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).
PHILADELPHIA - A two-judge panel of the Third Circuit U.S. Court of Appeals on Sept. 8 declined to reconsider its decision rejecting an appeal by a corporate property owner seeking to hold Chapter 11 debtor The Flintkote Co. liable for pollution at an old New Jersey manufacturing site (8 E. Frederick Place LLC v. The Flintkote Co., et al., No. 15-2886, 3rd Cir.).
NEW YORK - A $20 million attorney fee fund from a settlement between an insurer and asbestos claimants should be divided equally among four law firms that negotiated the settlement based on the language and meaning of the agreement, a New York federal bankruptcy judge held Aug. 26 (In re: Johns-Manville Corporation, et al. [Eric Bogdan and the Bogdan Law Firm v. Bevan & Associates, LPA, Inc., et al., No. 15-01023] No. 82-11656, S.D. N.Y. Bkcy.; 2016 Bankr. LEXIS 3145).
WILMINGTON, Del. - A Delaware federal bankruptcy judge will hold a hearing in October on a request by Honeywell International Inc. for access to asbestos claimants' data in nine Chapter 11 cases, including W.R. Grace & Co.'s bankruptcy proceedings, and in the meantime will contact a retired judge about appointing her to referee the dispute, according to an Aug. 23 docket entry (In re: W.R. Grace & Co., et al., No. 01-01139, D. Del. Bkcy.).
WILMINGTON, Del. - A Delaware federal bankruptcy judge on Aug. 18 disallowed 13 asbestos personal injury claims against reorganized Chapter 11 debtors Specialty Products Holding Corp. and affiliate Bondex International Inc., ruling that the claims are barred by an injunction channeling the claims to the debtors' asbestos trust (In re: Specialty Products Holding Corp., et al., No. 10-11780, D. Del. Bkcy.).
NEW YORK - The New York City Housing Authority (NYCHA) on Aug. 1 asked a Third Circuit U.S. Court of Appeals panel to rehear its recent decision rejecting the authority's bid to force former Chapter 11 debtor G-I Holdings Inc. to remove asbestos-containing building materials from apartment buildings, saying the Third Circuit should "reaffirm its commitment to carefully balance bankruptcy's goal of a clean start with environmental law's goal of protecting public health" (In re: G-I Holdings Inc., f/k/a GAF Corporation, et al. [New York City Housing Authority v. G-I Holdings, Inc.], No. 15-2164, 3rd Cir.; 2016 U.S. App. LEXIS 13108).
NEW ORLEANS - A Louisiana federal bankruptcy judge on Aug. 1 allowed the asbestos claimants' committee in the Chapter 11 case of Eagle Inc. to replace its counsel with an out-of-state law firm but capped the firm's hourly fee amount after an Eagle insurer protested the requested change (In re: Eagle, Inc., No. 15-12437, E.D. La. Bkcy.).
NEW YORK - People who were allegedly injured as a result of defective General Motors ignition switches in automobiles made before its 2009 bankruptcy can now sue the company, a Second Circuit U.S. Court of Appeals panel ruled July 13 (In Re: Motors Liquidation Company, Nos. 15-2844, 15-2847 and 15-2848, 2nd Cir.; 2016 U.S. App. LEXIS 12848).
WILMINGTON, Del. - Reorganized Chapter 11 debtors Specialty Products Holding Corp. and affiliate Bondex International Inc. filed their first omnibus objection to asbestos personal injury claims July 6 in Delaware federal bankruptcy court, saying the claims are now the responsibility of the debtors' asbestos trust (In re: Specialty Products Holding Corp., et al., No. 10-11780, D. Del. Bkcy.).
WILMINGTON, Del. - Ford Motor Co. on July 6 joined in two motions filed in Delaware federal bankruptcy court by Honeywell International Inc. seeking access to asbestos claimants' data in the Chapter 11 cases of W.R. Grace & Co. and The Flintkote Co. to review the information for evidence of fraud in the tort system by asbestos plaintiffs and their attorneys (In re: W.R. Grace & Co., et al., No. 01-01139, D. Del. Bkcy.; In re: The Flintkote Co., No. 04-11300, D. Del. Bkcy.).
NEW YORK - A New York federal bankruptcy judge on June 30 enjoined a woman's Louisiana state court asbestos personal injury lawsuit against a subsidiary of Johns-Manville Corp. after finding that the woman's claims are barred by decades-old injunctions in Johns-Manville's Chapter 11 case, and her only recourse is to file a claim with the asbestos trust established in the case (In re Johns-Manville Corporation, et al., No. 82-11656, S.D. N.Y. Bkcy.).
CHICAGO - Asbestos claimants were the only class to reject the proposed Chapter 11 plan of reorganization for debtor The Budd Co. Inc., voting 958-696 against the plan, despite a recommendation to approve the plan by the official asbestos claimants' committee, according to a balloting report filed June 20 in Illinois federal bankruptcy court (In re: The Budd Company, Inc., No. 14-11873, N.D. Ill. Bkcy.).
WILMINGTON, Del. - A timber company's claim that its land was contaminated with asbestos from W.R. Grace & Co.'s mining operations near Libby, Mont., is not foreclosed by a claims bar date in W.R. Grace's Chapter 11 case because the company did not know about the damage before the bar date, so enjoining the claim would violate due process, the representative for future property damage claimants argues in a June 20 brief in Delaware federal bankruptcy court (In re: W.R. Grace & Co., et al., No. 01-01139, D. Del. Bkcy.).
PITTSBURGH - A Pennsylvania federal bankruptcy judge approved a stipulation June 14 allowing insurers to proceed with their claim against the parent company of Chapter 11 debtor Pittsburgh Corning Corp. (PCC) for contribution or indemnification in a Louisiana state court asbestos premises liability action (In re: Pittsburgh Corning Corporation, No. 00-22876, W.D. Pa. Bkcy.).
POUGHKEEPSIE, N.Y. - A fund established in the Chapter 11 case of Johns-Manville Corp. paid more than $76 million to 17,111 asbestos personal injury claimants before the fund was terminated in May, according to the fund's final report, filed June 10 in New York federal bankruptcy court (In re Johns-Manville Corporation, et al., No. 82-11656, S.D. N.Y. Bkcy.).
NEW YORK - Underlying insurance limits must be exhausted by actual payment before excess liability coverage attaches for three of four policies in dispute between Chapter 11 debtor Rapid-American Corp. and the three insurers that have not settled their coverage disputes with the company, a New York federal bankruptcy judge ruled June 7 (Rapid-American Corporation, et al. v. Travelers Casualty and Surety Company, et al., No. 15-01095, S.D. N.Y. Bkcy.).
CHICAGO - Two plaintiff side asbestos firms fabricated false exposure histories in a scheme to defraud and obstruct justice, John Crane Inc. (JCI) alleges in a pair of Illinois federal complaints filed June 6 alleging violation of the Racketeering Influenced and Corrupt Organizations Act (John Crane Inc. v. Shein Law Center Ltd, et al., No. 16-5913, John Crane Inc. v. Simon Greenstone Panatier Bartlett, et al., No. 16-5918, N.D. Ill.).
WILMINGTON, Del. - Two potential asbestos claimants in the Chapter 11 case of Energy Future Holdings Corp. (EFH) agreed May 23 to stay the briefing in their appeal of the debtor's plan of reorganization pending a decision in Delaware federal court on EFH's request to dismiss the appeal as moot due to the plan becoming null and void (Michael Cunningham, et al. v. Energy Future Holdings Corp., et al., No. 15-1218, D. Del.; Shirley Fenicle, et al. v. Energy Future Holdings Corp., et al., No. 15-1183, D. Del.).
CHARLOTTE, N.C. - A North Carolina federal bankruptcy judge on May 23 said he will hold a hearing June 22 to consider approving the recently filed disclosure statement for the revamped plan of reorganization of Garlock Sealing Technologies LLC (GST) (In re: Garlock Sealing Technologies, LLC, et al., No. 10-31607, W.D. N.C. Bkcy.).
WILMINGTON, Del. - Proposed expedited protocols for confirmation of the plan of reorganization for Chapter 11 debtor Energy Future Holdings Corp. (EFH) should be rejected because they violate the due process rights of asbestos personal injury claimants, the two asbestos claimants on the debtor's committee of unsecured creditors say in a May 16 objection in Delaware federal bankruptcy court (In re: Energy Future Holdings Corp., No. 14-10979, D. Del. Bkcy.).
NEW ORLEANS - An insurance company on May 12 asked a Louisiana federal bankruptcy judge to order Chapter 11 debtor Eagle Inc. to share discovery documents produced in the case to other insurers and asbestos claimants; the request followed an order by the bankruptcy judge a week earlier granting in part another insurer's motion to compel discovery related to the debtor's corporate ownership (In re: Eagle, Inc., No. 15-12437, E.D. La. Bkcy.).
SAN FRANCISCO - A California federal judge on May 9 determined that insurers must post a bond of $1.5 million, plus prejudgment interest, in a coverage dispute with Chapter 11 debtor The Flintkote Co. (The Flintkote Company v. Aviva PLC, No. 15-cv-01638, N.D. Calif.; 2016 U.S. Dist. LEXIS 61366).
CHICAGO - An Illinois federal bankruptcy judge on May 6 approved the disclosure statement for the reorganization plan of Chapter 11 debtor The Budd Co. Inc., finding that the debtor has provided sufficient information in the statement to allow holders of claims, including asbestos personal injury claims, to make an informed decision when voting whether to accept or reject the plan (In re: The Budd Company, Inc., No. 14-11873, N.D. Ill. Bkcy.).
WILMINGTON, Del. - A Delaware federal bankruptcy judge on May 2 denied a request by Chapter 11 debtor Energy Future Holdings Corp. (EFH) to expedite consideration of dates and deadlines for confirmation of the company's revised plan of reorganization, which EFH was forced to file after its previously confirmed plan could not be effectuated (In re: Energy Future Holdings Corp., No. 14-10979, D. Del. Bkcy.).
PITTSBURGH - The reorganization plan of debtor Pittsburgh Corning Corp. (PCC), which includes a $3 billion trust to pay asbestos personal injury claims, became effective April 27, more than 16 years after the company filed for Chapter 11 protection in Pennsylvania federal bankruptcy court (In re: Pittsburgh Corning Corporation, No. 00-22876, W.D. Pa. Bkcy.).