STORY FROM: Talcum Powder Litigation Report

Pa. Federal Court: Bankruptcy Automatic Stay Doesn’t Apply to Cases Not Involving Bankrupt Debtor

PHILADELPHIA –– A Pennsylvania federal court has remanded an ovarian cancer talcum powder action, finding that the Johnson & Johnson defendants had failed to show that the lawsuit triggered Imerys Talc America’s duty to automatically indemnify the Baby Powder manufacturer.

In the June 11 opinion, the U.S. District Court for the Eastern District of Pennsylvania concluded that the defendants had not shown “related-to” jurisdiction over the underling claims.

“Possible indemnity is not automatic indemnity like a capped insurance policy setting a definite obligation without further litigation,” the court opined.

Ellen Kleiner contended in her state court complaint that she developed ...

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