Judge Sarah S. Vance, In re The Babcock & Wilcox Co. (August 25, 2000) No. 00-0558 (E.D. Louisiana):
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"After reviewing debtor’s Notice Plan, and the objections raised to it, the Court finds that the plan is reasonably calculated to apprise unknown claimants of their rights and meets the due process requirements set forth in Mullane…. Accordingly, the Notice Plan is approved."
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After the U.S. Supreme Court rejected the prior attempted asbestos class action settlements, despite tens of millions of dollars spent on notices,
something had to change regarding the design and implementation of notice when the 2000-2001 wave of asbestos bankruptcies hit.
At that time, on behalf of the Babcock and Wilcox Co., the leading manufacturer of large commercial boilers, Hilsoft Notifications designed and implemented the first multi-national bar date notice program for In re The Babcock & Wilcox Co., No. 00-10992 (Bankr. E.D.La). The notice program, which primarily targeted men who worked around B&W commercial boilers, included network television, magazines, and newspaper coverage throughout the U.S. and Canada, plus notices in key geographic targets such as the U.K. and the Philippines. The program was further supported by internet activities which included a detailed multi-lingual website, earned media, public service announcements on radio, as well as notices delivered by third parties to claimants. When selecting television programs and publications, Hilsoft Notifications carefully ensured effective reach among the predominantly male target.
Hilsoft Notifications saved the Estate substantial sums in implementing the plan. As documented by industry data, Hilsoft Notifications television rates were less than the actual buys achieved by the average media department – including all of the largest advertising agencies.
The plan served as a model that others followed in subsequent asbestos bankruptcy programs. The Court found that the notice program met due process requirements and that the reach and frequency methodology was correct despite challenge by expert for opposition. In side-by-side comparisons, the cost to deliver strong reach among claimants proved to be lower by far than similar programs by others.