LexisNexis® Legal Newsroom
    Mealey's Bankruptcy - Interpretation Of W.R. Grace Plan Makes Order Appealable, Hospital Tells Court

    WILMINGTON, Del. - A Delaware federal court has jurisdiction to hear a hospital's appeal of a bankruptcy court's refusal to reconsider denial of class certification for asbestos property damage claims against former Chapter 11 debtor W.R. Grace & Co. because the order interpreted W.R. Grace's plan of reorganization, the hospital argues Jan. 4 in response to the company's bid to dismiss the appeal (Anderson Memorial Hospital v. W.R. Grace & Co., et al., No. 16-799, D. Del.).

    Mealey's Bankruptcy - Bankruptcy Judge Dismisses Chapter 11 Case Of Eagle Inc.

    NEW ORLEANS - A Louisiana federal bankruptcy judge on Jan. 4 dismissed the Chapter 11 case of former gasket and insulation seller Eagle Inc. after the debtor declined to contest an order to show why the case should not be terminated (In re: Eagle, Inc., No. 15-12437, E.D. La. Bkcy.).

    Mealey's Bankruptcy - Judge Erred When Dismissing Asarco's CERCLA Contribution Claim, 10th Circuit Says

    DENVER - A federal judge in Utah erred when awarding summary judgment against Asarco LLC on its claim for contribution under Section 113(f) of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) against Noranda Mining Inc., a 10th Circuit U.S. Court of Appeals panel ruled Jan. 3, holding that the plaintiff company did not make misrepresentations to a bankruptcy court when a company representative stated that $7.4 million was a fair share of its cleanup costs at Richardson Flat Superfund site in Utah (Asarco LLC v. Noranda Mining Inc., No. 16-4045, 10th Cir.; 2017 U.S. App. LEXIS 11).

    Mealey's Bankruptcy - Judge: Notice, Lack Of Excusable Neglect Doom Timber Claim Against W.R. Grace

    WILMINGTON, Del. - A timber company cannot pursue a claim against former Chapter 11 debtor W.R. Grace & Co. that the company's land was contaminated with asbestos from W.R. Grace's mining operations near Libby, Mont., because the company received proper notice of the bankruptcy bar date for property damage claims and was aware that it had a potential claim, regardless of whether it was scientifically certain that its timber was contaminated, a Delaware federal bankruptcy judge held Dec. 28 (In re: W.R. Grace & Co., et al., No. 01-01139, D. Del. Bkcy.; 2016 Bankr. LEXIS 4478).

    Mealey's Bankruptcy - Energy Future Judge Nixes Asbestos Claimants' Bid To Dismiss Affiliates' Cases

    WILMINGTON, Del. - A Delaware federal bankruptcy judge on Dec. 19 rejected a request by four asbestos personal injury claimants to dismiss the Chapter 11 cases of several affiliates of debtor Energy Future Holdings Corp. (EFH) after finding that the cases were filed in good faith (In re: Energy Future Holdings Corp., et al., No. 14-10979, D. Del. Bkcy.; 2016 Bankr. LEXIS 4355).

    Mealey's Bankruptcy - Trust, FCRs Dispute Changes To Rule 2019 Access For Honeywell, Ford

    WILMINGTON, Del. - An asbestos personal injury trust and two representatives of future asbestos claimants on Dec. 15 asked a Delaware federal bankruptcy judge to reconsider or vacate an order allowing the release of asbestos trust claimant information to Honeywell International Inc. and Ford Motor Co. while eliminating a full review and redaction process for the information (In re W.R. Grace & Co., et al., No. 01-01139; In re Owens Corning, No. 00-3837; In re Armstrong World Industries, Inc., No. 00-4471; In re USG Corp., No. 01-2094; In re US Minerals Products Company, No. 01-2471; In re Kaiser Aluminum Corp., No. 02-10429; In re ACandS, Inc., No. 02-12687; In re Combustion Engineering, Inc., No. 03-10495; In re The Flintkote Company, No. 04-11300, D. Del. Bkcy.).

    Mealey's Bankruptcy - Bankruptcy Judge Defines 'Future' Claims For Tronox Tort Trust

    NEW YORK - A New York federal bankruptcy judge on Dec. 14, at the request of the trustee for the Tronox Inc. Tort Claims Trust after being deluged with "future" tort claims, defined what a future tort claimant is and who can file claims against the trust in the "Future Tort Claims" category (In re: Tronox Incorporated, et al., No. 09-10156, S.D. N.Y. Bkcy.; 2016 Bankr. LEXIS 4274).

    Mealey's Bankruptcy - Appeal In Insurer Liability Adversary Case Withdrawn From Mediation

    WILMINGTON, Del. - An appeal by 27 asbestos disease sufferers of a bankruptcy court's finding that their personal injury claims against insurers of Chapter 11 debtor W.R. Grace & Co. are barred will not be resolved through mediation, a Delaware federal judge ruled Dec. 13, agreeing with a magistrate judge that the issues involved "are not amenable to mediation" (Jeremy B. Carr, et al. v. Continental Casualty Company, et al., No. 16-1010, D. Del.).

    Mealey's Bankruptcy - Canadian Boards Can Delay Voting On Garlock Plan Pending Settlement Ruling

    CHARLOTTE, N.C. - Canada's 10 provincial workers' compensation boards on Dec. 9 got more time from a North Carolina federal bankruptcy judge to vote on the Chapter 11 plan for Garlock Sealing Technologies LLC so they can finalize a $20 million settlement with the debtor and related companies of the boards' claims for payments made to more than 1,300 Canadian workers suffering from asbestos diseases (In re: Garlock Sealing Technologies, LLC, et al., No. 10-31607, W.D. N.C. Bkcy.).

    Mealey's Bankruptcy - Insurer Loses Bid For Judgment On Liquidating Trust's Payment Claims

    OAKLAND, Calif. - An asbestos personal injury liquidating trust properly submitted proposals to an insurer regarding the payment of allowed claims that triggered the insurer's policies and did not violate two debtors' plan of reorganization by allocating to the insurer 100 percent of the liquidated value of each approved unpaid claim, a California federal bankruptcy judge held Nov. 21 (In re CFB Liquidating Corporation, f/k/a Chicago Fire Brick Co., et al., No. 01-45483, [Barry A. Chatz, as Trustee for the CFB/WFB Liquidating Trust v. Continental Casualty Company, No. 15-4136] N.D. Calif. Bkcy.; 2016 Bankr. LEXIS 4034).

    Mealey's Bankruptcy - Judge Vetoes Eagle's Disclosure Statement, Sets Hearing On Dismissal Of Case

    NEW ORLEANS - A Louisiana federal bankruptcy judge on Nov. 18 rejected the disclosure statement for the plan of reorganization of Chapter 11 debtor Eagle Inc. and ordered the company to show why the case should not be dismissed for failure to file a disclosure statement or a feasible reorganization plan (In re: Eagle, Inc., No. 15-12437, E.D. La. Bkcy.).

    Mealey's Bankruptcy - Kaiser Gypsum Wards Off Asbestos Claimants' Attempt To Transfer Case

    CHARLOTTE, N.C. - A North Carolina federal bankruptcy judge, in a Nov. 22 minute order, denied a request by five asbestos personal injury claimants to transfer the recent Chapter 11 case of former gypsum plaster and wallboard manufacturer Kaiser Gypsum Co. Inc. to the U.S. District Court for the Western District of Washington (In re Kaiser Gypsum Company, Inc., at al., No. 16-31602, W.D. N.C. Bkcy.).

    Mealey's Bankruptcy - Liquidator Asks Court To Approve Settlement Of Asbestos Claims

    CONCORD, N.H. - The liquidator of an insolvent insurer asked a New Hampshire court on Nov. 21 to approve a $13.8 million settlement agreement with a bankrupt company's asbestos personal injury trust (In the Matter of the Liquidation of The Home Insurance Company, No. 03-E-0106, N.H. Sup., Merrimack Co.).

    Mealey's Bankruptcy - Plaintiffs Appeal Ruling That Claims Against W.R. Grace Insurers Are Barred

    WILMINGTON, Del. - Twenty-seven asbestos disease sufferers on Nov. 14 asked a Delaware federal court to decide if a bankruptcy judge erred in finding that their state law personal injury claims against insurers of Chapter 11 debtor W.R. Grace & Co. are barred by an injunction in W.R. Grace's plan of reorganization (Continental Casualty Company, et al. v. Jeremy B. Carr, et al., No. 16-1010, D. Del.).

    Mealey's Bankruptcy - John Crane Says Law Firm's Arguments For Dismissal Don't Hold Water

    CHICAGO - Asbestos personal injury law firm Simon Greenstone Panatier Bartlett provides no basis in three motions for an Illinois federal court to dismiss fraud, conspiracy and racketeering allegations leveled by John Crane Inc. (JCI), and the claims are sufficiently pleaded to survive the motions, JCI says in a Nov. 11 response brief (John Crane Inc. v. Simon Greenstone Panatier Bartlett, et al., No. 16-5918, N.D. Ill.).

    Mealey's Bankruptcy - Judge: Honeywell, Ford Can Use Asbestos Claimants' Data From 9 Bankruptcies

    WILMINGTON, Del. - Honeywell International Inc. and Ford Motor Co. can access asbestos claimants' data in nine Chapter 11 cases, but only to investigate fraud in the claims process, and the information cannot be used for lobbying efforts, a Delaware federal bankruptcy judge held Nov. 8 (In re W.R. Grace & Co., et al., No. 01-01139; In re Owens Corning, No. 00-3837; In re Armstrong World Industries, Inc., No. 00-4471; In re USG Corp., No. 01-2094; In re US Minerals Products Company, No. 01-2471; In re Kaiser Aluminum Corp., No. 02-10429; In re ACandS, Inc., No. 02-12687; In re Combustion Engineering, Inc., No. 03-10495; In re The Flintkote Company, No. 04-11300, D. Del. Bkcy.).

    Mealey's Bankruptcy - Insurers Dispute Debtor's Attempt To Vacate Policy Exhaustion Finding

    NEW YORK - A bid by Chapter 11 debtor Rapid-American Corp. to vacate a finding that it has not paid a sufficient amount for asbestos claims to reach the level of excess coverage provided under three insurance policies should be rejected because the debtor is improperly trying to reargue the issue with a revised legal strategy, insurers assert in separate Oct. 18 response briefs in New York federal bankruptcy court (Rapid-American Corporation, et al. v. Travelers Casualty and Surety Company, et al., No. 15-01095, S.D. N.Y. Bkcy.).

    Mealey's Bankruptcy - Only 2 Claims Against W.R. Grace Insurers Survive Summary Judgment

    WILMINGTON, Del. - Two claimants in Libby, Mont., seeking to hold insurers of W.R. Grace & Co. liable for their asbestos injuries can pursue negligence and bad faith claims in state court against an insurer based on workers' compensation policies not covered by W.R. Grace's Chapter 11 reorganization; however, similar claims in other state court actions are barred by an injunction in W.R. Grace's case channeling asbestos claims to a trust for resolution, a Delaware federal bankruptcy judge ruled Oct. 17 (In re: W.R. Grace & Co., et al., No. 01-01139 [Ralph Hutt and Carl Osborn v. Maryland Casualty Company, No. 14-50867], [Continental Casualty Company, et al. v. Jeremy B. Carr, et al., No. 15-50766], D. Del. Bkcy.).

    Mealey's Bankruptcy - Asbestos Claims Force Kaiser Gypsum, Affiliate Into Chapter 11

    CHARLOTTE, N.C. - Former gypsum plaster and wallboard manufacturer Kaiser Gypsum Co. Inc. filed a Chapter 11 petition Sept. 30 in North Carolina federal bankruptcy court along with cement company affiliate Hanson Permanente Cement Inc. (HPCI) to resolve thousands of asbestos personal injury claims filed against the debtors (In re Kaiser Gypsum Company, Inc., at al., No. 16-31602, W.D. N.C. Bkcy.).

    Mealey's Bankruptcy - Judge Upholds Denial Of Class Certification For Unmanifested Asbestos Claims

    WILMINGTON, Del. - A Delaware federal judge on Sept. 28 affirmed a bankruptcy court's denial of class certification for holders of possible future asbestos injury claims against Chapter 11 debtor Energy Future Holdings Corp., holding that the court did not abuse its discretion in finding that the proposed class would not be superior to individual litigation (Michael Cunningham, et al. v. Energy Future Holdings Corp., No. 15-1218, D. Del.; 2016 U.S. Dist. LEXIS 133167).

    Mealey's Bankruptcy - Judge Dismisses Appeal Of Future Claimants Of Energy Future's Failed Plan

    WILMINGTON, Del. - A Delaware federal judge on Sept. 26 dismissed an appeal by potential asbestos claimants of the plan of reorganization for Chapter 11 debtor Energy Future Holdings Corp. (EFH) after finding that the plan is null and void because it was never consummated (Shirley Fenicle, et al. v. Energy Future Holdings Corp., et al., No. 15-1183, D. Del.; 2016 U.S. Dist. LEXIS 131217).

    Mealey's Bankruptcy - Specialty Products, Bondex Get More Time To Resolve Tax Claims

    WILMINGTON, Del. - A Delaware federal bankruptcy judge on Sept. 16 gave reorganized Chapter 11 debtors Specialty Products Holding Corp. and affiliate Bondex International Inc. three more months to object to non-asbestos claims so the debtors can continue negotiating resolutions for several tax claims (In re: Specialty Products Holding Corp., et al., No. 10-11780, D. Del. Bkcy.).

    Mealey's Bankruptcy - Eagle Files Plan While Insurer Seeks Dismissal Of Case For Bad Faith

    NEW ORLEANS - Former gasket and insulation distributor Eagle Inc. filed a Chapter 11 plan of reorganization and disclosure statement Sept. 13 in Louisiana federal bankruptcy court, a day after one of its insurers sought to have the debtor's case dismissed, saying the bankruptcy petition was filed in bad faith and Eagle has no reasonable chance of being rehabilitated (In re: Eagle, Inc., No. 15-12437, E.D. La. Bkcy.).

    Mealey's Bankruptcy - Asbestos Claimants Appeal Energy Future's Plan Confirmation

    WILMINGTON, Del. - Three asbestos personal injury claimants on Sept. 12 appealed a Delaware federal bankruptcy court's recent confirmation of the first of two plans of reorganization for Chapter 11 debtor Energy Future Holdings Corp. (EFH) to federal court (In re: Energy Future Holdings Corp., et al., No. 14-10979, D. Del. Bkcy.).

    Mealey's Bankruptcy - G-I Holdings Wins Summary Judgment On Claims By New York Housing Authority

    NEWARK, N.J. - The New York City Housing Authority (NYCHA) cannot pursue asbestos property damage claims against former Chapter 11 debtor G-I Holdings Inc. because the authority's allegations fail to meet the required elements for indemnity or restitution, a New Jersey federal bankruptcy judge held Sept. 9 in awarding G-I summary judgment (In re: G-I Holdings, Inc., et al., Nos. 01-30135 and 01-38790, D. N.J. Bkcy.; 2016 Bankr. LEXIS 3314).