NEW YORK - The Second Circuit U.S. Court of Appeals on Jan. 5 declined to reconsider its July decision compelling two insurance companies to pay more than $500 million to asbestos personal injury plaintiffs in Johns-Manville Corp.'s bankruptcy case under settlements reached more than 10 years ago (In re: Johns-Manville Corp., [Common Law Settlement Counsel, Statutory and Hawaii Direct Action Settlement Counsel and Asbestos Personal Injury Plaintiffs v. The Travelers Indemnity Company and Travelers Casualty and Surety Company, FKA Aetna Casualty and Surety Company], Nos. 12-1094, 12-1150 and 12-1205, 2nd Cir.).
NEW YORK - A reinsurer in liquidation told the Second Circuit U.S. Court of Appeals on Dec. 19 that a trial court judge erred when considering a motion to dismiss because the judge allegedly made inferences in favor of the defendant/reinsureds instead of the plaintiff/reinsurer (Mariah Re Ltd. [In Liquidation], acting by and through Geoffrey Varga and Jess Shakespeare, in their capacities as Liquidators thereof v. American Family Mutual Insurance Company, et al., No. 14-4062, 2nd Cir.).
NEW YORK - Although claimants asserted non-bankruptcy claims for violation of the Truth In Lending Act (TILA) and the Real Estate Settlement Procedures Act, a New York federal judge on Dec. 18 found that proofs of claim asserted against a bankruptcy entity should be decided by a bankruptcy court (Ronald A. Eriksen, et al. v. Residential Capital LLC, et al., No. 14-CV-7205, S.D. N.Y.; 2014 U.S. Dist. LEXIS 175001).
LONDON - Imperial Tobacco Canada, a subsidiary of British American Tobacco, will pay $575 million to settle asbestos-related litigation involving The Flintkote Co., the company announced Dec. 16 in a news release.
PROVIDENCE, R.I. - Any evidence gleaned from deposing an asbestos trust representative would be cumulative of and more easily obtained through the trust's governing documents, a Rhode Island judge held Dec. 16 (Maureen Gallagher, et al. v. American Insulated Wire Corp., et al., No. PC11-5269, Constance Podedworny, et al. v. American Insulated Wire Corp., et al., No. PC11-5268, R.I. Super., Providence Plantation; 2014 U.S. Dist. LEXIS 174226).
NEW YORK - A New York justice on Dec. 16 granted New York's superintendent of financial services' petition for an order to liquidate an insurer (In the Matter of UHAB Mutual Insurance Company, No. 452618/2014, N.Y. Sup., New York Co.).
DAYTONA BEACH, Fla. - A Florida appellate panel on Dec. 12 affirmed a lower court decision compelling appraisal of alleged sinkhole damage to a home insured by an insolvent insurer (Florida Insurance Guaranty Association v. Kenneth Sill, et al., No. 5D13-3363, Fla. App., 5th Dist.; 2014 Fla. App. LEXIS 20156).
HOUSTON - A federal judge in Texas on Dec. 16 stayed a suit against an insolvent insurer, noting that the liquidating court had ordered the end of all litigation against the insolvent insurer (Air Tropiques, S.P.R.L. v. Northern & Western Insurance Company, Ltd., et al., No. 13-cv-01438, S.D. Texas).
NEW YORK - Enforcement of a sale order and injunction entered as part of General Motors LLC's (New GM) acquisition of the assets of General Motors Corp. (Old GM) will violate the due process rights of plaintiffs in the ignition switch litigation against New GM, a group of GM vehicle owners argue in a memorandum filed Dec. 16 in the U.S. Bankruptcy Court for the Southern District of New York (In re: Chapter 11 Motors Liquidation Co., et al., f/k/a General Motors Corp., et al., No. 09-50026, S.D. N.Y. Bkcy.).
NEWARK, N.J. - The New York City Housing Authority's (NYCHA) attempt to recoup $500 million from reorganized building products company G-I Holdings Inc. for abatement of asbestos property damage should be rejected because the authority cannot support its allegations that asbestos products installed in its buildings are inherently dangerous to tenants or that the dangers of the products create a duty to abate in the interest of public safety, G-I argues in a Dec. 15 brief supporting a motion for summary judgment in New Jersey federal bankruptcy court (In re: G-I Holdings, Inc., et al., Nos. 01-30135 and 01-38790, D. N.J. Bkcy.).
WILMINGTON, Del. - Chapter 11 debtor Yarway Corp. and its corporate parent will pay $325 million to fund an asbestos personal injury trust in return for protection from all claims alleging that Yarway's products caused asbestos injuries, according to a term sheet filed Dec. 12 in Delaware federal bankruptcy court for a settlement on a consensual plan of reorganization for the debtor (In re: Yarway Corporation, No. 13-11025, D. Del. Bkcy.).
CHARLOTTE, N.C. - A North Carolina federal bankruptcy judge on Dec. 9 denied a request by the committee representing asbestos claimants in Garlock Sealing Technologies LLC's bankruptcy case to reopen the record of the hearing held to estimate Garlock's asbestos liability, rejecting the committee's contention that new evidence shows that Garlock committed a fraud upon the court (In re: Garlock Sealing Technologies, LLC, No. 10-31607, W.D. N.C. Bkcy.).
WILMINGTON, Del. - The Delaware federal court and federal bankruptcy court on Dec. 10 both approved a plan of reorganization for Chapter 11 debtor Specialty Products Holding Corp. and affiliates after the plan, which establishes two asbestos personal injury trusts totaling nearly $800 million, was accepted by more than 99 percent of asbestos claimants and received no objections (In re: Specialty Products Holding Corp., et al., No. 10-11780, D. Del. Bkcy.; In re: Specialty Products Holding Corp., et al., No. 14-246, D. Del.).
WILKES-BARRE, Pa. - A Pennsylvania federal bankruptcy judge on Dec. 8 confirmed a plan of reorganization for Chapter 11 debtor United Gilsonite Laboratories' (UGL) that establishes a trust containing more than $35 million to resolve current and future asbestos personal injury claims (In re: United Gilsonite Laboratories, 11-2032, M.D. Pa. Bkcy.).
SACRAMENTO, Calif. - A federal judge in California on Dec. 2 denied the motion of two insolvent insurers' insured to stay a $90,000 judgment while awaiting a decision in a case pending in a New York liquidation proceeding (Dale M. Wallis, D.V.M., et al. v. Centennial Insurance Company Inc. and Atlantic Mutual Insurance Company Inc., No. 08-2558, E.D. Calif.; 2014 U.S. Dist. LEXIS 167043).
BOISE, Idaho - After finding that an order granting summary judgment for several banks and mortgage entities was not entered in violation of an automatic stay related to a bankruptcy petition, an Idaho federal judge on Nov. 26 found that the order was not void and refused to reconsider the decision (Curtis W. Johnson, et al. v. Bank of America N.A., et al., No. 1:11-CV-0042, D. Idaho; 2014 U.S. Dist. LEXIS 165881).
HARRISBURG, Pa. - The liquidator of Reliance Insurance Co. applied with a Pennsylvania court on Nov. 24 for approval of a settlement and commutation agreement with an excess workers' compensation reinsurer (In re: Reliance Insurance Co. in liquidation, No. 1 REL 2001, Pa. Cmwlth.).
CHICAGO - The alleged assignee of certain rights of an insolvent insurer asked the Second Circuit U.S. Court of Appeals on Nov. 21 for a rehearing en banc of the court's decision denying the appeal of a lower court's dismissal of a motion to compel an international reinsurer to arbitrate a payment dispute (Pine Top Receivables of Illinois, LLC v. Banco De Seguros Del Estado, No. 13-1364, 7th Cir.).
NEW YORK - A New York justice issued an order to show cause on Nov. 14 asking for responses on why a New York insurer should not be liquidated (In the Matter of UHAB Mutual Insurance Company, No. 452618/2014, N.Y. Sup., New York Co.).
NEW YORK - Two feeder funds of Bernard L. Madoff Investment Securities LLC (BLMIS) will pay nearly $500 million to settle all claims associated with their role in Madoff's massive Ponzi scheme, according to court documents filed Nov. 17 in New York federal bankruptcy court (Securities Investor Protection Corp. v. Bernard L. Madoff Investment Securities LLC, No. 08-01789, [Irving H. Picard v. HSBC Bank PLC, et al., No. 09-1364] S.D. N.Y. Bkcy.).
CHARLOTTE, N.C. - A North Carolina federal judge on Nov. 12 remanded a request by Ford Motor Co. and 11 other parties for access to asbestos claimant information contained in statements filed in Garlock Sealing Technologies LLC's Chapter 11 case under Federal Rule of Bankruptcy Procedure 2019 so a bankruptcy judge can enter a consent order granting access to the information (Ford Motor Company, et al. v. Official Committee of Asbestos Personal Injury Claimants, No. 14-401, W.D. N.C.).
NEW YORK - A federal judge in New York on Nov. 10 adopted a bankruptcy judge's report and recommendation suggesting the final approval of a proposed $5.2 billion settlement that would resolve claims brought by the federal government against Kerr-McGee Corp. and its parent company Anadarko Petroleum Corp. over cleanup of contamination at Superfund sites in Ohio and New Jersey and 50 abandoned uranium mines in the Navajo Nation (In re Tronox Inc. v. Anadarko Petroleum Corp., No. 14-cv-5495, S.D. N.Y.; 2014 U.S. Dist. LEXIS 158767).
CHICAGO - A Seventh Circuit U.S. Court of Appeals panel on Nov. 7 affirmed a lower court decision and said certain reinsurance agreements merely show what debt is allegedly owed by a reinsurer but do not transfer the right to arbitrate that debt to the alleged assignee of certain rights of an insolvent insurer (Pine Top Receivables of Illinois, LLC v. Banco De Seguros Del Estado, No. 13-1364, 7th Cir.; 2014 U.S. App. LEXIS 21296).
CHARLOTTE, N.C. - The committee representing asbestos claimants in Garlock Sealing Technologies LLC's bankruptcy case on Nov. 7 accused Garlock of fraudulently withholding evidence for last year's hearing to estimate Garlock's asbestos liability and asked a North Carolina federal bankruptcy court to reopen the hearing. Garlock responded the same day that the committee's request should be denied because the committee had access to the evidence in question and fails to rebut the basis for the bankruptcy court's estimation ruling (In re: Garlock Sealing Technologies, LLC, No. 10-31607, W.D. N.C. Bkcy.).
NEW YORK - A New York justice on Oct. 27 issued an order to show cause why Eveready Insurance Co. should not be placed into liquidation (In the Matter of the Eveready Insurance Company, No. 160307/2014, N.Y. Sup., New York Co.).