Bankruptcy Judge Says All Members of Self-Insured Fund Must Be Part of Class Action

Question: If a self-insured group goes bankrupt, must all members shoulder a similar share of the unpaid workers’ compensation claims and other debt? By certifying the class of almost 5,000 defendants on Wednesday, U.S. Bankruptcy Judge John W. Kolwe took a big step toward a “yes” answer, at least in the case of the Louisiana Safety Association of Timbermen. The fund left as much as $70 million in unpaid claims when it shut down three years ago. Instead of filing lawsuits against each of the 4,928 former members of the fund, the bankruptcy trustee chose to file a class ...