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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...

Mealey's Bankruptcy - Insurers Who Had Settlement Rejected Oppose Oakfabco's Disclosure Statement

CHICAGO - Chapter 11 debtor Oakfabco Inc. on Feb. 21 modified its plan of liquidation and disclosure statement to answer questions by three insurers whose $9.78 million settlement offer was rejected by the debtor and who filed the only objection to the disclosure statement in the Illinois federal bankruptcy...

Mealey's Bankruptcy - Another Suit Filed Over Liability Of W.R. Grace Insurers For Their Own Actions

WILMINGTON, Del. - Two more people suffering from asbestos disease joined the fray over whether an insurer can be held liable for asbestos claims arising from the mining operations of former Chapter 11 debtor W.R. Grace & Co. in Libby, Mont., with the claimants filing an adversary complaint April...

Mealey's Bankruptcy - Attorneys' Compensation Halted For Lack Of Progress In Oakfabco's Case

CHICAGO - Attorneys representing Chapter 11 debtor Oakfabco Inc. and counsel for the debtor's asbestos claimants will not get paid until progress is made in the nearly three-year-old case, an Illinois federal bankruptcy judge ruled May 17 (In re: Oakfabco, Inc., No. 15-27062, N.D. Ill. Bkcy.).

Mealey's Bankruptcy - Claimants Seek To Have Future Asbestos Claims Against Debtors Reinstated

WILMINGTON, Del. - The due process violations suffered by future asbestos claimants from the reorganization plan of Chapter 11 debtor Energy Future Holdings Corp. (EFH) are so egregious that the plan's treatment of the claimants demands reversal, eight such claimants told a Delaware federal court...

Mealey's Bankruptcy - Kaiser Gypsum Directed To Assume Insurers' Asbestos Coverage Agreement

CHARLOTTE, N.C. - A North Carolina federal bankruptcy judge on May 29 ordered Chapter 11 debtor Kaiser Gypsum Co. to assume a settlement agreement among the debtor's insurers for payment of asbestos claims, saying the assumption is conditioned on approval of Kaiser's plan to send stayed asbestos...

Mealey's Bankruptcy - 7th Circuit Says Jurisdiction Lacking For John Crane's RICO Claims Against Firms

CHICAGO - A Seventh Circuit U.S. Court of Appeals panel on June 4 agreed with a federal judge that fraud and racketeering suits filed by frequent asbestos defendant John Crane Inc. (JCI) against two law firms and their principals do not belong in Illinois federal court just because JCI is located in...

Mealey's Bankruptcy - Kaiser Gypsum Stay Lifted So Claimant Can Collect Asbestos Judgment

CHARLOTTE, N.C. - An asbestos judgment winner can proceed with her appeal in a California court to recover more than $360,000 from Chapter 11 debtor Kaiser Gypsum Co., despite objections by the company and its primary insurer, a North Carolina federal bankruptcy judge ruled June 14 in a minute order...

Mealey's Bankruptcy - Maryland Casualty Says Latest Insurer Liability Action Should Get The Boot

WILMINGTON, Del. - A recent lawsuit in a string of actions seeking to hold insurers of former Chapter 11 debtor W.R. Grace & Co. liable for claimants' asbestos diseases should be dismissed because a Delaware federal bankruptcy judge has already found that the claims are barred by the protections...