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.).
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 discharged and enjoined by W.R. Grace's confirmed Chapter 11 reorganization plan because the claim was filed too late, even though the timber company had ample knowledge about the possible damage to the land, W.R. Grace says in an April 21 motion in Delaware federal bankruptcy court (In re: W.R. Grace & Co., et al., No. 01-01139, D. Del. Bkcy.).
WILMINGTON, Del. - Neither the confirmation order for W.R. Grace & Co.'s reorganization plan nor a proposed case management order precludes a Delaware federal bankruptcy court from certifying a class of building owners that hold property damage claims against the debtor, a South Carolina hospital argues in an April 11 reply brief (In re: W.R. Grace & Co., et al., No. 01-01139, D. Del. Bkcy.).
SAN FRANCISCO - A California federal judge on April 4 awarded insurers partial summary judgment in a coverage dispute with Chapter 11 debtor The Flintkote Co., finding that the insurers are obligated under the policies at issue to pay Flintkote only for the amount Flintkote actually pays to asbestos claimants through its post-bankruptcy trust (The Flintkote Company v. Aviva PLC, No. 15-cv-01638, N.D. Calif.; 2016 U.S. Dist. LEXIS 46090).
DETROIT - A federal bankruptcy judge in Michigan on March 25 denied a petitioner's motion to dismiss an adversary proceeding brought by the Michigan Unemployment Insurance Agency (agency) in which it seeks to recover $14,838.68 for unemployment benefit overpayments, ruling that the amount was not dischargeable under 11 U.S. Code Section 523(a)(2)(A) (In re: Stanley R. Kozlowski III, Debtor, Case No. 15-51057, Michigan Unemployment Insurance Agency v. Stanley R. Kozlowski III, No. 15-5123, E.D. Mich. Bkcy.; 2016 Bankr. LEXIS 936).
DENVER - A Colorado federal judge on March 18 affirmed an award entered in a bankruptcy court for damages against a bank for its violation of an automatic stay by sending out letters containing statements of foreclosure to a homeowner in bankruptcy (In re: Brenda A. Ogden; PNC Bank N.A. v. Brenda A. Ogden, No. 15-01274, D. Colo.; 2016 U.S. Dist. LEXIS 35338).
CHICAGO - With Chapter 11 debtor The Budd Co. Inc. agreeing to increase funding to pay uninsured asbestos claims in its latest proposed plan of reorganization by at least 1,400 percent, a representative for future claimants is not needed in the case, according to the Official Committee of Asbestos Personal Injury Claimants, which says in a March 18 motion to dispense with the appointment of a future claimants' representative (FCR) that it sufficiently represents the interests of all asbestos claimants (In re: The Budd Company, Inc., No. 14-11873, N.D. Ill. Bkcy.).
CHARLOTTE, N.C. - Manufacturing conglomerate EnPro Industries Inc., the ultimate parent of Chapter 11 debtor Garlock Sealing Technologies LLC, will pay nearly $500 million to settle all asbestos claims against Garlock, EnPro and Garlock direct parent Coltec Industries Inc. in a global settlement announced March 17 that includes releases of all of Garlock's fraud and racketeering claims against several asbestos plaintiffs' law firms and attorneys.
NEW YORK - While a federal bankruptcy judge correctly found that an asbestosis victim's negligence and conspiracy claims against Johns-Manville Corp.'s longtime insurance broker are barred by the reorganization plan confirmation orders in the case, she erred in finding that the claimant received sufficient due process in connection with the entry of those orders and must decide that issue on remand, a New York federal judge ruled March 14 (The Bogdan Law Firm v. Marsh USA, Inc., et al., No. 15-6607, S.D. N.Y.; 2016 U.S. Dist. LEXIS 33457).
WILMINGTON, Del. - Chapter 11 debtor Energy Future Holdings Corp. (EFH) on March 11 asked a Delaware federal court to consolidate two appeals filed by five asbestos personal injury claimants challenging bankruptcy court rulings confirming EFH's reorganization plan and denying certification for a class of future asbestos claimants (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.).
SCRANTON, Pa. - A federal judge in Pennsylvania on March 14 partially dismissed an insurance bad faith claim in a breach of contract lawsuit, ruling that a number of claims made by an insured are covered by the Pennsylvania Motor Vehicle Financial Responsibility Law (MVFRL) while others are not (Berkys Urena v. Allstate Insurance Co., et al., No. 15-570, M.D. Pa.; 2016 U.S. Dist. LEXIS 32562).
NEW YORK - An asbestos personal injury attorney who says a bankruptcy trust breached its fiduciary duties to trust beneficiaries by halting him from filing further claims cannot show that his past claimants are actual trust beneficiaries because he has submitted unreliable evidence to other trusts, the accused trust says in a March 9 brief filed at the request of a New York federal bankruptcy judge (In re Johns-Manville Corporation, et al., No. 82-11656 [Manville Personal Injury Settlement Trust v. Michael J. Mandelbrot and The Mandelbrot Law Firm, No. 15-01296], S.D. N.Y. Bkcy.).
SALT LAKE CITY - Utah legislators on March 10 sent to the governor legislation requiring asbestos plaintiffs to declare under oath that they investigated all potential claims arising with asbestos bankruptcy trusts and filed relevant claims.
NASHVILLE, Tenn. - Legislation that proponents claim will bring transparency to asbestos litigation and asbestos bankruptcy trusts passed the Tennessee House March 10 in a unanimous vote.
LOUISVILLE, Ky. - Complaints about a plaintiff's alleged failure to disclose the existence of additional asbestos exposures involves perjury claims subject to a one-year limitations period, not fraud, a Kentucky court held in affirming dismissal March 4 (Garlock Sealing Technologies LLC v. Delores Ann Robertson, et al., No. 2013-CA-001546-MR, Ky. App.; 2016 Ky. App. Unpub. LEXIS 175).
AUSTIN, Texas - A Texas judge on March 1 approved an agreement between an insurer's receivership estate and a trust set up to deal with asbestos related claims against a company in bankruptcy (State of Texas v. Highlands Insurance Company, No. D-1-GV-03-004537, Texas, 53rd Dist., Travis Co.).
CHICAGO - A labor union representing 5,500 retirees and spouses, dependents and surviving spouses of retirees of Chapter 11 debtor The Budd Co. Inc. on Feb. 23 objected to the disclosure statement for Budd's plan of reorganization, saying it does not provide adequate information about several issues, including the treatment of retiree claims and future health care benefits (In re: The Budd Company, Inc., No. 14-11873, N.D. Ill. Bkcy.).