Take-Home Asbestos Tort Claims Discharged by Debtor’s Constructive Notice

Claims of unknown creditors of Placid Oil Co. who had pre-bankruptcy petition asbestos-related tort claims against the debtor but did not bring them before the bankruptcy plan was confirmed were discharged by the debtor’s constructive notice, the U.S. Court of Appeals for the Fifth Circuit affirmed May 27 (Williams v. Placid Oil Co. (In re Placid Oil Co.), 2014 BL 146451, 5th Cir., 12-11120, 5/27/14).

Judge Emilio M. Garza, writing for the appeals court, concluded in affirming the bankruptcy court’s decision that debtor Placid Oil Co.'s constructive notice by publication of the notice of bar date wasn’t substantially ...