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Mealey's Bankruptcy - GM's Suit Against Manville Trust Barred By Injunction, Bankruptcy Judge Rules

POUGHKEEPSIE, N.Y. - General Motors LLC cannot sue Johns-Manville Corp.'s asbestos personal injury trust in Ohio state court to recover money for payments made to a widow because GM's claim for contribution is barred by the decades-old injunction issued in Johns-Manville's Chapter 11 case...

Mealey's Bankruptcy - Insurer Seeks To Force Arbitration Of Coverage Dispute With Garlock

CHARLOTTE, N.C. - An insurer of an affiliate of former Chapter 11 debtor Garlock Sealing Technologies LLC sued Garlock, its parent and another former debtor affiliate in North Carolina federal court on Aug. 2, seeking to force the Garlock parties to arbitrate a dispute over whether the insurer owes any...

Mealey's Bankruptcy - Oakfabco Insurer To Pay $4.5 Million To Trust After Battle With Asbestos Claimants

CHICAGO - An Illinois federal bankruptcy judge on Aug. 4 approved a $4.5 million asbestos insurance coverage dispute settlement between Chapter 11 debtor Oakfabco Inc. and one of its insurers over objections by asbestos claimants' representatives, after the insurer added $1 million to the deal (In...

Mealey's Bankruptcy - Rapid-American Protests Insurers' Subpoenas To Claims-Processing Facilities

NEW YORK - Chapter 11 debtor Rapid-American Corp. and the asbestos claimants in its case asked a New York federal bankruptcy judge on Aug. 15 to stop the debtor's insurers from enforcing subpoenas they issued to six asbestos claims-processing facilities, saying the subpoenas are "facially overbroad...

Mealey's Bankruptcy - Jurisdiction Plainly Lacking For Crane's RICO Claims, Law Firm Tells 7th Circuit

CHICAGO - A federal court in Illinois correctly dismissed fraud and racketeering claims leveled by frequent asbestos defendant John Crane Inc. (JCI) against two law firms and their principals for lack of jurisdiction because the asbestos cases giving rise to the claims did not occur in Illinois, one...

Mealey's Bankruptcy - Insurer Cannot Litigate Coverage Dispute In State Court, Bankruptcy Judge Says

OAKLAND, Calif. - A California federal bankruptcy judge on Aug. 24 denied an insurer's request to sue a company's asbestos trust in state court over the amount of coverage owed for asbestos personal injury claims, issuing a strong rebuke to the insurer's attorneys, who claimed that the trustee...

Mealey's Bankruptcy - Finding That Bankruptcy Asset Sale Bars Take-Home Asbestos Case Stands

HARRISBURG, Pa. - The Pennsylvania Supreme Court on Sept. 8 declined to review an appellate court's rejection of a widower's attempt to hold a company liable for his wife's death from mesothelioma and finding that the company's "free and clear" purchase of assets in a bankruptcy...

Mealey's Bankruptcy - Split 9th Circuit Sends Row Over Lawyer's Trust Claims Ban Back To Trial Court

SAN FRANCISCO - A California federal court must decide on remand whether federal or state law controls - and whether a Ninth Circuit U.S. Court of Appeals decision impacts - two asbestos trusts' attempt to enforce a settlement under which an attorney agreed to stop filing claims with the trusts due...

Mealey's Bankruptcy - Kaiser Gypsum's Stay Lifted To Allow Appeals In Coverage Dispute

CHARLOTTE, N.C. - The primary asbestos insurer for Chapter 11 debtor Kaiser Gypsum Co. can pursue appeals of rulings in all three phases of coverage litigation in California state court, a North Carolina federal bankruptcy judge ruled in a Sept. 20 minute order lifting the automatic stay in the bankruptcy...

Mealey's Bankruptcy - Son's Constitutional Due Process Claims Against Trust Shot Down By Judge

WILMINGTON, Del. - A son cannot pursue claims that an asbestos personal injury trust violated his deceased father's constitutional rights because the trust is a private entity and is not an arm of the government, a Delaware federal judge held Sept. 22 (Matthew D. Pinnavaia v. The Celotex Asbestos...

Mealey's Bankruptcy - Arbitration Not Available For Coverage Dispute Based On Policy, Garlock Says

CHARLOTTE, N.C. - Former Chapter 11 debtor Garlock Sealing Technologies LLC does not have to arbitrate an insurance coverage dispute with an insurer based on the plain language of the 1983 policy at issue, Garlock and affiliates argue in a Sept. 22 response to the insurer's motion to force arbitration...

Mealey's Bankruptcy - Federal Judge Vacates Even Split Of $20M Fee Award For Insurance Settlement

NEW YORK - While a $20 million attorney fee agreement for a settlement between an insurer and asbestos claimants does not say the money is to be divided unevenly among the four law firms that negotiated the settlement, it also does not say the fees are to be divided equally, a New York federal judge...

Mealey's Bankruptcy - Pittsburgh Corning Trust To Pay Up To $178.5 Million In Deal With Claimants

PITTSBURGH - More than 2,000 asbestos claimants from a decades-old consolidated Texas litigation will share up to $178.5 million from the asbestos trust established in the Pittsburgh Corning Corp. (PCC) bankruptcy case, according to a notice and settlement filed Oct. 18 in Pennsylvania federal bankruptcy...

Mealey's Bankruptcy - Rapid-American Seeks Protective Order For Insurers' Subpoenas

NEW YORK - A declaratory insurance coverage action filed by Chapter 11 debtor Rapid-American Corp. is not the proper vehicle for insurers to use in search of evidence of fraud in the asbestos trust system, the debtor says in an Oct. 20 motion and memorandum seeking protection from the insurers' subpoenas...

Mealey's Bankruptcy - Interest Rate Ruling Boosts IRS Refund To W.R. Grace Debtors By $1.6 Million

WILMINGTON, Del. - Reorganized chemical conglomerate W.R. Grace & Co. will receive an additional $1.6 million tax refund from the U.S. government after a Delaware federal bankruptcy judge found Oct. 23 that the Internal Revenue Service used the wrong percentage rate when figuring the refund (In re...

Mealey's Bankruptcy - Georgia-Pacific Subsidiary Bestwall Files For Bankruptcy Due To Asbestos Liabilities

CHARLOTTE, N.C. - Georgia-Pacific affiliate Bestwall LLC filed a Chapter 11 petition Nov. 2 in North Carolina federal bankruptcy court to create a trust to pay asbestos personal injury claims and receive an injunction forever barring future asbestos claims against the debtor, Georgia-Pacific and their...

Mealey's Bankruptcy - Insurer Owes Trustee $3.5M In Policy Limits, Attorney Fees For Coverage Dispute

OAKLAND, Calif. - A California federal bankruptcy judge on Nov. 16 entered a judgment of more than $3.5 million against an insurance company in a dispute over the amount of coverage owed to a company's liquidating trust for asbestos personal injury claims, including attorney fees and a $60,000 penalty...

Mealey's Bankruptcy - Asbestos Claimants' Committee Named For Bestwall's Chapter 11 Case

CHARLOTTE, N.C. - A North Carolina federal bankruptcy judge on Nov. 16 appointed the Official Committee of Asbestos Personal Injury Claimants in the new Chapter 11 case of Bestwall LLC, selecting one of three claimants who requested to sit on the committee in addition to the nine claimants proposed by...

Mealey's Bankruptcy - Asbestos Claimants Say Energy Future's Plan Cannot Be Confirmed

WILMINGTON, Del. - The revised plan of reorganization for Chapter 11 debtor Energy Future Holdings Corp. (EFH) cannot be confirmed because its treatment of claimants who have not yet developed an asbestos disease is unlawful and it was proposed in bad faith, eight asbestos personal injury claimants tell...

Mealey's Bankruptcy - Oakfabco Backs Asbestos Claimants' Pursuit Of Fraud Claims Against Insurer

CHICAGO - Chapter 11 debtor Oakfabco Inc. gave the go-ahead Dec. 20 to asbestos claimants to pursue a nine-count fraudulent inducement complaint against Oakfabco insurers and a claims management company alleging that they knew that additional coverage was available for asbestos claims when the insurers...

Mealey's Bankruptcy - Vice Chancellor Sends Insurers' Audit Dispute With Asbestos Trust To Trial

WILMINGTON, Del. - Insurers' rights to audit the T H Agriculture & Nutrition LLC (THAN) asbestos trust for evidence fraud must be decided at trial because the insurers and the trust put forth reasonable definitions of what those audit rights are, defeating summary judgment or dismissal, a Delaware...

Mealey's Bankruptcy - Man's Claims Against Johns-Manville Broker Barred, Court Rules Again

NEW YORK - An asbestosis sufferer "received due process in every possible respect" as a future claimant in the long-running Chapter 11 case of Johns-Manville Corp., so he cannot pursue in personam claims against the company's insurance broker, a New York federal bankruptcy judge held Jan...

Mealey's Bankruptcy - Bankruptcy Judge Abstains From Hearing Injunction Bid For Environmental Claims

NEWARK, N.J. - A New Jersey federal bankruptcy judge on Jan. 26 abstained from deciding a request by former Chapter 11 debtor G-I Holdings Inc. to enforce its reorganization plan injunction to bar indemnification claims for cleanup of a polluted industrial site, saying a state court is "fully capable...

Mealey's Bankruptcy - Rapid-American Denied Protective Order For Insurers' Subpoenas

NEW YORK - Chapter 11 debtor Rapid-American Corp. and asbestos claimants in its bankruptcy case do not have standing to challenge subpoenas served by insurers to asbestos claims-processing facilities seeking evidence of fraud in the asbestos trust system, and besides, the information sought is relevant...

Mealey's Bankruptcy - Insurer Asks For Relief From Kaiser Gypsum's Stay To Seek Settlement Reimbursement

CHARLOTTE, N.C. - An insurer of Chapter 11 debtor Hanson Permanente Cement Inc. sought relief from the automatic bankruptcy stay on Feb. 13 in North Carolina federal bankruptcy court so it can pursue $2.8 million in reimbursements from other insurers for settlement payments made to asbestos personal...