LexisNexis® Legal Newsroom
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...

Mealey's Bankruptcy - Law Firm Seeks Dismissal Of John Crane's Appeal Of RICO, Fraud Claims

CHICAGO - An attempt by frequent asbestos defendant John Crane Inc. to pursue fraud and racketeering claims against two law firms and their founders is barred by the doctrine established in Rooker v. Fid. Trust Co., 263 U.S. 413 (1923), and D.C. Court of Appeals v. Feldman, 460 U.S. 462 (1983), one law...

Mealey's Bankruptcy - Bankruptcy Judge Removes Consent Finding In Coverage Dispute Ruling

CHICAGO - An insurer successfully petitioned an Illinois federal bankruptcy judge to remove a finding in his ruling denying the insurer summary judgment in a coverage dispute with asbestos claimants in the Chapter 11 case of Oakfabco Inc. that the insurer waived its right to object to the ruling, according...

Mealey's Bankruptcy - Brokerage Company Says Foreign Specialty Reinsurer's $15M Bond Remains Defective

NEW YORK - A defunct brokerage company argues in its July 11 reply brief with a New York federal bankruptcy court that a foreign specialty reinsurer's $15 million bond as part of the reinsurer's effort to arbitrate a coverage dispute in Bermuda should be struck because the bond is defective ...

Mealey's Bankruptcy - Court: Res Judicata Bars Wrongful Death Consortium Claim

LOS ANGELES - A couple's previous asbestos action bars a widow's wrongful death action seeking loss of consortium, a California appeals court held July 11 while also concluding that the judge below properly offset an economic award for funeral and burial expenses with proceeds from settlements...

Mealey's Bankruptcy - Federal Bankruptcy Judge Strikes Foreign Specialty Reinsurer's $15M Bond

NEW YORK - A foreign specialty reinsurer must post a new $15 million bond as part of its attempt to arbitrate a coverage dispute in Bermuda, a New York federal bankruptcy judge ruled July 17, granting a defunct brokerage company's motion to strike the current bond as defective (In re: MF Global Holdings...

Mealey's Bankruptcy - Asbestos Claimants Drop Appeal Due To Failure Of Energy Future's Plan

WILMINGTON, Del. - Four asbestos claimants battling Chapter 11 debtor Energy Future Holdings Corp. (EFH) over its handling of asbestos claims in its plan to reorganize presented the Delaware federal court on July 21 with a proposed stipulation and order dismissing the claimants' appeal of the plan...

Mealey's Bankruptcy - GM's Suit Against Manville Trust Barred By Injunction, Bankruptcy Judge Rules

POUGHKEEPSIE, N.Y. - General Motors LLC cannot sue Johns-Manville Corp.'s asbestos personal injury trust in Ohio state court to recover money for payments made to a widow because GM's claim for contribution is barred by the decades-old injunction issued in Johns-Manville's Chapter 11 case...

Mealey's Bankruptcy - Insurer Seeks To Force Arbitration Of Coverage Dispute With Garlock

CHARLOTTE, N.C. - An insurer of an affiliate of former Chapter 11 debtor Garlock Sealing Technologies LLC sued Garlock, its parent and another former debtor affiliate in North Carolina federal court on Aug. 2, seeking to force the Garlock parties to arbitrate a dispute over whether the insurer owes any...

Mealey's Bankruptcy - Oakfabco Insurer To Pay $4.5 Million To Trust After Battle With Asbestos Claimants

CHICAGO - An Illinois federal bankruptcy judge on Aug. 4 approved a $4.5 million asbestos insurance coverage dispute settlement between Chapter 11 debtor Oakfabco Inc. and one of its insurers over objections by asbestos claimants' representatives, after the insurer added $1 million to the deal (In...

Mealey's Bankruptcy - Rapid-American Protests Insurers' Subpoenas To Claims-Processing Facilities

NEW YORK - Chapter 11 debtor Rapid-American Corp. and the asbestos claimants in its case asked a New York federal bankruptcy judge on Aug. 15 to stop the debtor's insurers from enforcing subpoenas they issued to six asbestos claims-processing facilities, saying the subpoenas are "facially overbroad...

Mealey's Bankruptcy - Jurisdiction Plainly Lacking For Crane's RICO Claims, Law Firm Tells 7th Circuit

CHICAGO - A federal court in Illinois correctly dismissed fraud and racketeering claims leveled by frequent asbestos defendant John Crane Inc. (JCI) against two law firms and their principals for lack of jurisdiction because the asbestos cases giving rise to the claims did not occur in Illinois, one...

Mealey's Bankruptcy - Insurer Cannot Litigate Coverage Dispute In State Court, Bankruptcy Judge Says

OAKLAND, Calif. - A California federal bankruptcy judge on Aug. 24 denied an insurer's request to sue a company's asbestos trust in state court over the amount of coverage owed for asbestos personal injury claims, issuing a strong rebuke to the insurer's attorneys, who claimed that the trustee...

Mealey's Bankruptcy - Finding That Bankruptcy Asset Sale Bars Take-Home Asbestos Case Stands

HARRISBURG, Pa. - The Pennsylvania Supreme Court on Sept. 8 declined to review an appellate court's rejection of a widower's attempt to hold a company liable for his wife's death from mesothelioma and finding that the company's "free and clear" purchase of assets in a bankruptcy...