Unlike shareholders, lenders, or even the corporate debtor's employees, tort claimants often do not choose to engage in commercial transactions with corporate debtors. Rather, their claims arise because the debtor has harmed them without their consent. While courts have the authority to form creditors' committees for tort claimants, courts do not uniformly grant tort claimants' requests. This Comment argues that courts should form creditors' committees for tort claimants when corporate debtors with tort liability file for bankruptcy. First, there are strong policy reasons for forming creditors' committees for tort claimants. Second, courts need to form creditors' committees for tort claimants to ensure that tort claimants are guaranteed due process of the law. Third, forming creditors' committees for tort claimants is consistent with the case law interpreting 11 U.S.C. § 1102(a)(2). Finally, forming creditors' committees for tort claimants has practical significance.
Creditors' Committees: Giving Tort Claimants a Voice in Chapter 11 Bankruptcy Cases,
Emory Bankr. Dev. J.
Available at: https://scholarlycommons.law.emory.edu/ebdj/vol31/iss2/8