A federal appeals court on Friday ruled that Owens Corning Sales LLC could be liable for allegedly-defective roof shingles, even though the company has been through a bankruptcy reorganization, Reuters reported on Friday. The U.S. Court of Appeals for the Third Circuit in recent years has expanded the types of claims that a company can shed in bankruptcy, but the court on Friday reinstated product-liability claims against the building-materials maker that came to light after it emerged from bankruptcy. Owens Corning entered bankruptcy proceedings in 2000, in the face of significant asbestos liability. The company published notices in the New York Times, the Wall Street Journal, USA Today and other media outlets, calling for any outstanding claims to be filed. A bankruptcy court confirmed the company's plan in September 2006, and extinguished all claims that arose before the confirmation date. Two customers, Patricia Wright and Kevin West, discovered leaks in their Owens Corning roofs from split shingles in 2009 and sued the company for fraud, negligence, strict liability and breach of warranty. A three-judge panel of the 3rd Circuit acknowledged that it had to balance the goal of giving a debtor a fresh start by resolving all claims arising from its conduct before emerging from bankruptcy, and the rights of individuals damaged by that conduct who were unaware of the potential harm at the time of the bankruptcy.
