Judge to rule on Dow Corning's bankruptcy plan

U.S. Bankruptcy Judge Arthur Spector's ruling comes four months after his hearings on the Midland-based company's $4.5 billion plan to emerge from bankruptcy, sought after thousands of women sued over implants.

Spector has said his ruling would focus on one the settlement's most contentious parts - a provision barring further lawsuits against Dow Corning's corporate parents - Dow Chemical Co. and Corning Corp. - over silicone breast implants. He also said he will consider the settlement's ban on punitive damages.

The implants settlement provides $3.2 billion to settle claims from 170,000 women who say their implants caused various illnesses. The bankruptcy plan also includes $1.3 billion to settle other claims, including those from creditors and health-care organizations.

Yesterday, Dow Corning spokesperson T. Michael Jackson said the company believed Spector would confirm the bankruptcy plan and implant settlement, the latter already approved by 94 percent of 112,774 women in the case.

Beyond that, Jackson said, "I wouldn't want to speculate at all" about what Spector might rule, including possible blanket or partial approval of the reorganization plan.

"It would be difficult not to approve the plan," he said. "It's anticipated the plan will be confirmed."

Objectors to the plan include 50 women with implants from Nevada, where that state's Supreme Court has upheld a civil decision against Dow Chemical. Geoffrey White, a lawyer for those women, argues the settlement takes away their right to sue, making it "patently illegal and unconstitutional."

"We're hopeful, based on (Spector's) comments throughout the (July) hearing, that he either rejects the plan despite the momentum behind it or carves out the Nevadans from the plan," White said.

White said a Spector ruling unfavorable to his clients would prompt his appeal to the 6th U.S. Circuit Court of Appeals in Cincinnati, then to the U.S. Supreme Court if necessary.

His question: "Does Judge Spector have the power to approve the plan that in one fell swoop wipes out (his clients') constitutional rights?"

Kenneth Eckstein, a lead attorney for the bulk of U.S. women who sued Dow Corning, did not immediately return a telephone message left yesterday.

Dow Corning, which no longer makes silicone breast implants, declared bankruptcy in 1995 after thousands of women sued over implants they said made them sick.

According to a settlement worked out between the company and attorneys for many of the women, those who blame illnesses on Dow Corning silicone breast implants could get between $12,000 and $300,000 each. Women also can get up to $25,000 for ruptured or leaking implants, and up to $5,000 for implant removal.

Women who have no problems with their Dow Corning implants but still filed claims against the company also can settle for $2,000 with no questions asked. The plan lets women file claims for 15 years after it goes into effect.

And it covers claims for women whose implants were made by other companies but filled with Dow Corning silicone gel.

The plan also provides a pool of up to $400 million for individual claims, allowing women who choose to reject the offer to file lawsuits on their own.

Dow Corning estimates about 179,000 women around the world are covered under the settlement.

11-30-99