Third Circuit Sets Standard for Appointment of Future Claims Representatives in Asbestos Bankruptcy Cases

Summary

This article discusses a recent decision addressing the standard for the appointment of a future claims representative (FCR). Unlike professionals retained in a Chapter 11 case by trustees, debtors, or official committees, the Bankruptcy Code provides little guidance regarding the appointment of a representative for future claimants in a Chapter 11 case involving the establishment of a trust to pay the claims of asbestos creditors. Only a handful of court rulings have addressed this question, and until recently, no circuit court of appeals had weighed in on the issue.