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Bankruptcy Keyed to Bussel, 12th Ed.
A.H. Robins Co. v. Piccinin
Citation:
788 F.2d 994 (1986)Facts
A.H. Robins Company manufactured and marketed the Dalkon Shield intrauterine contraceptive device from 1971 to 1974, when it discontinued sales due to mounting complaints and lawsuits. By mid-1985, approximately 5,000 Dalkon Shield lawsuits were pending against Robins, with more than half naming Robins as the sole defendant and the remainder including co-defendants. Facing large judgments, mounting legal costs, and the diversion of executive time to litigation, Robins filed for Chapter 11 bankruptcy protection in August 1985. While the bankruptcy filing automatically stayed all suits against Robins under 11 U.S.C. § 362(a), plaintiffs sought to sever their actions against Robins and proceed against co-defendants. Robins responded by seeking declaratory and injunctive relief to prevent prosecution of these actions, arguing that its insurance policy was an asset of the estate in which all claimants had an interest. The district court granted a preliminary injunction and later ordered that all Dalkon Shield personal injury cases be transferred to the Eastern District of Virginia for trial.
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