LexisNexis® Legal Newsroom
Judge Dismisses As Moot Insurers' Appeal Of Settlement In Plant Bankruptcy

SAN FRANCISCO - An appeal by nonsettling insurance companies of a $70 million settlement between Chapter 11 debtor Plant Insulation Co. and two other insurers is moot because the settlement is authorized by the U.S. Bankruptcy Code and was consummated in good faith and the nonsettling insurers never...

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...

Special Master Denies Pre-Deposition Meeting After Plaintiffs Withdraw Approval

NEW YORK - A defendant in a couple's asbestos action may not confer with a diagnosing expert in Milan, Italy, before his deposition because the plaintiffs withdrew their authorization, the special master overseeing discovery in New York held Sept. 26 (John W. Adler v. 3M Co., et al., No. 190392-2012...

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...

Magistrate Says Requested Documents Concerning Policy Exclusions Are Irrelevant

OCALA, Fla. - A Florida federal magistrate judge on Oct. 8 denied an insured's motion to compel the production of documents to determine whether two professional liability insurance policy exclusions are ambiguous, finding that the requested interpretative materials are irrelevant in a coverage dispute...

Mediator Appointed In Coverage Dispute Arising From Defective Knee Implants

GRAND RAPIDS, Mich. - A facilitative mediator was appointed in a federal court in Michigan on Oct. 21 to assist with settling a coverage dispute arising from defective knee implants (Stryker Corp., et al. v. National Union Fire Ins. Co. of Pittsburgh, PA, et al., No. 05-0051, W.D. Mich.).

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.).

Defective Product Complaints Alleged Occurrence Under Umbrella Policy, Panel Rules

PITTSBURGH - The Pennsylvania Superior Court on Dec. 3 found that underlying complaints involving defectively designed or manufactured windows and doors alleged an occurrence under a commercial umbrella insurance policy, reversing and remanding a lower court's ruling in favor of the insurer (Indalex...

Judge: Plumbing Contractor Must Reimburse Insurer $1.3M It Paid Toward Settlement

LAS VEGAS - An insurer has no duty to indemnify its plumbing contractor insured for suits arising from defective product claims, and the insured must reimburse the insurer $1,269,182.80 that it paid toward the underlying settlement, a Nevada federal judge ruled, entering judgment in favor of the insurer...

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...

Federal Judge Dismisses Insured, Insurer's Common- Law Negligence Claim

ABERDEEN, Miss. - An insured and its insurer do not sufficiently allege a common-law negligence claim against a manufacturer for allegedly defective metal coupling in piping that led to water damage, a Mississippi federal judge held Jan. 14; however, the judge refused to dismiss their claim for manufacturing...

Podiatrist Admits Lying To Grand Jury Investigating Orthofix Health Care Fraud

BOSTON - A Virginia podiatrist on Jan. 15 pleaded guilty to lying to a federal grand jury during an investigation into health care fraud and kickbacks related to bone growth stimulators sold by Orthofix Holdings Inc. (United States of America v. Ilene Terrell, No. 1:13-10180, D. Mass.).