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    Mealey's Bankruptcy - Judge Rejects Garlock's Request For Information On Asbestos Settlement Payments

    CHARLOTTE, N.C. - A North Carolina federal bankruptcy judge on Sept. 23 denied a discovery request by Chapter 11 debtor Garlock Sealing Technologies LLC for information from 13 law firms concerning settlement payments received by non-mesothelioma claimants after the targeted law firms and an asbestos claimants' committee objected to the discovery on several grounds (In re: Garlock Sealing Technologies, LLC, No. 10-31607, W.D. N.C. Bkcy.).

    Mealey's Bankruptcy - Law Firm For Asbestos Committee Appointed In Oakfabco Bankruptcy

    CHICAGO - A federal bankruptcy judge on Sept. 22 authorized a newly formed asbestos claimants' committee in the recent Chapter 11 case of defunct boiler manufacturer Oakfabco Inc. to retain Illinois law firm FrankGecker LLP as the committee's counsel (In re: Oakfabco, Inc., No. 15-27062, N.D. Ill. Bkcy.).

    Mealey's Bankruptcy - Lawyer Says Manville Trust Unlawfully Disallowed Submission Of His Claims

    NEW YORK - The trustees of the asbestos trust established in the landmark Chapter 11 case of Johns-Manville Corp. abused their discretion and breached their fiduciary duties of impartiality and loyalty when they decided to disallow the submission of claims from a California attorney based on allegations that he has filed unreliable claim-related evidence with other asbestos personal injury settlement trusts, the attorney said Sept. 21 in his answer to the Johns-Manville trust's declaratory judgment adversary complaint (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.).

    Mealey's Bankruptcy - Asbestos Claimants' Opposition Included In Energy Future Plan, Statement

    WILMINGTON, Del. - Chapter 11 debtor Energy Future Holdings Corp.'s (EFH) disclosure statement for its fourth amended plan of reorganization, filed Sept. 18 in Delaware federal bankruptcy court, adds language about asbestos claims - including a statement from the asbestos creditors' committee - making clear that the claimants believe the plan cannot be confirmed without using Section 524(g) of the U.S. Bankruptcy Code to address asbestos claims (In re: Energy Future Holdings Corp., No. 14-10979, D. Del. Bkcy.).

    Mealey's Bankruptcy - Judge: Firm's Bid For Fees From Asbestos Trust Not A Bankruptcy Issue

    ST. PAUL, Minn. - A Minnesota federal bankruptcy judge on Sept. 9 remanded to state court an adversary case in which a law firm is seeking fee payments from an asbestos trust, finding that there is no bankruptcy court jurisdiction for the assets of the trust or for the law firm's asserted lien on those assets (In re: A.P.I., Inc. [Faricy Law Firm, P.A., v. A.P.I., Inc. Asbestos Settlement Trust, No. 15-3096], No. 05-30073, D. Minn. Bkcy.; 2015 Bankr. LEXIS 3085).

    Mealey's Bankruptcy - Stipulation Barring Attorney From Filing Claims With Trusts Valid, Judge Says

    LOS ANGELES - A California federal bankruptcy judge did not abuse her discretion when enforcing a stipulation under which an attorney must stop filing claims with two asbestos personal injury trusts and transfer pending claims to other attorneys, a federal judge in the state ruled Sept. 3 (Michael J. Mandelbrot, et al. v. J.T. Thorpe Settlement Trust and Thorpe Insulation Company Asbestos Settlement Trust, No. 14-03883, C.D. Calif.; 2015 U.S. Dist. LEXIS 117941).

    Mealey's Bankruptcy - Judge Allows Garlock To Seek Evidence Of Fraud, RICO Violations

    CHARLOTTE, N.C. - A broad discovery request by Chapter 11 debtor Garlock Sealing Technologies LLC seeking information from 24 asbestos personal injury trusts and claims-processing facilities is an integral part of Garlock's attempt to establish a pattern of racketeering activity by an asbestos plaintiffs' law firm, a North Carolina federal judge held Sept. 3 in overruling the law firm's objections to a magistrate's approval of the discovery (Garlock Sealing Technologies LLC v. Belluck & Fox, LLP, et al., No. 3:14-cv-118, W.D. N.C.).

    Mealey's Bankruptcy - Judge Refuses To Dismiss Garlock's Fraud, RICO Actions Against Law Firms

    CHARLOTTE, N.C. - Allegations made by Chapter 11 debtor Garlock Sealing Technologies LLC in complaints filed against asbestos plaintiffs' attorneys and law firms are "more than adequate to state a claim for fraud," a North Carolina federal judge held Sept. 2 in denying motions to dismiss the complaints (Garlock Sealing Technologies LLC v. Simon Greenstone Panatier Bartlett, APLC, et al., No. 14-116, W.D. N.C.; 2015 U.S. Dist. LEXIS 117028; Garlock Sealing Technologies LLC v. Shein Law Center, Ltd., et al., No. 14-137, W.D. N.C.; 2015 U.S. Dist. LEXIS 117027).

    Mealey's Bankruptcy - Bankruptcy Judge Finds Borrowers Were Not Given A Loan Modification

    CANTON, Ohio - An Ohio federal bankruptcy judge on Aug. 27 found that borrowers failed to show that they were given a loan modification by a lender, granting the lender's motion to dismiss the case for failure to state a claim (In re: Shane Franklin Cultice, et al. v. OCWEN Loan Servicing LLC, No. 15-6013, Bkcy. N.D. Ohio; 2015 Bankr. LEXIS 2860).

    Mealey's Bankruptcy - Judge Finds Workers' Comp Acts As Statute Of Repose, Bars Malpractice Claims

    ROCK HILL, S.C. - South Carolina Supreme Court guidance indicates that the workers' compensation statute acts as a statute of repose, eliminating claims forming the basis of a putative class action over the allegedly improperly handling asbestos bankruptcy trust claims, a federal judge affirmed Aug. 27 (Odell Parker, et al. v. Asbestos Processing LLC, et al., No. 11-1800, D. S.C., 2015 U.S. Dist. LEXIS 113574).

    Mealey's Bankruptcy - Garlock Asbestos Committee: Plan Negotiations Should Remain Confidential

    CHARLOTTE, N.C. - Negotiations between asbestos claimants and Chapter 11 debtor Garlock Sealing Technologies LLC in a failed effort to reach a consensus on a plan of reorganization should remain confidential and out of the reach of discovery in the plan confirmation process, the claimants' committee says in an Aug. 24 motion for a protective order filed in North Carolina federal bankruptcy court (In re: Garlock Sealing Technologies, LLC, No. 10-31607, W.D. N.C. Bkcy.).

    Mealey's Bankruptcy - Asbestos Claimants Take Issue With Reichhold's Omnibus Objection To Claims

    WILMINGTON, Del. - Fifteen asbestos personal injury claimants filed an objection Aug. 20 to the seventh omnibus objection of Chapter 11 debtor Reichhold Holdings US Inc. to certain asbestos claims, saying Reichhold may be using the omnibus claim objection procedures to steer asbestos claims to a company that plans to liquidate and may have no liability for such claims (In re: Reichhold Holdings US, Inc., et al., No. 14-12237, D. Del. Bkcy.).

    Mealey's Bankruptcy - Judge To Hear Argument For 2 Suits On W.R. Grace Insurer Liability At Same Time

    WILMINGTON, Del. - A Delaware federal bankruptcy judge on Aug. 19 consolidated for oral argument motions to dismiss and for summary judgment in two adversary cases that ask the same question: whether the protective injunction in W.R. Grace & Co.'s Chapter 11 case bars asbestos personal injury claimants in Libby, Mont., from pursuing negligence and bad faith claims against the former debtors' insurers (In re: W.R. Grace & Co., et al., No. 01-01139 [Continental Casualty Company, et al. v. Jeremy B. Carr, et al., No. 15-50766], [Ralph Hutt and Carl Osborn v. Maryland Casualty Company, No. 14-50867], D. Del. Bkcy.).

    Mealey's Bankruptcy - EPA Says EFH Is Vague About Environmental Liabilities In Disclosure Statement

    WILMINGTON, Del. - The amended disclosure statement for the plan of reorganization of Chapter 11 debtor Energy Future Holdings Corp. (EFH) should not be approved because it does not clearly state whether EFH will comply with its obligations under environmental law concerning properties owned and operated by the company and does not notify the public of the health and safety risks posed by noncompliance, the U.S. Environmental Protection Agency says in an Aug. 17 objection filed in Delaware federal bankruptcy court (In re: Energy Future Holdings Corp., No. 14-10979, D. Del. Bkcy.).

    Mealey's Bankruptcy - Judge Denies Insurers' Bid For Relief From Pittsburgh Corning's Plan Approval

    PITTSBURGH - A Pennsylvania federal judge on Aug. 12 denied a request by two insurance companies for relief from the judgment approving Pittsburgh Corning Corp.'s Chapter 11 plan of reorganization, finding that she lacks authority to grant the request and that new evidence relied on by the insurers of alleged fraud in the asbestos trust system does not show that the plan approval was procured by fraud. The next day, the insurers appealed the ruling (In re: Pittsburgh Corning Corporation, No. 00-22876, W.D. Pa. Bkcy. [Mt. McKinley Insurance Company, et al. v. Pittsburgh Corning Corporation, Nos. 13-01639, 14-0144, 14-0182, W.D. Pa.]; 2015 U.S. Dist. LEXIS 105890).

    Mealey's Bankruptcy - Bankruptcy Judge Denies GM's Motion To Stay Suits By Plaintiffs, 2 States

    NEW YORK - A recent U.S. Supreme Court decision requires that certain plaintiffs in the ignition-switch litigation against General Motors LLC (New GM) be allowed to have their suits reviewed by a federal district court judge, the bankruptcy judge overseeing the General Motors Corp. (Old GM) bankruptcy case ruled Aug. 13 (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.).

    Mealey's Bankruptcy - Bankruptcy Court Confirms Flintkote's Amended Reorganization Plan

    WILMINGTON, Del. - A Delaware federal bankruptcy judge on Aug. 10 confirmed for the second time the Chapter 11 plan of reorganization for The Flintkote Co. and Canadian affiliate Flintkote Mines Ltd. after asbestos claimants voted overwhelmingly to approve the plan and its asbestos personal injury trust (In re: The Flintkote Co., et al., No. 04-11300, D. Del. Bkcy.).

    Mealey's Bankruptcy - Former Boilermaker Enters 2nd Round Of Bankruptcy Due To Asbestos Claims

    CHICAGO - Defunct boiler manufacturer Oakfabco Inc. filed a voluntary Chapter 11 petition Aug. 7 in Illinois federal bankruptcy court, with plans to liquidate its assets, establish a multimillion dollar trust with insurance settlement proceeds to pay asbestos personal injury claims and then cancel its corporate existence (In re: Oakfabco, Inc., No. 15-27062, N.D. Ill. Bkcy.).

    Mealey's Bankruptcy - Plaintiffs Ask Bankruptcy Court To Deny Enforcement Of Stay Of Suits Against GM

    NEW YORK - The plaintiffs in the ignition-switch litigation against General Motors LLC (New GM), a group of non-ignition switch plaintiffs and the states of Arizona and California on Aug. 5 filed an objection to the automaker's motion to enforce a stay against dozens of suits against it (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.).

    Mealey's Bankruptcy - Amended Order Clears Way For Garlock Discovery Of Manville Trust Claim Data

    CHARLOTTE, N.C. - A North Carolina federal bankruptcy judge on Aug. 5 amended his order allowing Chapter 11 debtor Garlock Sealing Technologies LLC to serve a subpoena on the Manville Personal Injury Settlement Trust for information on the more than 90,000 asbestos claimants in Garlock's bankruptcy case so the parties can conduct a preliminary exchange of information to limit the number of false positive matches of claimants in their databases (In re: Garlock Sealing Technologies, LLC, No. 10-31607, W.D. N.C. Bkcy.).

    Mealey's Bankruptcy - New Jersey Property Owner Asks 3rd Circuit To Decide Claims Against Flintkote

    WILMINGTON, Del. - A corporate property owner is taking its pursuit of state and federal environmental liability claims against Chapter 11 debtor The Flintkote Co. to the Third Circuit U.S. Court of Appeals, according to a notice of appeal the property owner filed Aug. 5 in Delaware federal court (8 E. Frederick Place LLC v. The Flintkote Co., et al., No. 12-1176, D. Del.).

    Mealey's Bankruptcy - Bankruptcy Judge: Claims Against Insurer Barred By Johns-Manville Injunction

    NEW YORK - An asbestosis victim's claims that an insurance company conspired with Johns-Manville Corp. to withhold information from the public on the dangers of asbestos inhalation are barred by nearly 30-year-old court orders confirming Johns-Manville's bankruptcy reorganization plan and issuing an injunction protecting the company and its insurers from such claims, a New York federal bankruptcy judge held July 27 (In re Johns Manville Corporation, et al., No. 82-11656, S.D. N.Y. Bkcy.; 2015 Bankr. LEXIS 2455).

    Mealey's Bankruptcy - Energy Future Holdings Proposes 2 Options For Reorganizing

    WILMINGTON, Del. - Chapter 11 debtor Energy Future Holdings Corp. (EFH) on July 23 filed an amended plan of reorganization that includes two options for emerging from bankruptcy, with the company favoring a plan that includes $12.1 billion of new debt and equity arranged by an ad hoc group and the conversion of EFH into a real estate investment trust (In re: Energy Future Holdings Corp., No. 14-10979, D. Del. Bkcy.).

    Mealey's Bankruptcy - GM Bankruptcy Judge Denies Motions For Relief From Ruling Barring Suits

    NEW YORK - The judge overseeing the General Motors Corp. (Old GM) bankruptcy proceedings on July 22 rejected a challenge to his ruling enforcing a sale order and injunction barring hundreds suits against General Motors LLC (New GM) alleging personal injury and economic loss as a result of ignition-switch defects in vehicles manufactured by Old GM (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.).

    Mealey's Bankruptcy - Children Of Meso Victim Seek Legal Representative For Unmanifested EFH Claimants

    WILMINGTON, Del. - The son and daughter of a man who died from mesothelioma after being exposed to asbestos at a plant operated by an affiliate of Chapter 11 debtor Energy Future Holdings Corp. (EFH) say a legal representative should be appointed in EFH's bankruptcy case to protect the interests of themselves and thousands of others like them who may one day have asbestos personal injury claims against the debtor, according to a motion filed July 22 in Delaware federal bankruptcy court (In re: Energy Future Holdings Corp., No. 14-10979, D. Del. Bkcy.).