TACOMA, Wash. — A Washington federal bankruptcy judge did not have jurisdiction to approve two settlements between Chapter 11 debtor Fraser’s Boiler Service Inc. and several asbestos liability insurers, nonsettling insurers argue in their Sept. 30 final brief on appeal in federal court (Fraser’s Boiler Service, Inc. v. Certain Underwriters at Lloyd’s, et al, No. 19-35269, 9th Cir.).
TACOMA, Wash. — A Washington federal bankruptcy court’s denial of an insurer’s bid to vacate a stipulated order barring its contribution claims against other insurers for asbestos claims against Chapter 11 debtor Fraser’s Boiler Service Inc. should be reversed because it goes against the law of the case, the insurer argues in an Oct. 1 opening brief on appeal in federal district court (National Union Fire Insurance Company of Pittsburgh, PA v. Fraser’s Boiler Service, Inc., et al., No. 3:19-cv-5648, W.D. Wash.).
CHICAGO — Asbestos disease sufferers have one year to file claims with Oakfabco Inc.’s Chapter 11 liquidating trust, with claim values of up to $135,000 for those with mesothelioma, under trust distribution procedures (TDP) approved Oct. 4 by an Illinois federal bankruptcy judge (In re: Oakfabco, Inc., No. 15-27062, N.D. Ill. Bkcy.).
TRENTON, N.J. — A New Jersey federal bankruptcy court did not abuse its discretion in appointing longtime future claimants’ representative (FCR) Lawrence Fitzpatrick as FCR for the Chapter 11 case of Duro Dyne National Corp. and correctly used the “disinterested” standard when assessing the candidate, a federal judge held Oct. 30 in dismissing an appeal by the U.S. Trustee’s Office (Andrew R. Vara v. Duro Dyne National Corp., et al., No. 3:18-cv-15563, D. N.J., 2019 U.S. Dist. LEXIS 172168).
PHILADELPHIA — The Third Circuit U.S. Court of Appeals on Oct. 3 affirmed dismissal of a hospital’s bid to pursue class claims for asbestos property damage against former Chapter 11 debtor W.R. Grace & Co., agreeing that pursuant to the company’s reorganization plan, the hospital must first litigate its individual claim against the debtor (In re Grace & Co., et al., No. 18-1960, 3rd Cir., 2019 U.S. App. LEXIS 29736).
CHARLOTTE, N.C. — An attempt by an insurer of Chapter 11 debtors Kaiser Gypsum Co. Inc. and Hanson Permanente Cement Inc. failed in its attempt to have an adversary case it filed moved from federal bankruptcy court to federal district court when a North Carolina federal judge on Oct. 1 stayed its transfer request pending action in the bankruptcy court on competing reorganization plans for the debtors (Truck Insurance Exchange v. Kaiser Gypsum Company, Inc., et al., No. 3:19-cv-467, W.D. N.C.).
WILMINGTON, Del. — The brief, preplanned Chapter 11 cases of Maremont Corp. and affiliates came to an end Sept. 26 with the issuance of a final decree by a Delaware federal bankruptcy judge (In re: Maremont Corporation, et al., No. 19-10118, D. Del. Bkcy.).
ROME, Ga. — An insurer of Chapter 11 debtor The Fairbanks Co. asked a Georgia federal bankruptcy court on Sept. 25 for relief from the automatic bankruptcy stay so an action in New York federal court to resolve coverage disputes for asbestos claims can proceed (In re The Fairbanks Company, No. 18-41768, N.D. Ga. Bkcy.).
CHARLOTTE, N.C. — A North Carolina federal bankruptcy judge should reconsider and then deny a request by Chapter 11 debtor Bestwall LLC for an injunction enjoining asbestos claims against the debtor and certain affiliates, including Georgia-Pacific LLC, because arguments by the asbestos claimants’ committee were not considered, the committee says in an Aug. 12 motion and brief (Bestwall LLC v. Those Parties Listed on Appendix A to Complaint, et al., No. 17-03105, W.D. N.C. Bkcy.).
CHARLOTTE, N.C. — The asbestos claimants’ committee in the Chapter 11 case of Bestwall LLC took its fight to have the case thrown out to the Fourth Circuit U.S. Court of Appeals, filing an appeal notice after winning approval to do so from a North Carolina federal bankruptcy judge (In re Bestwall LLC, No. 17-31795, W.D. N.C. Bkcy.).
WILMINGTON, Del. — Asbestos insurers and an asbestos trust settled their long-running dispute over the insurers’ rights to audit the trust for evidence of fraud with the filing of a consent order Aug. 22 in the Delaware Chancery Court that outlines the scope of annual trust audits by the insurers (AIU Insurance Company, et al. v. Philips Electronics North America Corporation, et al., No. 9852, Del. Chanc.).
WILMINGTON, Del. — Negligence claims leveled by asbestos plaintiffs in Montana against insurers of former Chapter 11 debtor W.R. Grace & Co. can proceed in state court because they do not meet the requirements for injunctive protection in W.R. Grace’s case, a Delaware federal bankruptcy judge held Sept. 23 (Continental Casualty Co., et al. v. Jeremy B. Carr, et al., No. 15-50766, D. Del. Bkcy., 2019 Bankr. LEXIS 2932).
TACOMA, Wash. — A Washington federal bankruptcy judge properly used its power under the U.S. Bankruptcy Code to approve two settlements between Chapter 11 debtor Fraser’s Boiler Service Inc. and several asbestos liability insurers, the debtor argues in a Sept. 9 brief on appeal by nonsettling insurers in federal court (Fraser’s Boiler Service, Inc. v. Certain Underwriters at Lloyd’s, et al, No. 19-35269, 9th Cir.).
SEATTLE — A Washington state jury on Sept. 4 found premises owner Alcoa Corp. 40 percent liable for a man’s fatal mesothelioma and awarded the plaintiff $425,000 (Henry S. Eisler Jr. v. Alcoa Corp., et al., No. 17-2-32647-0 SEA, Wash. Super., King Co.).
WILMINGTON, Del. — An insurer of an affiliate of Chapter 11 debtor Imerys Talc America Inc. will pay more than $2.4 million to settle claims by the debtor for a share of the costs to defend against asbestos personal injury suits, with a Delaware federal bankruptcy judge signing off on the deal on Sept. 18 (In re: Imerys Talc America, Inc., et al., No. 19-10289, D. Del. Bkcy.).
WILMINGTON, Del. — A Delaware federal bankruptcy judge on Sept. 18 gave Chapter 11 debtor Imerys Talc America Inc. and affiliates more time to propose a plan of reorganization after the debtors had argued that cutting short their exclusive right to file a plan would “certainly undermine” their attempt “to successfully put forth a consensual chapter 11 plan” (In re: Imerys Talc America, Inc., et al., No. 19-10289, D. Del. Bkcy.).
CHARLOTTE, N.C. — An insurer of Chapter 11 debtors Kaiser Gypsum Co. Inc. and Hanson Permanente Cement Inc. says in an Aug. 28 adversary complaint in North Carolina federal bankruptcy court that it should be relieved of its duty to pay to defend asbestos personal injury claims because of the debtors’ breach of cooperation agreements (Truck Insurance Exchange v. Kaiser Gypsum Company, Inc., et al., No. 19-03052, W.D. N.C. Bkcy.).
CHARLOTTE, N.C. — A North Carolina federal bankruptcy judge on Sept. 16 approved a settlement under which the United States will have more than $4 million in allowed claims in the joint Chapter 11 case of Kaiser Gypsum Co. Inc. and Hanson Permanente Cement Inc. as the debtors’ share of cleanup costs at a Washington Superfund site (In re Kaiser Gypsum Company, Inc., et al., No. 16-31602, W.D. N.C. Bkcy.).
SEATTLE — A Washington state jury on Sept. 13 awarded $4.25 million in an asbestos case against a company whose predecessor supplied a shipyard with asbestos-containing products (Douglas F. Everson, et al. v. Lone Star Industries Inc., No. 19-2-02-422-4 SEA, Wash. Super., King Co.).
NEW BRUNSWICK, N.J. — A jury on Sept. 11 hit Johnson & Johnson with a $37.3 million verdict, concluding that four individuals’ exposure to asbestos in the company’s cosmetic talc products caused their mesotheliomas, sources told Mealey Publications. The judge previously struck the company’s closing arguments, an issue the company will likely appeal, sources said (Douglas Barden, et al. v. Brenntag North America, et al., No. MID-L-1809-17, N.J. Super., Middlesex Co.). VIDEO FROM THE TRIAL IS AVAILABLE.