Mealey's Asbestos Bankruptcy

  • September 18, 2020

    Johnson & Johnson, Mining Companies Spar Over Asbestos Indemnity Claims

    WILMINGTON, Del. — Indemnity claims filed by two talc mining companies against Johnson & Johnson (J&J) for asbestos claims do not belong in the court overseeing the Chapter 11 case of another talc supplier, Imerys Talc America Inc., J&J says in a Sept. 16 reply in Delaware federal bankruptcy court in support of its bid to dismiss the claims (In re:  Imerys Talc America, Inc., et al. [Cyprus Mines Corporation, et al. v. Imerys Talc America, Inc., et al., Chapter 11, No. 19-10289, Adv. Proc. No. 20-ap-50626, D. Del. Bkcy.).

  • September 18, 2020

    Bankruptcy, Trust Deals Allowed As Evidence, But Only For Apportioning Damages

    NEW ORLEANS — Defendants in a case over a man's fatal lung cancer can present evidence of settlements he made before dying in asbestos bankruptcy cases and with asbestos trusts in order to calculate damages properly in the present case, a Louisiana federal judge ruled Sept. 16 (Callen Dempster, et al. v. Lamorak Insurance Co., et al., No. 20-95, E.D. La., 2020 U.S. Dist. LEXIS 169198).

  • September 14, 2020

    Bankruptcy Judge Rejects Most Of Insurer's Proof Of Claim Against Asbestos Debtor

    ROME, Ga. — An insurer of Chapter 11 debtor The Fairbanks Co. is not entitled to reimbursement of $1.2 million in historical indemnity payments, overpayments or defense costs for asbestos personal injury claims based on its untimely reservation of rights or on any subrogation rights it has, a Georgia federal bankruptcy judge held Sept. 9 (In re The Fairbanks Company, No. 18-41768, N.D. Ga. Bkcy.).

  • September 03, 2020

    Owens-Illinois Debtor Gets Extensions To Develop Consensual Reorganization

    WILMINGTON, Del. — Owens-Illinois Inc. affiliate and Chapter 11 debtor Paddock Enterprises LLC has more time to work on a consensual plan of reorganization after a Delaware federal bankruptcy judge on Aug. 20 approved an extension of the debtor's exclusive periods (In re Paddock Enterprises, LLC, No. 20-10028, D. Del. Bkcy.).

  • August 31, 2020

    Judge Finds Asbestos Trust's Motion To Dismiss 'Completely Undeveloped'

    LITTLE ROCK, Ark. — An asbestos defendant's failure to support its "completely undeveloped and conclusory" motion to dismiss is not merely a "technical foot fault" and requires denial, a federal judge in Arkansas said Aug. 25 (Thomas Kimmons, et al. v. AutoZone Inc., et al., No. 19-876, E.D. Ark., 2020 U.S. Dist. LEXIS 154199).

  • August 31, 2020

    Asbestos Claims In Energy Future Case Filed Too Late, Bankruptcy Judge Says

    WILMINGTON, Del. — Three asbestos personal injury claimants lost their bids to file late proofs of claim in the Chapter 11 case of Energy Future Holdings Corp. (EFH) on Aug. 27 when a Delaware federal bankruptcy judge found that the tardy filings "did not arise from excusable neglect" (In re:  Energy Future Holdings, et al., No. 14-10979, D. Del. Bkcy., 2020 Bankr. LEXIS 2285).

  • August 28, 2020

    Oregon Court Affirms Asbestos Bankruptcy Trust Discovery Misconduct Ruling

    PORTLAND, Ore. — An Oregon appeals court on Aug. 26 said a judge properly ordered a new trial after finding misconduct tied to the failure to produce asbestos bankruptcy trust evidence in a trial that produced a $3.9 million verdict (Alice J. Golik v. CBS Corp., et al., No. 410, Ore. App.).

  • August 27, 2020

    CertainTeed Debtor Seeks Garlock-Like Probe For Evidence Of Claimant Fraud

    CHARLOTTE, N.C. — Chapter 11 debtor DBMP LLC on Aug. 19 sought permission from a North Carolina federal bankruptcy court to subpoena several asbestos trusts to see if any of the 9,000 asbestos claimants who won verdicts or reached settlements with the debtor or its affiliate, CertainTeed Corp., defrauded the company by not revealing that they had also accepted settlements from the trusts — a discovery tactic used successfully in the landmark Garlock Sealing Technologies bankruptcy case (In re DBMP LLC, No. 3:20-bk-30080, W.D. N.C. Bkcy.).

  • August 26, 2020

    Asbestos Committee, FCR Sue Over Georgia-Pacific Funding For Debtor

    CHARLOTTE, N.C. — Representatives for asbestos claimants in the Chapter 11 case of Georgia-Pacific affiliate Bestwall LLC asked a North Carolina federal bankruptcy court in a July 29 adversary suit to declare that a funding agreement between the two companies can be assigned to a bankruptcy trust to pay asbestos claims (In re Bestwall LLC, [Official Committee of Asbestos Claimants, et al. v. Bestwall LLC, et al.], Chapter 11 No. 17-31795, Adv. Proc. No. 20-ap-03049, W.D. N.C. Bkcy.)

  • August 26, 2020

    Kaiser Gypsum Debtors' Plan With Asbestos Trust Gets OK From Court

    CHARLOTTE, N.C. — A North Carolina federal bankruptcy judge has approved the plan of reorganization for Chapter 11 debtor Kaiser Gypsum Co. Inc. and its co-debtor after overruling all objections to the plan by Kaiser's main asbestos insurer, according to a docket entry and the debtors' Aug. 25 proposed findings of fact and conclusions of law for confirmation of the plan (In re Kaiser Gypsum Company, Inc., et al., No. 16-31602, W.D. N.C. Bkcy.).

  • August 25, 2020

    4th Circuit Affirms Jury Instructions, $32.7 Million Asbestos Award

    GREENSBORO, N.C. — Nothing in the substantial factor causation case law required a judge overseeing an asbestos case to use specific jury instruction language, and nothing improperly or inflammatory led to a $32.7 million verdict, a Fourth Circuit U.S. Court of Appeals panel said Aug. 24 (Ann Finch, et al. v. Covil Corp., No. 19-1594, 4th Cir.).

  • August 25, 2020

    Debtor Seeks Further Delay Of Asbestos Insurance Coverage Actions

    NEW YORK — Chapter 11 debtor The Fairbanks Co. on Aug. 20 asked a New York federal judge to continue to abide by a stay of litigation in two declaratory judgment actions with insurers over coverage for asbestos claims as it presses on with negotiations on a consensual plan of reorganization (The Fairbanks Company v. National Union Fire Insurance Company of Pittsburgh, et al., No. 15-1141, Liberty Mutual Insurance Company v. The Fairbanks Company, No. 13-3755, S.D. N.Y.).

  • August 24, 2020

    Johnson & Johnson Seeks Dismissal Of Mining Companies' Indemnity Claims

    WILMINGTON, Del. — The Delaware federal bankruptcy court should dismiss indemnity claims filed by two talc mining companies against Johnson & Johnson (J&J) because they are state law contract claims that don't belong in the court overseeing the Chapter 11 case of another talc supplier, Imerys Talc America Inc., J&J says in a July 29 motion to dismiss the claims (In re:  Imerys Talc America, Inc., et al. [Cyprus Mines Corporation, et al. v. Imerys Talc America, Inc., et al., Chapter 11 No. 19-10289, Adv. Proc. No. 20-ap-50626, D. Del. Bkcy.).

  • August 20, 2020

    New Jersey Judge Leaves $200M Damage Award Intact In Asbestos-Talc Case

    NEW BRUNSWICK, N.J. — A New Jersey judge on June 29 denied two Johnson & Johnson entities' motion for judgment notwithstanding the verdict, leaving in place more than $200 million in damages against the company (Douglas Barden, et al. v. Brenntag North America, et al., Nos. MID-L-1809-17, MID-L-0932-17, MID-L-7049-16, MID-L-6040-17, N.J. Super., Middlesex Co.).

  • August 19, 2020

    Bankruptcy Judge Allows ON Marine More Time To File Liquidation Plan

    PITTSBURGH — A Pennsylvania federal bankruptcy judge on Aug. 17 gave Chapter 11 debtor ON Marine Services Company LLC additional time to seek approval of settlements with asbestos insurers and file a plan of liquidation (In re:  ON Marine Services Company, LLC, No. 20-2007, W.D. Pa. Bkcy.).

  • August 19, 2020

    Judge Finds Plaintiff's Pursuit Of Claims Against Former Debtor Not Frivolous

    BALTIMORE — While an asbestos claimant's arguments on when her claims against a former debtor arose "were difficult to sustain," her assertions of lack of adequate notice and due process in the bankruptcy case required enough analysis and consideration to defeat the debtor's bid for sanctions against her for alleged frivolous pursuit of the claims, a Maryland federal bankruptcy judge held Aug. 8 (In re RailWorks Corporation, et al. [L.K. Comstock & Company, Inc. v. Irene Reibie, et al.], No. 01-64463, Adv. No. 19-00199, D. Md. Bkcy.).

  • August 18, 2020

    Florida Judge Reduces Award, Enters $6.2M Judgment In J&J Asbestos Case

    MIAMI — Two Johnson & Johnson entities must pay $6,220,643 plus interest in an asbestos-talc case after a Florida judge on Aug. 13 reduced the economic damages but otherwise left the jury's verdict intact (Blanca Moure-Cabrera v. Johnson & Johnson, et al., No. 19-000727-CA, Fla. Cir., Miami-Dade Co.).

  • August 14, 2020

    Owens-Illinois Debtor Seeks Extensions To Develop Consensual Reorganization

    WILMINGTON, Del. — Owens-Illinois Inc. affiliate and Chapter 11 debtor Paddock Enterprises LLC on July 31 sought more time in Delaware federal bankruptcy court to file a plan of reorganization, saying the extension will give the company "a full and fair opportunity to negotiate and propose a consensual plan without the distraction, cost and delay of a competing plan process" (In re Paddock Enterprises, LLC, No. 20-10028, D. Del. Bkcy.).

  • August 10, 2020

    New York Appeals Court Remands 2 Asbestos Awards For Retrial Or Remittitur

    NEW YORK — In a 3-1 ruling, a New York state appeals court on Aug. 6 found that awards for $13 million in past pain and suffering and past loss of consortium in an asbestos dust exposure case were not reasonable and remanded the case for a new trial unless the plaintiff stipulates to reduce those awards (In re New York City Asbestos Litigation [William E. Robaey, et al. v. Air & Liquid Systems Corporation, et al., No. 190276/13, N.Y. Sup., App. Div., 1st Dept., 2020 N.Y. App. Div. LEXIS 4528).

  • August 05, 2020

    Federal Magistrate Says Plaintiffs Must Comply With State's Trust Transparency Law

    FARGO, N.D. — Two asbestos plaintiffs must comply with the North Dakota Asbestos Bankruptcy Trust Transparency Act before they can continue their survivor actions against several corporate defendants, and a question about the constitutionality of the act does not need go before the North Dakota Supreme Court, a federal magistrate judge ruled July 8 (Dorothy Kotalik v. A.W. Chesterton Company, et al., No. 3:18-cv-246, Catherine Selfors v. Apollo Piping Supply, Inc., et al., Case No. 3:18-cv-251, D. N.D., 2020 U.S. Dist. LEXIS 137483).