The Texas Two-Step: Testing Bankruptcy Law and Jury Rights with Adam Silverstein
What happens when a company facing billions of dollars in mass tort claims is still financially healthy—but turns to bankruptcy anyway?In this episode, I’m joined by plaintiff lawyer Adam Silverstein of Otterbourg to talk about the Texas two-step, a restructuring strategy that can move mass tort liabilities into a separate subsidiary, put that entity into Chapter 11, and shift thousands of claims from jury trials into bankruptcy court.We use Johnson & Johnson’s talc litigation as a jumping-off point, including its unsuccessful LTL bankruptcy filings and the question courts keep coming back to: Is the debtor actually in financial distress, or is bankruptcy being used to manage litigation? We also get into J&J’s third attempt, prepackaged bankruptcy voting, and how the Supreme Court’s Purdue decision changed the landscape for nondebtor releases.Adam also takes us to North Carolina, where other two-step bankruptcies have kept mass tort claims—many involving asbestos—tied up for years. That leads us into a harder part of the conversation: not everyone on the plaintiffs’ side sees these cases the same way. When litigation can stretch on for a decade or more, certainty can have its own appeal.It’s a conversation about mass torts, Chapter 11, corporate restructuring, and what happens to the right to a jury trial when bankruptcy enters the picture.Jump in to hear Adam’s perspective on where the Texas two-step stands, why courts have pushed back, and what may come next.______________________________________Thanks for listening! If you like what you hear please give us a rating. You'd be amazed at how much that helps. If you have questions for Tom or would like to participate, you can reach him at Editor@LitigationConferences.com. Ask him about creating this kind of content for your firm -- podcasts, webinars, blogs, articles, papers, and more. Tom on LinkedInEmerging Litigation Podcast on LinkedInEmerging Litigation Podcast on the HB Litigation site

