DLA Piper: Bankruptcy Sales for Distressed Hospitals: 4 Questions to Ask Before You Begin

By Thomas R. Califano , Rachel Nanes and Daniel G. Egan Over the last several years, a wide range of healthcare companies, among them hospitals, home health agencies and continuing care facilities, have faced financial distress as a result of declining revenues, high operating costs, reduction in...

Mealey's Bankruptcy - Company Tells U.S. High Court 'Popcorn Lung' Plaintiffs Lack Standing

WASHINGTON, D.C. - A bankrupt company on Sept. 22 filed a brief in the U.S. Supreme Court arguing that individual creditors who contend that they were injured by a chemical made and sold by the company lack standing to assert their claims for "popcorn lung" because those claims are property...

Mealey's Bankruptcy - Bankruptcy Judge Denies Concrete Subcontractor's Summary Judgment Motion

CHARLOTTE, N.C. - A federal bankruptcy judge in North Carolina on Sept. 30 denied a concrete subcontractor's motion for summary judgment on a general contractor's claims for negligence, professional negligence and indemnity, ruling that the economic loss doctrine does not bar the negligence claims...

Supreme Court To Decide If Bankruptcy Lawyers Can Get Fees For Pursuing Bonus Fees

WASHINGTON, D.C. — (Mealey’s) The U.S. Supreme Court on Oct. 2 agreed to decide whether the U.S. Bankruptcy Code gives bankruptcy courts discretion to award lawyers their fees for successfully defending applications for enhanced attorney fees ( Baker Botts, LLP, et al. v. ASARCO, LLC , No...

Mealey's Bankruptcy - Judge Dismisses Insolvent Reinsurer's Claims Against Reinsured And Others

NEW YORK - A federal judge in New York on Sept. 30 granted a motion to dismiss breach of contract and other claims brought by an insolvent reinsurer against an insurer and the issuers of an allegedly falsified storm weather loss report (Mariah Re Ltd. [In Liquidation], acting by and through Geoffrey...

Mealey's Bankruptcy - Pennsylvania Judge Grants Insolvent Insurer's $7M Commutation With Reinsurer

HARRISBURG, Pa. - A Pennsylvania judge on Oct. 2 approved the liquidator of an insolvent insurer's application to terminate and commute a reinsurer's obligations to the insolvent insurer (In re: Reliance Insurance Co. in liquidation, No. 1 REL 2001, Pa. Cmwlth.).

Mealey's Bankruptcy - Federal Judge Lifts Bankruptcy Stay To Allow 2 Claims In Breach Case To Proceed

SAN JOSE, Calif. - A federal judge in California on Oct. 6 granted a motion to lift a stay of bankruptcy to allow a plaintiff to pursue two claims, including a state unfair competition law (UCL) claim, against the individual defendants in a breach of contract case for failing to deliver computers or...

Mealey's Bankruptcy - New Hampshire Justice Approves Liquidator's Settlement Of Environmental Claims

CONCORD, N.H. - A New Hampshire justice on Oct. 6 approved a $175,000 settlement agreement between a liquidated insurer's estate and the successor of certain assets and liabilities of a chemical company (In the Matter of the Liquidation of The Home Insurance Company, No. 03-E-0106, N.H. Sup., Merrimack...

Mealey's Bankruptcy - 3rd Circuit: Insurer Not Compelled To Arbitrate Based On Equitable Estoppel

PHILADELPHIA - An insurer is not equitably bound under Delaware law to arbitrate a coverage dispute with Chapter 11 debtor The Flintkote Co. because there is no evidence that the insurer "embraced" an arbitration agreement that it was not a signatory to and because the theory of detrimental...

Mealey's Bankruptcy - Breach Of Contract Suit Over Sinkhole Damage Is Time-Barred, Florida Panel Affirms

LAKELAND, Fla. - A Florida appeals panel on Oct. 10 affirmed a lower court's ruling that insureds' breach of contract and declaratory judgment lawsuit against an insurer is barred by the state's one-year statute of limitations (Madeline Betancourt, et al. v. Florida Insurance Guaranty Association...

Mealey's Bankruptcy - Court Closes Chapter 11 Cases Of 15 Affiliates Of W.R. Grace

WILMINGTON, Del. - A Delaware federal bankruptcy judge on Oct. 14 issued a final decree closing the Chapter 11 cases of 15 affiliates of W.R. Grace & Co. (In re: W.R. Grace & Co., et al., No. 01-01139, D. Del. Bkcy.).

Mealey's Bankruptcy - California DA Asks GM MDL Judge To Remand Suit To State Court

NEW YORK - A suit brought on behalf of California owners of vehicles manufactured by General Motors LLC (New GM) should be remanded to California state court, Orange County, Calif., District Attorney Tony Rackauckas argues in a memorandum filed Oct. 14 in the U.S. District Court for the Southern District...

Mealey's Bankruptcy - Insureds Waived Right To Appraisal In Sinkhole Suit, Florida Panel Says, Reverses

DAYTONA BEACH, Fla. - A Florida appeals panel on Oct. 17 found that insureds waived their right to an appraisal, reversing a lower court's ruling against an insurer in a sinkhole coverage dispute (Florida Insurance Guaranty, etc. v. Gerassimos Maroulis and Irina Dmitrieva, No. 5D13-3185, Fla. App...

Mealey's Bankruptcy - GM Tells MDL Judge California District Attorney's Suit Belongs In MDL

NEW YORK - A suit brought By Orange County, Calif., District Attorney Tony Rackauckas on behalf of California owners of vehicles manufactured by General Motors LLC (New GM) belongs in the GM ignition-switch multidistrict litigation pending in the U.S. District Court for the Southern District of New York...

Mealey's Bankruptcy - Bankruptcy Judge Unseals Record In Garlock's Estimation Proceeding

CHARLOTTE, N.C. - The North Carolina federal bankruptcy judge overseeing Garlock Sealing Technologies LLC's Chapter 11 case on Oct. 16 unsealed the entire record of last year's hearing to estimate Garlock's asbestos liability, saying he should have kept the proceeding open to the public in...

Mealey's Bankruptcy - Specialty Products' Disclosure Statement OK'd; Plan Calls For 2 Asbestos Accounts

WILMINGTON, Del. - U.S. Bankruptcy Judge Peter J. Walsh of the District of Delaware on Oct. 21 approved the disclosure statement for Chapter 11 debtor Specialty Products Holding Corp.'s plan of reorganization, which includes establishment of two asbestos personal injury trust accounts totaling nearly...

Mealey's Bankruptcy - Former Mineworkers Look To Sue W.R. Grace Insurer For Negligence, Bad Faith

WILMINGTON, Del. - Two men suffering from asbestos disease who worked at W.R. Grace & Co.'s mine and mill in Libby, Mont., sought authorization Oct. 21 in Delaware federal bankruptcy court to file a negligence and bad faith suit in state court against one of W.R. Grace's insurers, even though...

Mealey's Bankruptcy - New York Justice Asks For Input On Possible Liquidation Of Insolvent Insurer

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.).

U.S. Supreme Court Refuses To Hear ‘Popcorn Lung’ Personal Injury Case

WASHINGTON, D.C. — (Mealey’s) The U.S. Supreme Court on Nov. 3 denied certiorari in a personal injury case for what is called “popcorn lung” brought against the makers of artificial butter flavoring used in microwave popcorn ( Diacetyl Plaintiffs v. Aaroma Holdings LLC , No. 14...

Mealey's Bankruptcy - Asbestos Committee Says Garlock Committed Fraud At Its Estimation Hearing

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...

Mealey's Bankruptcy - 7th Circuit Affirms Foreign Reinsurer Cannot Be Compelled To Arbitrate Dispute

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...

Mealey's Bankruptcy - Judge Approves $5.2B Settlement To Remediate Superfund Sites, Uranium Mines

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...

Mealey's Bankruptcy - Consent Order For Access To Claimant Information Presented To District Court

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...

Mealey's Bankruptcy - Feeder Funds To Pay Nearly $500M To Madoff Liquidation Trustee

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...

Mealey's Bankruptcy - Justice Seeks Input Regarding Petition To Liquidate Insurer

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.).