Judge Removed From Some Asbestos Bankruptcy Cases

Newark, NJ, May 18--A federal judge was removed from three of the five bankruptcy cases he had been overseeing involving companies sued by people exposed to asbestos. U.S. District Judge Alfred M. Wolin committed no wrongdoing and displayed no bias, but his actions gave the appearance of prejudice, the 3rd U.S. Circuit Court of Appeals in Philadelphia ruled in a 2-1 decision. Judge Wolin refused to recuse himself last year after some of those involved claimed some of his advisers had conflicts of interest. They also charged that private meetings the judge had with lawyers for various parties in the five asbestos cases raised questions about his impartiality. "We emphasize that our review of the record has not revealed the slightest hint of any actual bias or partisanship by Judge Wolin," Circuit Judge Leonard I. Garth wrote for himself and Circuit Judge D. Brooks Smith. "But the test for disqualification ... is not actual bias; it is the perception of bias," the court ruled. In his dissent, Circuit Judge Julio M. Fuentes said he doubts a reasonable person would perceive any bias by Judge Wolin, adding that the advisers had no conflicts. "I find it telling that petitioners have not asked, and the majority has not seen a need, for any of Judge Wolin's prior rulings to be disturbed," Judge Fuentes wrote. He added the private meetings didn't warrant removal. The court majority said it didn't decide that issue, but commented, "Whatever value the ex parte meetings may have had in moving the Five Asbestos Cases along or creating a settlement-friendly atmosphere was outweighed by the attendant risks and problems." The five companies that are in bankruptcy are W.R. Grace & Co. (GRA), Owens-Corning (OWENQ), Armstrong World, U.S. Gypsum and Federal-Mogul Corp. (FDMLQ). The ruling removes Judge Wolin from the Owens-Corning, W.R. Grace and U.S. Gypsum cases. The panel said it will make a decision regarding the Armstrong case after more argument. Judge Wolin remains in charge of the Federal-Mogul bankruptcy because none of its parties sought his removal. Judge Wolin was assigned the five cases in late 2001 by the chief judge of the 3rd Circuit in what Judge Wolin has described as an "unprecedented concentration of authority over nationwide asbestos litigation" for coordinated management of the complex cases. W.R. Grace and Owens-Corning opposed recusal, as did lawyers for asbestos victims. They said Judge Wolin can filter any information from the advisers that isn't objective, and that delaying the cases to assign a new judge would harm the bankrupt companies and people suffering from asbestos-related problems. Judge Wolin said he had neither a personal bias toward any party, nor personal knowledge of disputed evidence, reasons a judge must disqualify himself.