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Mealey's Asbestos Bankruptcy

  • March 1, 2019

    Duro Dyne, Asbestos Claimants Back Plan, Section 524(g) Trust

    TRENTON, N.J. — Chapter 11 debtor Duro Dyne National Corp., the asbestos claimants’ committee and the embattled future claimants’ representative (FCR) say in a Feb. 26 memorandum that the debtor’s reorganization plan meets all the requirements for confirmation, despite objections to the plan by insurers, a labor union and the U.S. trustee (In re:  Duro Dyne National Corp., et al., No. 18-27963, D. N.J. Bkcy.).

  • March 1, 2019

    Fairbanks’ FCR Candidate Highlights Lack Of Conflicts In New Declaration

    ROME, Ga. — The asbestos future claimants’ representative (FCR) candidate of Chapter 11 debtor The Fairbanks Co. filed a supplemental declaration Feb. 19 in Georgia federal bankruptcy court on potential conflicts of interest after the court held a hearing on competing motions to name an FCR for the case (In re The Fairbanks Company, No. 18-41768, N.D. Ga. Bkcy.).

  • February 25, 2019

    New York Top Court Says Jones Act Settlement Doesn’t Preclude Mesothelioma Claim

    NEW YORK — A 1997 settlement for a man’s nonmalignant asbestos disease does not preclude his subsequent action seeking to recover for mesothelioma, a divided New York Court of Appeals held Feb. 21 (In re:  New York City Asbestos Litigation, Anne M. South, etc. v. Chevron Corp., etc., et al., No. APL-2017-00252, N.Y. App., 2019 N.Y. LEXIS 267).

  • February 25, 2019

    U.S. Trustee Names 4 Candidates For FCR In Maremont Bankruptcy

    WILMINGTON, Del. — The U.S. trustee for the new Chapter 11 case of Maremont Corp. asked a Delaware federal bankruptcy court on Feb. 20 to choose a future claimants’ representative (FCR) from a list of four candidates he submitted, three of which are the same candidates proposed by the trustee in a Georgia asbestos bankruptcy case (In re:  Maremont Corporation, et al., No. 19-10118, D. Del. Bkcy.).

  • February 21, 2019

    New York Justice: No Evidence Restaurant Companies Performed De Facto Merger

    NEW YORK — No evidence suggests that an all-cash purchase of a restaurant equipment company’s assets constituted a de facto merger of the companies, a New York appeals court held Feb. 19 in reversing a summary judgment ruling in favor of an asbestos plaintiff (Eleni Dritsas, etc., et al. v. Amchem Products Inc., et al., No. 8430 190276/15, N.Y. Sup., App. Div., 1st Dept.).

  • February 21, 2019

    Debtors Battle Oregon Agency Over Cleanup Costs, Though Settlement Eyed

    CHARLOTTE, N.C. — A North Carolina federal bankruptcy court erred in finding that Chapter 11 debtors Kaiser Gypsum Co. Inc. and Hanson Permanente Cement Inc. are not protected by the automatic stay from environmental cleanup cost state court settlement judgments, the debtors argue Feb. 4 in their opening appeal brief in federal court (Kaiser Gypsum Company, Inc., et al. v. Oregon Department of Environmental Quality, No. 3:18-cv-507, W.D. N.C.).

  • February 20, 2019

    Johns-Manville Trust, Trustees Suggest Replacement For Representative Who Resigned

    NEW YORK — The future claimants’ representative (FCR) in the landmark asbestos bankruptcy case of Johns-Manville Corp. has retired after 29 years of service, and now his longtime colleague should replace him, according to a letter filed in New York federal bankruptcy court Feb. 5 by the Manville Personal Injury Settlement Trust (In re Johns-Manville Corporation, et al., No. 82-11656, S.D. N.Y. Bkcy.).

  • February 19, 2019

    Johns-Manville Successor, Asbestos Claimants Resolve State Court Allegations

    NEW YORK — The successor to the PVC pipe business of former Chapter 11 debtor Johns-Manville Corp. on Feb. 11 said it has agreed to drop its bid in New York federal bankruptcy court for sanctions against state court asbestos plaintiffs for suing the company in violation of the bankruptcy protections implemented when it bought the business (In re Johns-Manville Corporation, et al., No. 82-11656, S.D. N.Y. Bkcy.).

  • February 15, 2019

    Government Continues Challenges To FCRs, This Time In Maremont Case

    WILMINGTON, Del. — The U.S. trustee for the Chapter 11 case of Maremont Corp. filed an objection Feb. 14 in Delaware federal bankruptcy court to the appointment of the debtor’s chosen future claimants’ representative (FCR), saying the court should accept FCR nominations from all interested parties, as was done recently in another asbestos bankruptcy case (In re:  Maremont Corporation, et al., No. 19-10118, D. Del. Bkcy.).

  • February 15, 2019

    Talc Supplier Hits Chapter 11 Seeking To Shed Increasing Asbestos Liabilities

    WILMINGTON, Del. — Facing mounting asbestos injury litigation while maintaining that its talc product is safe, Johnson & Johnson supplier Imerys Talc America Inc. filed for Chapter 11 protection Feb. 13 in Delaware federal bankruptcy court, seeking to continue its talc mining and distribution business and establish a trust to pay asbestos claims (In re:  Imerys Talc America, Inc., et al., No. 1:19-bk-10289, D. Del. Bkcy.).

  • February 14, 2019

    South Carolina Court: Contractor Wasn’t Employee, $14M Asbestos Verdict Proper

    COLUMBIA, S.C. — A $14 million asbestos damages award stands after the South Carolina Court of Appeals on Feb. 12 found that a contractor could not be considered a statutory employee because the maintenance work he performed differed sufficiently from the polyester fiber manufacturer’s core job, and that neither jury misconduct or prejudice contributed to the verdict (Angela Keene, et al. v. CNA Holdings LLC, No. 2016-000227, S.C. App., 2019 S.C. App. LEXIS 20).

  • February 14, 2019

    Rapid-American Seeks Summary Judgment On 2 Asbestos Coverage Issues

    NEW YORK — Chapter 11 debtor Rapid-American Corp. and asbestos claimant representatives filed two summary judgment motions Feb. 8 in New York federal bankruptcy court in an adversary action seeking to resolve the two remaining issues in a dispute with insurers over coverage for asbestos liability (Rapid-American Corporation, et al. v. Travelers Casualty and Surety Company, et al., No. 15-01095, S.D. N.Y. Bkcy.).

  • February 12, 2019

    Plan Confirmation For Fraser’s Boiler Service Faces Hurdles

    TACOMA, Wash. — The plan of reorganization for Chapter 11 debtor Fraser’s Boiler Service Inc. meets all the requirements in the U.S. Bankruptcy Code for confirmation, the company says in a Feb. 6 preconfirmation hearing statement in Washington federal bankruptcy court, while the U.S. trustee and certain insurers counter in their statements filed the same day that the plan was not filed in good faith and cannot be confirmed (In re:  Fraser’s Boiler Service, Inc., No. 18-41245, W.D. Wash. Bkcy.).

  • February 12, 2019

    U.S. Trustee Names 3 Candidates For FCR In Fairbanks Bankruptcy

    ROME, Ga. — The U.S. trustee for the Chapter 11 case of The Fairbanks Co. on Jan. 31 submitted the names of three candidates for an asbestos future claimants’ representative (FCR), a process originally opposed by the debtor and asbestos committee but now backed by both, according to the trustee’s notice in Georgia federal bankruptcy court (In re The Fairbanks Company, No. 18-41768, N.D. Ga. Bkcy.).

  • February 11, 2019

    Bankruptcy Court Erred In Naming Future Representative, U.S. Trustee Argues

    TRENTON, N.J. — A bankruptcy court clearly misapplied federal bankruptcy law in appointing a future claimants’ representative (FCR) for asbestos claimants in Duro Dyne National Corp.’s Chapter 11 case, so the appointment should be vacated, the U.S. trustee says in a Feb. 8 opening brief for his appeal of the appointment in New Jersey federal court (Andrew R. Vara v. Duro Dyne National Corp., et al., No. 3:18-cv-15563, D. N.J.).

  • February 11, 2019

    South Carolina Jury Returns $5,125,000 Verdict In Asbestos Products Case

    ANDERSON, S.C. — A South Carolina jury found for two defendants, but hit a third with a $5,125,000 verdict, including punitive damages, on Jan. 25, sources told Mealey Publications (Rita Joyce Glenn, et al. v. Air & Liquid Systems Corp., et al., No. 2015CP041607, S.C. Comm. Pls., 10th Jud. Cir., Anderson Co.).

  • February 11, 2019

    Sheet Metal Workers’ Union Says Debtor Ignores Trademark Infringement Claims

    TRENTON, N.J. — A labor union on Feb. 6 objected to the confirmation of the reorganization plan for Chapter 11 debtor Duro Dyne National Corp., telling a New Jersey federal bankruptcy court that the plan fails to address the union’s $7.6 million proof of claim for the company’s alleged infringement and counterfeiting of the union’s trademark on doors it manufactured (In re:  Duro Dyne National Corp., et al., No. 18-27963, D. N.J. Bkcy.).

  • February 8, 2019

    Judge’s Asbestos Case Dismissal Without Prejudice Proper, Louisiana Court Affirms

    NEW ORLEANS — A trial court acted within its discretion in considering an otherwise late motion to dismiss an asbestos action without prejudice after the plaintiff refiled the action in South Carolina, a Louisiana appeals court held Feb. 6 (James C. Sizemore v. Reilly-Benton Co. Inc., et al., No. 2018-CA-0826, La. App., 4th Cir., 2019 La. App. LEXIS 188).

  • February 6, 2019

    U.S. Trustee Names Asbestos Committee For New Debtor Maremont Corp.

    WILMINGTON, Del. — Five asbestos claimants of new Chapter 11 debtor Maremont Corp. and their law firms will serve on the Committee of Asbestos Personal Injury Claimants for the case, according to a Feb. 4 notice from the U.S. trustee on the committee’s appointment (In re:  Maremont Corporation, et al., No. 19-10118, D. Del. Bkcy.).

  • February 4, 2019

    Missouri Top Court Stays 2nd Asbestos-Talc Case As It Ponders Jurisdiction

    ST. LOUIS — The Missouri Supreme Court on Jan. 31 granted a petition for writ of prohibition, staying a 24-plaintiff asbestos-talc trial while it considers jurisdiction over out-of-state plaintiffs, according to its docket (Imerys Talc America, et al. v. The Honorable Rex Burlison, et al., No. SC97647, Mo. Sup.).