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    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 dozens of affiliates (In re Bestwall LLC, No. 17-31795, W.D. N.C. Bkcy.).

    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: W.R. Grace & Co., et al., No. 01-01139, D. Del. Bkcy, 2017 Bankr. LEXIS 3679).

    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 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 - 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 court (In re: Pittsburgh Corning Corporation, No. 00-22876, W.D. Pa. Bkcy.).

    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 found Sept. 29 in reversing a bankruptcy court ruling awarding $5 million to each firm (Bevan & Associates, LPA, Inc., et al. v. Eric Bogdan, et al., No. 16-cv-7154, S.D. N.Y.).

    Mealey's Bankruptcy - Claims Against Garlock Face Asbestos Trust Procedures After Reclassification

    CHARLOTTE, N.C. - A North Carolina federal bankruptcy judge agreed Sept. 25 to reclassify 72 claims against the bankruptcy estate of former Chapter 11 debtor Garlock Sealing Technologies LLC from general unsecured claims to asbestos claims (In re: Garlock Sealing Technologies, LLC, et al., No. 10-31607, W.D. N.C. Bkcy.).

    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 in North Carolina federal court (Safety National Casualty Corp. v. Garlock Sealing Technologies LLC, et al., No. 3:17-cv-00458, W.D. N.C.).

    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 Settlement Trust, No. 16-742, D. Del., 2017 U.S. Dist. LEXIS 155340).

    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 case to allow the appeals to proceed (In re Kaiser Gypsum Company, Inc., et al., No. 16-31602, W.D. N.C. Bkcy.).

    Mealey's Bankruptcy - Split 9th Circuit Sends Row Over Lawyer's Trust Claims Ban Back To Trial Court

    SAN FRANCISCO - A California federal court must decide on remand whether federal or state law controls - and whether a Ninth Circuit U.S. Court of Appeals decision impacts - two asbestos trusts' attempt to enforce a settlement under which an attorney agreed to stop filing claims with the trusts due to his pattern of presenting unreliable evidence, a divided Ninth Circuit panel held Aug. 14 (Michael J. Mandelbrot, et al. v. J.T. Thorpe Settlement Trust and Thorpe Insulation Company Asbestos Settlement Trust, No. 15-56430, 9th Cir.).

    Mealey's Bankruptcy - Finding That Bankruptcy Asset Sale Bars Take-Home Asbestos Case Stands

    HARRISBURG, Pa. - The Pennsylvania Supreme Court on Sept. 8 declined to review an appellate court's rejection of a widower's attempt to hold a company liable for his wife's death from mesothelioma and finding that the company's "free and clear" purchase of assets in a bankruptcy court auction barred his take-home asbestos exposure claims (Jacqueline S. Wagner, et al. v. Standard Steel LLC, et al., No. 80 EAL 2017, Pa. Sup.).

    Mealey's Bankruptcy - Insurer Cannot Litigate Coverage Dispute In State Court, Bankruptcy Judge Says

    OAKLAND, Calif. - A California federal bankruptcy judge on Aug. 24 denied an insurer's request to sue a company's asbestos trust in state court over the amount of coverage owed for asbestos personal injury claims, issuing a strong rebuke to the insurer's attorneys, who claimed that the trustee knew the claims he submitted to the insurer did not trigger the polices at issue (In re CFB Liquidating Corporation, f/k/a Chicago Fire Brick Co., et al., No. 01-45483, N.D. Calif. Bkcy., 2017 Bankr. LEXIS 2411).

    Mealey's Bankruptcy - Jurisdiction Plainly Lacking For Crane's RICO Claims, Law Firm Tells 7th Circuit

    CHICAGO - A federal court in Illinois correctly dismissed fraud and racketeering claims leveled by frequent asbestos defendant John Crane Inc. (JCI) against two law firms and their principals for lack of jurisdiction because the asbestos cases giving rise to the claims did not occur in Illinois, one of the firms argues in an Aug. 16 brief to the Seventh Circuit U.S. Court of Appeals (John Crane Inc. v. Shein Law Center Ltd., et al., Nos. 17-1809 and 17-1926, John Crane Inc. v. Simon Greenstone Panatier Bartlett, et al., No. 17-1814, 7th Cir.).

    Mealey's Bankruptcy - Rapid-American Protests Insurers' Subpoenas To Claims-Processing Facilities

    NEW YORK - Chapter 11 debtor Rapid-American Corp. and the asbestos claimants in its case asked a New York federal bankruptcy judge on Aug. 15 to stop the debtor's insurers from enforcing subpoenas they issued to six asbestos claims-processing facilities, saying the subpoenas are "facially overbroad and seek material that is wholly irrelevant" to the issues in an insurance coverage adversary action (Rapid-American Corporation, et al. v. Travelers Casualty and Surety Company, et al., No. 15-01095, S.D. N.Y. Bkcy.).

    Mealey's Bankruptcy - Oakfabco Insurer To Pay $4.5 Million To Trust After Battle With Asbestos Claimants

    CHICAGO - An Illinois federal bankruptcy judge on Aug. 4 approved a $4.5 million asbestos insurance coverage dispute settlement between Chapter 11 debtor Oakfabco Inc. and one of its insurers over objections by asbestos claimants' representatives, after the insurer added $1 million to the deal (In re: Oakfabco, Inc., No. 15-27062, N.D. Ill. Bkcy., 2017 Bankr. LEXIS 2201).

    Mealey's Bankruptcy - Insurer Seeks To Force Arbitration Of Coverage Dispute With Garlock

    CHARLOTTE, N.C. - An insurer of an affiliate of former Chapter 11 debtor Garlock Sealing Technologies LLC sued Garlock, its parent and another former debtor affiliate in North Carolina federal court on Aug. 2, seeking to force the Garlock parties to arbitrate a dispute over whether the insurer owes any money to the parties under an excess policy issued in 1983 (Safety National Casualty Corp. v. Garlock Sealing Technologies LLC, et al., No. 3:17-cv-00458, W.D. N.C.).

    Mealey's Bankruptcy - GM's Suit Against Manville Trust Barred By Injunction, Bankruptcy Judge Rules

    POUGHKEEPSIE, N.Y. - General Motors LLC cannot sue Johns-Manville Corp.'s asbestos personal injury trust in Ohio state court to recover money for payments made to a widow because GM's claim for contribution is barred by the decades-old injunction issued in Johns-Manville's Chapter 11 case, a New York federal bankruptcy judge held July 24 (In re Johns-Manville Corporation, et al., No. 82-11656 [General Motors LLC v. Manville Personal Injury Settlement Trust, et al., No. 1:17-ap-1032], S.D. N.Y. Bkcy.).

    Mealey's Bankruptcy - Asbestos Claimants Drop Appeal Due To Failure Of Energy Future's Plan

    WILMINGTON, Del. - Four asbestos claimants battling Chapter 11 debtor Energy Future Holdings Corp. (EFH) over its handling of asbestos claims in its plan to reorganize presented the Delaware federal court on July 21 with a proposed stipulation and order dismissing the claimants' appeal of the plan confirmation, due to EFH's inability to consummate the plan (Shirley Fenicle, et al. v. Energy Future Holdings Corp., No. 17-229, D. Del.).

    Mealey's Bankruptcy - Federal Bankruptcy Judge Strikes Foreign Specialty Reinsurer's $15M Bond

    NEW YORK - A foreign specialty reinsurer must post a new $15 million bond as part of its attempt to arbitrate a coverage dispute in Bermuda, a New York federal bankruptcy judge ruled July 17, granting a defunct brokerage company's motion to strike the current bond as defective (In re: MF Global Holdings Ltd., et al., MF Global Holdings Ltd. as plan administrator, and MF Global Assigned Assets LLC v. Allied World Assurance Company Ltd., et al., Chapter 11 No. 11-15059, Adv. Proc. No. 16-01251, S.D. N.Y. Bkcy.).

    Mealey's Bankruptcy - Court: Res Judicata Bars Wrongful Death Consortium Claim

    LOS ANGELES - A couple's previous asbestos action bars a widow's wrongful death action seeking loss of consortium, a California appeals court held July 11 while also concluding that the judge below properly offset an economic award for funeral and burial expenses with proceeds from settlements with asbestos bankruptcy trusts (Janet Stewart v. Union Carbide Corp., No. B267405, Calif. App., 2nd Dist., Div. 4).

    Mealey's Bankruptcy - Brokerage Company Says Foreign Specialty Reinsurer's $15M Bond Remains Defective

    NEW YORK - A defunct brokerage company argues in its July 11 reply brief with a New York federal bankruptcy court that a foreign specialty reinsurer's $15 million bond as part of the reinsurer's effort to arbitrate a coverage dispute in Bermuda should be struck because the bond is defective (In re: MF Global Holdings Ltd., et al., MF Global Holdings Ltd. as plan administrator, and MF Global Assigned Assets LLC v. Allied World Assurance Company Ltd., et al., Chapter 11 No. 11-15059, Adv. Proc. No. 16-01251, S.D. N.Y. Bkcy.).

    Mealey's Bankruptcy - Bankruptcy Judge Removes Consent Finding In Coverage Dispute Ruling

    CHICAGO - An insurer successfully petitioned an Illinois federal bankruptcy judge to remove a finding in his ruling denying the insurer summary judgment in a coverage dispute with asbestos claimants in the Chapter 11 case of Oakfabco Inc. that the insurer waived its right to object to the ruling, according to a June 29 amended opinion (In re: Oakfabco, Inc., No. 15-27062, N.D. Ill. Bkcy., 2017 Bankr. LEXIS 1856).

    Mealey's Bankruptcy - Law Firm Seeks Dismissal Of John Crane's Appeal Of RICO, Fraud Claims

    CHICAGO - An attempt by frequent asbestos defendant John Crane Inc. to pursue fraud and racketeering claims against two law firms and their founders is barred by the doctrine established in Rooker v. Fid. Trust Co., 263 U.S. 413 (1923), and D.C. Court of Appeals v. Feldman, 460 U.S. 462 (1983), one law firm and its principals argue in a June 28 bid to have the Seventh Circuit U.S. Court of Appeals dismiss the action (John Crane Inc. v. Shein Law Center Ltd., et al., Nos. 17-1809 and 17-1926, John Crane Inc. v. Simon Greenstone Panatier Bartlett, et al., No. 17-1814, 7th Cir.).

    Mealey's Bankruptcy - Judge" Foreign Specialty Reinsurance Must Pay $926,000 In Attorney Fees

    NEW YORK - A New York federal bankruptcy judge ruled June 22 that a foreign specialty reinsurance company owes a defunct company $926,000 in attorney fees for its failure to get court permission before filing an action to arbitrate a contract dispute in Bermuda (In re" MF Global Holdings Ltd., et al. MF Global Holdings Ltd. as plan administrator, and MF Global Assigned Assets LLC v. Allied World Assurance Company Ltd., et al., Chapter 11 No. 11-15059, Adv. Proc. No. 16-01251, S.D. N.Y. Bkcy., 2017 Bankr. LEXIS 1585).

    Mealey's Bankruptcy - 'Insured Vs. Insured' Exclusion Bars Coverage For Trustee's Breach Of Fiduciary Suit

    CINCINNATI - A majority of the Sixth Circuit U.S. Court of Appeals on June 20 held that a management liability insurance policy's "insured-versus-insured" exclusion bars coverage for a liquidation trustee's $18.8 million breach of fiduciary lawsuit against officers of the bankrupt holding company (Indian Harbor Insurance Co. v. Clifford Zucker, et al., Nos. 16-1695, 16-1697 and 16-1698, 2017 U.S. App. LEXIS 10821, 6th Cir).