LexisNexis® Legal Newsroom
    Mealey's Bankruptcy - 2nd Circuit Panel Revives Ignition Switch Claims Against General Motors

    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).

    Mealey's Bankruptcy - Specialty Products, Bondex Object To Asbestos Claims Against Reorganized Debtors

    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.).

    Mealey's Bankruptcy - Ford, Honeywell Seek To Mine Asbestos Claimant Data For Evidence Of Fraud

    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.).

    Mealey's Bankruptcy - Bankruptcy Judge Bars State Court Suit Against Johns-Manville Affiliate

    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.).

    Mealey's Bankruptcy - Asbestos Personal Injury Claimants Reject Budd's Plan Of Reorganization

    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.).

    Mealey's Bankruptcy - Claimant Representative, Company Back Damaged Timber Claim Against W.R. Grace

    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.).

    Mealey's Bankruptcy - Bankruptcy Judge: Insurers Can Seek Contribution From Pittsburgh Corning Parent

    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.).

    Mealey's Bankruptcy - Johns-Manville Fund Closed After Paying $76M To Asbestos Claimants

    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.).

    Mealey's Bankruptcy - Rapid-American Insurers Win Summary Judgment Battle Over Limit Exhaustion

    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.).

    Mealey's Bankruptcy - John Crane Inc. Files RICO Actions Against Asbestos Plaintiff Firms

    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.).

    Mealey's Bankruptcy - Future Claimants Say Appeal Not Mooted By Energy Future's Failed Plan

    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.).

    Mealey's Bankruptcy - Garlock Files New Plan; Disclosure Statement Hearing Scheduled

    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.).

    Mealey's Bankruptcy - Asbestos Claimants Oppose Expedited Confirmation For Energy Future's Plan

    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.).

    Mealey's Bankruptcy - 2nd Eagle Insurer Seeks Discovery On Debtor's Corporate Ownership

    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.).

    Mealey's Bankruptcy - California Federal Judge: Insurers Must Post $1.5M Bond In Asbestos Suit

    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).

    Mealey's Bankruptcy - Budd Statement OK'd; Asbestos Committee Says Plan Should Be Approved

    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.).

    Mealey's Bankruptcy - Bankruptcy Judge Nixes Energy Future's Request To Expedite Confirmation Plan

    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.).

    Mealey's Bankruptcy - Pittsburgh Corning's Plan Takes Effect; Trust Funding Expected Soon

    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.).

    Mealey's Bankruptcy - W.R. Grace Says Claim Over Damaged Timberland Filed 7 Years Too Late

    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.).

    Mealey's Bankruptcy - Hospital Seeks Class Certification For W.R. Grace Property Damage Claims

    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.).

    Mealey's Bankruptcy - California Federal Judge: Insurers Must Pay Flintkote Trust For Asbestos Claims

    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).

    Mealey's Bankruptcy - Bankruptcy Judge Finds Unemployment Fraud Penalty Is Not Dischargeable

    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).

    Mealey's Bankruptcy - Federal Judge Upholds Award Against Bank For Violating Bankruptcy Court Stay

    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).

    Mealey's Bankruptcy - Budd Co. Hikes Funding For Uninsured Asbestos Claims; Committee Says No FCR Needed

    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.).

    Mealey's Bankruptcy - Garlock Parent To Pay $500 Million To Resolve All Asbestos Claims

    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.