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    Mealey's Bankruptcy - Federal Judge Affirms Order Requiring Debtors To Surrender Property

    WEST PALM BEACH, Fla. - A Florida federal judge on Nov. 23 affirmed a bankruptcy court's decision in favor of a bank, ordering the debtors to surrender the property pursuant to a statement of intention (David A. Failla, et al. v. Citibank N.A., et al., No. 15-80328, S.D. Fla.; 2015 U.S. Dist. LEXIS 157832).

    Mealey's Bankruptcy - New York Justice Wants More From Plaintiffs Subpoenaing Commentary Author

    NEW YORK - The justice overseeing New York asbestos litigation issued an order to show cause Nov. 16 about why he should not quash a subpoena seeking to depose the author of a legal commentary published in Mealey's Asbestos Bankruptcy Report (In re: New York City Asbestos Litigation, All Weitz & Luxenberg Asbestos Cases, No. 040000/88, N.Y. Sup., New York Co.).

    Mealey's Bankruptcy - Garlock Disputes Fee Request Of Adviser For Asbestos Committee

    CHARLOTTE, N.C. - The latest request for compensation by the financial adviser for the asbestos claimants' committee in the Chapter 11 case of Garlock Sealing Technologies LLC should be reduced by more than $104,000 because some of the adviser's work was not needed or duplicates work that was already done, Garlock contends in a Nov. 16 objection to the adviser's request for payment filed 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 - Asbestos Plaintiffs Say Amicus Brief From Grace Trust Should Be Rejected

    WILMINGTON, Del. - The W.R. Grace & Co. asbestos trust should not be allowed to file an amicus curiae brief in an adversary case to determine whether asbestos personal injury lawsuits brought against former insurers of Grace in Montana state courts violate Grace's Chapter 11 plan of reorganization, the state court plaintiffs argue in a Nov. 17 objection filed in Delaware federal bankruptcy court (Continental Casualty Company, et al. v. Jeremy B. Carr, et al., No. 15-50766, D. Del. Bkcy.).

    Mealey's Bankruptcy - Law Firm Counterattacks, Says Garlock Lied About Dangers Of Its Products

    CHARLOTTE, N.C. - A Dallas-based asbestos plaintiffs' law firm accused by Chapter 11 debtor Garlock Sealing Technologies LLC of scheming to fraudulently induce Garlock into settling tort system cases denied the allegations and leveled its own fraud and racketeering charges against Garlock, saying in a Nov. 16 answer and counterclaim filed in North Carolina federal court that the debtor schemed with an affiliate to withhold evidence of the dangers of Garlock's products to reduce verdict and settlement amounts (Garlock Sealing Technologies LLC, et al. v. Simon Greenstone Panatier Bartlett, APLC, et al., No. 14-116, W.D. N.C.).

    Mealey's Bankruptcy - Judge Orders Nonprofit Mutual Health Insurance Company Into Rehabilitation

    MASON, Mich. - A Michigan judge on Nov. 13 ordered a nonprofit mutual health insurance company with insufficient reserves into rehabilitation (Patrick McPharlin, Director of the Department of Insurance and Financial Services v. Consumers Mutual Insurance of Michigan, No. 15-948-CR, Mich. Cir., Ingham Co.).

    Mealey's Bankruptcy - Johns-Manville Trust: Attorney's Bid For Sanctions Flawed, Unsound

    NEW YORK - A request by an asbestos personal injury attorney to impose sanctions against two attorneys representing an asbestos trust that filed a declaratory judgment action against him should be rejected and the trust should be awarded attorney fees because the request "amounts to a procedurally improper exercise in vituperation, made without legal or factual support," the trust says in a Nov. 12 opposition brief filed in New York federal bankruptcy court (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 - Punitive Damages Partially Allowed Against New GM In Ignition Switch Case

    NEW YORK -

    Mealey's Bankruptcy - Judge Orders Termination, Final Distribution Of Insurer's Conservatorship

    SAN FRANCISCO - A California judge on Nov. 5 ordered the end of the conservatorship of an insurer and authorized a final $3.1 million distribution to a liquidating trust (Dave Jones, Insurance Commissioner of the State of California v. Majestic Insurance Company, No. CPF-11-511261, Calif. Super., San Francisco Co.).

    Mealey's Bankruptcy - New Fraud Evidence Must Be Considered For Pittsburgh Corning's Plan, Insurers Say

    PITTSBURGH - A Pennsylvania federal court erred when it failed to consider that fraud occurred in asbestos claimant voting on Pittsburgh Corning Corp.'s Chapter 11 plan of reorganization and that the fraud was "inherently and critically tied to procurement of the confirmation order," two insurance companies told the Third Circuit U.S. Court of Appeals on Nov. 9 (Mt. McKinley Insurance Company, et al. v. Pittsburgh Corning Corporation, Nos. 15-2954, 14-4329, 3rd Cir.).

    Mealey's Bankruptcy - Pennsylvania Insurer Placed Into Liquidation; Judge Enjoins All Related Lawsuits

    HARRISBURG, Pa. - A Pennsylvania judge on Nov. 5 granted the state's insurance commissioner's petition to place an insurer into liquidation (In re: Lincoln General Insurance Company In Liquidation, No. 1 LIN 2015, Pa. Cmwlth.).

    Mealey's Bankruptcy - Garlock, Asbestos Committee, FCR Spar Over Document Requests, Subpoenas

    CHARLOTTE, N.C. - The asbestos claimants' committee in the Chapter 11 case of Garlock Sealing Technologies LLC should be ordered to produce "nonpublic" communications its members have made with claimants about Garlock's proposed plan of reorganization so the debtor can determine whether the committee has been attempting to improperly discredit the plan, Garlock says in a Nov. 5 motion filed 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 - Bankruptcy Judge Denies Committee's Request For Garlock Documents

    CHARLOTTE, N.C. - A North Carolina federal bankruptcy judge on Nov. 6 denied a request by an asbestos claimants' committee to compel Chapter 11 debtor Garlock Sealing Technologies LLC to provide certain discovery sought in the committee's first request for production of documents directed to Garlock regarding issues for the confirmation of Garlock's plan of reorganization (In re: Garlock Sealing Technologies, LLC, at al., No. 10-31607, W.D. N.C. Bkcy.).

    Mealey's Bankruptcy - Pennsylvania Judge Orders Liquidation, Makes Insurance Commissioner Liquidator

    HARRISBURG, Pa. - A Pennsylvania judge on Oct. 30 ordered the liquidation of an insurer following the consent to the liquidation by the insurer's sole shareholder (In re: Regis Insurance Company In Liquidation, No. 1 REG 2015, Pa. Cmwlth.).

    Mealey's Bankruptcy - Judge Orders Insurer Into Rehabilitation, Enjoins Other Actions

    MASON, Mich. - A Michigan judge on Oct. 29 ordered an insurer into rehabilitation, finding that the insurer's financial condition is hazardous to policyholders (Patrick McPharlin, Director of the Department of Insurance and Financial Services v. Affirmative Insurance Company of Michigan, No. 15-898-CR, Mich. Cir., Ingham Co.).

    Mealey's Bankruptcy - 3rd Circuit: Attorney Lacks Standing To Pursue Claims Against Asbestos Trusts

    PHILADELPHIA - An asbestos plaintiffs' lawyer cannot pursue a declaratory judgment suit alleging that several asbestos personal injury trusts violated the terms of their respective distribution procedures by refusing to process his claims because he cannot show that he was harmed by the trusts' actions, the Third Circuit U.S. Court of Appeals held Oct. 15 in affirming a trial court's ruling (Michael J. Mandelbrot, et al. v. Armstrong World Industries Asbestos Personal Injury Settlement Trust, et al., No. 14-4173, 3rd Cir.; 2015 U.S. App. LEXIS 17902).

    Mealey's Bankruptcy - Asbestos Plaintiffs Seek Judgment On Insurers' Suit To Halt State Court Cases

    WILMINGTON, Del. - Personal injury lawsuits brought against former insurers of W.R. Grace & Co. in Montana state courts do not violate the channeling injunction set forth in Grace's confirmed Chapter 11 plan of reorganization, so the state court plaintiffs should be awarded summary judgment on the insurers' declaratory judgment action filed in Delaware federal bankruptcy court, the plaintiffs say in an Oct. 8 brief (Continental Casualty Company, et al. v. Jeremy B. Carr, et al., No. 15-50766, D. Del. Bkcy.).

    Mealey's Bankruptcy - 3rd Circuit Dismisses Appeal Of Flintkote's Reorganization Plan

    PHILADELPHIA - With the Chapter 11 plan of reorganization for The Flintkote Co. and Canadian affiliate Flintkote Mines Ltd. becoming effective and the plan being substantially consummated, the Third Circuit U.S. Court of Appeals on Oct. 8 dismissed an appeal of the plan confirmation by Flintkote's former parent company at the request of all parties (Imperial Tobacco Canada Limited, et al. v. The Flintkote Company, et al., No. 14-3367, 3rd Cir.).

    Mealey's Bankruptcy - Some Plan Negotiations In Garlock Case Will Remain Confidential, Judge Says

    CHARLOTTE, N.C. - Negotiations conducted after Jan. 16 between asbestos claimants and Chapter 11 debtor Garlock Sealing Technologies LLC on a plan of reorganization for the debtor will be kept confidential and out of the reach of discovery in the plan confirmation process based on a stipulation between the parties, a North Carolina federal bankruptcy ruled Sept. 23 (In re: Garlock Sealing Technologies, LLC, No. 10-31607, W.D. N.C. Bkcy.).

    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).