3rd Circuit Affirms Sua Sponte Decision to Appoint Trustee in U.S. Mineral Bankruptcy

PHILADELPHIA - A federal appeals court has ruled that a bankruptcy court did not abuse its discretion when it appointed a trustee, sua sponte, to oversee what has been characterized as a contentious asbestos-related Chapter 11 proceeding. In Re: United States Mineral Products Company v. Official Committee of Asbestos Bodily Injury and Property Damage Claimants, No. 04-1363 and 04-1433 (3rd Cir.).

In an Aug. 6 decision affirming the appointment of the trustee, the 3rd Circuit U.S. Court of Appeals held that bankruptcy laws permit judges to take extraordinary action to manage bankruptcy proceedings and that in the instant case, the …