Professional Documents
Culture Documents
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In re:
Chapter 11
Debtors.
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Drysdale ("Application"). The facts set forth in this Statement are personally known to me and,
if called as a witness, would testify thereto.
3.
appointments since 1978 and have published numerous articles and books in the field of
Bankruptcy Law
I began work on mass tort bankruptcies in the early 1980s when I started teaching
mass tort bankruptcies in my bankruptcy classes and advanced seminars at the University of
Texas. In 1984, wrote the initial drafts of a chapter on mass tort bankruptcies for my casebook
with Professor Westbrook, The Law ofDebtors and Creditors (Little Brown 1985).
taught that
chapter and continued to research and update the materials contained in it for the next sixteen
years. The latest edition of the casebook, The Law ofDebtors and Creditors (41h edition Aspen
2001 ), includes sections dealing with mass tort bankruptcies, future claims, conflicts among
claimant classes, and a several other issues that arise with special force in asbestos bankruptcies.
In the late 1980s and early 1990s, I helped design and implement judicial
education programs dealing with mass tort bankruptcies. I served for nine years on the Federal
Judicial Center's Bankruptcy Education Committee. Many of the Federal Judicial Center
programs in those years included a section on issues relevant to mass tort bankruptcies. There
was also at least one invitation-only program specifically developed to deal exclusively with
mass tort bankruptcies.
attended many of the programs and spoke at several ofthem on a wide range oftopics, including
mass tort bankruptcies.
6.
on its Code Review Project on the bankruptcy system. My specific assignment was to develop a
recommendation to Congress on how to deal with mass tort bankruptcies. I wrote several drafts
ofthat report, with the thoughtful advice and suggestions ofthe Mass Tort committee of the
NBC. I presented the report to the Conference, leading a discussion and modifying the
recommendations based on that discussion. Twice I returned to the Conference at its annual
meetings with modified versions. The Conference finally adopted the third report. That report
was published in the Conference's recommendations to Congress in The National Bankruptcy
Conference, REFORMING THE BANKRUPTCY CODE, Future Claims 281 (Final Report May 1
994). The mass tort recommendations were revisited by the Conference after section 524(g)
was added to the Bankruptcy Code in 1994.
about the future claims issues. The National Bankruptcy Conference's second comprehensive
recommendation to Congress, REFORMING THE BANKRUPTCY CODE, Future Claims 33 (Final
Report May 1, 1997), included the future claims recommendations developed by my committee
and endorsed by the Conference.
In 1993 and 1994 when Congress was considering amending the Bankruptcy
Code to deal with mass tort bankruptcies, I provided assistance to various Congressional staff
people.
tried to help them understand the issues involved and to evaluate the various statutory
the time the Commission was formed, mass tort bankruptcies were chief among the items on its
agenda. Congress had recently passed 11 U.S.C. 524(g) dealing with mass tort problems
exclusively in the asbestos industry, but several people in Congress hoped that the Commission
would develop a more comprehensive approach to replace that section. In 1995, Congressman
Mike Synar was appointed to lead the Commission. When Congressman Synar asked me to be
the Adviser to the Commission, he specifically asked if I would develop proposals and write a
report for the Commission on mass tort bankruptcies. I agreed. When the Commission formed
working groups, I assisted the mass tort group, supervised the research on the subject, developed
an agenda to consider mass tort issues, prepared a number of position papers, invited witnesses
and participants to Commission meetings, and helped craft a proposal that was ultimately
adopted unanimously by the Commissioners. That report is now published as part of the
Commission's final report. REPORT OF THE NATIONAL BANKRUPTCY REVIEW
COMMISSION, Treatment ofMass Future Claims in Bankruptcy 2
9.
In the past few years, I have continued my academic research on mass tort
bankruptcies. I gave an address, for example, in 1999 at the Manhattan Institute on the
connection between bankruptcy and mass tort reform. The Institute asked for permission to
publish those remarks. In 1993, I organized and moderated a conference that brought together
academics, judges, and practitioners at the University of Pennsylvania on the subject of mass
torts and bankruptcy In 1995, I spoke at the Federal Reserve Bank in Philadelphia about mass
tort bankruptcies. From 1995 through 2000, I have taught the subject of mass tort bankruptcies
at Harvard's Practicing Law Institute as part of the course on Business Bankruptcy. I have
taught the issues related to mass tort bankruptcies in my advanced Chapter 1 seminars at the
University ofTexas, the University ofPennsylvania and the University of Texas. At Harvard
Law School I have supervised senior honors theses and master's theses on mass torts in
bankruptcy. Each time I have spoken or supervised a student, have reviewed the published
cases and scholarly literature on mass tort bankruptcies.
10.
Moreover, every year since 1983, I have given a lecture at the University of Texas
n the annual bankruptcy program. My topic, shared with Professor Jay Westbrook, has always
been, "Recent Developments." To prepare for this, I read the even-numbered volumes of the
bankruptcy reporter that have been published during the year while Professor Westbrook reads
the odd-number volumes. We both write squibs on interesting cases, and then write on four or
five topics each in greater detail. Those longer pieces become the basis for an oral presentation
as well. In several of those years, I have spoken on one or another topics related to mass tort
bankruptcies. Both the squibs and the extended discussions are published each year by the CLE
program sponsors.
In addition to these academic and legislative activities, have consulted with a
number of companies on mass tort issues. I served in an advisory capacity to Dow Chemical, the
parent company ofDow Coming, in the early days of the Dow Coming bankruptcy I have
assisted the Johns Manville 'rust and the National Gypsum Trust in appellate litigation. I have
been an expert witness on behalf of the National Gypsum Trust and the Fuller Austin trust.
These trusts were formed as part ofthe confirmation of a plan of reorganization in mass tort
asbestos bankruptcies. I have assisted in the preparation for petitions for certiorari to the United
States Supreme Court in two cases involving future claims, one in an environmental context and
one in an employee liability context. I have argued a case on behalf of Fairchild Aviation, an
airplane manufacturer facing future claims liability. I have filed an amicus brief in future claims
litigation involving Piper Aircraft.
12.
proceedings involving the Babcock & Wilcox Company, Pittsburgh Coming Corporation, Owens
Coming Corporation, Armstrong World Industries, Inc., W.R. Grace & Company, G-1 Holdings,
Inc., United States Gypsum Corporation, Federal-Mogul Global, Inc. and North American
Refractories Company.
13
Based on all of the above. I am unaware ofhaving any connection with Kaiser
Aluminum Corporation. et al., their creditors, the United States Trustee, or any other party, or
their respective attorneys or accountants.
14.
counsel to the firm of Caplin & Drysdale. Harvard Law School expressly prohibits faculty
members from forming such relationships. The law school policy is unambiguous: 'Faculty
members should not be partners in law firms or be held out as 'of counsel'... Harvard Law
School, Faculty Manual2001-2002 (August 1, 2001). I believe this policy is fairly standard in
law schools throughout the country, although it is not strictly enforced at all schools. It is,
however, strictly enforced at Harvard Law School.
15
do not share any compensation with Harvard Law School or Harvard University
that I receive when I consult. Neither Harvard Law School nor Harvard University have any
financial interest of any kind in my employment. Harvard University understands that faculty
members may participate in a broad range of outside activities, and it specifically acknowledges
the benefits that consulting and advising may produce. See Appendix A, Harvard Law School
Guidelines for Reporting. The university also understands that faculty will be compensated for
such work. It asks for no part of the compensation received, but instead imposes a limit on the
amount of time that faculty members may spend in such consulting activities. See Appendix A.
16.
In addition, Harvard University limits the time each faculty member spends on
outside activities to twenty percent of a faculty member's total professional effort. See Appendix
A. The University requires that each faculty member report annually the time spent on outside
activities. Outside activities requiring reporting include litigation and litigation related
activitie~
advising, consulting, counseling, lectures and conferences, and commissioned research While
-Iarvard University has extensive rules governing the reporting of outside activities, it asks for no
information of any kind about the identity of those with whom a faculty member consults or on
whose behalf such work is undertaken. Reporting forms have only the time spent and the type 01
activity; there is no space available to report the identities of any ofthe involved parties. I have
made no disclosures to Harvard University or Harvard Law School about my outside activities
other than the time spent, and I expect to make no such disclosures in the future.
17.
Jaw School.
Harvard Law School. I do not represent Harvard University or Harvard Law School as counsel
With the exception of a few private donors whom I know personally and what I occasionally read
in the newspapers, do not know who donates to Harvard University or Harvard Law School. I
do not know what companies are included within Harvard University's investment portfolio.
have no information to suggest that Kaiser Aluminum Corporation or any of its affiliates is one
of Harvard University's donors or in Harvard University's investment portfolio.
18.
Subject to the Court's approval, my hourly rate in this case will be $675. My
customary billing rate is $700. I have been working, writing, teaching, lecturing, and consulting
in the bankruptcy field for twenty-two years. My fee is commensurate with other professionals
of similar experience.
19.
I will maintain strict billing records to account for time spend in the service of the
Committee in these proceedings. When I undertake any work at the request of Caplin &
Drysdale, I will ask for the name of the committee on whose behalf will be working, and I will
keep records accordingly that will distinguish such time and work from any other case or matter
upon which I work, including but not limited to the other asbestos-related bankruptcies on which
I am working with Caplin & Drysdale. To facilitate the administrative process and to minimize
the my administrative time, in light of my limited role, Caplin & Drysdale will incorporate my
time entries in its billing statement and will bill for my services as part of the Caplin &
Drysdale's monthly and quarterly fee applications.
20.
It is anticipated that I will provide very limited services in this Bankruptcy Case.
In general, my billable hours will not exceed ten hours per month and usually will be
significantly less. I will work with Caplin & Drysdale as a consultant in this bankruptcy case
providing advice and guidance to the Committee through the Caplin & Drysdale firm, as well as
to the other asbestos-related bankruptcy cases in which Caplin & Drysdale is counsel to the
committees representing asbestos personal injury claimants. Generally, wilJ focus my efforts in
assisting Caplin & Drysdale with respect to the Plan of Reorganization process. I may, however,
be consulted by Caplin & Drysdale on other technical issues that may arise in the course of the
case.
In accordance with section 504 of the Bankruptcy Code and rule 2016(b) of the
Bankruptcy Rules, no division of compensation has been or will be made by Caplin & Drysdale
and me.
22.
have not entered into any agreements, express or implied, with any other party in
interest, including the Debtors, attorneys for the Debtors, any creditor, or any attorney for such
party in interest for compensation to be paid from the assets of the estate rendered in connection
with this case in excess of the compensation allowed by law
WHEREFORE, respectfully request that this Court enter the order filed concurrently
herewith authorizing the employment nunc pro tunc effective as of February 25, 2002, of Caplin
& Drysdale as national counsel to the Committee and Professor Elizabeth Warren as special
Elizabeth Warren
SWORN to and subscribed before me
10
August 2001
ELIZABETH WARREN
Leo Gottlieb Professor of Law
Harvard Law School
Academic Appointments
Harvard Law School. 1995-present: Lc.o Gottlieb Professor ofLaw; 1992-93: Robert
Braucher Visiting Professor of Commercial Law.
The University of Pennsylvania Law School. 1990-1995: William A Schnader Professor
of Commercial Law; 1987-1990: Professor of Law.
The University of Texas School of Law. 1986-87: Jay H. Brown Centennial Fellow in
Law; 1983-1987: Professor ofLaw. 1985-86: Conoco Faculty Fellow in Law; 1981-82:
Visiting Associate Professor of Law.
The University of Texas at Austin. 1983-87: Research Associate, Population Research
Center.
The University of Houston Law Center. 1981-83: Associate Professor of Law; 1978-80:
Assistant Professor of Law; 1980-81: Associate Dean for Academic Affairs.
The University of Michigan. 1985: Visiting Professor of Law
Rutgers School of Law (Newark). 1977-78: Lecturer in Law
Teaching Fields
Pu blicatioos
(With Sullivan and Westbrook) THe FRAGILE MIDDLE CLASS: AMERICANS IN DEBT
(Yale University Press 2000).
(With Westbrook) THE LAW OF DEBTORS AND CREDITORS (Little, Brown &Co. 1986).
SUPPLEMENT TO THE LAW Of DEBTORS AND CREDITORS (1990). THE LAW OF DEBTORS
AND CREDITORS (Little, Brown & Co. 2d cd. 1991, 2"d ed. 1991, Aspen 3rd ed. 1996, 4 1h
ed. 2001 ).
(With Westbrook) TEACHERS MANUAL, THE LAW OF DEBTORS AND CREDITORS (Little,
Brown & Co. 1986, 2"4 ed. 1991, Aspen 3fd ed. 1996, 4 1h ed. 2001 ).
(With LoPucki) SECURED TRANSACTIONS: A SYSTEMS APPROACH (Little, Brown & Co.
1995, Aspen 2d. Ed. 1998, 3d ed. 2000).
(With LoPucki) TEACHERS MANUAL, SECURED TRANSACTIONS: A SYSTEMS APPROACH
(Little, Brown & Co. 1995, Aspen 2d. ed. 1998, 3d. ed. 1998, 3d. ed. 2000).
1997).
BUSINESS BANKRUPTCY (Federal Judicial Center 1993).
(With Sullivan and Westbrook) AS WE FORGIVE OUR D EBTORS: CONSUMER CREDIT AND
BANKRUPTCY IN AMERICA (Oxford University Press
1989).
Book Chapters
Evaluate the Present and Shape the Furure, in THE DEVELOPMENT OF BANKRUPTCY &
REORGANJZA TION LAW IN THE COURTS OF THE
(With Sullivan and Westbrook) Bankruptcy and the Family, in FAMIUES AND LAW (L.
Macintyre, M . Sussman eds. Haworth Press 1995).
Reports
(With Sullivan and Westbrook) '1Une Prosperite PrecaireSur les situations flnancieres
critiques dans la classe moyenne," 138 Actes de la Recherche en Sciences Sociales 19
33 (Juin 2001) (abstracts in French, English, German, and Spanish).
(With Jacoby and Sullivan) Rethinking the Debates over Health. Care Financing:
Rvidencefrom the BanJ...ruptcy Courts, 76 NEw YoRK UNlVF.RSlTY LAW REVIEW 375
(2001 ).
(With Jacoby and Sullivan) Medical Problems and Bankruptcy Filings, NoRTON
BANKRUPTCY LAW ADVISOR 1 (May 2000).
(With Westbrook) Financial Characteristics ofBusinesses in Banlrruptcy, 73 AMERICAN
BANKRUPTCY LAW JOURNAL 499 (1999).
The Changing Politics ofAmerican Bankrupu.y Reform, 37 OSGOODE HALL LAW
189 (Symposium Spring/Summer 1999).
JouRNAL
1 (October 1999).
101(1998).
(With Sullivan and Westbrook) The Persistence ofLocal Legal Culture: Twenty Years of
Evidettcefrom the Bankruptcy Courts, 17 HARVARD JOURNAL OP LAW & PUBLIC POLICY
801 (1994).
(With Sullivan and Westbrook) Consumer Debtors Ten Years Later: A Financial
Comparison ofConswner Bankrupts 1981-91,68 AMERICAN BANKRUPTCY LAW
JOURNAL 121 (1994).
(With Sullivan and Westbrook) Baby Boomers and the Bankruptcy Boom, NORTON
BANKRUPTCY LAW ADVISOR l(April1993).
171e Untenable Case For Repeal of Chapter 11, 102 YALE LAW JOURNAL 437 (1992).
Why Have a Federal Bankruptcy System?, 77 CORNELl.. LAW REVIEW 2401 (1992).
A T1zeory ofAbsolute Priority, 1991 NEW YORK UNIVERSITY ANNUAL SURVEY OF
AMERICAN LAW 9.
Absolute Priority, New Value, and 17zeories of Bankruptcy, 1990 N.C.B.J. 1125 (1990).
(With Sultivan and Westbrook) Laws, Atfodels, and Real People, 13 LAW AND SOCIA
INQUIRY 661 (1988).
(With Sullivan and Westbrook) The Role ofEmpirical Data in Formulating a National
Bankruptcy Policy, 50 LAW AND CONTEMPORARY PROBLEMS 195 (1987).
(With Sullivru1 and Westbrook) Folklore and FacLs: A Prelimina1y Report from The
Consumer Bankruptcy Project, 60 AMERlCAN BANKRUPTCY LAW JOURNAL 293 ( 1986).
(With Sullivan and Westbrook) Rejoinder: Limiting Access co Banbuptcy Discharge,
1984 WISCONSIN LAW REVIEW 1087.
Reducing Bankruptcy Protection for Consumers: A Response, 72 GEORGETO'WN LAW
JoURNAL 1333 (1984).
(With Sullivan and Westbrook) Limiting Access to Bankruptcy Discharge: An Analysis of
the Creditors' Data, 1983 WISCONSIN LAW REVIEW 1091.
Formal and Operative Rules Under Common Law and Code, 32 UCLA LAW REVIEW
898 (1983).
Trade Usage and Parties in the Trade: An Economic RatioHale for an Inflexible Rule, 42
PITTSBURGH LAW REVIEW 515 (1982).
Regulated Industries' Automatic Cost of Service Adjustme11t Clauses: Do They I11crease
or Decrease Cost to the Consumer?, 55 NOTRE DAME LAWYP.R 333 (1980).
Tax Accounting in Regulated Industries: Limitations on Rate Base Exclusions, 31
RUTGERS LAW REVIEW 187 (1978).
Anti-Women Bankruptcy Bill May Be Veto-Proof, 'Women's Enews (December 14, 2000)
Commentary: Don't Link Bankruptcy, Domestic Violence Bills, Women's Enews
(October 4, 2000)
"Homeowners in Banlauptcy: The Hidden Costs of Predatory Lending," testimony before
the Predatory Lending Joint Task Force of the Department of Housing and Urban
Development, May 25, 2000.
Banhuptcy Reform Targets the Little Guy, Star Ledger, Perspectives (February 2, 2000).
The New Women's Issue: BanJ.cruptcy Law, Christian Science Monitor (September 10,
1999).
Banlo"Upt? Pay Your Child Support First, New York Times A19 (April27, 1998).
"Bankruptcy Refonn," testimony before the Joint Hearing ofthe Subcommittee on
Administrative Oversight and the courts and the Subcommittee of the Commerc1a.l and
Adminlstrative Law, March 11, 1999.
In Serious Jeopardy: Lies v. Unadulterated Statistics Muddle Bankroptcy Reform,
Chicago Tribune 21 (March 19, 1998).
How I Write, 4 SCRIBES JOURNAL OF LEGAL WRITING 71 (Symposium Issue) (1994).
Chapter 11 Report, NATIONAL BANKRUPTCY CONFERENCES' CODE REVIEW PROJl3CT,
REFORMING THE BANKRUPTCY CODE 265 (Reporter 1994).
"Consumer Credit Industry," testimony before the House of Representatives Com.mittee
on Banking and Coinage, Subcorrunittee on Consumer Affairs, Hearings published in
Congressional Record and Committee Hearings Report, September 10, 1992.
Bankruptcy is a Better Altemative, (opinion piece) NATIONAL LAW JOURNAt (April 20,
1992).
(With Sullivan and Westbrook) What We Really Said About Chapler 13, 5 NATIONAL
ASSOCIATION OF CHAPTER 13 TRUSTEES QUARTERLY 18 (April, 1992).
"The Bankruptcy Code and Individual Debtors," testimony before the Sena.le Judiciary
Committee, Subcommittee on Courts and Administrative Practices, Hearings published in
Congressional Record and Committee Hearings Report, July, 1991.
Book Review, The Law of Letters of Credit: Commercial and Standby Credits, 48 TEXAS
BAR JOURNAL 216 (1985).
LENDING OFFICERS MANUAL (Revision) (for Texas Bankers Association 1984).
(With Sullivan and Westbrook) Ban!o-uptcy Judges and Banlauptcy Lawyers, 79TH
ANNUAL REPORT Of 'fl-IE AMERICAN SOCJOLOGICAL ASSOCIATION (1984).
Brown Award for Judicial Scholarship and Education, Federal Judicial Center ( 1998)
CommendationjoJ Service, American Banlauptcy Board of Certification (1998)
.,
Fifty Most lnflu.ential Women Attorneys, National Law Journal (March 30, 1998)
Commendation/or Outstanding Public Service, American College of Bankruptcy (March
14, 1998)
The Alben A. Sacks-Paul A. Freund Award for Teaching Excellence, Harvard La.w
School, .Tune 1997
Competitive Grants
Robert Wood Johnson Foundation, Research Grant for Empirical Study entitled
"Medical Bankruptcy: A Study of Financially Catastrophic lllness."
Ford Foundation, Research Grant for Empirical Study entitled "Homeownership
and Financial Distress: The Interplay of Tax, Real Estate and Bankruptcy Laws."
1994- National Bankruptcy Conference, Research Grant for Empirical Study of
1998 Business Bankruptcy.
Bankruptcy.
1986
Ba.r Membe-rships
11