Delaware Claims Processing Facility, LLC v. DBMP, LLC

Supreme Court of Delaware·Decided July 31, 2026·No. 469, 2025·Published

Opinion

IN THE SUPREME COURT OF THE STATE OF DELAWARE

DELAWARE CLAIMS PROCESSING, § FACILITY, LLC; ARMSTRONG § WORLD INDUSTRIES, INC. § ASBESTOS PERSONAL INJURY § SETTLEMENT TRUST; THE § BABCOCK & WILCOX COMPANY § No. 469, 2025 ASBESTOS PI TRUST; CELOTEX § ASBESTOS SETTLEMENT TRUST; § Court Below: Court FEDERAL-MOGUL ASBESTOS § of Chancery of the PERSONAL INJURY TRUST; THE § State of Delaware FLINTKOTE ASBESTOS TRUST; § OWENS CORNING FIBREBOARD § C.A. No. 2025-0404 ASBESTOS PERSONAL INJURY § TRUST; OWENS-ILLINOIS § ASBESTOS PERSONAL INJURY § TRUST; PITTSBURGH CORNING § CORPORATION ASBESTOS § PERSONAL INJURY SETTLEMENT § TRUST; UNITED STATES GYPSUM § ASBESTOS PERSONAL INJURY § SETTLEMENT TRUST; and WRG § ASBESTOS PI TRUST, § § Defendants Below, § Appellants, § § v. § § DBMP LLC; JOHNSON & JOHNSON; § PECOS RIVER TALC, LLC; RED § RIVER TALC, LLC; J-M § MANUFACTURING CO., INC.; THE § DOW CHEMICAL COMPANY; § ROHM AND HAAS COMPANY; and § UNION CARBIDE CORPORATION, § § Plaintiffs Below, § Appellees. § Submitted: May 6, 2026 Decided: July 31, 2026

Before SEITZ, Chief Justice; TRAYNOR, LEGROW, GRIFFITHS, Justices, and MUCH, Judge,1 constituting the Court en banc.

Upon appeal from the Court of Chancery of the State of Delaware. REVERSED and REMANDED.

Edwin J. Harron, Esquire (argued), Kevin A. Guerke, Esquire, Lauren Dunkle Fortunato, Esquire, Renae P. Pagano, Esquire, YOUNG CONAWAY STARGATT & TAYLOR, LLP, Wilmington, Delaware, for Defendant Below/Appellant Delaware Claims Processing Facility, LLC.

K. Tyler O’Connell, Esquire (argued), Kirsten A. Zeberkiewicz, Esquire, Barnaby Grzaslewicz, Esquire, Alena V. Smith, Esquire, Samuel E. Bashman, Esquire, MORRIS JAMES LLP, Wilmington, Delaware, for Defendants Below/Appellants Armstrong World Industries, Inc. Asbestos Personal Injury Settlement Trust; The Babcock & Wilcox Company Asbestos PI Trust; Celotex Asbestos Settlement Trust; Federal-Mogul Asbestos Personal Injury Trust; The Flintkote Asbestos Trust; Owens Corning Fibreboard Asbestos Personal Injury Trust; Owens-Illinois Asbestos Personal Injury Trust; Pittsburgh Corning Corporation Asbestos Personal Injury Settlement Trust; United States Gypsum Asbestos Personal Injury Settlement Trust; and WRG Asbestos PI Trust.

Kelly E. Farnan, Esquire, Blake Rohrbacher, Esquire, Christine D. Haynes, Esquire, RICHARDS, LAYTON & FINGER, P.A., Wilmington, Delaware, for Plaintiffs Below/Appellees.

Gregory M. Gordon, Esquire, Daniel B. Prieto, Esquire, JONES DAY, Dallas, Texas; Morgan R. Hirst, Esquire, JONES DAY, Chicago, Illinois; C. Kevin Marshall, Esquire, (argued), David S. Torborg, Esquire, David Wreesman, Esquire, JONES DAY, Washington, D.C., for Plaintiffs-Below/Appellees DBMP LLC; Johnson & Johnson; Pecos River Talc, LLC; and Red River Talc, LLC.

1 Sitting by designation under Del. Const. art. IV, § 12 and Supreme Court Rules 2(a) and 4(a) to complete the quorum. 2 Allison M. Brown, Esquire, Kristen R. Fournier, Esquire, KIRKLAND & ELLIS LLP, New York, New York, for Plaintiffs Below/Appellees Johnson & Johnson; Pecos River Talc, LLC; Red River Talc, LLC; The Dow Chemical Company; and Union Carbide Corporation.

John C. Phillips, Jr., Esquire, PHILLIPS, MCLAUGHLIN & HALL, P.A., Wilmington, Delaware for Amici Curiae.

3 TRAYNOR, Justice:

In this interlocutory appeal, we consider whether the Court of Chancery erred

by invoking sua sponte a centuries-old discovery mechanism: the equitable bill of

discovery. Courts of equity used this mechanism to facilitate discovery between

parties before the adoption of formal discovery rules. The court invoked the

mechanism here in a declaratory-relief action in which a group of asbestos

manufacturers sought a declaration that numerous settlement trusts and their data-

processing facility were required to retain information to which the manufacturers

had no present right to obtain. By that, we mean that the information was not the

subject of a pending subpoena or discoverable in a specifically identified pending or

anticipated lawsuit.

The settlement trusts and the data-processing facility moved to dismiss the

manufacturers’ complaint based on, among other grounds, their failure to state a

claim upon which relief can be granted. Although the manufacturers did not

explicitly request an equitable bill of discovery, the Court of Chancery found that

they had adequately pleaded one and denied the settlement trusts’ motion.

Recognizing that “this case presents sufficiently novel issues of law and a

sufficiently specific set of alleged facts that an early assessment from the justices

4 would be optimal,”2 the Court of Chancery recommended that we accept an

interlocutory appeal from its decision. We have done so and, as explained more fully

below, even accepting the current viability of an action for an equitable bill of

discovery, we conclude that the manufacturers’ complaint failed to plead all the

required elements of their claim. Thus, we reverse.

I

Our discussion of the factual background is drawn from the well pleaded

allegations in the manufacturers’ Verified First Amended Complaint for Declaratory

and Injunctive Relief.

A

The plaintiffs are asbestos manufacturers 3 (collectively, the “Manufacturers”)

and, as such, are regularly named as defendants in asbestos litigation. When an

asbestos plaintiff files a claim alleging harm caused by asbestos exposure at the

hands of a manufacturer, one strategy the manufacturers will typically pursue is to

identify other potential sources of asbestos exposure that contributed to the

plaintiff’s injuries. Identifying other sources of exposure affects the value of the

plaintiff’s claim as the Manufacturers explain in their complaint:

2 Order, DBMP LLC v. Delaware Claims Processing Facility, LLC, No. 2025-0404 (Del. Ch. Nov. 14, 2025), D.I. 73. 3 DBMP LLC; Johnson & Johnson; Pecos River Talc, LLC; Red River Talc, LLC; J-M Manufacturing Co., Inc.; The Dow Chemical Company; Rohm and Haas Company; and Union Carbide Corporation. 5 The extent to which claimants have been exposed to alternative sources of asbestos is critical in determining the value of a claim against a particular defendant. A claim with few alternative exposures typically has a higher value than a claim with multiple alternative exposures. The extent to which a plaintiff has recovered from other defendants or asbestos trusts also typically reduces the amount that plaintiff can recover from a particular defendant . . . . 4

But this strategy can be challenging. As we recognized in Droz v. Hennessy

Industries, LLC,

[a]sbestos exposure cases are beset with evidentiary challenges. The latency period before disease onset is lengthy. Memories fade about the circumstances of exposure. The plaintiff often passes away before litigation is concluded. These challenges are particularly acute when it comes to product identification—proving that the plaintiff was exposed to an asbestos-containing product manufactured by a specific defendant.5

The Manufacturers thus look to sources of information other than the asbestos

plaintiff and his or her counsel to identify other asbestos exposures that may have

contributed to the plaintiff’s injuries. One such source is asbestos settlement trusts.

B

Asbestos settlement trusts were created when mass litigation forced numerous

asbestos manufacturers and users into bankruptcy. The concept traces its origin to

the bankruptcy plan of the formerly prominent asbestos manufacturer, Johns-

Manville Corporation.

4 App. to Opening Br. at A16 (Compl. ¶ 8). 5 Droz v. Hennessy Indus., LLC, 275 A.3d 257, 261 (Del. 2022).

Free access — add to your briefcase to read the full text and ask questions with AI

Delaware Claims Processing Facility, LLC v. DBMP, LLC, (Del. 2026).

Delaware Claims Processing Facility, LLC v. DBMP, LLC (Delaware Claims Processing Facility, LLC v. DBMP, LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

In Re General Motors (Hughes) Shareholder Litigation
897 A.2d 162 (Supreme Court of Delaware, 2006)
In Re Santa Fe Pacific Corp. Shareholder Litigation
669 A.2d 59 (Supreme Court of Delaware, 1995)
Schoon v. Smith
953 A.2d 196 (Supreme Court of Delaware, 2008)
Savor, Inc. v. FMR Corp.
812 A.2d 894 (Supreme Court of Delaware, 2002)
Hall v. Stout
4 Del. Ch. 269 (Court of Chancery of Delaware, 1871)
Curran v. Craven
125 A.2d 375 (Court of Chancery of Delaware, 1956)
Lewis v. Weaver
969 So. 2d 586 (District Court of Appeal of Florida, 2007)