion Eng’g, Inc., 391 F.3d 190, 234 (3d Cir. 2004), as amended (Feb. 23, 2005)). This process effectively “allows a debtor to address in one forum all potential asbestos claims against it, both current and future, as well as current and potential future claims against third parties alleged to be liable on account of asbestos claims against the debtor.” Id. (quoting In re Bestwall LLC, 606 B.R. 243, 249 (Bankr. W.D.N.C. 2019), aff’d, No. 3:20-cv-103-RJC, 2022 WL 67469 (W.D.N.C. Jan. 6, 2022), aff’d, 71 F.4th 168

(4th Cir. 2023)). Utilizing this two-step framework, Bestwall was assigned the entirety of Old Georgia-Pacific’s asbestos liabilities and some of its assets to resolve the asbestos claims, while the bulk of Old Georgia-Pacific’s $28.3 million company was assigned to New GP. Specifically, “Bestwall received: (a) three bank accounts containing approximately $32 million in cash;

(b) all contracts of the old Georgia-Pacific related to its asbestos-related litigation;

(c) certain real estate;

(d) 100% of a separate company that manufactures and sells gypsum plaster products . . . [with] . . . projected . . . cash flow of approximately $18 million per year, and . . . [and a valuation of] approximately $145 million in 2017; and

(e) an agreement from Georgia-Pacific to pay for Bestwall's expenses incurred in the normal course of business; administration expenses if Bestwall declared bankruptcy; and a § 524(g) asbestos trust in the amount required by a confirmed reorganization plan if Bestwall couldn't fund the trust.”

Id. at 237-238. In November 2017, Bestwall petitioned for relief under Chapter 11, triggering the automatic stay under 11 U.S.C. § 362. Bestwall also sought and was granted an order enjoining the prosecution of any “Bestwall Asbestos Claims” claims against certain non-debtor affiliates known as “protected parties.” [ECF 7 at 11; ECF 13 at 8]. In 2018, the Official Committee of Asbestos Claimants (“the Committee”) sought dismissal of Bestwall’s Chapter 11 petition under section 1112(b), contending the petition was filed in bad faith inasmuch as Bestwall was a solvent entity. Applying the two-prong test for bad faith dismissals articulated by our Court of Appeals in Carolin Corp. v. Miller, 886 F.2d 693, 700-01 (4th Cir. 1989)2 and its progeny, the Bankruptcy Court denied the Committee’s Motion. See In Re Bestwall LLC, 605 B.R. 43, 48-50 (Bankr. W.D.N.C. 2019) (Beyer, J.). In so doing, the Court found “[a]ttempting to resolve asbestos claims

through 11 U.S.C. § 524(g) is a valid reorganizational purpose, and filing for Chapter 11, especially in the context of an asbestos or mass tort case, need not be due to insolvency.” Id. at 49. Inasmuch as the Court concluded the Committee failed to establish the matter was objectively futile given Bestwall had the resources to reorganize, it declined to reach the question of subjective bad faith. Id. The Court noted it would “ultimately have to rule on Bestwall’s good faith, albeit in a different context, at confirmation.” Id. The Committee subsequently sought leave to appeal to the district court under 28 U.S.C. § 158(a)(3). It also moved for certification of direct appeal to our Court of Appeals under 28 U.S.C. § 158(d)(2). Our Court of Appeals, however, denied the petition. See Off. Comm. of Asbestos Claimants of Bestwall, LLC v. Bestwall LLC, No. 19-408, 2019 WL 13512209 (4th Cir.

Nov. 14, 2019). Thereafter, the district court declined to exercise its discretion in granting the Committee leave to appeal. Off. Comm. of Asbestos Claimants v. Bestwall LLC, 3:19-cv-00396- RJC, 2023 WL 7361075, at *5 (W.D.N.C. Nov. 7, 2023) (Conrad, J.).

2 Under Carolin, dismissal of a Chapter 11 petition due to bad faith is proper when the movant establishes both (1) “objective futility of any possible reorganization,” and (2) “the subjective bad faith of the petitioner in invoking this form of bankruptcy protection.” 886 F.2d at 694. The objective futility inquiry focuses on whether “there exists the realistic possibility of an effective reorganization.” Id. at 698 (internal citations and quotations omitted).

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