Mealey's Bankruptcy - GM Ignition-Switch Plaintiffs Seek Relief From Stay In Bankruptcy Court

NEW YORK - The plaintiffs in a class action alleging that General Motors LLC (New GM) concealed ignition-switch defects in its vehicles on Aug. 22 asked U.S. Bankruptcy Judge Robert E. Gerber of the Southern District of New York, who is overseeing General Motors Corp.'s (Old GM) Chapter 11 proceedings...

Mealey's Bankruptcy - Bankruptcy Judge Finds Claims Against Tyvek Installer Are Timely

RALEIGH, N.C. - A federal bankruptcy court judge in North Carolina on Aug. 25 found that the general contractor overseeing construction of a luxury condominium complex could pursue claims for negligence, breach of express warranty and indemnity against the subcontractor that installed Tyvek building...

Mealey's Bankruptcy - Republic Powdered Metals Joins Affiliate Specialty Products In Bankruptcy

WILMINGTON, Del. - Roof coatings and restoration company Republic Powdered Metals Inc., an affiliate of Chapter 11 debtor Specialty Products Holding Corp., on Aug. 31 filed its own voluntary Chapter 11 petition in Delaware federal bankruptcy court, seeking to reorganize and resolve asbestos personal...

Mealey's Bankruptcy - GM Opposes Stay Relief For California District Attorney's State Court Suit

NEW YORK - Orange County, Calif., District Attorney Tony Rackauckas should not be granted relief from a stay in the General Motors Corp. (Old GM) bankruptcy proceedings in order to seek remand of his suit against the automaker to California state court, General Motors LLC (New GM) argues in an Aug. 29...

Mealey's Bankruptcy - Michigan Panel Says Insolvent Insurer's Officers Are Not Eligible For Severance

LANSING, Mich. - In an unpublished opinion, a Michigan appeals panel on Sept. 9 affirmed a trial court ruling and held that certain former directors and officers of an insolvent insurer are not entitled to severance benefits because they all left their jobs after the trial court issued an order placing...

Mealey's Bankruptcy - Attorney Loses Bid To Force Asbestos Trusts To Process His Claims

WILMINGTON, Del. - A California attorney facing allegations that he filed fraudulent claims against asbestos personal injury trusts cannot pursue a lawsuit seeking to force six trusts that stopped offering settlements to his claimants to resume processing his claims, a Delaware federal judge ruled Sept...

Mealey's Bankruptcy - Panel Agrees With Referee That Liquidator Properly Calls Policy Reinsurance

HARRISBURG, Pa. - A Pennsylvania Commonwealth Court panel on Sept. 12 found that an insolvent insurer's liquidator correctly determined that a certain policy was reinsurance (Alabama Insurance Guaranty Association v. Reliance Insurance Company in Liquidation, No. 6 REL 2012, Pa. Cmwlth.).

Mealey's Bankruptcy - Judge: Discovery Needed To Determine If Antitrust Claim Discharged In Bankruptcy

NEW YORK - A federal judge in New York on Sept. 16 denied United Air Lines' motion to dismiss claims that it participated in a conspiracy to fix the price of air cargo shipments in violation of Section 1 of the Sherman Act, finding that discovery was necessary to determine whether the antitrust claim...

Mealey's Bankruptcy - New GM Not Liable For Class Action Settlement, 2nd Circuit Panel Rules

NEW YORK - General Motors LLC (New GM) is not liable for the cost of a settlement between General Motors Corp. (Old GM) and a class of Saturn owners who alleged that their vehicles' transmissions were defectively designed, the Second Circuit U.S. Court of Appeals ruled Sept. 19 (In the Matter of...

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...