In re Imerys Talc Am., Inc.

602 B.R. 248
CourtDistrict Court, D. Delaware
DecidedMay 9, 2019
DocketBankr. Case No. 19-10289-LSS (Jointly Administered); Misc. No. 19-103-MN
StatusPublished
Cited by1 cases

This text of 602 B.R. 248 (In re Imerys Talc Am., Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Imerys Talc Am., Inc., 602 B.R. 248 (D. Del. 2019).

Opinion

NOREIKA, U.S. DISTRICT JUDGE:

*250Presently before the Court is the Emergency Motion for Provisional Transfer Under 28 U.S.C. § 157(b)(5) (D.I. 12 & 13) ("Emergency Provisional Transfer Motion") filed by non-debtors Johnson & Johnson and Johnson & Johnson Consumer Inc. (collectively, "J&J") on April 30, 2019. The motion seeks entry of an order directing provisional transfer of approximately 2,400 federal and state personal injury and wrongful death actions, pending this Court's decision on J&J's Motion to Fix Venue for Claims (D.I. 1, 2, 3 & 4) ("Venue Motion"), which was filed on April 18, 2019. J&J has also filed a request that the Court enter an order granting the Emergency Provisional Transfer Motion immediately and on an ex parte basis (D.I. 15). ("Motion for Ex Parte Relief"). The Court has reviewed J&J's motion papers with respect to the Emergency Provisional Transfer Motion and the Motion for Ex Parte Relief and considered the oppositions filed with respect to those motions by the Official Committee of Tort Claimants ("Committee") (D.I. 17 & 31) and various law firms on behalf of affected plaintiffs (D.I. 19, 21, 32, & 33). The Court has further considered J&J's replies and affidavits in further support of relief. (D.I. 22, 23, 28, 29, & 30). For the reasons set forth below, the Court will DENY both the Emergency Provisional Transfer Motion and the Motion for Ex Parte Relief.

I. BACKGROUND

J&J's motions relate to the chapter 11 cases of Imerys Talc America, Inc. and certain affiliates (together, "Debtors").1 On February 13, 2019, the Debtors filed their Chapter 11 petitions. J&J is a defendant in numerous personal injury and wrongful death actions pending in state and federal courts all over the country. Each plaintiff alleges that exposure to talc - through products like Johnson's Baby Powder - caused cancer, primarily mesothelioma or ovarian cancer. J&J alleges that Debtors supplied cosmetic talc to J&J for use in some J&J products.

A. Venue Motion

On April 18, 2019, J&J filed the Venue Motion seeking to fix venue in this Court with respect to the personal injury and wrongful death claims against J&J that were identified in Exhibit 1 to the motion and to "centralize the adjudication of claims impacting the Debtors' estates" in this Court and "ensure orderly and efficient resolution of these claims." (See D.I. 1). The authority for the relief requested in the Venue Motion is 28 U.S.C. §§ 157(b)(5) and 1334(b). (See id. at 2). Section 1334(b) provides, in relevant part, that "the district courts shall have original but not exclusive jurisdiction of all civil proceedings arising under title 11, or arising in or related to cases under title 11." 28 U.S.C. § 1334(b). Section 157(b)(5) provides: "The district court shall order that personal injury tort and wrongful death claims shall be tried in the district court in which the bankruptcy case is pending, or in the district court in the district in which the claim arose, as determined by the district court in which the bankruptcy case is pending." 28 U.S.C. § 157(b)(5). Certain courts have held that § 157(b)(5) is not *251limited to cases already pending in the bankruptcy court and "should be read to allow a district court to fix venue for cases pending against nondebtor defendants which are 'related to' bankruptcy proceedings pursuant to Section 1334(b)." See e.g., In re Dow Corning Corp. , 86 F.3d 482, 497 (6th Cir. 1996) ; A.H. Robins Co. v. Piccinin , 788 F.2d 994, 1010 (4th Cir.1986), cert. denied , 479 U.S. 876, 107 S.Ct. 251, 93 L.Ed.2d 177 (1986). This "related to" jurisdiction may extend to "suits between third parties that conceivably may have an effect on the bankruptcy estate." In re W.R. Grace & Co. , 591 F.3d 164, 171 (3d Cir. 2009) ; In re Combustion Eng'g, Inc. , 391 F.3d 190, 226 (3d Cir. 2004). "Broadly worded as that is, however, related-to jurisdiction is " 'not without limitation.' " Id. at 228. See e.g., Pacor Inc. v. Higgins , 743 F.2d 984, 994-95 (3d Cir. 1984) (concluding "related to" jurisdiction did not extend to civil proceeding between non-debtors Higgins and Pacor because, "[a]t best, [the lawsuit] is a mere precursor to the potential third party claim for indemnification by [defendant] against [the debtor]").

J&J argues that, because supply agreements between the Debtors and J&J contain cross-contractual indemnifications triggered upon the filing of the claims without regard to findings on underlying liability, the claims affect the Debtors' estates.

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602 B.R. 248, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-imerys-talc-am-inc-ded-2019.