Bankruptcy Court May Expunge 23,963 Asbestos Claims, Federal Judge Affirms

NEW YORK - A bankruptcy court properly expunged the asbestos claims of nearly 24,000 seamen after a legal clinic failed to meet a 30-day court-ordered time frame for filing civil action complaints, a federal judge in New York has affirmed. In re U.S. Lines, Inc., Asbestosis Claimants v. U.S. Lines Reorganization Trust, et al., No. 00 Civ. 3800 (RWS) (S.D. N.Y.).

U.S. District Court Judge Robert W. Sweet found the bankruptcy court's factual findings were not clearly erroneous and equitable estoppel was not warranted for appellant Maritime Asbestosis Legal Clinic's (MALC) failure to timely file the claims.

In his May …