In re Congoleum Corp.
- Case Date: 6/9/2006
- Project Name: Civil Justice Reform
In May 2007, a Washington, D.C. law firm dropped its appeal from a $9 million sanction imposed on it by a bankruptcy judge based on its unethical behavior while representing a company that filed for bankruptcy in the face of massive asbestos liability litigation. The dismissal of the appeal was a victory for WLF, which in May 2006 filed a brief with the U.S. District Court for the District of New Jersey, urging it to uphold the sanction. WLF's brief argued that the law firm of Gilbert Heintz & Randolph (GHR) should be required to disgorge all legal fees it was paid during the course of bankruptcy proceedings. WLF noted that in 2005 the U.S. Court of Appeals for the Third Circuit kicked GHR off of the case based on its unethical conduct. WLF argued that GHR had done tremendous damage to the bankruptcy system by undermining public confidence in the integrity of that system, particularly with respect to asbestos-related bankruptcies.
More Information and Downloads:
6/9/2006: Download the Brief
Press Release: Court Urged to Uphold Sanction Against Asbestos Law Firm