LexisNexis® Legal Newsroom
Insurer: U.S. High Court Must Vacate; Bankruptcy Courts Lack Judicial Power

WASHINGTON, D.C. - In a brief made available on Sept. 16, the Executive Benefits Insurance Agency (EBIA) argues that the U.S. Supreme Court should vacate a ruling by the Ninth Circuit U.S. Court of Appeals because Article III of the U.S. Constitution does not permit the exercise of the judicial power...

Skinner's Case Closed; Asbestos Claims Can Proceed Against Insurers

PITTSBURGH - A Pennsylvania federal bankruptcy judge on Sept. 11 dismissed the 12-year-old converted Chapter 7 case of Skinner Engine Co. Inc., allowing asbestos personal injury claims to proceed against the company's lone remaining asset - insurance policies - in the tort system (In re: Skinner...

Federal Judge Compels Arbitration In Disputes Over Asbestos Insurance Coverage

WILMINGTON, Del. - Two insurance companies involved in long-running disputes with Chapter 11 debtor The Flintkote Co. over coverage for asbestos claims are bound by an "expansive" 28-year-old agreement to participate in arbitration to resolve the disputes, a Delaware federal judge held Sept...

9th Circuit Vacates Asbestos Bankruptcy Reorganization; Says Trust Isn't In Control

SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals on Oct. 28 vacated the bankruptcy reorganization plan for a former asbestos insulator, finding that the plan failed to satisfy the requirements of Section 524(g) of the Bankruptcy Code dealing with control by asbestos trusts (In Re: Plant Insulation...

Bankruptcy Judge Denies Reconsideration Of Pittsburgh Corning Plan Confirmation

PITTSBURGH - A Pennsylvania federal bankruptcy judge on Nov. 12 mostly denied a motion by two insurance companies to reconsider confirmation of Pittsburgh Corning Corp.'s Chapter 11 plan of reorganization, granting the request only to make clear what affiliates of the debtor are protected from asbestos...

California Federal Judge Dismisses Insurer's Coverage Action Against Flintkote

SAN FRANCISCO - A California federal judge on Nov. 21 dismissed an insurer's declaratory judgment action filed against Chapter 11 debtor The Flintkote Co. to determine insurance coverage rights and obligations because the same issues were recently decided in Delaware federal court (Aviva PLC v. The...

Delaware Court: Dissolved Company's Insurance Proceeds Warrant Appointing Receiver

WILMINGTON, Del. - Undistributed insurance proceeds are the property of a company dissolved more than 10 years ago, and a receiver must be appointed to defend against asbestos actions, the Delaware Supreme Court held Nov. 26 (Anderson v. Krafft-Murphy Co., No. 85,2013, Del. Sup.).

Md. Federal Judge Interprets Insurance Coverage In Favor Of Asbestos Defendant

BALTIMORE - While two insurance companies are correct that Maryland follows the horizontal exhaustion rule for determining primary and excess policy coverage, the rule must be applied based on the theory of pro-rata allocation, as a former insulation company seeking coverage for asbestos personal injury...

Bankruptcy Judge Approves $2M Of Financing For Litigation Trust Of Insurance Subsidiaries

SAN FERNANDO, Calif. - A California federal bankruptcy judge on Jan. 7 granted an order approving $2 million of financing with regard to the litigation trust of SNTL Holdings Corp., its noninsurance subsidiaries and insurance subsidiaries (In re: Superior National Insurance, No. 00-bk-14099, C.D. Bkcy...

Creditor Of Solar Energy Company: Trustee's Deal With Insurer Should Be Denied

WILMINGTON, Del. - A creditor of bankrupt alternative energy company Abound Solar Manufacturing LLC on Jan. 22 moved in the U.S. Bankruptcy Court for the District of Delaware to oppose the trustee's motion to approve a settlement with the company's insurer for $2.2 million that would resolve...