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    Mealey's Bankruptcy - 2nd Circuit Dismisses Appeal Of Toxic Tort Plaintiffs' Tronox 'Derivative' Claims

    NEW YORK - Because a federal court's ruling enforcing a permanent anti-suit injunction issued as part of a $5.5 billion settlement in the Chapter 11 case of Tronox Inc. is not a final order, it cannot be appealed by 4,300 individuals who say they were injured from the company's operation of a wood-treatment plant in Pennsylvania, the Second Circuit U.S. Court of Appeals said April 20 (Avoca plaintiffs, et al. v. Kerr-McGee Corp., et al., No. 16-343, 2nd Cir., 2017 U.S. App. LEXIS 6949).

    Mealey's Bankruptcy - New York Federal Judge Grants Insurers' Motion To Withdraw Bankruptcy Reference

    NEW YORK - A New York federal judge on April 17 granted a motion filed by two insurers to withdraw an insured's adversary proceeding from bankruptcy court because the bankruptcy court does not have the authority to decide the breach of contract and bad faith claims alleged against the insurers in the adversary proceeding (Phillip Michael Scott v. AIG Property Casualty Co., et al., No. 17-1052, S.D. N.Y., 2017 U.S. Dist. LEXIS 58339).

    Mealey's Bankruptcy - No Cause, Jurisdiction To Rehash Pittsburgh Corning Case, Texas Claimants Argue

    PITTSBURGH - There is neither sufficient cause nor subject matter jurisdiction to reopen the Chapter 11 case of Pittsburgh Corning Corp. (PCC) at the request of the company's asbestos trust to determine whether thousands of claims from a consolidated Texas litigation qualify for payment by the trust, the claimants told a Pennsylvania federal bankruptcy court April 14 (In re: Pittsburgh Corning Corporation, No. 00-22876, W.D. Pa. Bkcy.).

    Mealey's Bankruptcy - Failed ACA Insurer Claims HHS Improperly Withholds Reinsurance Funds

    COLUMBIA, S.C. - The government is improperly withholding payments from, and setting off debts owed by, a failed South Carolina Patient Protection and Affordable Care Act (ACA) co-operative insurer, illegally placing its own interests before those of policyholders and others entitled to priority, the insurer's liquidator allege in an April 12 federal complaint filed in South Carolina (Raymond G. Farmer, et al. v. The United States of America, et al., No. 17-956, D. S.C.).

    Mealey's Bankruptcy - Panel: Architect Did Not Have 'Deemed Allowed' Claim That Constitutes Res Judicata

    NEW ORLEANS - The Fifth Circuit U.S. Court of Appeals on March 24 denied an architect's appeal seeking to reverse a ruling in favor of a home builder's insurer in a breach of contract dispute arising from an underlying $63,471,000 copyright infringement dispute, rejecting the architect's argument that an unobjected-to proof of claim in a bankruptcy case should be allowed and should become a final judgment when the bankruptcy case is closed (Kipp Flores Architects, LLC v. Mid-Continent Casualty Co., No. 16-20255, 5th Cir., 2017 U.S. App. LEXIS 5241).

    Mealey's Bankruptcy - Judges Dismiss John Crane's RICO Suits Against Lawyers For Lack Of Jurisdiction

    CHICAGO - Illinois federal court is the wrong jurisdiction for John Crane Inc.'s fraud and racketeering claims against two law firms and their founders, two federal judges held separately March 23 in dismissing the company's lawsuits, but without prejudice to refile the actions in the proper courts (John Crane Inc. v. Shein Law Center Ltd., et al., No. 16-5913, 2017 U.S. Dist. LEXIS 42758, John Crane Inc. v. Simon Greenstone Panatier Bartlett, et al., No. 16-5918, N.D. Ill., 2017 U.S. Dist. LEXIS 41840).

    Mealey's Bankruptcy - N.Y. Justice: Wisconsin Dissolution Law Bars Suit Against Special Electric

    NEW YORK - An asbestos action filed outside Wisconsin's two-year window for suing Special Electric Co. Inc. after its dissolution is untimely, and an earlier motion to reopen and enforce its bankruptcy plan does not save the case, a New York justice held in an opinion posted March 21 (In re: New York City Asbestos Litigation, Thomas McGlynn v. Aerco International Inc., No. 190219/2016, 2017 N.Y. Misc. LEXIS 900, In re: New York City Asbestos Litigation, Bertle Stromholm, et al. v. Aerco International Inc., No. 190177/2016, N.Y. Sup., New York Co.).

    Mealey's Bankruptcy - Pittsburgh Corning Trust Opposes $9 Billion In Claims From Texas Litigation

    PITTSBURGH - Trustees for the asbestos trust established by the Chapter 11 case of Pittsburgh Corning Corp. (PCC) said March 17 in Pennsylvania federal bankruptcy court that they want to reopen the case to find out whether more than $9 billion in claims from a consolidated Texas litigation qualify for payment by the trust, which has assets of less than $4 billion (In re: Pittsburgh Corning Corporation, No. 00-22876, W.D. Pa. Bkcy.).

    Mealey's Bankruptcy - Garlock Debtors, Insurer Agree To Denial Of Arbitration Request

    CHARLOTTE, N.C. - An insurer cannot pursue arbitration against Chapter 11 debtor Garlock Sealing Technologies LLC and affiliates for a coverage dispute with a third-party manufacturer but can file a late proof of claim against the debtors without prejudice to its arbitration rights, according to a consent order filed March 16 in North Carolina federal bankruptcy court (In re: Garlock Sealing Technologies, LLC, et al., No. 10-31607, W.D. N.C. Bkcy.).

    Mealey's Bankruptcy - Rapid-American, Insurers Both Denied Judgment On Policy's Limits

    NEW YORK - A New York federal bankruptcy judge on March 2 denied summary judgment to both Chapter 11 debtor Rapid-American Corp. and two of its insurers in a dispute over whether a policy has a $10 million or $30 million limit for asbestos liability claims (Rapid-American Corporation, et al. v. Travelers Casualty and Surety Company, et al., No. 15-01095, S.D. N.Y. Bkcy.).

    Mealey's Bankruptcy - Garlock Affiliate Files For Bankruptcy; Cases To Be Administered Jointly

    CHARLOTTE, N.C. - A North Carolina federal bankruptcy judge on Feb. 3 added three asbestos claimants from the new Chapter 11 case of Garlock Sealing Technologies LLC affiliate OldCo LLC to the claimants committee in Garlock's case after agreeing that the cases should be jointly administered (In re: Garlock Sealing Technologies, LLC, et al., No. 10-31607, In re: OldCo, LLC, successor by merger to Coltec Industries Inc., No. 17-30140, W.D. N.C. Bkcy.).

    Mealey's Bankruptcy - Bankruptcy Judge Denies Bid To Transfer Kaiser Gypsum's Chapter 11 Case

    CHARLOTTE, N.C. - A North Carolina federal bankruptcy judge on Jan. 30 denied a request by five asbestos personal injury claimants to transfer the Chapter 11 case of former gypsum plaster and wallboard manufacturer Kaiser Gypsum Co. Inc. to another venue, finding that the filing meets U.S. Bankruptcy Code venue requirements and that transfer "would not be in the interests of justice or for the convenience of the parties" (In re Kaiser Gypsum Company, Inc., at al., No. 16-31602, W.D. N.C. Bkcy.).

    Mealey's Bankruptcy - 3rd Circuit Accepts Direct Appeal In Row Between Insurers, Asbestos Claimants

    PHILADELPHIA - The Third Circuit U.S. Court of Appeals said Jan. 20 that it will hear a direct appeal by 27 asbestos disease sufferers of a bankruptcy court's finding that their personal injury claims against insurers of reorganized Chapter 11 debtor W.R. Grace & Co. are barred (Continental Casualty Company, et al. v. Jeremy B. Carr, et al., No. 17-8002, 3rd Cir.).

    Mealey's Bankruptcy - Magistrate: Trust Claim Information Discoverable, But Not Settlements

    NEW ORLEANS - Claim information submitted to asbestos trusts is discoverable in an asbestos personal injury action, but information about past settlements with asbestos trusts or defendants is not, a Louisiana federal magistrate judge ruled Jan. 23 (Jesse Frank Sheppard v. Liberty Mutual Insurance Company, et al., No. 16-2401, E.D. La.; 2017 U.S. Dist. LEXIS 8595).

    Mealey's Bankruptcy - Kaiser Gypsum Gets Extra Time To Present Plan For Reorganizing

    CHARLOTTE, N.C. - A North Carolina federal bankruptcy judge in a Jan. 19 minute order gave Chapter 11 debtor Kaiser Gypsum Co. Inc. six more months to file a plan of reorganization that the debtor hopes will include a trust to resolve asbestos claims (In re Kaiser Gypsum Company, Inc., at al., No. 16-31602, W.D. N.C. Bkcy.).

    Mealey's Bankruptcy - Johns-Manville Affiliate Backs Order Barring Woman's Mesothelioma Claim

    NEW YORK - A bankruptcy court properly exercised its jurisdiction when determining that a mesothelioma sufferer's premises liability claim against a subsidiary of Johns-Manville Corp. arose long before the subsidiary filed for bankruptcy protection and is therefore enjoined and channeled to Johns-Mansville's asbestos trust, the subsidiary argues in a Jan. 19 brief filed in a New York federal court appeal (Lynda Berry v. Graphic Packaging International, Inc., No. 16-5817, S.D. N.Y.).

    Mealey's Bankruptcy - Claimants Appeal Rejection Of Bid To Dismiss Cases Of 4 Energy Future Affiliates

    WILMINGTON, Del. - Four asbestos personal injury claimants on Jan. 18 asked a Delaware federal judge to decide whether several affiliates of debtor Energy Future Holdings Corp. (EFH) had a valid bankruptcy purpose when filing their Chapter 11 petitions or whether they filed for bankruptcy as a litigation tactic to evade asbestos liabilities (Shirley Fenicle, et al. v. Energy Future Holdings Corp., No. 17-9, D. Del.).

    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.).