Free Answering Brief in Opposition - District Court of Delaware - Delaware

Case 1:07-cv-00287-RLB

Document 16

Filed 10/01/2007

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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWAR
In re:

) Civil Action No. 07-287 RLB ) Hon. Ronald L. Buckwalter
) United States Distrct Judge
) (by special designation)

W. R. GRACE & CO., et al.
Debtors.

) Bankptcy Case No. 01-01139 (JK)

RESPONSE IN OPPOSITION TO JOINT APPELLANTS' MOTION TO SUPPLEMENT
THE RECORD ON APPEAL
The above-captioned Debtors file this response in opposition to the Joint Appellants'
Motion to Supplement the Record on AppeaL. (Dkt. No. 14)

Because Appellants' opening brief raised legal issues that were not addressed by the

Bankptcy Cour in its order disallowing the claims at issue in this Appeal,l this Court granted
Debtors leave to supplement the record on AppeaL. (Dkt. No. 13) Specifically, Debtors
designated one additional item, the transcript from the October 31, 2005 hearing, where the
Banptcy Court found that Speights & Runyan's ("S&R") role as counsel in the Anderson

Memorial South Carolina litigation did not give it authority to fie bankptcy claims. This item

was necessary, because it demonstrates that the Bankptcy Court previously rejected -- and
S&R failed to appeal -- the exact legal position that Appellants raised in their opening brief

(despite the fact that this issue was not par of the Bankptcy Court opinion being appealed).

(Dkt. No.7, p. 8)
Appellants now request leave to supplement the record by adding two items, which are
not, as Appellants contend, "necessary to address Grace's supplementation"2: (1) a March 13,

1 See Boo. Dkt. Nos. 15209, 15210.
2 Dkt. No. 14, p. 1.

DOCS_DE:

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2002, letter from David Bernick, counsel to Debtors, to the Bankptcy Cour judge, Judith K.
Fitzgerald, and (2) an August 11,2005, Affdavit of

Professor John P. Freeman, a professor at

the University of South Carolina Law SchooL. Rather than addressing the binding effects of the

Bankptcy Cour's October 2005 ruling, Appellants appear to be using their motion as an
opportity to improperly introduce new evidence that has nothing to do with the one

supplemental item added by Grace.

First, Appellants' Reply Brief uses the Freeman Affidavit to support the underlying legal
argument of

whether S&R's role as counsel to putative class claimant Anderson Memorial

actually gave S&R authority to file claims on account of individual that had been strcken from

that putative class. (Dkt. No. 15, p. 9) This is unrelated to the issue for which Grace designated
.

the October 31, 2005 transcript, namely that the Banptcy Court ruling represents the law of
the case, was not appealed in 2005, and therefore cannot be appealed now.

Second, Appellants' Reply Brief relies upon the Bernick letter to support the proposition

that "Debtors argued that In re: American Reserve Corporation set forth the guidepost for

bringing class claims into the bankptcy court." (Dkt. No. 15, p. 2). The application of a
Seventh Circuit case concerning class proofs of claim has no connection to this issue of whether
the Banptcy Court decided in 2005 that the Anderson Memorial

litigation did not give S&R

authority to fie banptcy claims.
Therefore, the Debtors request that the Court deny Appellants' Motion to Supplement the

Record on Appeal in its entirety and strke all portions of Appellants Reply that relate to or
otherwise rely upon these two items.

2
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Dated: October 1, 2007

Respectfully submitted,

KIAN & ELLIS LLP
David M. Bernick, p.e. Janet S. Baer Lisa Esayian Samuel L. Blatnick 200 East Randolph Drive

Chicago, Ilinois 60601 (312) 861-2000
And
ZIEHL & JONES LLP

Laura is Jones ( ar No. 2436)
James E. O'Neil, III (Bar No. 4042) Timothy P. Cairns (Bar No. 4228) 919 North Market Street, 17th Floor P.O. Box 8705 Wilmington, DE 19899-8705 (302) 652-4100
Co-Counsel for the Debtors and Debtors in Possession

J'

3
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IN THE UNITED STATES BANUPTCY COURT
FOR THE DISTRICT OF DELAWAR

In re:

W. R. GRACE & CO., et aI.,
Debtors.

) ) ) ) )

Civil Action No. 07-287 RLB Hon. Ronald L. Buckwalter United States Distrct Judge (by special designation)

Bankptcy Case No. 01-1139 (JKF)

CERTIFICATE OF SERVICE
I, Timothy P. Cairns, hereby certify that on the 1 st day of October, 2007, I caused

a copy of the following document to be served on the individuals on the attached service list in
the manner indicated:

Response in Opposition to Joint Appellants' Motion to Supplement the

Record on Appeal. ~ t.

Timothy P. Cairns (Bar No. 4228)

jJV ~. _

91100-001\DOCS_DE:125703.81

Case 1:07-cv-00287-RLB

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WR Grace FAX Core Group, Speights, Loizides Service List Case No. 01-1139 (JKF) October 1, 2007
Document # 130169

Facsimile 305-374-7593 Scott L. Baena, Esquire Property Damage (Official Committee of Claimants)

20 - Facsimie
Facsimile 302-426-9947 Mark T. Hurford, Esquire Marla Rosoff Eskin, Esquire Matthew G. Zaleski, III, Esquire (Counsel for Asbestos Personal Injury Claimants)
Facsimile 302-658-6548

Facsimile 212-715-8000 Philip Bentley, Esquire (Counsel for Equity Committee)

Facsimile 312-993-9767 J. Douglas Bacon, Esquire (Counsel to DIP Lender)
Facsimile 302-657-4901 Michael R. Lastowski, Esquire (Counsel to Offcial Committee of Unsecured Creditors) Facsimile 973-424-2001 Wiliam S. Katchen, Esquire (Counsel to the Offcial Committee of Unsecured Creditors)

Mark D. Collins, Esquire (Counsel for The Chase Manhattan Bank)

Facsimile 312-861-2200
Janet S. Bear, Esquire

(Counsel to Debtor)

Facsimile 302-658-6395 Steven M. Yoder, Esquire (Local Counsel to DIP Lender)

Facsimile 302-552-4295
Teresa K.D. Currer, Esquire

(Counsel to the Equity Committee)

Facsimile 302-573-6497 David Klauder, Esquire (United States Trustee)
Facsimile 410-531-4545 Mark Shelnitz (W. R. Grace & Co.)

Facsimile 202-429-3301 Peter Van N. Lockwood, Esquire Albert G. Lauber, Esquire Nathan D. Finch, Esquire Max C. Heerman, Esquire
(Counsel for Asbestos Personal Injur

Claimants)

Facsimile 212-644-6755 Elihu Inselbuch, Esquire Rita Tobin, Esquire
(Offcial Committee of

Personal Injur

Facsimile 302-655-4210 John C.. Philips, Jr., Esquire (Counsel to David T. Austern as Future
Claimants ' Representative)

Claimants)

Facsimile 212-806-6006
Lewis Krger, Esquire
(Offcial Committee of

Unsecured

Creditors)

Facsimile 202-339-8500 Roger Frankel, Esquire Richard H. Wyron, Esquire Matthew W. Cheney, Esquire
(Counsel to David T. Austern as Futue Claimants ' Representative)

Case 1:07-cv-00287-RLB

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Facsimile 302-575-1714 Michael B. Joseph, Esquire
Ferr & Joseph, P.A.

(Counsel for Property Damage Claimants)

Facsimile 803-943-4599 Daniel A. Speights, Esquire Marion C. Fairey, Jr., Esquire
(Counsel for various PD Claimants)

Facsimile 302-654-0728
Chrstopher D. Loizides, Esquire

(Counsel for Various PD Claimants)

Case 1:07-cv-00287-RLB

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W. R. Grace Email Core Group, Speights, Loizides Service List Case No. 01-1139 (JKF)
Document Number: 130168

Electronic Delivery
meskin(i¡Jel. camlev. com

20 - Electronic Delivery
(Counsel to Debtors and Debtors in Possession) Laura Davis Jones, Esquire
James E. O'Neil, Esquire

mhurford(i¡Jel. camlev. com (Local Counsel to Asbestos Claimants) Marla Eskin, Esquire Mark T. Hurford Campbell & Levine 800 North King Street, Suite 300

Wilmington, DE 19801
Electronic Delivery

Pachulski Stang Ziehl Young Jones & Weintraub LLP 919 North Market Street, 17th Floor P.O. Box 8705 Wilmington, DE 19899-8705
(Copy Service)
Parcels, Inc.

Collns(iRLF. com (Counsel for The Chase Manhattan Bank) Mark D. Collns, Esquire
Deborah E. Spivack, Esquire Richards, Layton & Finger, P .A.

Vito i. DiMaio 10th & King Streets Wilmington, DE 19801
Electronic Delivery mlastowski(¡Juanemorris. com

One Rodney Square P.O. Box 551 Wilmington, DE 19899
Electronic Delivery

mioseoh(iferrvioseoh.com (Counsel for Property Damage Claimants) Michael B. Joseph, Esquire
Ferr & Joseph, P.A.

rrilev¡Juanemorris.com
(Counsel to Official Committee of Unsecured Creditors) Michael R. Lastowski, Esquire Richard W. Riley, Esquire Duane, Morrs & Heckscher LLP 1100 North Market Street, Suite 1200 Wilmington, DE 19801-1246
Electronic Delivery

824 Market Street, Suite 904 P.O. Box 1351 Wilmington, DE 19899
Electronic Delivery
David.

svoder(havardfirm.com
(Local Counsel to D IP Lender)

Klauder(,usdoi.J!ov (United States Trustee) David Klauder, Esquire Office of the United States Trustee 844 King Street, Room 2311 Wilmington, DE 19801

Steven M. Yoder, Esquire The Bayard Firm 222 Delaware Avenue, Suite 900 P.O. Box 25130 Wilmington, DE 19899

Electronic Delivery

currier(klettroonev. com (Equity Committee Counsel) Teresa K. D. Currer Klett Rooney Lieber & Schorling
1000 West Street, Suite 1410

Wilmington, DE 19801

Case 1:07-cv-00287-RLB

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Electronic Delivery

Electronic Delivery

ibaer(kirkland. com dbernick(kirkland. com
(Counsel to Debtor) David B. Bernick, P.C. Janet Baer, Esquire Kirkland & Ells LLP 200 East Randolph Drive Chicago, IL 60601
Electronic Delivery

sbaena(ihilzin.com
Property Damage (Offcial Committee of Claimants) Scott L. Baena, Esquire Member Bilzin Sumberg Dunn Baena Price & Axelrod LLP First Union Financial Center 200 South Biscayne Blvd, Suite 2500 Miami, FL 33131
Electronic Delivery

mark.shelnitz(ijlrace.com (W. R. Grace & Co.) Mark Shelniz
W.R. Grace and Co. 7500 Grace Drive Columbia, MD 21044
Electronic Delivery IkruJ!er(~troock. com koaSQiiale(~troock.com Unsecured (Official Committee of Creditors)
Lewis Krger, Esquire

obentlev(kramerlevin.com tmaver(kramerlevin. com
(Equity Committee Counsel) Philip Bentley, Esquire Thomas M. Mayer, Esquire Kramer Levin Naftalis & Frankel LLP 1177 Avenue of the Americas New York, NY 10036
Electronic Delivery

ovnl(ißaodale.com
Ildf(Ùcaodale. com tws(i¡:aodale.com iwd(i¡:iiodale. com Peter Van N. Lockwood, Esquire Julie W. Davis, Esquire Trevor W. Swett, III, Esquire Nathan D. Finch, Esquire Caplin & Drysdale, Chartered One Thomas Circle, N.W.

Kenneth Pasquale, Esquire Stroock & Stroock & Lavan LLP 180 Maiden Lane New York, NY 10038-4982
Electronic Delivery

e~ciipdale.com
rctrapdale. com
(Official Committee of

Personal Injur

Claimants) Elihu Inselbuch, Esquire Rita Tobin, Esquire
Caplin & Drysdale, Charered
375 Park Avenue, 35th Floor

Washington, DC 20005
Electronic Delivery WSKiitchen(i¡Juanemorris.com

New York, NY 10152

(Counsel to Offcial Committee of Unsecured Creditors) Wiliam S. Katchen, Esquire Duane Morrs LLP 744 Broad Street Suite 1200 Newark, NJ 07102-3889

~

Case 1:07-cv-00287-RLB

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Electronic Delivery
carol. hennessevJw. com

(Counsel to DIP Lender) J. Douglas Bacon, Esquire
Latham & Watkins

Sears Tower, Suite 5800 Chicago, IL 60606
Electronic Delivery rfrttnkel(i,Orrick. com rwvron(i,Orrick. com mchenev(,Orrick. com (Counsel to David T. Austern, Future Claimant' s Representative)
Roger Franel

Richard H. Wyron Matthew W. Cheney Orrck Herrngton & Sutcliffe LLP 3050 K Street, NW Washington, DC 20007
Electronic Delivery

ic1JpJ!slaw.com (Counsel to David T. Austern, Future
Claimant' s Representative) Philips, Goldman & Spence, P.A.
John C. Phillps, Jr

1200 North Broom Street Wilmington, DE 19806
dsoeiJ!hts(i~oeiJ!htsriinvan. com Daniel A. Speights, Esquire Speights & Runyan (Counsel for varous PD Claimants)
loizides(iJoizides. com Chrstopher D. Loizides, Esquire Loizides & Associates (Counsel for various PD Claimants)