Note:
Margaret I. Lyle, Mass Tort Claims and the Corporate Tortfeasor: Bankruptcy Reorganization and Legislative Compensation Versus the Common-Law Tort System, 61 TEXAS L. REV. 1297 (1983).
 

Abstract:
This Note examines the impact that strict products liability theories have on the financial health of large corporations. The author uses the example of Johns-Manville, a maker of asbestos that while financially healthy filed for Chapter 11 bankruptcy protection because of thousands of products liability lawsuits related to asbestos-related worker diseases. The author raises two questions: (1) whether the Chapter 11 bankruptcy process is the appropriate way to handle the conflicting goals of tort compensation and economic health for large corporations, and (2) if the bankruptcy process is not appropriate, whether a statutory compensation system can deal with mass tort liability better than the current system. The author concludes that bankruptcy is appropriate if a corporation is facing only claims from a single incident, but not in any other cases. In these cases, the author proposes several solutions that depend on the specific circumstances of the lawsuits and their economic impact.