LexisNexis® Legal Newsroom
Bankruptcy Judge Recommends Approval Of W.R. Grace's Reorganization Plan

WILMINGTON, Del. - (Mealey's) A federal bankruptcy judge in Delaware on Jan. 31 resolved the last objections to W.R. Grace & Co.'s Chapter 11 joint plan of reorganization and recommended that the district court approve the plan ( In re: W.R. Grace & Co., et al. , No. 01-1139, D. Del....

Federal Judge Affirms Leslie Controls' Reorganization Plan

WILMINGTON, Del. - A Delaware federal judge on Feb. 7 affirmed an amended plan of reorganization in Leslie Controls Inc.'s Chapter 11 bankruptcy case ( In re: Leslie Controls, Inc. , No. 1:11-mc-00013, D. Del.). Judge Jerome B. Simandle issued an order in the U.S. District Court for the District...

General Motors' Asbestos Liability Set At $625 Million

NEW YORK -- A New York federal bankruptcy judge approved an agreement on Feb. 14 in General Motors Corp.'s Chapter 11 bankruptcy case that fixes the debtors' aggregate liability for asbestos personal injury claims at $625 million ( In re: Motors Liquidation Co., et al. , No. 09-50026, S.D. N...

3rd Circuit Says Insurers Have Standing In Dispute Over GIT's Silica-Related Liabilities

PHILADELPHIA - (Mealey's) The Third Circuit U.S. Court of Appeals on May 4 held that insurers have standing to challenge the confirmed Chapter 11 plan of reorganization of Global Industries Technologies Inc. (GIT) ( In re: Global Industrial Technologies, Inc., et al. , No. 08-3650, 3rd Cir.). ...

Bankruptcy Judge Again Denies Confirmation Of Pittsburgh Corning's Reorganization Plan

PITTSBURGH - (Mealey's) Changes that Pittsburgh Corning Corp. (PCC) made to its Chapter 11 plan of reorganization following denial of plan confirmation in 2006 have not made the plan confirmable, though the plan's problems can still be fixed, a Pennsylvania federal bankruptcy judge held June...

9th Circuit: Insurers Have Standing To Object To Thorpe's Confirmed Reorganization Plan

SAN FRANCISCO - (Mealey's) Because Thorpe Insulation Co.'s Chapter 11 plan of reorganization could harm insurance companies, the plan is not "insurance neutral" and, therefore, the insurers have standing to object to it, the Ninth Circuit U.S. Court of Appeals held Jan. 24 in reversing...

Delaware Federal Judge Overrules Objections, Confirms W.R. Grace's Chapter 11 Plan

WILMINGTON, Del. - (Mealey's) A Delaware federal judge on Jan. 30 overruled all remaining objections to W.R. Grace & Co.'s Chapter 11 plan of reorganization and confirmed the plan, which includes establishment of a trust to pay asbestos personal injury claims having an estimated total value...

3rd Circuit Upholds Conversion Of Skinner Bankruptcy To Chapter 7

PHILADELPHIA - (Mealey's) A bankruptcy court has the authority to determine at the disclosure statement stage that a Chapter 11 reorganization plan is unconfirmable without first holding a confirmation hearing if it is obvious that the plan is patently unconfirmable, the Third Circuit U.S. Court...

Delaware Federal Judge Grants Debtor Access To Asbestos Claimant Information

WILMINGTON, Del. - (Mealey's) A Delaware federal judge on March 1 ruled that Chapter 11 debtor Garlock Sealing Technologies LLC can obtain documents filed by asbestos claimants' attorneys in nine other asbestos-related bankruptcy cases, finding that a bankruptcy judge erred and abused her discretion...

Bankruptcy Judge Sets Specialty Products’ Asbestos Liability At $1.16 Billion

WILMINGTON, Del. -- (Mealey's) Former joint compound producer Bondex International Inc. and its related holding company Specialty Products Holding Corp. face an estimated $1.16 billion in pending and future asbestos personal injury claims, about double what the companies estimate their asbestos...

Bankruptcy Judge Sets Specialty Products' Asbestos Liability At $1.16 Billion

WILMINGTON, Del. -- (Mealey's) Former joint compound producer Bondex International Inc. and its related holding company Specialty Products Holding Corp. face an estimated $1.16 billion in pending and future asbestos personal injury claims, about double what the companies estimate their asbestos liabilities...

Pfizer Faces Asbestos Actions after Supreme Court Declines to Hear Case

WASHINGTON, D.C. - (Mealey's) The U.S. Supreme Court on June 24 denied a bid for certiorari by Pfizer Inc. of a ruling removing the protection for Pfizer of a bankruptcy injunction barring asbestos personal injury claims entered in the case of a defunct Pfizer subsidiary ( Pfizer Inc. v. Law...

Pfizer Faces Asbestos Actions After Supreme Court Declines To Hear Case

WASHINGTON, D.C. - (Mealey's) The U.S. Supreme Court on June 24 denied a bid for certiorari by Pfizer Inc. of a ruling removing the protection for Pfizer of a bankruptcy injunction barring asbestos personal injury claims entered in the case of a defunct Pfizer subsidiary ( Pfizer Inc. v. Law Offices...

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

SAN FRANCISCO — (Mealey’s) 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...

U.S. House Approves Asbestos Trust Disclosure Bill

WASHINGTON, D.C. — (Mealey’s) Saying the measure will provide much needed transparency in the more than 60 asbestos-bankruptcy trusts and help prevent fraud, the U.S. House of Representatives on Nov. 13 passed House Resolution 982, the Furthering Asbestos Claim Transparency Act (FACT Act...

Asbestos Litigation, Attorney Advertising & Bankruptcy Trusts: The Economic Incentives Behind The New Recruitment Of Lung Cancer Cases

By Marc C. Scarcella, Peter R. Kelso, and Joseph Cagnoli, Jr. [Editor's Note: Marc C. Scarcella and Peter R. Kelso, Managers at the Washington, D.C., office of Bates White Economic Consulting. Joseph Cagnoli, Jr., Shareholder in the Philadelphia office of Segal McCambridge Singer & Mahoney...

Asbestos Bankruptcy Trusts: A 2013 Overview Of Trust Assets, Compensation & Governance

By Marc C. Scarcella and Peter R. Kelso [Editor's Note: Marc C. Scarcella and Peter R. Kelso, Managers at the Washington, DC office of Bates White Economic Consulting. The views of the authors do not reflect the opinions of their firm, their clients, or Mealey's Publications. © 2013 by...

Garlock Sues Law Firms, Alleging Fraud Over Asbestos Claims

CHARLOTTE, N.C. — (Mealey’s) Chapter 11 debtor Garlock Sealing Technologies LLC filed four adversary complaints yesterday in a North Carolina federal bankruptcy court against several law firms and attorneys, alleging conspiracy, fraud and violations of the Racketeer Influenced and Corrupt...

Bankruptcy Judge: Plaintiffs, Lawyers Covered Up Evidence in Garlock Meso Cases

CHARLOTTE, N.C. — (Mealey’s) Chapter 11 debtor Garlock Sealing Technologies LLC’s total estimated liability for present and future mesothelioma claims is only $125 million, not $1.2 billion as asbestos personal injury claimants argued, because Garlock’s history of settling mesothelioma...

NYCAL Justice Ends Deferral of Punitive Damages, Keeps CMO Intact

NEW YORK — (Mealey’s) Continued deferral of punitive damages in New York City Asbestos Litigation (NYCAL) unfairly prejudices plaintiffs, and fears of runaway verdicts bankrupting defendants appear overblown in light of the standard necessary for such awards, a New York justice held today...

Supreme Court Won’t Rule On Injunctive Relief Under Bankruptcy Code Section 524(g)

WASHINGTON, D.C. — (Mealey’s) The U.S. Supreme Court today denied a petition to resolve the question of whether a bankruptcy court’s order barring the assertion of contribution claims against settling insurers must be accompanied by the establishment of alternative means for the nonsettling...

2nd Circuit: Bankruptcy Court Order Final; Insurers’ Deals With Asbestos Claimants Valid

NEW YORK — (Mealey's) The Second Circuit U.S. Court of Appeals on July 22 reinstated a federal bankruptcy court ruling requiring two insurance companies to pay $510 million to asbestos personal injury plaintiffs under decades-old settlements, finding that conditions precedent to payment under...

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...

Payment Of Attorneys For Defending Fee Requests Debated In Supreme Court

WASHINGTON, D.C. — (Mealey’s) There is no basis in the law for categorically denying payment to lawyers for successfully defending their fee applications in bankruptcy cases, attorney Aaron M. Streett of Texas law firm Baker Botts LLP told the U.S. Supreme Court Feb. 25 in a case in which...

Supreme Court: Bankruptcy Lawyers Not Entitled To Fees For Defending Fee Requests

WASHINGTON, D.C. — (Mealey’s) The U.S. Bankruptcy Code does not allow bankruptcy courts to award fees to attorneys for successfully defending their fee applications, the U.S. Supreme Court held June 15 in a 6-3 decision, affirming a Fifth Circuit U.S. Court of Appeals ruling denying a $5...