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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...

Mealey's Bankruptcy - Split 9th Circuit Sends Row Over Lawyer's Trust Claims Ban Back To Trial Court

SAN FRANCISCO - A California federal court must decide on remand whether federal or state law controls - and whether a Ninth Circuit U.S. Court of Appeals decision impacts - two asbestos trusts' attempt to enforce a settlement under which an attorney agreed to stop filing claims with the trusts due...

Florida Bankruptcy Judge Cites Song & Literature in Dealing with Frivolous Pro Se Filer

In an Opinion in a Chapter 7 bankruptcy case from the United States Bankruptcy Court for the Southern District of Florida, Fort Lauderdale Division, Judge John K. Olson cites several literary references and song in dealing with Kenneth A. Frank, an unrelenting pro se unsecured creditor. Judge Olson’s...

Mealey's Bankruptcy - Kaiser Gypsum's Stay Lifted To Allow Appeals In Coverage Dispute

CHARLOTTE, N.C. - The primary asbestos insurer for Chapter 11 debtor Kaiser Gypsum Co. can pursue appeals of rulings in all three phases of coverage litigation in California state court, a North Carolina federal bankruptcy judge ruled in a Sept. 20 minute order lifting the automatic stay in the bankruptcy...

Mealey's Bankruptcy - Son's Constitutional Due Process Claims Against Trust Shot Down By Judge

WILMINGTON, Del. - A son cannot pursue claims that an asbestos personal injury trust violated his deceased father's constitutional rights because the trust is a private entity and is not an arm of the government, a Delaware federal judge held Sept. 22 (Matthew D. Pinnavaia v. The Celotex Asbestos...

Mealey's Bankruptcy - Arbitration Not Available For Coverage Dispute Based On Policy, Garlock Says

CHARLOTTE, N.C. - Former Chapter 11 debtor Garlock Sealing Technologies LLC does not have to arbitrate an insurance coverage dispute with an insurer based on the plain language of the 1983 policy at issue, Garlock and affiliates argue in a Sept. 22 response to the insurer's motion to force arbitration...

Mealey's Bankruptcy - Claims Against Garlock Face Asbestos Trust Procedures After Reclassification

CHARLOTTE, N.C. - A North Carolina federal bankruptcy judge agreed Sept. 25 to reclassify 72 claims against the bankruptcy estate of former Chapter 11 debtor Garlock Sealing Technologies LLC from general unsecured claims to asbestos claims (In re: Garlock Sealing Technologies, LLC, et al., No. 10-31607...

Mealey's Bankruptcy - Federal Judge Vacates Even Split Of $20M Fee Award For Insurance Settlement

NEW YORK - While a $20 million attorney fee agreement for a settlement between an insurer and asbestos claimants does not say the money is to be divided unevenly among the four law firms that negotiated the settlement, it also does not say the fees are to be divided equally, a New York federal judge...

Mealey's Bankruptcy - Pittsburgh Corning Trust To Pay Up To $178.5 Million In Deal With Claimants

PITTSBURGH - More than 2,000 asbestos claimants from a decades-old consolidated Texas litigation will share up to $178.5 million from the asbestos trust established in the Pittsburgh Corning Corp. (PCC) bankruptcy case, according to a notice and settlement filed Oct. 18 in Pennsylvania federal bankruptcy...

Mealey's Bankruptcy - Rapid-American Seeks Protective Order For Insurers' Subpoenas

NEW YORK - A declaratory insurance coverage action filed by Chapter 11 debtor Rapid-American Corp. is not the proper vehicle for insurers to use in search of evidence of fraud in the asbestos trust system, the debtor says in an Oct. 20 motion and memorandum seeking protection from the insurers' subpoenas...

Mealey's Bankruptcy - Interest Rate Ruling Boosts IRS Refund To W.R. Grace Debtors By $1.6 Million

WILMINGTON, Del. - Reorganized chemical conglomerate W.R. Grace & Co. will receive an additional $1.6 million tax refund from the U.S. government after a Delaware federal bankruptcy judge found Oct. 23 that the Internal Revenue Service used the wrong percentage rate when figuring the refund (In re...

Mealey's Bankruptcy - Georgia-Pacific Subsidiary Bestwall Files For Bankruptcy Due To Asbestos Liabilities

CHARLOTTE, N.C. - Georgia-Pacific affiliate Bestwall LLC filed a Chapter 11 petition Nov. 2 in North Carolina federal bankruptcy court to create a trust to pay asbestos personal injury claims and receive an injunction forever barring future asbestos claims against the debtor, Georgia-Pacific and their...

Mealey's Bankruptcy - Insurer Owes Trustee $3.5M In Policy Limits, Attorney Fees For Coverage Dispute

OAKLAND, Calif. - A California federal bankruptcy judge on Nov. 16 entered a judgment of more than $3.5 million against an insurance company in a dispute over the amount of coverage owed to a company's liquidating trust for asbestos personal injury claims, including attorney fees and a $60,000 penalty...

Mealey's Bankruptcy - Asbestos Claimants' Committee Named For Bestwall's Chapter 11 Case

CHARLOTTE, N.C. - A North Carolina federal bankruptcy judge on Nov. 16 appointed the Official Committee of Asbestos Personal Injury Claimants in the new Chapter 11 case of Bestwall LLC, selecting one of three claimants who requested to sit on the committee in addition to the nine claimants proposed by...