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    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.).

    Mealey's Bankruptcy - Canadian Boards Can Delay Voting On Garlock Plan Pending Settlement Ruling

    CHARLOTTE, N.C. - Canada's 10 provincial workers' compensation boards on Dec. 9 got more time from a North Carolina federal bankruptcy judge to vote on the Chapter 11 plan for Garlock Sealing Technologies LLC so they can finalize a $20 million settlement with the debtor and related companies of the boards' claims for payments made to more than 1,300 Canadian workers suffering from asbestos diseases (In re: Garlock Sealing Technologies, LLC, et al., No. 10-31607, W.D. N.C. Bkcy.).

    Mealey's Bankruptcy - Insurer Loses Bid For Judgment On Liquidating Trust's Payment Claims

    OAKLAND, Calif. - An asbestos personal injury liquidating trust properly submitted proposals to an insurer regarding the payment of allowed claims that triggered the insurer's policies and did not violate two debtors' plan of reorganization by allocating to the insurer 100 percent of the liquidated value of each approved unpaid claim, a California federal bankruptcy judge held Nov. 21 (In re CFB Liquidating Corporation, f/k/a Chicago Fire Brick Co., et al., No. 01-45483, [Barry A. Chatz, as Trustee for the CFB/WFB Liquidating Trust v. Continental Casualty Company, No. 15-4136] N.D. Calif. Bkcy.; 2016 Bankr. LEXIS 4034).

    Mealey's Bankruptcy - Judge Vetoes Eagle's Disclosure Statement, Sets Hearing On Dismissal Of Case

    NEW ORLEANS - A Louisiana federal bankruptcy judge on Nov. 18 rejected the disclosure statement for the plan of reorganization of Chapter 11 debtor Eagle Inc. and ordered the company to show why the case should not be dismissed for failure to file a disclosure statement or a feasible reorganization plan (In re: Eagle, Inc., No. 15-12437, E.D. La. Bkcy.).

    Mealey's Bankruptcy - Kaiser Gypsum Wards Off Asbestos Claimants' Attempt To Transfer Case

    CHARLOTTE, N.C. - A North Carolina federal bankruptcy judge, in a Nov. 22 minute order, denied a request by five asbestos personal injury claimants to transfer the recent Chapter 11 case of former gypsum plaster and wallboard manufacturer Kaiser Gypsum Co. Inc. to the U.S. District Court for the Western District of Washington (In re Kaiser Gypsum Company, Inc., at al., No. 16-31602, W.D. N.C. Bkcy.).

    Mealey's Bankruptcy - Liquidator Asks Court To Approve Settlement Of Asbestos Claims

    CONCORD, N.H. - The liquidator of an insolvent insurer asked a New Hampshire court on Nov. 21 to approve a $13.8 million settlement agreement with a bankrupt company's asbestos personal injury trust (In the Matter of the Liquidation of The Home Insurance Company, No. 03-E-0106, N.H. Sup., Merrimack Co.).

    Mealey's Bankruptcy - Plaintiffs Appeal Ruling That Claims Against W.R. Grace Insurers Are Barred

    WILMINGTON, Del. - Twenty-seven asbestos disease sufferers on Nov. 14 asked a Delaware federal court to decide if a bankruptcy judge erred in finding that their state law personal injury claims against insurers of Chapter 11 debtor W.R. Grace & Co. are barred by an injunction in W.R. Grace's plan of reorganization (Continental Casualty Company, et al. v. Jeremy B. Carr, et al., No. 16-1010, D. Del.).

    Mealey's Bankruptcy - John Crane Says Law Firm's Arguments For Dismissal Don't Hold Water

    CHICAGO - Asbestos personal injury law firm Simon Greenstone Panatier Bartlett provides no basis in three motions for an Illinois federal court to dismiss fraud, conspiracy and racketeering allegations leveled by John Crane Inc. (JCI), and the claims are sufficiently pleaded to survive the motions, JCI says in a Nov. 11 response brief (John Crane Inc. v. Simon Greenstone Panatier Bartlett, et al., No. 16-5918, N.D. Ill.).

    Mealey's Bankruptcy - Judge: Honeywell, Ford Can Use Asbestos Claimants' Data From 9 Bankruptcies

    WILMINGTON, Del. - Honeywell International Inc. and Ford Motor Co. can access asbestos claimants' data in nine Chapter 11 cases, but only to investigate fraud in the claims process, and the information cannot be used for lobbying efforts, a Delaware federal bankruptcy judge held Nov. 8 (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.).