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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...

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...

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...

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...

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...

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...

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...

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...

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...

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...

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...

Mealey's Bankruptcy - Garlock Lobbies For Approval Of Joint Plan Establishing Asbestos Trust

CHARLOTTE, N.C. - The plan of reorganization for Chapter 11 debtor Garlock Sealing Technologies LLC should be confirmed because it meets all federal bankruptcy law requirements and is the best option for asbestos personal injury claimants, 95 percent of whom voted to accept the plan, the debtor says...

Mealey's Bankruptcy - Appeal Briefing Delayed Pending Energy Future's Plan Consummation

WILMINGTON, Del. - A Delaware federal bankruptcy judge on April 26 stayed briefing on an appeal filed by four asbestos personal injury claimants who say several affiliates of debtor Energy Future Holdings Corp. (EFH) did not have a valid bankruptcy purpose when filing their Chapter 11 petitions but rather...

Mealey's Bankruptcy - U.S. Supreme Court Won't Review Appeal Regarding GM's Liability After Bankruptcy

WASHINGTON, D.C. - The U.S. Supreme Court on April 24 said it will not review the Second Circuit U.S. Court of Appeals' ruling that personal injury, wrongful death and economic loss claims over a defective ignition switch can be filed against General Motors LLC because they fall within the "free...

Mealey's Bankruptcy - Lack Of Jurisdiction Dooms Bid To Enforce Injunction For Environmental Claims

NEWARK, N.J. - A New Jersey federal bankruptcy judge on May 1 declined to decide a request by former Chapter 11 debtor G-I Holdings Inc. to enforce its reorganization plan injunction to bar indemnification claims for cleanup of a polluted industrial site, saying G-I's appeal of a remand order in...

Mealey's Bankruptcy - Disability Claimant Is Not Precluded From Pursuing Claim, Magistrate Judge Says

ST. LOUIS - A disability claimant is not barred from pursuing a claim for long-term disability (LTD) benefits because the claimant was not required to disclose the disability benefits claim as part of her assets in a bankruptcy case as the disability claim did not begin to accrue until after the bankruptcy...

Mealey's Bankruptcy - Battle Over Superfund Site Cleanup Not A Bankruptcy Issue, Judge Says In Remanding

NEWARK, N.J. - A dispute among several companies, including former Chapter 11 debtor G-I Holdings Inc., over who should pay for the cleanup of a 26-acre polluted industrial site in New Jersey does not belong in federal bankruptcy court, a federal judge ruled May 5 in agreeing to remand the case to state...

Mealey's Bankruptcy - Panel: Asbestos Trust Owes Law Firm For Work On Claim To Insolvent Insurer

ST. PAUL, Minn. - A trial court erred by releasing an asbestos settlement trust of any duty to pay a law firm for work on a claim filed with an insolvent insurer despite finding that the firm performed some uncompensated work on that claim for which a promise to pay was implied, a Minnesota panel held...

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

NEW YORK - A New York federal bankruptcy judge on May 15 declined to award summary judgment to either Chapter 11 debtor Rapid-American Corp. or one of its insurers in a dispute over whether a policy has a $7 million or $14 million limit for asbestos liability claims, saying the policy is too ambiguous...

Mealey's Bankruptcy - John Crane Takes RICO Claims Against Lawyers To Pennsylvania Federal Court

PHILADELPHIA - Less than two months after having its fraud and racketeering claims against two law firms and their founders dismissed for lack of personal jurisdiction, John Crane Inc. (JCI) filed the identical claims against one of the firms and its principals in Pennsylvania federal court May 15 (John...

Mealey's Bankruptcy - John Crane Details RICO, Fraud Allegations Against Shein Firm

PHILADELPHIA - Four asbestos disease sufferers won multimillion verdicts against solvent manufacturers, then went out and made claims against asbestos trusts of bankrupt manufacturers whose products they had denied any exposure to when questioned in their court cases in a racketeering scheme devised...

Mealey's Bankruptcy - Federal Judge Confirms Garlock Sealing's Joint Plan Establishing Asbestos Trust

CHARLOTTE, N.C. - A North Carolina federal judge on June 12 confirmed the plan of reorganization for Chapter 11 debtor Garlock Sealing Technologies LLC after an insurer's remaining objections to the plan were resolved at a one-day bankruptcy court confirmation hearing in May (In re: Garlock Sealing...

Mealey's Bankruptcy - Kaiser Gypsum Gets 3 More Months To File Reorganization Plan

CHARLOTTE, N.C. - With negotiations ongoing among Chapter 11 debtor Kaiser Gypsum Co. and its various stakeholders, including asbestos personal injury claimants, a North Carolina federal bankruptcy judge on June 14 gave the company three more months to file a plan of reorganization (In re Kaiser Gypsum...

Mealey's Bankruptcy - 'Insured Vs. Insured' Exclusion Bars Coverage For Trustee's Breach Of Fiduciary Suit

CINCINNATI - A majority of the Sixth Circuit U.S. Court of Appeals on June 20 held that a management liability insurance policy's "insured-versus-insured" exclusion bars coverage for a liquidation trustee's $18.8 million breach of fiduciary lawsuit against officers of the bankrupt holding...

Mealey's Bankruptcy - Judge" Foreign Specialty Reinsurance Must Pay $926,000 In Attorney Fees

NEW YORK - A New York federal bankruptcy judge ruled June 22 that a foreign specialty reinsurance company owes a defunct company $926,000 in attorney fees for its failure to get court permission before filing an action to arbitrate a contract dispute in Bermuda (In re" MF Global Holdings Ltd., et...