BOSTON - A company being sued in a number of asbestos-related bodily injury lawsuits removed a case brought by a state's insurance insolvency fund seeking to recover for the asbestos claims paid on behalf of a pair of insolvent insurer to a federal court in Massachusetts on June 9 (Massachusetts Insurers Insolvency Fund v. Beacon Roofing Supply, Inc., et al, No. 15-cv-12291, D. Mass.).
PHILADELPHIA - Two insurance companies trying to overturn confirmation of Pittsburgh Corning Corp.'s (PCC) Chapter 11 plan of reorganization do not have standing to object to the plan and present objections that lack merit, so the confirmation ruling should be affirmed, PCC, its corporate shareholders and asbestos claimants argue in a June 4 brief in the Third Circuit U.S. Court of Appeals (In re: Pittsburgh Corning Corporation [Mt. McKinley Insurance Company, et al. v. Pittsburgh Corning Corporation, et al.], No. 14-4329, 3rd Cir.).
NEW YORK - A New York appeals panel on June 4 rejected a directors and officers liability insurer's argument that a merger litigation and an adversary proceeding constitute one continuous claim, finding that coverage for the adversary proceeding is not subject to a 2006-2007 policy's insured versus insured (IVI) exclusion (American Casualty Company of Reading, P.A., et al., v. Morris Gelb, et al., No. 15335 653280/11, N.Y. Sup., App. Div., 1st Dept.; 2015 N.Y. App. Div. LEXIS 4643).
NEW YORK - A New York justice on June 2 issued an order to show cause asking for responses regarding the proposed termination of the ancillary receivership of an insolvent Ohio insurer (In the Matter of the Ancillary Receivership of Credit General Insurance Company, No. 400160/01, N.Y. Sup., New York Co.).
NEW YORK - A New York justice on May 28 appointed the state's superintendent of financial services as the ancillary receiver of an insolvent Oklahoma insurer licensed to do business in New York (In the Matter of Red Rock Insurance Company, No. 451197/15, N.Y. Sup., New York Co.).
WILKES-BARRE, Pa. - United Gilsonite Laboratories (UGL), the maker of home improvement products Drylock sealant and ZAR wood finish, emerged from Chapter 11 protection on May 28 with the issuance by a Pennsylvania federal bankruptcy judge of a final decree, closing a case filed four years ago to protect the family-owned business from asbestos personal injury claims (In re: United Gilsonite Laboratories, 11-2032, M.D. Pa. Bkcy.).
AUSTIN, Texas - The special deputy receiver of an insolvent insurer asked a Texas court on May 26 to approve the $15 million settlement of certain asbestos related bodily injury claims (State of Texas v. Highlands Insurance Company, No. D-1-GV-03-004537, Texas, 53rd Dist., Travis Co.).
AUSTIN, Texas - The Texas Senate on May 22 overwhelmingly adopted a bill that would force asbestos and silica personal injury claimants to file any claims they have with bankruptcy trusts before a trial could proceed on their tort system claims.
HOUSTON - A group of 29 owners of cars manufactured by General Motors LLC (New GM) filed suit in federal court in Texas May 19, asserting personal injury and/or wrongful death claims stemming from accidents linked to defects in their cars, including ignition-switch defects (Dana Danley, et al. v. General Motors LLC, No. 15-01354, S.D. Texas).
CHARLOTTE, N.C. - All unsealed materials from last year's highly publicized mesothelioma liability ruling in the Chapter 11 case of Garlock Sealing Technologies LLC were made public May 18 in a North Carolina federal bankruptcy, with all personal information of claimants redacted (In re: Garlock Sealing Technologies, LLC, No. 10-31607, W.D. N.C. Bkcy.).
WASHINGTON, D.C. - The U.S. House Judiciary Committee on May 14 approved H.R. 526, the Furthering Asbestos Claim Transparency Act of 2015 (FACT Act), by a vote of 19-9.
AUSTIN, Texas - The Texas House of Representatives on May 11 voted 126-11 to approve a bill that would require asbestos and silica personal injury claimants suing to recover damages for their diseases to file all claims they have with asbestos and silica bankruptcy trusts before a trial is held.
WILMINGTON, Del. - Chapter 11 debtor The Flintkote Co. on May 4 sought approval in Delaware federal bankruptcy court of a $1.7 million settlement of insurance coverage disputes with Travelers Casualty and Surety Co., the 20th settlement the debtor has reached with insurers in its decade-long bankruptcy case (In re: The Flintkote Co., et al., No. 04-11300, D. Del. Bkcy.).
AUSTIN, Texas - The special deputy receiver of an insolvent insurer informed a Texas court on May 4 that a newly appointed state insurance commissioner has taken over as liquidator of the insolvent insurer (The State of Texas and the Texas Department of Insurance v. Vesta Fire Insurance Corporation, et al., No. D-1-GN-002366, Texas Dist., Travis Co.).
CONCORD, N.H. - The liquidator of an insolvent insurer told a federal court in New Hampshire on May 1 that two reinsurers waived their right to remove an asbestos and environmental claims reinsurance dispute from the state court by agreeing to a service of suit clause in the underlying reinsurance agreements (N.H. Insurance Department, Commissioner v. British Aviation Insurance Company Limited, et al., No. 15-cv-00127, D. N.H.).
CHICAGO - The liquidator of an insolvent insurer told an Illinois court on April 30 that a claim by a company that had provided services to the insolvent insurer's insureds should be paid, including certain post-judgment interest calculated at Texas' statutory post-judgment interest rate (People of the State of Illinois, ex rel. Andrew Boron, Director of Insurance of the State of Illinois v. Concert Health Plan Insurance Company, No. 13-CH-27224, Ill. Cir., Cook Co.).
NEW YORK - Owners of vehicles containing defective ignition switches on April 29 told the judge overseeing multidistrict litigation against General Motors LLC (New GM) that they intend to appeal a ruling by the U.S. Bankruptcy Court for the Southern District of New York finding that the bulk of ignition switch suits stemming from conduct on the part of General Motors Corp. (Old GM) are barred (In re General Motors LLC Ignition Switch Litigation, No. 14-md-2543 [JMF], S.D. N.Y.).
BOSTON - The manufacturer of pharmaceutical cleanrooms and its insurer will pay $1 million to settle allegations that defective cleanrooms contributed to a nationwide outbreak of fungal meningitis, according to a settlement agreement proposed April 20 by a bankruptcy trustee (In Re: New England Compounding Pharmacy, Inc., No. 12-19882, D. Mass. Bkcy., Eastern Div.).
WILMINGTON, Del. - A Delaware federal bankruptcy judge on April 14 authorized a creditors' committee in the Chapter 11 case of Energy Future Holdings Corp. (EFH) to hire an asbestos noticing expert to evaluate the debtor's proposed procedures for notifying asbestos personal injury claimants of a bar date for their claims (In re: Energy Future Holdings Corp., No. 14-10979, D. Del. Bkcy.).
NEW YORK - A sale order and injunction issued pursuant to Section 363 of the U.S. Bankruptcy Code shields General Motors LLC (New GM) from liability for the majority of ignition-switch suits stemming from conduct on the part of General Motors Corp. (Old GM), a bankruptcy judge in New York held April 15 (In re: Chapter 11 Motors Liquidation Co., et al., f/k/a General Motors Corp., et al., No. 09-50026, S.D. N.Y. Bkcy.).
WILMINGTON, Del. - Holders of allowed asbestos personal injury claims against Chapter 11 debtor Energy Future Holdings Corp. (EFH) will be paid in full for their claims, according to a plan of reorganization and disclosure statement filed by the energy company April 14 in Delaware federal bankruptcy court (In re: Energy Future Holdings Corp., No. 14-10979, D. Del. Bkcy.).
CHARLOTTE, N.C. - Garlock Sealing Technologies LLC's proposed procedures for objecting to and disallowing claims of 2,333 people seeking payment for asbestos-related injuries under prepetition settlements with Garlock should be rejected because the procedures are one-sided, unreasonable and unnecessary in the face of more pressing litigation to determine if Garlock's plan of reorganization can be confirmed, the asbestos claimants' committee in Garlock's Chapter 11 case said April 13 in an objection filed in North Carolina federal bankruptcy court (In re: Garlock Sealing Technologies, LLC, No. 10-31607, W.D. N.C. Bkcy.).
CHARLOTTE, N.C. - A North Carolina federal bankruptcy judge on April 10 approved the disclosure statement for Chapter 11 debtor Garlock Sealing Technologies LLC's plan of reorganization, established a bar date for asbestos personal injury claims against Garlock, allowed the future claimants' representative (FCR) to vote on the reorganization plan and scheduled the plan confirmation hearing for June 2016 (In re: Garlock Sealing Technologies, LLC, No. 10-31607, W.D. N.C. Bkcy.).
WILMINGTON, Del. - A Delaware federal bankruptcy judge on April 8 confirmed a reorganization plan for Chapter 11 debtor Yarway Corp. that establishes a $325 million trust to process and pay thousands of asbestos injury and wrongful death claims (In re: Yarway Corporation, No. 13-11025, D. Del. Bkcy.).
FRESNO, Calif. - The receiver of an insolvent insurer asked a federal court in California on April 1 to certify one of the court's previous orders as final (Thomas T. Hawker, et al. v. BancInsure, Inc., et al., No. 12-cv-01261, E.D. Calif.).