Combustion Engineering

Montgomery McCracken represented the prevailing appellants in overturning a confirmed plan of reorganization in the landmark, unanimous decision by the Court of Appeals for the Third Circuit, In re Combustion Engineering, Inc. Our clients, a group of cancer claimants, objected to the plan for a variety of reasons, including its lack of equality of treatment among asbestos claimants and provisions enjoining and releasing claims against affiliates of Combustion Engineering that were not in bankruptcy. In settlement of their objections to the plan, and as a result of the Third Circuit’s decision, ABB Ltd., the ultimate parent of Combustion Engineering, agreed to provide an additional $204 million for the payment of asbestos claims and our clients were able to obtain changes beneficial to the treatment afforded to cancer claimants.