Professional Documents
Culture Documents
Susan E. Brune
Theresa Trzaskoma
80 Broad Street
New York, New York 10004
Telephone: (212) 668-1900
Facsimile: (212) 668-0315
-and-
1. I am over the age of 18 years, and am competent and otherwise qualified to make
this Declaration. Unless otherwise stated in this Declaration, I have personal knowledge of the
(“THAN” or the “Debtor”) motion (the “Motion”)1 for an order pursuant to sections 105(a) and
524(g) of the Bankruptcy Code, appointing a legal representative to represent and protect the
interests of future holders of Asbestos PI Claims (the “Future Claimants’ Representative”) on the
3. I am a graduate of Yale Law School and currently the Bonnie and Richard Reiss
injury litigation. I am the Reporter on Aggregate (class-action) Litigation for the American Law
Institute, and have represented various constituents, including plaintiffs’ attorneys, corporations
and insurance companies, in mass tort litigation. I have also published several works with
respect to class action lawsuits and aggregate settlements. A copy of my curriculum vitae is
not have any connection with or any interest adverse to THAN, its creditors, other known
THAN’s corporate parent, and Elementis Group B.V., (or their attorneys or accountants) or the
United States Trustee (or any person employed by the United States Trustee). I believe I am
“disinterested,” as that term is defined in section 101(14) of the Bankruptcy Code, for the
1
Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Motion.
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6. To the best of my knowledge, I have not had any professional association with
any law firms representing potential claimants to the Asbestos PI Trust to be established under
the Debtor’s proposed Plan in any matter relating to asbestos personal injury liability. The only
exception was my service as special master in the Cimino litigation in the early 1990’s. In that
matter, I worked directly for Judge Robert Parker and did not work for any of the plaintiffs’
firms.
following law firms that may represent clients who may have claims against the Asbestos PI
Trust to be established under the Debtor’s proposed Plan in this case: Baron and Budd, P.C.;
Stanley, Mandel & Iola, LLP; and Weitz & Luxenberg, PC. It is possible that some other
plaintiffs’ firms have been associated in cases in which I have served in some capacity, but I am
not aware of those at present. I have also been an expert witness on behalf of some law firms on
v. Rice, 04 Civ 4171 (SDNY) in which I represented Joseph F. Rice, Ronald L. Motley and
Motley Rice LLC in a suit brought against them in connection with the Combustion Engineering
9. The representations described above do not relate to or involve, and will not relate
to or involve, any matter concerning the Debtor in this case or any other matter relating to this
case.
10. In approximately April 2007, THAN asked me to serve as the Future Claimants’
THAN under chapter 11 of the Bankruptcy Code that would be proposed if THAN was to decide
B-3
at a later stage to seek bankruptcy relief. In connection therewith, THAN asked me to
familiarize myself generally with the insurance, business affairs, assets and liabilities of THAN
and its affiliates and conduct any other due diligence I might deem appropriate in my role as
reorganization as the Future Claimants’ Representative should THAN decide to proceed with a
chapter 11 filing.
dated April 19, 2007 (the “Engagement Letter”), a copy of which is attached to the Motion as
Exhibit A. The terms of the Engagement Letter are intended to govern my retention as the
Future Claimants’ Representative both prior to and, subject to approval by the Court, after the
Commencement Date.
association, relationship with, or other connection to THAN or any affiliate of THAN, and have
never represented any plaintiff, defendant or insurer in any asbestos-related litigation against
selected the law firm of Brune & Richard LLP to serve as my counsel, Sander L. Esserman, Esq.
and his law firm, Stutzman, Bromberg, Esserman & Plifka, A Professional Corporation to serve
as my general bankruptcy counsel, The Claro Group, LLC to serve as my insurance consultant
and Duff & Phelps LLC to serve as my financial consultant. I also retained Hamilton,
Rabinovitz & Alschuler, Inc. (now known as Hamilton, Rabinovitz & Associates, Inc.) to act as
my expert for the purpose of evaluating the Asbestos PI Claims against THAN. Each of the
foregoing named professionals was retained pursuant to separate engagement letters. I have filed
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or will be filing papers to retain each of these professionals in the Debtor’s bankruptcy case. I
understand that THAN’s estate will reimburse these professionals directly for their reasonable
fees and expenses incurred in the scope of their employment, subject to any necessary Court
approvals.
14. Pursuant to the Engagement Letter, THAN will, among other things, indemnify
and agree to defend and hold harmless me and my employees and professionals, (the
“Indemnified Parties”), to the fullest extent authorized by Delaware law, from and against any
losses, claims, damages, or liabilities (or actions in respect thereof) to which any Indemnified
Party may become subject as a result of or in connection with my rendering services related to
my duties as Future Claimants’ Representative, and will promptly reimburse any Indemnified
Party for all reasonable costs and expenses (including reasonable counsel fees and expenses) as
they are incurred in connection with the investigation of, preparation for or defense arising from
any threatened or pending claim, whether or not such Indemnified Party is a party to the claim
and whether or not such claim, action or proceeding is initiated or brought by, or on behalf of,
THAN. To the extent THAN is unable to satisfy and promptly pay in a timely manner the
foregoing obligations, PENAC agrees that it will be liable under the guarantee or by law, statute
or otherwise. THAN and PENAC will not be obligated to indemnify any Indemnified Party,
however, if it is determined by final judicial order that such party’s losses, claims, damages, or
liabilities were caused by fraud, gross negligence or willful misconduct by the Indemnified Party
professionals and I have conducted an investigation concerning the background, nature and
scope of THAN’s liability for Asbestos PI Claims in order to negotiate a global settlement that
B-5
would be fair and equitable to, among others, the Future Asbestos Claimants. This investigation
has included, among other things, a review of the facts concerning THAN’s historical
involvement with asbestos; the nature and extent of past and pending asbestos litigation against
THAN, including the types of claims asserted and the legal issues raised; analysis of THAN’s
assets and liabilities; the projected value of present and future Asbestos PI Claims; and the extent
to which insurance and other THAN assets may be available to satisfy these liabilities in whole
or in part. My professionals and I also examined the potential for recovery by claimants
asserting asbestos-related claims against PENAC, or some other affiliate of THAN, based upon a
16. This analysis included submitting THAN multiple written requests for documents
and information and reviewing the more than 200,000 pages of documents and deposition
employees of THAN and its affiliates, regarding the financial and corporate tax documents of
THAN and of PENAC. Additionally, THAN, PENAC, and their respective counsel met with me
and my professionals on multiple separate occasions to discuss various issues related to the
Future Asbestos Claimants, including the status of the document review and analysis, claims
valuation, and THAN’s insurance. My professionals met with THAN’s counsel to discuss the
17. With the assistance of my professionals, I negotiated the terms of the global
settlement embodied in the Plan on behalf of the Future Asbestos Claimants. I believe my
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professionals and I have fulfilled in good faith the responsibility to represent the Future Asbestos
current rate of $700.00 per hour plus reimbursement of customary out-of-pocket expenses. As a
condition to serving as Future Claimants’ Representative, I requested from THAN, and was
provided, a retainer (the “Retainer”) in the amount of $50,000.00. The Retainer was held as
security for payment of my fees and expenses and does not earn interest. After submitting my
monthly bills to THAN, I satisfied the amounts owing to me from the Retainer. THAN then
replenished the Retainer, and paid to me any additional amounts owing. As of the
Commencement Date, all of my outstanding invoices for services provided through the
Commencement Date have been satisfied. Accordingly, I am not a creditor of the Debtor.
Pursuant to the Engagement Letter, and subject to Court approval, THAN has agreed to
compensate me for my post-petition services at my current standard hourly rate of $700.00 per
hour, subject to upward adjustment at the commencement of each calendar year, plus
this case other than as disclosed herein and in the Motion. In accordance with Rule 2016 of the
Federal Rules of Bankruptcy Procedure, I disclose that I have no agreement with any other entity
to share with such entity, any compensation received by me in connection with this case.
20. I will continue to monitor my connections to the Debtor, other creditors, or any
other party-in-interest, their respective attorneys and accountants, the United States Trustee, or
any person employed in the office of the United States Trustee to ensure that no conflicts or
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other disqualifying circumstances exist or arise and will promptly file supplemental disclosures
as needed.
21. As stated, I was a participant on behalf of the Future Asbestos Claimants in the
prepetition negotiation of the global settlement that is reflected in the Plan. Through
participation in the negotiations regarding the terms of the global settlement I have become
familiar with the interests and priorities of the other major constituents in this case: the Debtor,
the Asbestos Claimants Group, and PENAC. I have both the professional qualifications and
case-specific knowledge required to fully and adequately represent the interests of the Future
Asbestos Claimants.
Claimants’ Representative upon the terms set forth in the Motion and subject to the terms of the
Engagement Letter.
I declare under penalty of perjury that the foregoing is true and correct.
B-8
SAMUEL ISSACHAROFF
New York University School of Law
40 Washington Square South
New York, NY 10012
(212) 998-6580, Fax: (212) 995-4590
email: si13@nyu.edu
ACADEMIC EXPERIENCE
Oxford University
Courses Taught: Civil Procedure, Employment Law, Law of Democracy, Constitutional Law,
Comparative Constitutional Law, Complex Litigation, Legal Process, Profession of Law
1
EDUCATION
PROFESSIONAL EXPERIENCE
@ Lawyers' Committee for Civil Rights Under Law, Washington, D.C. (l985-1988)
Staff attorney with Voting Rights Project (served as Acting Director of Voting Rights Project,
1985-86). Conducted voting rights litigation and other civil rights case work throughout the U.S.
Served as co-counsel, lead counsel or consultant at all levels of federal practice, from District
Court to U.S. Supreme Court.
@ Kirschner, Walters, Willig, Weinberg & Dempsey, Associate, Phila., PA. (l985)
Union labor law practice representing public and private employees in court, arbitration
and administrative proceedings.
2
PUBLICATIONS
Articles
@ Private Claims, Aggregate Rights. 2008 Supreme Court Rev. ______ (forthcoming 2009).
@ Democracy in Times of War, ___ OXFORD J. LEGAL STUDIES _____ (forthcoming 2009).
@ Will Aggregate Litigation Come to Europe?, ___ VANDERBILT L. REV. _____ (forthcoming
2009)(with Geoffrey P. Miller).
@ Meriwether Lewis, the Air Force, and the Surge: The Problem of Constitutional Settlement, 12
LEWIS & CLARK L. REV. 649 (2008).
@ Class Action Settlements Under Attack, 156 U. PENN L. REV. 1649 (2008)(with Richard.A Nagareda).
@ Settled Expectations in a World of Unsettled Law, 106 COLUM. L. REV. 1839 (2006).
@ Law, Rules and Presidential Selection, 120 POLITICAL SCIENCE QUARTERLY 113(2005).
@ Collateral Damage: The Endangered Center in American Politics, 46 WILLIAM & MARY L. REV. 415
(2004).
@ Where to Draw the Line: Judicial Review of Political Gerrymanders, 153 PENN L. REV. 541
(2004)(with Pamela S. Karlan).
@ The Elusive Search for Constitutional Integrity: A Memorial for John Hart Ely, 57 STANFORD L.
REV.727 (2004).
3
@ Is Section 5 of the Voting Rights Act a Victim of Its Own Success?, 105 COLUM. L. REV. 1710 (2004).
@ Throwing in the Towel: The Constitutional Morass of Campaign Finance, 3 ELEC. L. J. 259 (2004).
@ Owen Fiss and the Warren Court Legacy: Politics, Law, and the Struggle for Equal Protection, 58
MIAMI. L. REV. 35 (2003)(with Pamela S. Karlan).
@ Emergency Contexts Without Emergency Powers: The United States’ Constitutional Approach to
Rights During Wartime, 2 INT’L JOURNAL OF CONSTITUTIONAL LAW 296 (2004)(with Richard H.
Pildes).
@ The Enabling Role of Democratic Constitutionalism: Fixed Rules and Some Implications for
Contested Presidential Elections, 81 TEX. L. REV. 1985 (2003).
@ Regulation for Conservatives: Human Decision Making and the Case for “Asymmetric Paternalism,”
151 PENN. L. REV. 1211 (2003)(with Colin Camerer, George Loewenstein, Ted O’Donoghue, and
Matthew Rabin).
@ Preclusion, Due Process, and the Right to Opt Out of Class Actions, 77 NOTRE DAME L. REV. 1057
(2002)
@ The Content of Our Casebooks: Why Cases Get Litigated, 29 FL. ST. L. REV. 1265 (2002).
@ “Shocked”: Mass Torts and Aggregate Asbestos Litigation After Amchem and Ortiz, 80 U. TEX. L.
REV. 1925 (2002).
@ Law and Misdirection in the Debate Over Affirmative Action, 2002 UNIV. OF CHICAGO LEGAL FORUM
11.
4
@ Can Process Theory Constrain Courts?, 72 U. COL. L. REV. 923 (2001)(with Michael C. Dorf).
@ Behavioral Decision Theory at the Court of Public Law, 87 CORNELL L. REV. 671 (2002).
@ Governance and Legitimacy in the Law of Class Actions, 1999 SUPREME COURT REVIEW 187.
@ Private Parties With Public Purposes: Political Parties, Associational Freedoms, and Partisan
Competition, 101 COLUM. L. REV. 274 (2001).
@ Introduction to Symposium: The Structures of Democratic Governance, 100 COLUM. L. REV. 593
(2000).
@ The Vexing Problem of Reliance in Consumer Class Actions, 74 TULANE. L. REV. 1633 (2000).
@ The Hydraulics of Campaign Finance Reform, 77 TEX. L. REV. 1705 (1999)(with Pamela Karlan).
@ Standing and Misunderstanding in Voting Rights Law, 111 HARV. L. REV. 2276 (1998)(with Pamela
Karlan).
@ Can There Be a Behavioral Law and Economics?, 51VANDERBILT L. REV. 1729 (1998).
@ Group Litigation of Consumer Claims: Lessons of the American Experience, 34 TEX. INT’L L. J. 135
(1999).
@ Creating Convergence: Debiasing Biased Litigants, 22 J. OF LAW AND SOCIAL INQUIRY 913
(1998)(with Linda Babcock and George Loewenstein).
@ Is Age Discrimination Really Age Discrimination?: The ADEA's Unnatural Solution, 72 N.Y.U. L.
REV. 780 (1997)(with Erica Worth Harris).
@ The Constitutional Contours of Race and Politics, 1995 SUPREME COURT REVIEW 45.
5
@ Contracting For Employment: The Limited Return of the Common Law, 74 TEXAS LAW REVIEW 1783
(1996).
@ Identifying the Harm in Racial Gerrymandering Claims, 1 MICH. J. OF RACE & LAW 47 (1996)(with
Thomas C. Goldstein).
@ Supreme Court Destabilization of Single-Member Districts, 1995 UNIV. OF CHICAGO LEGAL FORUM
205.
@ Women and the Workplace: Accommodating the Demands of Pregnancy, 95 COL. L. REV. 2154
(1994)(with Elyse Rosenblum).
@ Race and Redistricting: Drawing Constitutional Lines after Shaw v. Reno, 92 MICHIGAN LAW
REVIEW 588 (1993)(with T. Alexander Aleinikoff).
@ Judging Politics: The Elusive Quest for Judicial Review of Political Fairness, 71 TEXAS LAW REVIEW
1643 (1993).
@ Polarized Voting and the Political Process: The Transformation of Voting Rights Jurisprudence, 90
MICH. L. REV. 1833 (1992).
@ When Substance Mandates Procedure: Martin v. Wilks and the Rights of Vested Incumbents in Civil
Rights Consent Decrees, 77 CORNELL L. REV. 189 (1992).
@ Self-Serving Assessments of Fairness and Pretrial Bargaining, 22 JOURNAL OF LEGAL STUDIES 135
(1992)(with George Loewenstein, Colin Camerer, Linda Babcock).
@ The Census Undercount and Minority Representation: The Constitutional Obligation of the States to
Guarantee Equal Representation, 13 REVIEW OF LITIGATION 1 (1993)(with Allan J. Lichtman).
@ Second Thoughts About Summary Judgment, 100 YALE L.J. 73 (1990)(with George Loewenstein).
@ Dictatorship on Trial: Prosecution of Human Rights Violations in Argentina, 10 YALE J. INT'L LAW
118 (1985) (with E. Mignone and C. Estlund).
6
@ Note, Making the Violation Fit the Remedy: The Intent Standard and Equal Protection Law, 92 YALE
L.J. 328 (1982).
Review Essays
@ Bearing the Costs, Review of M. Kelman, STRATEGY OR PRINCIPLE?: THE CHOICE BETWEEN
REGULATION AND TAXATION, 53 STAN. L. REV. 519 (2000).
Books
@ THE LAW OF DEMOCRACY: LEGAL STRUCTURE OF THE POLITICAL PROCESS (with Pamela Karlan and
Richard Pildes)(Foundation Press, 1998).
@ THE LAW OF DEMOCRACY: LEGAL STRUCTURE OF THE POLITICAL PROCESS (with Pamela Karlan and
Richard Pildes)(Foundation Press, 2d. edition, 2001).
@ THE LAW OF DEMOCRACY: LEGAL STRUCTURE OF THE POLITICAL PROCESS (with Pamela Karlan and
Richard Pildes)(Foundation Press, 3d. edition, 2007).
@ WHEN ELECTIONS GO BAD: THE LAW OF DEMOCRACY AND THE PRESIDENTIAL ELECTION OF 2000
(with Pamela Karlan and Richard Pildes)(Foundation Press, 2001).
@ WHEN ELECTIONS GO BAD: THE LAW OF DEMOCRACY AND THE PRESIDENTIAL ELECTION OF 2000
(with Pamela Karlan and Richard Pildes)(Foundation Press, 2d. edition, 2001).
@ PARTY FUNDING AND CAMPAIGN FINANCING IN INTERNATIONAL PERSPECTIVE (with K.D. Ewing)
(Hart Press, Oxford, 2006).
Book Chapters
7
@ A Cosmopolitan Judge for a Cosmopolitan Era: An Essay in Honor of Carl Baudenbacher, in
ECONOMIC LAW AND JUSTICE IN TIMES OF GLOBALIZATION: FESTSCHRIFT FOR CARL
BAUDENBACHER 131 (M. Monti, N. Liechtenstein, B. Vesterdorf, J. Westbrook, L. Wildhaber,
eds)(2007).
@ Supreme Court Preemption: The Contested Middle Ground of Products Liability, in FEDERAL
PREEMPTION: STATES’ POWERS, NATIONAL INTEREST 194 (Richard A. Epstein & Michael S.
Greve, eds.) (2007) (with Catherine Sharkey).
@ Does Section 5 of the Voting Rights Act Still Work?, in THE FUTURE OF THE VOTING RIGHTS ACT (D.
Epstein, R. Pildes, R. de la Garza, S. O’Halloran, eds., Russell Sage, 2006).
@ Compensation for the Victims of September 11 in THE HANDBOOK OF REPARATIONS (P. De Grieff,
ed., Oxford 2006) (with Anna Morawiec Mansfield).
@ Baker v. Carr in Context, in CONSTITUTIONAL LAW STORIES 297-323 (M. Dorf, ed., Foundation
Press, 2004) (with Stephen Ansolabehere).
@ Too Much Lawyering, Too Little Law, in THE REFORM OF CIVIL PROCEDURE, (A.A.S. Zuckerman &
R. Cranston, eds., Oxford Univ. Press, 1995).
@ Bargaining Impediments and Settlement Behavior (with Charles Silver and Kent Syverud), in
DISPUTE RESOLUTION: BRIDGING THE SETTLEMENT GAP, Anderson, ed., JAI Press, 1996).
@ The Redistricting Morass, in AFFIRMATIVE ACTION AND REPRESENTATION, (A. Peacock, ed.,
Carolina Acad. Press, 1997).
@ Litigating for Equality of Political Opportunity, in J. Lobel, ed., CIVIL RIGHTS LITIGATION AND
ATTORNEY FEES ANNUAL HANDBOOK (Clark, Boardman, 1987).
@ “Declarative Sentences: Congress Has the Power to Make and End War – Not Manage It," SLATE
MAGAZINE, March 5, 2007 (with Noah Feldman).
@ “Create a National Voter Registration List,” BOSTON REVIEW, Vol. 31, No. 5, Sept-Oct. 2006, at 21.
@ “Democracy Isn’t Built On One Election Alone,” WASHINGTON POST, Jan. 23, 2005, at B01.
@ “In Real Elections, There Ought to Be Competition,” NEW YORK TIMES, Feb. 16, 2002, at A19.
@ "The Court’s Legacy for Voting Rights," NEW YORK TIMES, DEC. 14, 2000, at A39.
8
@ “Charles Alan Wright: The Scholar as Lawyer,” in A TRIBUTE: CHARLES ALAN WRIGHT, THE MAN
AND THE SCHOLAR (2000).
@ "Not By ‘Election Law’ Alone,” 32 LOYOLA L. REV. 1173 (1999)(with Richard Pildes).
@ "The Census and the Constitution," ENCYCLOPEDIA OF THE AMERICAN CONSTITUTION (1998).
@ "The Destruction of Public Funding," TEXAS LAWYER, May 12, 1997, at 20 (with David Horan).
@ "All for One," THE NEW REPUBLIC, Nov. 18, 1996, at 10 (with Richard Pildes).
@ "No Place for Political Gerrymandering," TEXAS LAWYER, Aug. 5, 1996 (with Richard Pildes).
@ "Racial Gerrymandering in a Complex World: A Reply to Judge Sentelle," 45 CATH. U. LAW REV.
1257 (1996).
@ "Conference: The Supreme Court, Racial Politics, and the Right to Vote: Shaw v. Reno and the Future
of the Voting Rights Act, 44 AMERICAN UNIV. L. REV. 1 (1994).
@ "A Highly Visible Bloodletting," AUSTIN AMERICAN STATESMAN, Oct. 2, 1994 (Op-ed piece on
redistricting).
@ "The State of Voting Rights Law," 3 ISSUES IN NATIONAL AFFAIRS No. 1 (1993)(Paper prepared for
the American Jewish Committee).
@ "Remedial Options for the Selection of the Texas Judiciary," Report prepared for settlement
negotiations in LULAC/Houston Lawyers' Association v. State of Texas, Jan. 14, 1993,
@ "Adjusting Census Data For Reapportionment: An Independent Role for the States," TEXAS LAWYER,
March 18, 1991 (with A. Lichtman).
@ "The 37.5 Percent Solution: 'Limited Voting' Could Rescue Judiciary," TEXAS LAWYER, March 5,
1990.
9
@ "The Texas Judiciary and the Voting Rights Act: Background and Options," Report prepared for the
Texas Policy Research Forum (1989).
@ "The Generals Give Back Uruguay," Human Rights Report of the Lawyers' Committee for
International Human Rights (1985)(with C. Estlund).
SELECTED LECTURES
@ BROWN UNIVERSITY, THE JANUS LECTURE, September 17, 2008: Was the New Deal A Good Deal?
New Deal Constitutionalism Reexamined
@ OXFORD UNIVERSITY, THE HART MEMORIAL LECTURE, May 6, 2008: Democracy in Times of War
@ LEWIS & CLARK LAW SCHOOL, HIGGINS LECTURE, March 19, 2008: Meriwether Lewis, the Air Force,
and the Surge: The Problem of Constitutional Settlement
@ JULIUS ROSENTHAL FOUNDATION SERIES LECTURES, Northwestern University School of Law, March
28 and 29, 2007: Fragile Democracies, and Contested Visions of Democracy
@ ASTOR VISITING LECTURE, Oxford University, June 8, 2005: When Rights Break Down: U.S.
Constitutional Responses in Times of National Security Crisis.
@ JAMES GOULD CUTLER LECTURE, William and Mary University School of Law, Feb. 19, 2004: The
Endangered Center in American Politics.
@ SIBLEY LECTURE, University of Georgia School of Law, March 16, 2000: Political Parties, the
Constitution and Democratic Competition.
@ MASON LADD LECTURE, Florida State University School of Law, March 15, 2000: Why Do Cases Get
Litigated?.
10
@ BOARD OF DIRECTORS, Brennan Center for Justice at NYU School of Law.
@ MEMBER, Judicial Selection Task Force of the Texas Commission on Judicial Efficiency (1995-
1997).
@ LEGAL CONSULTANT, National Research Council, Panel on Census Requirements in the Year 2000
and Beyond (1993-1995).
@ COUNSEL to State of Texas for 1992 Redistricting in Richards v. Terrazas, No. 91-1270 (U.S.
Supreme Court), and Texas v. United States, No. 91-2383 (D.D.C.). (1992-1993).
@ SPECIAL MASTER TASKFORCE for Eastern District of Texas Asbestos Litigation, Cimino v. Raymark
Industries, Inc., 751 F.Supp. 649 (E.D. Tex. 1990). (1989-1990).
@ BOARD OF DIRECTORS, Lawyers' Committee for Civil Rights Under Law of Texas. (1991-1995);
Executive Committee of the Board of Directors (1993-1995).
@ COUNSEL to State of Texas and University of Texas Law School in Hopwood v. State of Texas and
Regents of the University of Texas System, No. 92 CA 563 (W.D. Texas, 1992)(challenge to
School of Law affirmative action admissions practices)(1992-2001).
11
ACADEMIC AWARDS
@ Texas Excellence Teaching Award in the School of Law, Univ. of Texas School of Law, 1994
Annual student-selected award to one faculty member
@ James W. Vick Texas Excellence Awards in Academic Advising, Univ. of Texas, 1994
University-Wide Award
PERSONAL
12
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF NEW YORK
--------------------------------------------------------------------------- x
In re: :
: Chapter 11
T H AGRICULTURE & NUTRITION, L.L.C., :
Case No. 08-______(___)
:
Debtor. :
--------------------------------------------------------------------------- x
Upon the motion dated November 24, 2008 (the “Motion”)1 of T H Agriculture &
Nutrition, L.L.C., as debtor and debtor in possession (the “Debtor”), seeking entry of an order
pursuant to sections 105(a) and 524(g) of title 11 of the United States Code (the “Bankruptcy
Issacharoff”) to represent and protect the rights of persons who might assert, after the Court has
confirmed a plan of reorganization for the Debtor, claims or demands against the Debtor and/or
certain of its affiliates and related parties based on alleged exposure to asbestos (a “Future
Claimants’ Representative”), all as more fully set forth in the Motion; and upon the Declaration
of Steven A. Carlson Pursuant to Rule 1007-2 of the Local Bankruptcy Rules for the Southern
District of New York in Support of First-Day Motions and Applications, sworn to on the
Commencement Date; and upon the declaration of Samuel Issacharoff, sworn to on November
22, 2008 (the “Issacharoff Declaration”); and the Court having jurisdiction to consider the
Motion and the relief requested therein pursuant to 28 U.S.C. §§ 157 and 1334 and the Standing
Order of Referral of Cases to Bankruptcy Court Judges of the District Court for the Southern
District of New York, dated July 10, 1984 (Ward, Acting C.J.); and consideration of the Motion
and the relief requested therein being a core proceeding pursuant to 28 U.S.C. § 157(b); and
1
Capitalized terms used but not defined herein shall have the meanings ascribed thereto in the Motion.
1
venue being proper before this Court pursuant to 28 U.S.C. §§ 1408 and 1409; and due notice of
the Motion having been provided to (i) the Debtor’s thirty largest unsecured creditors,
(ii) counsel for the Asbestos Claimants Group, (iii) counsel for the proposed Future Claimants’
Representative, (iv) the Office of the United States Trustee for the Southern District of New
York, (v) counsel for PENAC, and (vi) all the parties on the proposed master service list; and no
other or further notice of the Motion being necessary; and the relief sought in the Motion being
in the best interests of the Debtor, its estate and all parties in interest; and the Court having
reviewed the Motion and having heard the statements in support of the relief requested therein at
a hearing before the Court held and concluded on ______, 2008 (the “Hearing”); and the Court
having determined that the legal and factual bases set forth in the Motion, the Issacharoff
Declaration, and at the Hearing establish just cause for the relief granted herein; and upon all the
proceedings had before the Court and after due deliberation and sufficient cause appearing
therefor, it is
Claimants’ Representative in this case, pursuant to Bankruptcy Code sections 105(a) and 524(g),
subject to the terms of this Order and the engagement letter attached hereto as Exhibit A (the
“Engagement Letter”), to protect the rights of persons who may, subsequent to any date of
confirmation of any chapter 11 plan of reorganization, assert demands (as defined in section
524(g)(5) of the Bankruptcy Code) against the Debtor and affiliated parties protected under any
channeling injunction issued in this case pursuant to section 524(g) of the Bankruptcy Code; and
it is further
Engagement Letter shall continue to apply and be fully enforceable according to their terms;
2
provided, however, that in no event shall the Debtor indemnify or release the Future Claimants’
Representative for any liability arising from any claims, obligations, rights, causes of action,
demands, suits, proceedings or liabilities based upon any act or omission arising out of the
further
hourly rate established in accordance with (i) the terms of the Engagement Letter, (ii) the
payment procedures, if any, that are established by this Court, and (iii) section 330 of the
ORDERED that the Future Claimants’ Representative may employ attorneys and
other professionals consistent with sections 327 and 330 of the Bankruptcy Code, subject to
approval of such employment by this Court and pursuant to the payment order procedures, if
ORDERED that this Court shall retain jurisdiction with respect to any matters,
claims, rights or disputes arising from or related to the implementation of this Order; and it is
further
ORDERED that service of the Motion as provided therein shall be deemed good
3
EXHIBIT A
Engagement Letter
BRUNE & RICHARD LLP
Susan Brune
Theresa Trzaskoma
80 Broad Street
New York, New York 10004
Telephone: (212) 668-1900
Facsimile: (212) 668-0315
-and-
1. I am over the age of 18 years, and am competent and otherwise qualified to make
this Supplemental Declaration. Unless otherwise stated in this Supplemental Declaration, I have
¿0ñqN|)$* 0814692090410000000000001
!I½
BRUNE & RICHARD LLP
Susan Brune
Theresa Trzaskoma
80 Broad Street
New York, New York 10004
Telephone: (212) 668-1900
Facsimile: (212) 668-0315
-and-
declaration.
¿0ñqN|)%2 0814692090518000000000003
#E½
2. I submit this declaration1 in support of confirmation of the First Amended
the Bankruptcy Code (as may be amended or modified, the “Plan”) proposed by T H Agriculture
& Nutrition, L.L.C. (“THAN” or the “Debtor”).2 The opinions and conclusions stated herein are
professionals, the Debtor, the Debtor’s counsel and the Debtor’s other professionals. Unless
otherwise stated, I have personal knowledge of the facts stated in this declaration.
3. I have reviewed and am generally familiar with the terms and provisions of the
Plan, the Plan Documents and the requirements of Section 524(g) of the Bankruptcy Code for the
issuance of the Asbestos PI Channeling Injunction and the establishment of an asbestos personal
injury trust to resolve THAN’s asbestos-related liabilities. Based on my work and on the efforts
of my professionals, as discussed more fully below, it is my opinion that the Plan is fair and
equitable in its treatment of holders of future Asbestos PI Claims (the “Future Asbestos
Claimants”), and that the Plan represents a reasonable resolution of the liabilities of THAN for
PERSONAL BACKGROUND
4. I am a graduate of Yale Law School and currently the Bonnie and Richard Reiss
Professor of Constitutional Law at New York University School of Law. I have been a faculty
member at various other law schools including: University of Pennsylvania Law School where I
was a Lecturer in Law; the University of Texas School of Law where I was a Professor and
Preston Shirley Faculty Fellow from 1993 to 1994, the Charles Tilford McCormick Professor in
1
This declaration is in summary form and does not attempt to capture every detail of every topic addressed. I
reserve the right to revise, amend and/or supplement this declaration as appropriate in my judgment to address
other matters relating to plan confirmation.
2
Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Plan.
2
Law from 1994 to 1998, and the Joseph D. Jamail Centennial Chair in Law from 1998 to 1999;
and Columbia Law School where I was the Harold R. Medina Professor in Procedural
Jurisprudence from 2001 to 2005. I have also been a visiting professor/lecturer at several
schools including: the Gerzensee Center for Law and Economics, Switzerland, Tel Aviv
member of the editorial board for the Foundation Press, and a Fellow with the American
Academy of Arts and Sciences. I am a frequent author and lecturer on many topics, including
complex litigation and class actions. Some of my relevant publications include: Class Action
Settlements Under Attack, 156 U. PENN L. REV. 1649 (2008)(with Richard A. Nagareda); The
VANDERBILT L. REV. 1571 (2004) (with John Fabian Witt); “Shocked”: Mass Torts and
Aggregate Asbestos Litigation After Amchem and Oritz, 80 U. TEX. L. REV. 1925 (2002); Class
Action Conflicts, 30 U.C. DAVIS L. REV. 805 (1997); and Administering Damage Awards in
PRE-PETITION NEGOTIATIONS
Representative in connection with the negotiation of a potential plan of reorganization for THAN
under chapter 11 of the Bankruptcy Code for the purpose of protecting the rights of Future
Asbestos Claimants.
3
8. I agreed to serve as the proposed Future Claimants’ Representative and my
engagement with THAN was memorialized in an engagement letter dated April 19, 2007, which
is attached as Exhibit A to the Debtor’s Motion for an Order Appointing a Legal Representative
Representative, I selected Sander L. Esserman, Esq. and his law firm, Stutzman, Bromberg,
Esserman & Plifka, A Professional Corporation to serve as my general bankruptcy counsel and
the law firm of Brune & Richard LLP to serve as additional counsel in particular specializing in
investigating matters; The Claro Group, LLC to serve as my insurance consultant; and Duff &
Phelps LLC to serve as my financial consultant. I also retained Hamilton, Rabinovitz &
Alschuler, Inc. (now known as Hamilton, Rabinovitz & Associates, Inc.) to act as my expert for
the purpose of evaluating the Asbestos PI Claims against THAN. In order to fulfill my
responsibilities as the Future Claimants’ Representative and in considering the terms of the Plan
and various matters relating to the confirmation of the Plan, I have relied and continue to rely on
10. The focus of my due diligence included all aspects of the Debtor’s background
and this Chapter 11 Case that could affect persons who may assert Demands in the future, and in
particular an assessment of whether the Plan’s proposed treatment of future Demands complies
with Section 524(g) of the Bankruptcy Code. Central to my involvement and that of the
professionals retained by me, was the question of whether the Plan provides for treatment of
future Demands and gives reasonable assurance of payment of such future Demands in a manner
that is substantially similar to the treatment provided for current Asbestos PI Claims.
4
11. My professionals and I have conducted an investigation into the insurance,
business affairs, and assets and liabilities of THAN and its affiliates. This investigation focused
on an analysis of the background, nature and scope of THAN’s liability for Asbestos PI Claims
in order to negotiate a global settlement that would be fair and equitable to the Future Asbestos
Claimants. This investigation has included, among other things, a review of the facts concerning
THAN’s historical involvement with asbestos; the nature and extent of past and pending asbestos
litigation against THAN, including the types of claims asserted and the legal issues raised;
analysis of THAN’s assets and liabilities; the projected value of present and future Asbestos PI
Claims; and the extent that other THAN assets may be available to satisfy these liabilities in
whole or in part. My professionals and I also examined the potential for recovery by claimants
asserting asbestos-related claims against PENAC, or some other affiliate of THAN, based upon a
12. My professionals also met with THAN’s counsel to discuss and analyze the
prepetition claims review process conducted by Verus Claims Services, LLC. My professionals
reported to me the results of this review process and their evaluation of those results.
because I wanted to ensure that the interests of future asbestos personal injury claimants would
be protected vis-à-vis the interests of the Debtor, current asbestos claimants, the Debtor’s other
creditors and its insurance carriers. To stay up to date on all of these due diligence matters my
14. Prior to THAN’s solicitation of votes on the Plan, my professionals and I engaged
in negotiations with counsel for the Asbestos Claimants Group and representatives of THAN and
PENAC regarding the resolution of present and future Asbestos PI Claims against THAN (or
5
derivatively, against PENAC arising out of THAN’s conduct or products), the creation and
funding of the Asbestos PI Trust, the terms of the Asbestos PI Trust Distribution Procedures and
a number of other issues relating to the reorganization of THAN. These negotiations resulted in
the formulation of the Plan which includes the creation of an asbestos personal injury trust and a
channeling injunction pursuant to Section 524(g) of the Bankruptcy Code. The negotiations over
both the terms of the Plan and the Asbestos PI Trust Distribution Procedures were conducted in
15. My professionals and I have been involved in all aspects of this case potentially
affecting Future Asbestos Claimants. The focus of my work has been an assessment of whether
the Plan, the Asbestos PI Trust Agreement, and the Asbestos PI Trust Distribution Procedures
treat Future Asbestos Claimants fairly and equitably. I monitored and participated in those
aspects of the Debtor’s case that could potentially affect the rights of Future Asbestos Claimants.
THE PLAN
16. The primary purpose of the Plan is to resolve THAN’s liability for all Asbestos PI
Claims by channeling them to a trust pursuant to Section 524(g) of the Bankruptcy Code.
17. Pursuant to the terms of the Plan, two trusts will be established: the Parent Trust
and the Asbestos PI Trust. On the Effective Date, the Parent Trust will be created in accordance
with the Plan Documents and the Parent Trust Documents. The purpose of the Parent Trust is to
hold one-hundred percent (100%) of the membership interests of Reorganized THAN for the
benefit of the Parent Trust’s beneficiaries and to conduct a profit making business through
Reorganized THAN. On the Effective Date, the membership interests of PENAC and
Remediation Services in THAN will be cancelled and one-hundred percent (100%) of the
membership interests of Reorganized THAN shall be issued to and vest in the Parent Trust.
6
18. On the Effective Date, the Asbestos PI Trust will also be created in accordance
with the Plan Documents, the Asbestos PI Trust Documents and Section 524(g) of the
Bankruptcy Code. The Asbestos PI Trust will be funded by cash contributions from both THAN
and PENAC in the aggregate amount of $900 million. In addition, on the Effective Date,
Reorganized THAN will execute and deliver a $1 million Promissory Note to the Asbestos PI
Trust. In order to secure payment of the Promissory Note, the Parent Trust shall execute a
Pledge Agreement granting the Asbestos PI Trust a security interest in one-hundred percent
(100%) of the outstanding membership interests of Reorganized THAN. The Asbestos PI Trust
will also be entitled to receive distributions from the Parent Trust in accordance with the terms of
19. As consideration for the assets enumerated above, the Asbestos PI Trust will
assume and be responsible for all liability for and payment of Asbestos PI Claims. All Asbestos
PI Claims will be resolved in accordance with the terms of the Asbestos PI Trust Agreement, the
Asbestos PI Trust Distribution Procedures, the Plan and the Confirmation Order. Pursuant to
Section 524(g) of the Bankruptcy Code and the Plan, an Asbestos PI Channeling Injunction will
enjoin holders of Asbestos PI Claims from pursuing their Asbestos PI Claims and future
Demands against Reorganized THAN, PENAC, and the other Asbestos Protected Parties.
20. The purpose of the Asbestos PI Trust is (a) to assume, liquidate and satisfy all
liabilities determined to arise from or relate to Asbestos PI Claims (whether existing as of the
Effective Date or arising at any time thereafter); (b) to use the Asbestos PI Trust Assets to pay
holders of Asbestos PI Claims in accordance with the Asbestos PI Trust Distribution Procedures
in such a way that such holders are treated fairly, equitably and reasonably in light of the assets
7
available to satisfy the claims; and (c) to otherwise comply in all respects with the requirements
21. The contribution of the Asbestos PI Trust Assets to the Asbestos PI Trust
pursuant to the Plan provides a reasonable expectation that the Asbestos PI Trust will have
sufficient capital upon the Effective Date to begin processing Asbestos PI Claims expeditiously
22. All present and future Asbestos PI Claims arising from the operations of THAN
will be resolved by, and if eligible, compensated exclusively from the Asbestos PI Trust. The
function and purpose of the Asbestos PI Trust and the Asbestos PI Channeling Injunction
provided for under Section 524(g) of the Bankruptcy Code are to enjoin the continuance of
current Asbestos PI Claims and the commencement of future asbestos-related Demands against
Reorganized THAN or any other party protected by the Asbestos PI Channeling Injunction. It
appears that THAN will likely be subject to substantial numbers of Asbestos PI Claims and
future Demands in the absence of the Asbestos PI Channeling Injunction. If prosecution of the
Asbestos PI Claims continued outside the procedures proposed in the Plan, such prosecution
would threaten the equitable treatment of such Asbestos PI Claims and future Demands. Absent
the Asbestos PI Trust and the Asbestos PI Channeling Injunction, holders of Asbestos PI Claims
would be forced to litigate their claims in the tort system and could be subject to its limitations
on recovery from THAN and others potentially responsible. Furthermore, without the Asbestos
THAN’s assets could be consumed by those claimants who first file suit, leaving little for Future
Asbestos Claimants.
8
23. Since negotiating the Plan, my professionals and I have continued our due
diligence and monitored the activities of the Debtor and its affiliates.
24. Based on the due diligence that my professionals and I have conducted, I believe
that the treatment of Asbestos PI Claims and, more precisely, the funding of the Asbestos PI
Trust provided by the Plan, are fair and equitable to holders of Demands in light of the benefits
Injunction, and that the Asbestos PI Trust will be in a position to pay present Asbestos PI Claims
and future Demands that involve similar claims in substantially the same manner.
25. In addition to the negotiations over the amount of consideration that would be
transferred to the Asbestos PI Trust and the structure of the Plan, my professionals and I engaged
in negotiations with counsel for the Asbestos Claimants Group (prior to the Commencement
Date, and the Official Committee of Unsecured Creditors following its appointment in the
Chapter 11 Case) and THAN over the terms of the Asbestos PI Trust Distribution Procedures.
Numerous provisions were negotiated and refined to provide final trust distribution procedures
26. The Asbestos PI Trust Distribution Procedures are a set of rules that the Asbestos
PI Trust will use to receive, process and, if valid, pay Asbestos PI Claims. The processes set
forth in the Asbestos PI Trust Distribution Procedures provide a reasonable assurance that the
Asbestos PI Trust will value and be in a financial position to pay present Asbestos PI Claims and
future Demands that involve similar claims in substantially the same manner.
27. The Asbestos PI Trust Distribution Procedures further the goal of treating all
beneficiaries of the Asbestos PI Trust equitably by setting forth procedures for processing and
9
paying Asbestos PI Claims generally on an impartial, first-in-first-out (“FIFO”) basis, with the
intention of paying all holders of Asbestos PI Claims over time as equivalent a share as possible
of the value of their Asbestos PI Claims, based on historical values for substantially similar
claims in the tort system. To this end, the Asbestos PI Trust Distribution Procedures establish a
schedule of eight asbestos-related diseases, seven of which have presumptive medical and
exposure requirements, and specific liquidated values, and seven of which have both anticipated
average values and a cap on their liquidated values. The disease levels, medical and exposure
criteria, liquidated values, average values and maximum values have all been selected and
derived with the intention of achieving a fair allocation of the Asbestos PI Trust funds as among
claimants suffering from different diseases in light of the best available information considering
the settlement history of THAN and the rights claimants would have in the tort system absent
bankruptcy.
28. Asbestos PI Claims will initially be paid one-hundred percent (100%) of the
Asbestos PI Claim’s liquidated value (the “Initial Payment Percentage”). The Initial Payment
Percentage may thereafter be adjusted from time to time by the Asbestos PI Trust, with the
consent of the Asbestos PI Trust Advisory Committee and the Future Claimants’ Representative,
to reflect then-current estimates of the Asbestos PI Trust’s assets and liabilities, as well as the
29. Requiring evidence that will satisfy the medical and exposure criteria set forth in
the Asbestos PI Trust Distribution Procedures is the principle mechanism by which meritorious
claims will be distinguished from claims lacking merit, and more serious claims from those that
are less serious. Because every dollar the Asbestos PI Trust spends on a non-meritorious or less
serious claim represents one less dollar that the Asbestos PI Trust otherwise would have to pay a
10
future meritorious or more serious claim, it was critically important to me that the Asbestos PI
Trust Distribution Procedures be formulated to exclude non-meritorious claims and assign lower
30. After the liquidated value of an Asbestos PI Claim is determined by the Asbestos
PI Trust, the claimant will receive a pro rata share of that liquidated value based upon the then-
current payment percentage for such claims. As noted above, the Initial Payment Percentage is
one-hundred percent (100%). However, the Initial Payment Percentage can be changed if the
Asbestos PI Trustees, with the consent of the Asbestos PI Trust Advisory Committee and the
Future Claimants’ Representative, determine that the Initial Payment Percentage should be
changed to assure that the Asbestos PI Trust shall be in a financial position to pay present and
future holders of Asbestos PI Claims in substantially the same manner. Furthermore, the
Asbestos PI Trust Distribution Procedures require the Asbestos PI Trustees to reconsider the
then-applicable payment percentage at least once every three (3) years to assure that it is based
on accurate and current information. The Asbestos PI Trust Distribution Procedures thus provide
the Asbestos PI Trustees with the flexibility to modify the payment percentage over time based
upon updated information as to the assets and liabilities of the Asbestos PI Trust and its funds.
experience in this process, I believe that the Asbestos PI Trust Distribution Procedures are fair
and equitable in all respects and ensures that holders of future Demands will be treated in
32. The following individuals have been designated as the trustees to manage and
operate the Asbestos PI Trust: Charles A. Koppleman, Executive Chairman of Martha Stewart
11
Living Omnimedia Inc.; David F. Levi, Dean of Duke Law School; and the Hon. Alfred M.
Wolin, former Chief Judge of the United States District Court for the District of New Jersey.
The proposed trustees are qualified and their appointment and continuance in the position of the
33. Under the Plan, the Asbestos PI Trust Agreement, and the Asbestos PI Trust
Distribution Procedures, the role of the Future Claimants’ Representative continues during the
administration of the Asbestos PI Trust. The Asbestos PI Trustees will consult with the Future
Claimants’ Representative and the Asbestos PI Trust Advisory Committee on various matters
relating to, among other things, the implementation and administration of the Asbestos PI Trust
and the Asbestos PI Trust Distribution Procedures. I intend to continue in my role as Future
Claimants’ Representative in order to ensure that the Asbestos PI Trust operates appropriately,
and that the intentions of the parties set forth in the Asbestos PI Trust Documents are carried out
in practice.
CONCLUSION
well as my own experience, I believe the Plan is a fair and equitable plan of reorganization,
provides for a valuation of Demands and provides reasonable assurance of payment of those
Demands, such that they will be treated substantially similar to equivalent current Asbestos PI
Claims. Specifically, the Plan, the Asbestos PI Trust Distribution Procedures, and the Asbestos
PI Trust Agreement provide for mechanisms, including but not limited to structured, periodic, or
supplemental payments, pro rata distributions, matrices, periodic review of estimates of the
numbers and values of current Asbestos PI Claims and future Demands, and periodic adjustment
of the payment percentage, which provide reasonable assurance that the Asbestos PI Trust will
12
be in a financial position to pay present Asbestos PI Claims and future Demands that involve
35. Based upon my involvement in this case and the advice of my professionals, it is
my belief that the funding and structure of the Asbestos PI Trust serve the interest of Future
Asbestos Claimants. I am confident that the structure of the Asbestos PI Trust ensures that funds
will be available to satisfy Asbestos PI Claims and future Demands far into the future when,
absent the Asbestos PI Trust, there would otherwise be no assurance that THAN would have any
Pursuant to 28 U.S.C. § 1746, I declare under penalty of perjury under the laws of the
Samuel Issacharoff
Future Claimants’ Representative
13
2. I am a graduate of Yale Law School and currently the Bonnie and Richard Reiss
3. On November 24, 2008 (the “Petition Date”), T H Agriculture & Nutrition, L.L.C.
(“THAN” or the “Debtor”) filed the Debtor’s Motion for an Order Appointing a Legal
Representative for Future Asbestos Personal Injury Claimants (the “Motion”), seeking to have
me appointed as the Future Claimants’ Representative, to represent and protect the interests of
future holders of Asbestos PI Claims. See Docket No. 28. My Declaration in Support of
Debtor’s Motion for an Order Appointing a Legal Representative for Future Asbestos Personal
Injury Claimants was attached as Exhibit B to the Motion. A hearing on the Motion was held
before the Court on December 17, 2008, and an Order granting the Motion was entered by the
been retained to act as Counsel of Record on behalf of certain claimants represented by Reaud,
Morgan & Quinn, Environmental Litigation Group, P.C., and Provost & Umphrey Law Firm in
an appeal now pending before the Supreme Court of the United States (The Travelers Indemnity
Company, et al. v. Pearlie Bailey, et al., No. 08-295, 08-307). The Cascino Vaughan Law
Offices, Ltd., also consented to have me submit a brief on their behalf to the Supreme Court and
to argue the case on their behalf as well. These claimants hold claims under the applicable
common law of various states against Travelers Indemnity Company, Travelers Casualty and
Surety Company and certain affiliates (collectively “Travelers”) for alleged damages resulting
2
from Travelers’ misconduct in its investigation, defense and settlement of asbestos claims
against certain of its insureds. Stutzman, Bromberg, Esserman & Plifka, A Professional
Corporation is my co-counsel in this appeal and represents Reaud, Morgan & Quinn,
Environmental Litigation Group, P.C., and Provost & Umphrey Law Firm in connection with the
appeal to the Supreme Court. Jason R. Searcy of Jason R. Searcy & Associates, PC is a counsel
on the appeal with respect to those of the claimants represented by the Cascino Vaughn Law
Offices, Ltd.
6. I have only undertaken this representation in connection with the Supreme Court
7. My representation in the appeal does not relate to or involve, and will not relate to
or involve, any matter concerning the Debtor in this case or any other matter relating to this case.
conflict as I do not hold an interest adverse to the Debtor or the Debtor’s estate and I remain a
disinterested person as that term is defined in 11 U.S.C. § 101(14) of the Bankruptcy Code, for
the purpose of serving as the Future Claimants’ Representative in this chapter 11 case.
do not have any connection with the Debtor, its creditors, or any other party in interest, their
respective attorneys and accountants, the United States Trustee, or any person employed in the
10. I will continue to monitor my connections with the Debtor, its creditors, or any
other party in interest, their respective attorneys and accountants, the United States Trustee, or
any person employed in the office of the United States Trustee to ensure that no conflicts or
3
disqualifying circumstances exist or arise and will promptly file supplemental disclosures as
needed.
I declare under penalty of perjury that the foregoing is true and correct.
Executed this 10th day of April 2009, in New York, New York.
Samuel Issacharoff
4
Hearing Date & Time: May 6, 2009, at 9:45 a.m.
Objection Deadline: May 1, 2009
¿0ñqN|)$6 0814692090422000000000001
!B½
SUMMARY COVERSHEET TO THE FIRST INTERIM APPLICATION OF SAMUEL
ISSACHAROFF IN HIS CAPACITY AS LEGAL REPRESENTATIVE FOR FUTURE
ASBESTOS PERSONAL INJURY CLAIMANTS
PERIOD FOR WHICH COMPENSATION AND November 24, 2008 through March 31, 2009
REIMBURSEMENT IS SOUGHT:
ii
TABLE OF CONTENTS
iii
TABLE OF AUTHORITIES
Cases
In re Ames Dep’t Stores, Inc.,
76 F.3d 66 (2d Cir. 1996) ......................................................................................................... 10
In re Angelika Films 57th Inc.,
227 B.R. 29 (Bankr. S.D.N.Y. 1998), aff’d, 246 B.R. 176 (S.D.N.Y. 2000) ........................... 10
In re Cena’s Fine Furniture, Inc.,
109 B.R. 575 (E.D.N.Y. 1990) ................................................................................................... 9
In re Drexel Burnham Lambert Group, Inc.,
133 B.R. 13 (Bankr. S.D.N.Y. 1991).......................................................................................... 9
In re The Korea Chosun Daily Times, Inc.,
337 B.R. 758 (Bankr. E.D.N.Y. 2005)...................................................................................... 10
Statutes
11 U.S.C. § 105............................................................................................................................... 1
11 U.S.C. § 328............................................................................................................................... 1
11 U.S.C. § 330....................................................................................................................... 1, 6, 7
11 U.S.C. § 330(a)(1)...................................................................................................................... 7
11 U.S.C. § 330(a)(1)(A) ................................................................................................................ 8
11 U.S.C. § 330(a)(3)...................................................................................................................... 7
11 U.S.C. § 330(a)(3)(A)-(F).......................................................................................................... 8
11 U.S.C. § 331....................................................................................................................... 1, 6, 7
28 U.S.C. § 1334............................................................................................................................. 3
28 U.S.C. § 1408............................................................................................................................. 3
28 U.S.C. § 157............................................................................................................................... 3
28 U.S.C. § 157(b)(2)(A)................................................................................................................ 3
Rules
FED. R. BANKR. P. 2016 .............................................................................................................. 1, 6
Local Bankruptcy Rule 2016-1....................................................................................................... 1
iv
INDEX OF EXHIBITS
v
Hearing Date & Time: May 6, 2009, at 9:45 a.m.
Objection Deadline: May 1, 2009
Samuel Issacharoff as the legal representative for future asbestos personal injury
claimants (the “Future Claimants’ Representative”) in the chapter 11 case of T H Agriculture &
Nutrition L.L.C. (“THAN” or the “Debtor”), submits this application (the “Application”) for the
allowance of interim compensation and reimbursement of expenses for the period from
November 24, 2008 through March 31, 2009 (the “Compensation Period”), pursuant to 11
U.S.C. §§ 105, 328, 330 and 331; Rule 2016 of the Federal Rules of Bankruptcy Procedure (the
“Bankruptcy Rules”); Local Bankruptcy Rule 2016-1; and this Court’s Order Establishing
Professionals and Committee Members signed on December 17, 2008 (Docket No. 144) (the
I.
PRELIMINARY STATEMENT
sum of $34,440.00 for services rendered during the Compensation Period and $897.00 for the
1
This Application has been prepared in accordance with the Interim Compensation Order, which
is attached hereto as Exhibit A, the Guidelines for Fees and Disbursements for Professionals in
the Southern District of New York Bankruptcy Cases (General Order M-104) dated June 20,
1991, the Amended Guidelines for Fees and Disbursements for Professionals in the Southern
District of New York Bankruptcy Cases (General Order M-151) dated April 19, 1995 (together
1
reimbursement of expenses incurred in connection with the rendition of such services, for a total
award of $35,337.00.
Other than the payments described below, which were made in accordance with this Court’s
Interim Compensation Order, the Future Claimants’ Representative has not received payment of
or understanding between the Future Claimants’ Representative and any other person for the
sharing of compensation to be received for services rendered during the Debtor’s chapter 11
case.
3. Pursuant to the terms of the Interim Compensation Order, the Future Claimants’
Representative, as indicated in the chart below, submitted four monthly invoices for services
invoices, and as of the date hereof, the Future Claimants’ Representative received payments from
the Debtor representing 80% of the fees and 100% of the expenses for services rendered and
with General Order M-104, the “Local Guidelines”), and the United States Trustee Guidelines
for Reviewing Applications for Compensation and Reimbursement of Expenses filed under 11
U.S.C. § 330, dated January 30, 1996 (“the U.S. Trustee Guidelines”).
2
invoiced for his November-December 2008 and January 2009 invoices. As of the date hereof,
the Future Claimants’ Representative has not received any payments from the Debtor for fees
and expenses related to services rendered during the period from February 1, 2009 through
all monthly fees and expenses that have been paid to date, as well as authorization to receive (i)
any unpaid monthly fees and expenses on account of the above monthly invoices, and (ii) the
twenty percent (20%) of his fees previously held back from each of the invoices previously
II.
JURISDICTION AND VENUE
6. This Court has jurisdiction over this Application pursuant to 28 U.S.C. §§ 157 and
1334, and the District Court’s Standing Order of Referral of Bankruptcy Cases to Bankruptcy
Judges dated July 10, 1984. This is a core proceeding pursuant to 28 U.S.C. § 157(b)(2)(A).
III.
BACKGROUND
title 11 of the United States Code, 11 U.S.C. §§ 101, et seq., (the “Bankruptcy Code”) on
November 24, 2008 (the “Petition Date”). THAN continues to operate its business and manage
its properties as debtor in possession pursuant to Sections 1107(a) and 1108 of the Bankruptcy
Code.
Agriculture & Nutrition, L.L.C. Under Chapter 11 of the Bankruptcy Code (the “Plan”) and the
3
Disclosure Statement with Respect to a Prepackaged Plan of Reorganization of T H Agriculture
& Nutrition, L.L.C. Under Chapter 11 of the Bankruptcy Code (the “Disclosure Statement”).
Committee of Unsecured Creditors (the “Committee”) in this case. No trustee or examiner has
been appointed.
10. Prior to 1984, THAN (through its corporate predecessors) was engaged in the
lawsuits wherein plaintiffs asserted claims against THAN for asbestos-related personal injuries
and wrongful death (“Asbestos PI Claims”). In addition to claims asserted against THAN,
plaintiffs have asserted derivative or successor Asbestos PI Claims against other parties related
corporate parent, and Elementis Group B.V. (with its affiliates, “Elementis”), which acquired
liabilities, THAN entered into negotiations with PENAC, numerous law firms that represent a
majority of the present holders of Asbestos PI Claims against THAN and PENAC, and Professor
Issacharoff as the putative future claimants’ representative regarding the resolution of the
Asbestos PI Claims. These pre-petition negotiations resulted in the formulation of the Plan,
which includes the creation of an asbestos personal injury trust and a channeling injunction
4
13. THAN has commenced this chapter 11 case in order to preserve its remaining
assets and to implement the negotiated settlement embodied in the Plan so as to accord fair and
equitable treatment to all present and future holders of asbestos-related claims pursuant to
IV.
APPOINTMENT OF THE FUTURE CLAIMANTS’ REPRESENTATIVE
15. THAN selected Professor Issacharoff to serve as the putative legal representative
for future asbestos personal injury claimants pursuant to a letter agreement dated April 19, 2007
16. Pursuant to the Issacharoff Engagement Agreement, THAN agreed to be liable for
all reasonable fees and expenses incurred by Professor Issacharoff in connection with his
services rendered as the Future Claimants’ Representative. In the event that THAN defaults on
this obligation, PENAC agreed to assume and pay for THAN’s liability to pay Professor
received from THAN a retainer (the “Retainer”) in the amount of $50,000 to be held as security
for unpaid fees and expenses. Prior to the Petition Date, upon submitting periodic bills for fees
and expenses to THAN, Professor Issacharoff applied the Retainer to the bills and THAN
promptly replenished the Retainer. As of the Petition Date, all of Professor Issacharoff’s
outstanding invoices for services performed prior to the Petition Date were satisfied. As of the
18. On November 24, 2008, THAN filed the Debtor’s Motion for an Order
Appointing a Legal Representative for Future Asbestos Personal Injury Claimants (Docket No.
5
28), seeking to have Professor Issacharoff appointed as the Future Claimants’ Representative to
represent and protect the interests of future holders of Asbestos PI Claims against the Debtor (the
19. By Order signed on December 17, 2008, this Court appointed Professor
Issacharoff to serve as the Future Claimants’ Representative in this case in order to protect the
rights of persons who may, subsequent to any date of confirmation of any chapter 11 plan of
reorganization, assert demands against the Debtor and affiliated parties protected under any
channeling injunction issued in this case pursuant to Section 524(g) of the Bankruptcy Code. A
true and correct copy of the Order Appointing a Legal Representative for Future Asbestos
authorized to seek compensation and reimbursement in accordance with the terms of the
Issacharoff Engagement Agreement, the Interim Compensation Order and Section 330 of the
Bankruptcy Code.
V.
STATUTORY BASIS FOR COMPENSATION
21. The statutory predicates for the award of fees and expenses under the Application
are Sections 330 and 331 of the Bankruptcy Code, as supplemented by Bankruptcy Rule 2016.
Pursuant to Sections 330 and 331 of the Bankruptcy Code, the Future Claimants’ Representative
seeks compensation for actual and necessary professional services rendered and for
6
after an order for relief in a case under this title, or more often if
the court permits, for such compensation for services rendered
before the date of such an application or reimbursement for
expenses incurred before such date as is provided under section
330 of [the Bankruptcy Code]. After notice and a hearing, the
court may allow and disburse to such applicant such compensation
or reimbursement.
11 U.S.C. § 331.
23. Section 330 of the Bankruptcy Code authorizes the bankruptcy court to award an
applicant, as counsel for a debtor, creditors’ committee or other professional employed pursuant
to 11 U.S.C. § 327, reasonable compensation for its services and reimbursement of expenses.
Specifically, Section 330 of the Bankruptcy Code states, in relevant part, as follows:
(a)(1) After notice to the parties in interest and the United States
Trustee and a hearing, and subject to sections 326, 328, and 329,
the court may award to a trustee, … or a professional person
employed under section 327 or 1103—
11 U.S.C. § 330(a)(1).
compensation to be awarded, the court should consider the nature, extent and value of the
services rendered to the estate, taking into account all relevant factors including
7
(D) whether the services were performed within a reasonable
amount of time commensurate with the complexity, importance,
and nature of the problem, issue, or task addressed;
11 U.S.C. § 330(a)(3)(A)-(F).
the bankruptcy courts utilize the “lodestar” method for calculating fees. In re Drexel Burnham
Lambert Group, Inc., 133 B.R. 13, 21-22 (Bankr. S.D.N.Y. 1991); see also In re Cena’s Fine
Furniture, Inc., 109 B.R. 575, 581 (E.D.N.Y. 1990) (“It is now settled that the “lodestar” method
of fee calculation developed by the Third Circuit, see Lindy Bros. Builders, Inc. v. American
Radiator & Standard Sanitary Corp., 487 F.2d 161, 167 (3d Cir. 1973), is the method to be used
to determine a “reasonable” attorney fee in all federal courts, including the bankruptcy courts.”
(emphasis in original)). Under this method, the lodestar amount is calculated by multiplying the
reasonable number of hours worked on a case by the reasonable hourly rate. In re Cena’s Fine
Furniture, Inc., 109 B.R. at 581. There is a strong presumption that the figure arrived at under
the lodestar calculation is reasonable under Section 330. In re Drexel Burnham Lambert Group,
Inc., 133 B.R. at 22. In making such calculations the court is to rely on the market rate for
comparable services in non-bankruptcy cases. In re Drexel Burnham Lambert Group, Inc., 133
B.R. at 22. With respect to the number of hours to be used in the calculation, Section 330
provides that the court can award fees to professionals for actual and necessary services
rendered. 11 U.S.C. § 330(a)(1)(A); In re The Korea Chosun Daily Times, Inc., 337 B.R. 758,
8
765-66 (Bankr. E.D.N.Y. 2005); In re Angelika Films 57th Inc., 227 B.R. 29, 43 (Bankr.
S.D.N.Y. 1998), aff’d, 246 B.R. 176 (S.D.N.Y. 2000). The test for determining the necessity of
services is an objective test and focuses on “what services a reasonable lawyer or legal firm
would have performed in the same circumstances.” In re Angelika Films 57th Inc., 227 B.R. at
42. This test does not rely on perfect hindsight and if the services rendered are likely to benefit
the debtor’s estate, then they should be compensable. Id. (citing In re Ames Dep’t Stores, Inc.,
76 F.3d 66, 72 (2d Cir. 1996)); In re The Korea Chosun Daily Times, Inc., 337 B.R. at 766.
26. Under the above analysis, the Future Claimants’ Representative’s request for
compensation for professional services and reimbursement for expenses incurred on behalf of the
27. Professor Issacharoff is a graduate of Yale Law School and currently the Bonnie
and Richard Reiss Professor of Constitutional Law at New York University School of Law. He
has been a faculty member at various other law schools including, the University of
Pennsylvania Law School, the University of Texas School of Law and Columbia Law School.
He has also been a visiting professor/lecturer at several schools including, the Gerzensee Center
for Law and Economics, Switzerland; Tel Aviv University; Oxford University and Harvard Law
School.
28. Professor Issacharoff has experience in the field of mass torts, including asbestos-
related personal injury litigation. He has represented various constituents, including plaintiffs’
29. Professor Issacharoff is the Reporter on Aggregate Litigation for the American
Law Institute, a member of the editorial board for the Foundation Press, and a Fellow with the
American Academy of Arts and Sciences. He is a frequent author and lecturer on many topics
9
including complex litigation and class actions. Some of his relevant publications include: Class
Action Settlements Under Attack, 156 U. PENN. L. REV. 1649 (2008) (with Richard A. Nagareda);
VANDERBILT L. REV. 1571 (2004) (with John Fabian Witt); “Shocked”: Mass Torts and
Aggregate Asbestos Litigation After Amchem and Oritz, 80 U. TEX. L. REV. 1925 (2002); Class
Action Conflicts, 30 U.C. DAVIS L. REV. 805 (1997); and Administering Damage Awards in
Representative and to provide professional services to the Court and the Debtor’s estate at his
customary hourly rate of $700.00. The Future Claimants’ Representative represents and would
demonstrate that his hourly rate for services performed in these proceedings are competitive and
customary for the degree of skill and expertise required in the performance of similar services
Guidelines and the U.S. Trustee Guidelines, the cover page of this Application includes a
summary schedule of the hours expended by the Future Claimants’ Representative, his hourly
billing rate and the total value of services rendered to the Debtor’s estate during the
Compensation Period.
31. The Future Claimants’ Representative represents that all services for which
Claimants and not on behalf of any committee, creditor or any other person. Furthermore, the
Future Claimants’ Representative respectfully submits that the services for which he seeks
compensation in this Application were, at the time rendered, believed to be necessary for and
beneficial to the protection of the interests of the Future Asbestos Claimants that he represents in
10
this case. The services performed by the Future Claimants’ Representative were performed
economically, effectively and efficiently, and the results obtained have benefited not only the
Future Asbestos Claimants, but also the Debtor, the Debtor’s estate and other parties in interest,
by moving this case closer to confirmation. Accordingly, the compensation requested herein is
reasonable in light of the nature, extent and value of such services to the Future Asbestos
32. For the Court’s review, a summary containing the Future Claimants’
Representative’s customary billing rate, his time expended, and the total value of services
33. A summary of the time expended by the Future Claimants’ Representative and the
total value of professional services rendered identified by project task category is attached hereto
as Exhibit E.
34. Attached hereto as Exhibit F is a summary of the expenses incurred by the Future
VI.
SUMMARY OF SERVICES RENDERED
35. With respect to the time and labor expended by the Future Claimants’
Representative in this case during the Compensation Period, as set forth in Exhibits D and E,
$34,440.00. The Future Claimants’ Representative believes that it is appropriate for him to be
compensated for the time spent in connection with these matters, and sets forth a brief narrative
description of the services rendered for or on behalf of the Future Asbestos Claimants that he
represents, and the time expended, organized by project task categories, as follows:
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A. CASE ADMINISTRATION (C-01)
36. During the Compensation Period, the Future Claimants’ Representative reviewed
various pleadings in this case and routinely communicated with counsel to remain informed of
all material developments in the case. The Future Claimants’ Representative also communicated
with counsel about his duties and responsibilities under the Bankruptcy Code including but not
37. The Future Claimants’ Representative seeks compensation for 3.20 hours of
reasonable and necessary professional fees incurred in the category of Case Administration
38. During the Compensation Period the Future Claimants’ Representative reviewed
and approved the applications filed on his behalf to retain and employ his professionals,
including the applications to retain Stutzman, Bromberg, Esserman & Plifka, A Professional
Corporation, as his bankruptcy counsel, Brune & Richard LLP as his counsel, The Claro Group
as his insurance consultant and Hamilton, Rabinovitz & Associates, Inc. to act as his expert for
evaluating Asbestos PI Claims against THAN. The Future Claimants Representative also
reviewed and approved his Declaration in Support of Debtor’s Motion for an Order Appointing
a Legal Representative for Future Asbestos Personal Injury Claimants which was filed as
Exhibit B to the Debtor’s Motion for an Order Appointing a Legal Representative for Future
Asbestos Personal Injury Claimants in this case. These activities allowed the Future Claimants’
Representative to file the necessary papers with the Court to retain and employ his professionals
in order to allow such professionals to assist him in his duties as the Future Claimants’
12
39. The Future Claimants’ Representative seeks compensation for 2.50 hours of
40. During the Compensation Period, the Future Claimants’ Representative reviewed
and analyzed documents and pleadings in connection with various contested matters in this case.
The Future Claimants’ Representative routinely communicated with counsel regarding planning,
strategizing and responding to various pleadings filed in this case. Specifically, the Future
Claimants’ Representative reviewed pleadings and other filings relating to the issues raised in the
pleadings filed by Volkswagen Group of America, Inc. and Owens-Illinois, Inc, including the
standing of each of these parties to participate in the Debtor’s chapter 11 case. On January 12,
2009, the Court held a hearing on the Amended Statement of Volkswagen Group of America, Inc.
in Support of Motion to Modify Scheduling Order Entered November 25, 2008 (Docket No. 175)
and held that Volkswagen Group of America, Inc. did not have standing to participate in the
41. On February 2, 2009, the Debtor filed the Debtor’s Motion to Strike Owens-
Illinois, Inc.’s Objection to the Prepackaged Plan of Reorganization for Lack of Standing
(Docket No. 294). On February 11, 2009, the Future Claimants’ Representative filed the
Response of Legal Representative for Future Asbestos Claimants in Support of Debtor’s Motion
to Strike Owens-Illinois, Inc.’s Objection to the Prepackaged Plan of Reorganization for Lack of
Standing (Docket No. 306). On February 17, 2009, the Court held a hearing on the Debtor’s
Motion to Strike Owens-Illinois, Inc.’s Objection to the Prepackaged Plan of Reorganization for
Lack of Standing (Docket No. 294). By order signed on March 5, 2009, this Court granted the
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Debtor’s motion and ordered that Owens-Illinois, Inc.’s objection be stricken in its entirety. In
addition, the Court ordered that Owens-Illinois, Inc. may not object to the Plan, seek discovery
with respect to the Plan, or otherwise participate in this chapter 11 case. See Order Granting
Reorganization for Lack of Standing (Docket No. 329) dated March 5, 2009.
42. The Future Claimants’ Representative seeks compensation for 1.10 hours of
43. During the Compensation Period, the Future Claimants’ Representative reviewed
pleadings, corresponded with and otherwise communicated with counsel regarding various issues
Under Chapter 11 of the Bankruptcy Code. The Future Claimants’ Representative’s efforts in
this area have included conducting interviews of potential trustee candidates and attending to
matters relating to the creation of and operation of the Asbestos PI Trust. The Future Claimants’
Representative has also been involved in negotiations with the Debtor, the Committee and other
parties to resolve objections to the Plan. The Future Claimants’ Representative has also
reviewed and responded to discovery propounded on him by the certain claimants represented by
Motley Rice LLC, including preparing for a deposition to be taken in connection with objections
to the plan.
44. The Future Claimants’ Representative seeks compensation for 21.80 hours of
reasonable and necessary professional fees incurred in the category of Plan and Disclosure
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E. NONWORKING TRAVEL (C-10)
45. During the Compensation Period the Future Claimants’ Representative has
incurred certain fees and expenses for nonworking travel when necessary to attend hearings in
this case.
46. The Future Claimants’ Representative seeks compensation for 6.80 hours of
reasonable and necessary professional fees incurred in the category of Nonworking Travel during
47. During the Compensation Period, the Future Claimants’ Representative reviewed
and analyzed the relief sought by the Debtor in its “First Day” motions and applications filed on
48. The Future Claimants’ Representative seeks compensation for 4.30 hours of
reasonable and necessary professional fees incurred in the category of First Day Matters during
49. During the Compensation Period, the Future Claimants’ Representative reviewed
pleadings and documents submitted by various insurers relating to the insurers’ objections to the
insurance neutrality provision and other terms of the Debtor’s Plan. The Future Claimants’
Representative communicated with counsel and reviewed and analyzed certain proposed changes
to the Plan in order to determine the effect that such changes would have on the interests of the
Future Asbestos Claimants that he represents. The efforts of the Future Claimants’
Representative, his counsel and other parties involved in the negotiations with the insurers
resulted in the resolution of several issues raised by the insurers which culminated with the entry
15
of a Stipulation and Agreed Order resolving the insurers’ concerns. On January 28, 2009, the
Debtor filed a motion for approval of the Stipulation and Agreed Order and on February 10,
2009, this Court entered its Order Pursuant to Fed. R. Bankr. P. 9019 Approving the Stipulation
50. The Future Claimants’ Representative seeks compensation for 5.00 hours of
reasonable and necessary professional fees incurred in the category of Insurance Issues during
H. HEARINGS (C-14)
51. During the Compensation Period, the Future Claimants’ Representative reviewed
documents and pleadings and held conferences with his counsel in preparation for the hearing on
the Debtor’s Motion for an Order Appointing a Legal Representative for Future Asbestos
Personal Injury Claimants and the hearing on the Future Claimants’ Representative’s
applications to retain and employ his professionals. The Future Claimants’ Representative also
attended the hearing on these motions and applications. Following the hearing, the Court entered
its Order appointing the Future Claimants’ Representative as well as several orders authorizing
the Future Claimants’ Representative to retain and employ professionals to represent him and
assist him in performing his duties as the Future Claimants’ Representative in this case.
52. The Future Claimants’ Representative seeks compensation for 4.50 hours of
reasonable and necessary professional services incurred in the category of Hearings during the
VII.
DISBURSEMENTS
amount of $897.00 in connection with the services rendered during the Compensation Period. A
16
summary of the expenses incurred by the Future Claimants’ Representative during the
54. These expenses are actual, necessary, out-of-pocket expenses which are not
properly included in overhead, and arise exclusively from and are traceable to the services
rendered by the Future Claimants’ Representative in connection with this chapter 11 case and
were incurred for the benefit of the Future Asbestos Claimants and are therefore, reimbursable
by the estate. No allowable disbursement is treated as a “profit center” involving a markup over
actual cost.
55. None of the travel related expenses incurred by the Future Claimants’
Representative during the Compensation Period were for first-class airfare, luxury
VIII.
CONCLUSION
56. The professional services summarized by this Application and rendered by the
Future Claimants’ Representative were substantial and beneficial to the interests of the Future
57. The amounts sought by the Future Claimants’ Representative consist only of the
actual and reasonable billable time expended by him and the actual and necessary expenses
58. The reasonable value of the professional services rendered by the Future
Claimants’ Representative during the Compensation Period is $34,440.00 and the reasonable and
necessary out-of-pocket expenses incurred by the Future Claimants’ Representative are $897.00,
17
59. The Future Claimants’ Representative believes that the instant application and the
description of services set forth herein of work performed are in compliance with the
requirements of Local Bankruptcy Rule 2016-1, the Bankruptcy Code, the Local Guidelines and
the U.S. Trustee Guidelines. As required by the Local Guidelines a true and correct copy of the
entry of an order (a) awarding the Future Claimants’ Representative allowance of compensation
for professional services in the amount of $34,440.00 and reimbursement of expenses in the
amount of $897.00 for total compensation of $35,337.00 during the Compensation Period, (b)
directing payment of the foregoing amounts to the extent that such amounts have not already
been paid by the Debtor, and the 20% of professional fees that has been held back from each
monthly invoice, and (c) granting the Future Claimants’ Representative such other and further
18
Dated: New York, New York
April 22, 2009 Respectfully submitted,
Susan E. Brune
80 Broad Street
New York, New York 10004
Telephone: (212) 668-1900
Facsimile: (212) 668-0315
-and-
19
EXHIBIT G
Hearing Date & Time: May 6, 2009, at 9:45 a.m.
Objection Deadline: May 1, 2009
1. I am over the age of 18 years, and am competent and otherwise qualified to make
this Certification. Unless otherwise stated in this Certification, I have personal knowledge of the
Issacharoff in His Capacity as Legal Representative for Future Asbestos Personal Injury
for the Period from November 24, 2008 through March 31, 2009 (the “Application”) and in
5. To the best of my knowledge, information and belief formed upon the basis of my
participation in this case, as well as after reasonable inquiry, the Application complies with the
Local Guidelines.
6. To the best of my knowledge, information and belief formed upon the basis of my
participation in this case, as well as after reasonable inquiry, the facts set forth in the Application
are true and correct and the fees and disbursements sought in the Application fall within the
Local Guidelines and the U.S. Trustee Guidelines, except as specifically noted herein.
7. Except to the extent that fees or disbursements are prohibited by the Local
Guidelines or the U.S. Trustee Guidelines, the fees and disbursements sought are billed at rates
disbursements for which reimbursement is sought: (a) I do not make a profit on such
disbursements; (b) in charging for a particular service, I do not include in the amount for which
reimbursement is sought the amortization of the cost of any investment, equipment, or capital
outlay, and (c) in seeking reimbursement for a service which I obtained from a third party, I
1
Capitalized terms not otherwise defined herein shall have the meaning ascribed to such terms in the Application.
2
request reimbursement for only the amount billed to me by the third party vendor and paid by me
to such vendor.
9. In accordance with the Interim Compensation Order, the Debtor, counsel for the
Debtor, the United States Trustee for the Southern District of New York, counsel for PENAC,
and counsel to the Committee have each been provided with a statement of fees and
disbursements accruing during each month for which compensation is sought in the Application
on or about the 20th day of each month following the end of the month for which compensation
was sought.
10. In accordance with the Interim Compensation Order and the Local Guidelines, the
Debtor, counsel for the Debtor, the United States Trustee for the Southern District of New York,
counsel for PENAC, and counsel to the Committee will each be provided with a copy of the
Application simultaneously with the filing thereof and will have at least ten days to review the
I declare under penalty of perjury that the foregoing is true and correct.
Executed this 17th day of April 2009, in New York, New York.
Samuel Issacharoff