ROME, Ga. — A Georgia federal bankruptcy judge on May 4 approved the disclosure statement for the plan of reorganization of Chapter 11 debtor The Fairbanks Co., setting June 24 as the deadline for asbestos claimants to vote on whether to accept the plan and its proposed asbestos trust.
WILMINGTON, Del. — Chapter 11 debtor Paddock Enterprises LLC has reached an agreement with asbestos claimants’ representatives on a consensual plan of reorganization that includes establishment of a $610 million trust to pay asbestos personal injury claims, the debtor says in an April 30 motion seeking to extend its exclusive periods for filing the plan.
CHARLOTTE, N.C. — A California court must determine whether fraud claims leveled against Chapter 11 debtor Kaiser Gypsum Co. Inc. by plaintiffs in two state asbestos actions are covered by Kaiser’s insurance, and the claims are stayed until a ruling on the issue, a North Carolina federal bankruptcy judge ruled March 29.
PITTSBURGH — Negotiating with insurers and asbestos claimants over the terms of settlements for coverage disputes has kept Chapter 11 debtor ON Marine Services Company LLC busier than it expected, and more time is needed to hammer out the deals, the company tells a Pennsylvania federal bankruptcy court in an April 20 motion to extend its exclusive periods.
By Mark A. Behrens and Mary Margaret Gay
GREENSBORO, N.C. — Iowa likely adopted the scope of liability analysis in the Restatement (Third) of Torts and abandoned the sole proximate cause standard, but in any case questions remain about whether a product manufacturer can be liable for a woman’s asbestos exposure and resulting mesothelioma, a federal judge in North Carolina said April 15.
NEW YORK — In hopes of a quick exit from bankruptcy, Chapter 11 debtor Garrett Motion Inc. and affiliates on April 21 filed a proposed order for confirmation of its plan of reorganization, asking a New York federal bankruptcy court to make the order effective immediately.
CHARLOTTE, N.C. — A stay in the North Carolina federal bankruptcy court Chapter 11 case of Bestwall LLC to allow the Official Committee of Asbestos Claimants to appeal approval of a claimants’ questionnaire to help estimate the debtor’s asbestos liability could jeopardize Bestwall’s chance at a successful reorganization at a key time in the proceeding, it says in its April 20 objection to the stay request by the committee.
CHARLOTTE, N.C. — Chapter 11 debtor DBMP LLC and representatives for asbestos claimants on April 9 filed competing proposed findings of fact and conclusions of law in an adversary action on whether a North Carolina federal bankruptcy court should enjoin the prosecution of all asbestos personal injury claims against DBMP and its affiliates, including the former CertainTeed Corp.
ROME, Ga. — While Chapter 11 debtor The Fairbanks Co. has included safeguards against fraud in its plans for an asbestos trust in its recently filed plan of reorganization, the plan’s exculpation clause is too broad and needs reworking, the U.S. trustee says in an April 11 response to the debtor’s motion in Georgia federal bankruptcy court to approve the plan’s disclosure statement.
CHARLOTTE, N.C. — A North Carolina federal bankruptcy court on April 8 closed an adversary action filed by asbestos claimants’ representatives over a corporate funding agreement in the Chapter 11 case of Georgia-Pacific affiliate Bestwall LLC after the representatives said the day before that they were voluntarily dismissing the case.
TRENTON, N.J. — An affiliate of Congoleum Corp. is not liable to pay for cleanup at a polluted site in New Jersey because Congoleum retained all liability for future environmental claims in a settlement with an insurer in its 2003 Chapter 11 case, a New Jersey federal bankruptcy judge held April 16 in awarding the affiliate summary judgment in its adversary action in Congoleum’s current Chapter 11 case.
WILMINGTON, Del. — Insurers of Chapter 11 debtor Cyprus Mines Corp. joined the U.S. trustee March 23 in objecting to naming as future claimants’ representative (FCR) the same person who was appointed FCR in the bankruptcy case of affiliate Imerys Talc America Inc., arguing that if all Cyprus asbestos claims will be channeled to a trust established by Imerys as proposed, an FCR is not even needed for Cyprus’ case.
WASHINGTON, D.C. — Defects in a $2.1 billion asbestos-talc judgment warrant review, including improper joinder of 22 plaintiffs that created structural issues preventing a fair trial and issues surrounding the court’s jurisdiction, amici curiae tell the U.S. Supreme Court in early April briefs.
By Evelyn Fletcher Davis and William T. Wood, III
WILMINGTON, Del. — The Official Committee of Tort Claimants in the Chapter 11 case of Imerys Talc America Inc. affiliate Cyprus Mines Corp. needs to be reformed due to conflicts of interest of most of the U.S. trustee-appointed committee members, asbestos plaintiffs represented by an Oakland, Calif., law firm reiterate in a March 31 reply in Delaware federal bankruptcy court in support of their motion to modify the committee.
WILMINGTON, Del. — Chapter 11 debtor Paddock Enterprises LLC on March 26 asked a Delaware federal bankruptcy court for more time to decide whether to remove any of the asbestos injury lawsuits pending against the company so it can continue with mediation to develop a consensual plan of reorganization.
PITTSBURGH — Pennsylvania’s consent-by-registration statute remains a constitutional basis for exercising jurisdiction over companies registering to do business in the state, a federal judge said March 24 while also staying the case against a second asbestos defendant while the administrative process sorts out whether a valid worker disability claim exists.
LOS ANGELES — Evidence that all brake pads during the period in question contained identical amounts of asbestos required a jury to apportion a non-zero amount to automakers and brake manufacturers and suppliers, a California appeals court held March 25 in ordering a new trial on the question of apportionment and punitive damages.
LOS ANGELES — Trial evidence establishes a man’s exposure to asbestos pipe insulation; expert testimony establishes that the exposure was sufficient to cause his tunica vaginalis testes mesothelioma; and the trial court properly applied California law over Iranian law in the case, a California appeals court said March 24 in affirming a $25 million asbestos verdict.