Document Type

Essay

Degree Name

Master of Laws

Abstract

Companies in the United States have increasingly turned to reorganization under Chapter 11 of the Bankruptcy Code to resolve mass tort claims. Despite this experience, Australian companies have hesitated to use similar processes to achieve the same goal. Instead, mass tort liability continues to be resolved through traditional class action litigation. This essay argues that such hesitation is unfounded and that the creditors’ scheme of arrangement process in Part 5.1 of the Corporations Act 2001 (Cth) provides not only an appropriate method for resolving mass tort liability, but one which is in many respects superior to a Chapter 11 reorganization. Accordingly, it advocates for increased use of creditors’ schemes by Australian companies as a means of fairly and finally resolving mass tort liability.

Disciplines

Bankruptcy Law | Law | Torts

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